Throughout most of its history, the importance of the Panama Canal — to the United States, to Panama, and to the international shipping community — was never questioned. This situation changed when the political confrontation between the United States and the Noriega regime took place in the 1980s, and most of the media began to suggest that the usefulness of the Panama Canal was on the decline and no longer of much importance to world trade. In this regard, the media seriously misrepresented the facts. Let us take a closer look at the Canal in order to gain a better perspective on the actual situation.

Prior to World War I, the volume of trade going through the Panama Canal, though a useful transportation artery, was relatively small. In fact, in 1929, its peak pre-War year, the total volume was just 30 million tons.