With the termination of the Panama Canal Treaty, a new mode of canal operation can be expected. The treaty affects the transfer of the Panama Canal from the United States to the Government of Panama at the end of the year 1999. Whether or not the Panamanian Government will maintain the current price of canal passage is the major concern of this paper. This paper forecasts the future traffic in the canal, and examines possible changes in canal pricing along with possible actions of canal users, under the framework of a gaming situation. The feasibility of building a new canal is also examined.