UPSC Mains Answer Writing Practice Booklet: Pragati Notebooks – Spiral and Detachable sheets Click Here to know more and order
News: The U.S. claimed its government ships could now pass through the Panama Canal for free.
About Panama Canal
- The Panama Canal is a strategic artificial waterway connecting the Atlantic Ocean (via the Caribbean Sea) and the Pacific Ocean.
- It is located in Central America, within Panama. It is one of the most important global maritime trade routes.
- It significantly reduces travel time for ships, avoiding the long and dangerous route around Cape Horn (South America).
- The canal was controlled by the U.S. until 1999 when it was transferred to Panama under the Torrijos-Carter Treaties (1977).
Geopolitical Importance
- Key chokepoint in global trade, handling about 5% of world maritime trade.
- Shortens travel time between the Pacific and Atlantic, especially for US, China, and Europe.
- A crucial factor in US foreign policy, maintaining influence in Latin America.
- Competition with China’s Belt and Road Initiative (BRI) and Nicaragua Canal proposal.
Strategic Issues for India
- Key route for India’s trade with Latin America and the US West Coast.
- Increased toll fees and delays affect India’s export-import competitiveness.
- Alternative trade routes, such as the Arctic Northern Sea Route (NSR), are gaining importance.
- China’s influence in Panama poses strategic challenges for India’s global trade positioning.
Discover more from Free UPSC IAS Preparation Syllabus and Materials For Aspirants
Subscribe to get the latest posts sent to your email.
