The US and Panama: The Evolution of an Asymmetric Relationship

Abstract

This article examines the historic transition of the Panama Canal from the United States to Panama and analyzes how this transition transformed the relationship between the US and Panama. We argue that the relatively peaceful transition of the Canal from the US to Panama, despite its flaws, ultimately allowed Panama to overcome a history of occupation, to gain long-awaited sovereignty over its territory and to expand its role in the international community. With the acquisition of the Canal, and the lengthy transition period which allowed adequate time for Panamanians to master Canal operations, Panama has become an essential player in the global economy and now uses the Canal as a catalyst for national economic growth. The transition, as well as the divergent interests of both actors, changed the historically asymmetric relationship between the US and Panama. While the US remains dominant, Panama has solidified its sovereignty.