He was born in Colón. Colón is now and always has been in Panama. Like West Berlin, surrounded by East Germany, it was surrounded by the Canal Zone, but never part of it.
That "Colon" birth certificate is a fake. He was born on the Coco Solo submarine base. McCain has NOT RELEASED his birth certificate. He has shown it to some reporters but he has NOT RELEASED it.
http://voices.washingtonpost.com/fact-checker/2008/05/john_mccains_birthplace.html
Why would someone release a fake BC that shows they are NOT qualified for a job?