The main topic of this project will be studying Panamanian/US relations and how much they were built on the Panama Canal. This is an interesting topic because the Panama Canal is a one-of-a-kind entity which has affected foreign policy in a unique way compared to other Latin American counterparts. The compromise made for the United States to run the canal provided a unique power relationship between the two countries which led to other decisions in the country’s foreign policy. The research gap in this topic is connecting the Panama Canal to foreign policy with the United States. Many studies and researchers have looked at the Canals impact on global trade and markets, or as an example of U.S. intervention in South America. However, not many use the canal as a game changing entity that forever changed how the U.S. and Panama interact with each other. This report will attempt to fill that gap by analyzing and drawing connections from effects of the Panama Canal in foreign policy. This project will draw heavily from declassified U.S. government files regarding Panama. It may also draw from newspapers and other media from the era. This project is important to understand because the Panama Canal is so unique and subsequently the foreign policy related is also unique. It is crucial to understand how this foreign policy differed from others in the region and how that changed the future of those countries.