Investment giant BlackRock has led a $23 billion deal to secure two ports along the Panama Canal. President Donald J. Trump, who has alluded to “demand[ing] that the Panama Canal be returned to us, in full, quickly and without question, mentioned the deal earlier this week during his speech before Congress.
The consortium, led by BlackRock, alongside Global Infrastructure Partners and Terminal Investment Limited, acquired the Balboa and Cristobal ports in a transaction originally managed by CK Hutchison Holdings of Hong Kong.
During his speech, Trump described the deal as a U.S. victory, particularly over the Chinese Communist Party (CCP). “The Panama Canal was built by Americans for Americans,” he reminded listeners, noting that the U.S. is a principal user of the canal, accounting for nearly 70 percent of its traffic.
This development follows increased U.S. diplomatic efforts to limit Chinese economic activities in global infrastructure. Secretary of State Marco Rubio visited Panama earlier this year to promote distancing from Beijing.
Recently, Panama exited China’s Belt and Road Initiative, a decision taken amidst rising U.S. concerns regarding economic influence in the region.
However, the transaction is under scrutiny, with Panama’s attorney general labeling the port contracts “unconstitutional.” An audit is presently in progress. Approval from Panama’s government is pending for the sale. The deal excludes interests in facilities located in China.
