Overview

• President Trump has directed the U.S. military to draft plans to increase its presence in Panama, including potential collaboration with Panamanian forces or, less likely, a forceful seizure of the Panama Canal.
• BlackRock, in partnership with other firms, has acquired ports on both sides of the Panama Canal as part of a $22.8 billion global deal, boosting U.S. corporate control over critical infrastructure.
• The Trump administration views these moves as part of a broader strategy to counter China's growing influence in Latin America, particularly near the canal, a key global trade route.
• The Panama Canal's neutrality, enshrined in Panama's Constitution, has been defended by the Panamanian government, which denies any foreign interference or ceding control to China.
• This development reflects a shift in U.S. foreign policy, emphasizing corporate and military dominance over strategic assets in the face of heightened competition with China.