The Republic of Panama (Spanish: República de Panamá) is a country in Central America that borders Costa Rica and Colombia. Panama is best known for the Panama Canal, which allows the passage between the Atlantic Ocean and the Pacific Ocean.

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The Panama Canal is a 81 km long canal in Central American Panama. It runs through the Isthmus of Panama and connects the Caribbean Sea with the Pacific Ocean. The canal is an important artery in intercontinental transport because otherwise one would have to sail around South America. A ship sailing from New York to San Francisco will cover a distance of 9,500 kilometers via the canal, which is less than half of the 22,500 kilometers via Cape Horn.

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