What is the Panama Canal?

Opened in 1914, the Panama Canal dramatically shortened sea travel by allowing ships to avoid the long trip around South America. The canal uses a system of locks and a man-made lake to lift ships up to the level of Gatun Lake and then lower them again. It became one of the most important routes in global trade, especially for cargo moving between the Americas, Asia, and Europe. Control of the canal passed from the United States to Panama at the end of 1999 under the Torrijos-Carter Treaties.