No, it is located on the isthmus of Panama where the Americans built the Panama canal. The "canal zone'' was referred to as the land the Americans got through the land treaty with the Panamanians.
panama isthmus
Isthmus of Suez
Going south from Mexico, there are several smaller nations and then the Isthmus of Panama, which is the dividing line between North America and South America. The Panaman Canal was constructed approximately through the Isthmus of Panama.
The Isthmus and Panama Canal.
The Panama Canal cuts across the isthmus in Central America, providing a shortcut for ships traveling between the Atlantic and Pacific Oceans.
Isthmus Canal Sovereign country
french
A strait.
A canal
The Panama Canal and the Isthmus of Panama.
Mexico and Nicaragua