Op-Ed: Panama and its Important Role in International Maritime Trade and its Ship Registry
Before 1914, vessels had to travel all the way to the southern tip of the American continent to cross from one ocean to another. The opening of the Panama Canal drastically transformed global trade since its inauguration, reducing transit time and avoiding high transportation costs. Panama not only leads in the transit of goods but also positions itself as one of the largest ship registries in the world, with strong legal security in ship mortgages and a specialized legal framework that guarantees safe and efficient transactions.
Approximately 5% of global trade passes through this engineering work, generating significant revenue for the National Treasury in the Republic of Panama. On September 7, 1977, the Torrijos–Carter Treaties were signed between Panama and the United States, completely changing the course of the Canal’s administration. This treaty established that Panamanians would have control over the Canal, and the transfer was completed on December 31, 1999.