The Panama Canal suffered severe droughts in 2023 and 2024. Lower water levels disrupted vital US commercial trade routes for liquefied natural gas and other products. The canal's disabled state opens an opportunity for China, which is investing in infrastructure throughout Latin America, causing concern in Washington. With weather patterns changing, is the canal doomed? In this episode, host Monica de Bolle asks David A. Gantz (Baker Institute for Public Policy, Rice University) whether anything can be done to save the canal. There are alternatives being explored—some of them surprising, expensive, and potentially realistic. If the United States is to combat Chinese influence in Latin America, he argues, investing in the Panama Canal is a vital and urgent priority.

This podcast is produced by the Peterson Institute for International Economics.

Music by Baegel/When I Hop/Courtesy of Epidemic Sound.

Download the episode transcript [PDF]

Learn more about David A. Gantz.

Learn more about Monica de Bolle.