- It connects the continents of North and South America;
Panama is located at the southern most part of the North American continent, bordering the South American continent as well, and it is the only country that has a land border with South America. This means the Panama is a must go through country in order to do anything between the two continents through land.
- It controls the Panama Canal;
The Panama Canal is one of the most important canals in the world. It cuts through Panama, connecting the Caribbean Sea and further the Atlantic Ocean with the Pacific Ocean, enabling a much shorter and safer route than going around the continents.