Bismarck Brief

Bismarck Brief

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Bismarck Brief
Bismarck Brief
Panama’s Irreplaceable Role in International Trade
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Panama’s Irreplaceable Role in International Trade

Panama has effectively stewarded the Panama Canal, an irreplaceable link in global trade. The country also plays a substantial role in finance, as a tax shelter and sometimes money launderer.

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Samo Burja
Dec 04, 2024
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Bismarck Brief
Bismarck Brief
Panama’s Irreplaceable Role in International Trade
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A Neopanamax-size ship passes through the locks of the Panama Canal in 2019. Photo by Mario Roberto Durán Ortiz. Source.

The Panama Canal links the Atlantic and Pacific Oceans. It allows dozens of ships to cross per day, avoiding a detour of 12,500 kilometers around South America, and saving about a week and a half of travel time, depending on the ship’s speed. About 5% of the world’s shipping passes through the canal, especially on the route between Asia and the Eastern United States. The U.S. relies on the canal to transport about 40% of its containerized freight, which accounts for almost all manufactured goods and high-value foods.1 The canal runs through Panama, a small nation of some 4.4 million people and a de facto protectorate of the United States, which cares a great deal that the canal continues to run efficiently and cares little for the details of how Panama is run internally.

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