The Panamanian Sea-Level Canal: Problems and Prospects from a Policy Perspective

The social, political, economic and environmental dimensions of the question of replacing or reconstructing the Panama Canal are discussed. Special reference is made to the effect implementation of the Panama Canal Treaties is likely to have, in light of the recent history of the sea-level canal question. Environmental concerns raised during the past decade are described. The economic benefits of such a canal reconstruction are uncertain, but both costs and benefits appear likely to be spread among an uncommonly large number of interests, partly as an effect of Panama´s unique position in the geography of the Americas. The U.S. could do much to assure that important environmental and socioeconomic issues receive proper attention, despite the diminished role it is likely to have in future canal replacement or reconstruction considerations.