...Strategic National Asset: The Panama Canal plays a critical role in Panama's economy, through its direct and indirect contributions to GDP and employment, its capital investments, and government revenues. The Canal has gained attention due to heightened geopolitical tensions between China and the U.S. It remains Fitch Ratings' base case that it will remain under Panamanian control. Neutrality Treaty: Since the U.S. handover in 1999, the Panama Canal Authority (ACP), an autonomous public entity, has solely operated the Canal. Its operations are guided by the 1977 Neutrality Treaty between the U.S. and Panama, ensuring that the Canal remains neutral, providing safe and non-discriminatory access. Tolls are uniform for all countries, but the ACP determines how these are determined in consultation with its clients and has recently shifted to a structure based on cargo value rather than just volume. Economic Contributions: According to its 2024 annual report, the Canal directly contributes about...
