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ARTICLE · 12 FEBRUARY 2025

Potential U.S. Trade Implications Of Trump Administration's Panama Canal Interest

Cassidy Levy Kent LLP
Cassidy Levy Kent LLP
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Cassidy Levy Kent LLP

Cassidy Levy Kent LLP

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With concerns over Chinese activity and influence in the vicinity of the Panama Canal receiving significant focus from the Trump Administration, businesses engaged in international trade...

GlobalInternational Law
James E. Ransdell
James E. Ransdell
Andrea Rivera Conte
Andrea Rivera Conte
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With concerns over Chinese activity and influence in the vicinity of the Panama Canal receiving significant focus from the Trump Administration, businesses engaged in international trade should be aware of the potential for trade-related action, including tariffs and transit-related restrictions, that could impact business logistics and the timely arrival of imports or delivery of exports.

The Panama Canal's Importance to Trade

Since opening in 1914, the Panama Canal has played a pivotal role in facilitating international trade by shortening navigation distances and reducing oceangoing vessels' transportation costs. An estimated 5-6% of the world's global trade passes through the canal each year. This includes 40% of all U.S. container traffic, underscoring the waterway's great importance for U.S. commerce in particular. During fiscal year 2024, the Panama Canal facilitated 9,944 vessel transits totaling 423 million tons. Over that period, the top countries of

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