Panama Canal News

Not more than two months ago I read a news story about Stephen Harper, Canada’s Prime Minister-elect, warning the US about Canada’s sovereignty over the Northwest Passage.  Canada says it owns the ice and snow in the Arctic Circle area and will brook no interference by any country. Becasue of global warming, the ice and snow are melting, however, and soon ships may be able to go thru the passage year round.

Canada has pledged to defend its borders.  The Northwest Passage will permit ships to move goods from Western Europe to East Asia without going thru the Panama Canal ( when the ice melts , of course.) This looks like a sure-fire loss of Panamanian Canal revenue to me.

Now 60 days later I read THIS.   

“PANAMA CITY, Panama (AP) — Voters are expected Sunday to approve the largest modernization project in the 92-year-history of the Panama Canal, a US$5.25 billion plan to expand the waterway to allow for larger ships while alleviating traffic problems.”- Associated Press via CNN

Panama does nothing for years to alleviate the problems that shipping had getting thru its old and undersized lock system. (Super tankers have to go around Cape Horn because the locks are too small.) However, now that the Northwest Passage may open up and be ice free, due to global warming, perhaps Canada will allow vessels to cross her territorial waters for less money than Panamanian lock fees. 

 Stay tuned. If Panama becomes less vital to world commerce, this may have political implications.  Theodore Roosevelt helped Panama break away from Columbia in 1904 in exchange for the canal.  Perhaps the US will not pay enough attention to Panama in ten years and Columbia will decide to take it back.