The document discusses Panama's strategy for negotiating control over the Panama Canal from the United States. Panama's leader, Omar Torrijos, secretly tried to divide US support and weaken rivals. His strategy was to reclaim sovereignty over the canal on ethical grounds, and he threatened to destroy the canal if the US Senate did not approve a treaty returning it to Panama. This hardball tactic of intimidation proved successful, as the Torrijos-Carter Agreement was signed in 1977, transferring complete control of the canal to Panama by 1999. Lessons included using an opponent's strengths against them, focusing on small gains while pursuing the ultimate goal, and negotiating ambitiously.

1. PANAMA CANAL
NEGOTIATION STRATEGY
1

2. Introduction
Group 1
Nguyen Ha Dan
Tran Ngoc Minh Nhu
Truong Nguyen Hoang Khuong
Tran Hao Quang
2

3. 1
Describe Situation
+ Problem
2
Understand
the Problem Fully
3
Identify Strategy
4
Result + Lessons learned
The places we will check in
3

4. 1
Describe Situation
+ Problem
4

5. PANAMA REPUBLIC
5

6. Canal Panama
6

7. Canal Panama
An international waterway
that links the Atlantic and
Pacific Oceans.
1. Global Trade Importance
2. Military Importance
3.Panama-Pacific
International Relation
7

8. Relationship with American
• 1903, November 3
Panama becomes independent.
US buys the rights to build the Panama Canal from French
• 1914, August 15
Canal formally opened with the transit of Steamer SS Ancon, a cargo
ship.
• 1977, September 7
The US and Panama sign the Hay-Buneau Varilla Treaty
8

9. Relationship with American
• 1999, December 31st
Panama gains complete control over the Canal from the US
• 2007, June 28th
Panama and the US sign the Trade Promotion Agreement: a
free trade agreement between Panama and the US
9

10. Problem
Ownership of Panama Canal
• 1914 - 1999
Progress of 85 years of US military presence and
influence
How can a small country like Panama had
successful engage negotiation with a powerful
America?
10

11. 2
Understand
the Problem Fully 11

12. Common benefits
• The shortest - connecting the Pacific with the
Atlantic.
• Reducing the shipping charges, increase the
competitiveness of goods.
• Promote economic exchanges
12

13. Benefits for America
Length of ship Fees
~15,240 m (50 ft) 500 USD
15,240 m (50 ft) ~ 24,384 m (80 ft) 750 USD
24,384 m (80 ft) ~30,480 m (100 ft) 1.000 USD
> 30,480 m (100 ft) 1.500 USD
PC/ UMS Fees
10.000 tons 2.96 USD/ton
10.000 – 20.000 tons 2.90 USD/ton
> 20.000 tons 2.85 USD/ton
13

14. Benefits for America
14

15. Benefits for Panama
• Revenues 1 billion/year.
• Accounting for 10% of government revenues and
6% national economy.
• Create 10,000 employments.
• Panama became one of the most powerful
economy in the region
• GDP increases 8,4% in 2013.
15

16. Third - party
16

17. 17

18. 18

19. 3
Identify Strategy
19

20. Omar Torrijos
Military Leader of Panama
1929- 1981
20

21. Identify Strategy
He secretly tried to divided tycoon US forces to
get the financial support and able
weaken rivals
21

22. Reclaim the sovereignty
over the Panama Canal
is not simply legal but
also a ethical issue
22

23. Identify Strategy
Omar may destroyed the canal if the
US Senate refused to approved the treaty
of returning it to Panama
23

24. Identify Strategy
Omar may destroyed the canal if the
US Senate refused to approved the treaty
of returning it to Panama
Hardball tactics : Intimidation
24

25. 25

26. 4
Result +
Lessons learned
26

27. Result
After the World War II, Panama asked for the possession
of Panama Canal. On 7/9/1977, Torrijos - Carter
Agreement was signed by Omar Torrijos – Panama
President and Jimmy Carter - the U.S.A President
Panama Canal officially belongs to Panama on
31/12/1999

29. Review
After 1945, president of Panama,
Jose Antonio Remon tried to
negotiate with the U.S.A to sign
new agreement aimed to
increase the share in tax income
of Panama Canal. But he died in
1953, 2 years before the new
agreement implemented.

30. Learned Lessons
- Make counterpart’s strength to weakness (the U.S.A
democracy is a strength and it is a weakness as well)
- Concentrate on a little gain if we are weaker than the
counterpart but never forget the ultimate goal (gain
back the possession of Panama Canal).
- People will ask for more and gain more, if they are
able to do it. Never negotiate yourself.

31. 31