In news: Panama Canal

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Panama Canal

 

Why in the News?

US President-elect Donald Trump criticized Panama for charging excessively for US ships’ use of the Panama Canal and threatened a US takeover of the canal.

In news: Panama Canal

About Panama Canal:

Geographical Location:

  • Located in Central America, connecting the Atlantic Ocean (via the Caribbean Sea) to the Pacific Ocean.
  • 80 km long, spanning across the Isthmus of Panama.
  • Uses a system of locks to raise and lower ships across an elevation of 85 feet (26 meters).

Historical Significance:

  • French started construction in 1881, led by Ferdinand de Lesseps, but failed.
  • Completed by the U.S. in 1914, under engineers George Washington Goethals and John Stevens.
  • Control transferred from the U.S. to Panama in 1999 under the Torrijos-Carter Treaties (1977).
  • Present Significance:
    • Crucial for global trade, reducing travel time between the Atlantic and Pacific Oceans.
    • Strategic military value, especially during the World Wars.
    • Major contributor to Panama’s economy through tolls and trade-related activities.

Present Geopolitics:

  • Trump raised concerns about China’s influence in the region, especially Panama’s role in China’s Belt and Road Initiative (BRI).
  • In recent years, Chinese companies have been involved in infrastructure projects around the Panama Canal, including logistics and energy sectors.
  • Panama’s 2018 signing of the BRI furthered its ties with China, a development that some view as a challenge to US influence in the region.

 

PYQ:

[2011] Between India and East Asia, the navigation time and distance can be greatly reduced by which of the following?

1. Deepening the Malacca straits between Malaysia and Indonesia.

2. Opening a new canal across the Kra isthmus between the Gulf of Siam and Andaman Sea.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both I and 2

(d) Neither I nor 2

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