Geography: Panama is located at the narrowest point of the Americas, known as the Isthmus of Panama. This made it an ideal location to build a canal as it would significantly reduce the distance and time required for ships to travel between the Atlantic and Pacific oceans. The narrow width of the isthmus also meant that the canal could be built with a shorter length, making it more cost-effective.
Historical and political factors: Panama was part of Colombia when the idea of building a canal first emerged. Colombia initially granted a concession to a French company to build the canal, but the project faced numerous challenges and was eventually abandoned. The United States, recognizing the strategic importance of a canal, supported Panama's independence from Colombia in 1903 and negotiated the Hay-Bunau Varilla Treaty, which gave the U.S. control over a zone in Panama where the canal would be built and operated.
