This unique history of foreign administration sets Panama apart from its Central American peers, even though it is geographically and culturally aligned with the region. Panama remained tied to Colombia until it seceded in 1903 to allow for the construction of the Panama Canal.
The Panama Canal's Vital Role in United States History
Economically, Panama operates as a hub for banking and logistics in the region, leveraging its status as a gateway between the Americas to foster growth. While Colombia is part of the South American continent, Panama is not.
Understanding this distinction clarifies why Panama is a member of Central American and Latin American organizations while simultaneously being a critical component of the North American continent. From a geological and geographical standpoint, it is unequivocally part of North America.
The Panama Canal's Impact on United States History and Geography
It is a member of the Central American Integration System (SICA), which coordinates policy among the nations of Central America. The border between the two countries serves as the dividing line between Central America and South America.
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