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A 1977 treaty was created and signed by the US president (Jimmy Carter) as well as Panama's leader (Omar Torrijos) to allow the nation of Panama full control over their canal starting December 1999 (Panama Canal).

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The transit routes that these ships follow, considering the location of the canal, led to a large impact on the US economy and global trade. Both nations have mutual investments, where the finance and wholesale trade divisions of the US goes into Panama, and the manufacturing division of Panama goes into the US (U.S.).

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Panama is also able to trade out their resources of fish, sugar, cacao, oil, natural gas, and many other items (Panama).

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Seafood, especially shrimp and lobster, are both significant exports of Panama that has led to improved aquaculture as a result of the canal (Panama).

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Because of the canal, Panama's culture has been affected where US citizens can be located in Panama City and around the canal. People of Chinese, Middle East, and Indian descent are a few of the minority groups that are found in Panama (Panama).

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The Hay-Bunau-Varilla Treaty of 1903 gave the US the strip of land needed for the canal, as well as payments to Panama. This treaty additionally gave Panama the independence that they wanted (Office).

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The Spooner Act of 1902 gave power to create a treaty with Colombia regarding the area in which they could build the canal (Garnaut).

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Demolition, disease, and death: Building the Panama Canal - Alex Gendler

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The US planned to build a canal in Panama or Nicaragua. Because the French had successfully built the Suez Canal a few years back, they attempted to fund the construction of the Panama Canal for $40 million. Construction of the Canal by the French started in 1881, but was delayed due to the increase in cases of malaria and yellow fever, as well as many other diseases (Garnaut).

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The Panama Canal is a waterway that goes from the Atlantic coast to the Pacific coast, and is about 50 miles long. This canal has reduced the amount of time for ships to travel, which has greatly progressed the world economy as well as having an influence on the demand for trade (Garnaut).

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The canal was opened in August 1914. While the SS Ancon (pictured here) was the first to lead the transport, the Cristobal crossed the isthmus first (Garnaut).