Panama
'panama' is the definition.
(synonyms)
This is the entire clue.
(Other definitions for strawhat that I've seen before include "Summer headgear" , "E.g. boater" , "Headgear for the sun" .)
(Other definitions for canal that I've seen before include "Duct" , "Long, narrow strip of water" , "Manmade flower" , "Man-made watercourse" , "navigate this?" .)