The Panama Canal’s other conflict: Water security for the population and the global economy.
The Panama Canal is one of the most important waterways in the world, with about 7% of global trade passing through. It also relies heavily on rainfall. Without enough freshwater flowing in, the canal’s locks can’t raise and lower ships traveling between the Atlantic and Pacific oceans. Droughts mean fewer ships per day, and that can quickly affect Panama’s finances and economies around the world.
But the same freshwater is also essential for Panama’s many other needs, including drinking water for about 2 million Panamanians, use by Indigenous people and farmers in the watershed, as well as hydropower.
When the region experiences droughts, as it did in 2023-2024, the resulting water shortages can lead to increasing water conflicts.
