On the Economic Cost to Panama of Negotiating a Peaceful Solution to the Panama Canal Question

Negotiating a treaty between two sovereign nations is no simple matter. Even when there is consensus that a new accord is long overdue, a solution acceptable to both governments and their most vocal constituencies is most elusive and often difficult to conclude within a reasonable period of time. This is especially true when there is strong popular opinion aroused on both sides. Discussions usually drag on, and while diplomats publicly agree that “progress is being made,” there are significant political and economic benefits unrealized by either or both countries involved in the negotiation proceedings (Lopez Guevara, 1976).The present treaty negotiations between the Republic of Panama and the United States of America is a case in point. That Panamanian public opinion is aroused on the Canal issue is indicated by the 1964 Canal Zone border incidents in which twenty-one Panamanians and three Americans died and by subsequent demonstrations.