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Resource Politics

Why the Panama Canal Is Back at the Center of a Global Power Struggle

Published on Feb 03, 2026

The Panama Canal links the Atlantic and Pacific Oceans and carries over 5% of global maritime commerce. Today, it is being pulled in different directions by US sanctions, China’s growing trade power, and Panama’s attempts to maintain control of its own canal.

 

Why the Canal Still Shapes Global Trade

The canal remains one of the world’s most critical shipping routes. When it slows down, global trade slows down with it. Major users include the United States, which sends around 40% of its container traffic through the canal each year, along with China, Japan, and South Korea.

 

For Panama, the canal is not just infrastructure. It pays the country's bills, supports jobs, and keeps its economy running. Any disruption, whether political or environmental, is felt almost immediately at home and abroad.

 

How Sanctions and Shadow Fleets Are Dragging Panama In

The United States has urged Panama to tighten controls on ships passing through the waterway,

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