‘Reclaiming Panama Canal’: Trump praises BlackRock’s deal to buy major ports

During his first presidential address to Congress since returning to the White House for a second term on Tuesday (Mar 4), US President Donald Trump hailed US asset management firm BlackRock for buying two Panama Canal ports amid his effort at “reclaiming” the canal.

BlackRock has agreed to buy the ports from their Hong Kong-based owner CK Hutchison as part of a $22.8bn deal, after facing pressure from Donald Trump over alleged Chinese influence over the crucial waterway.

The deal will allow the US consortium control of the major ports of the canal. Following the announcement, CK Hutchison stock soared nearly 25 per cent on the first trading day.

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“My administration will be reclaiming the Panama Canal, and we’ve already started doing it,” Trump told the US Congress.

“Just today, a large American company announced they are buying both ports around the Panama Canal and lots of other things having to do with the Panama Canal and a couple of other canals.”

‘We’re taking it back’

“The Panama Canal was built by Americans, for Americans, not for others but others could use it,” Trump said in the US Capitol. He added that it had been “built at tremendous cost of American blood and treasure.”

Panama gained control of the waterway in 1999, over 20 years after then-president Jimmy Carter signed a treaty in 1977, which allowed Panama’s control over the canal.

“That agreement has been violated very severely,” the president said. “We didn’t give it to China. We gave it to Panama. We’re taking it back.”

Trump administration’s efforts to “take back” the Panama Canal are under the US Secretary of State Marco Rubio, who was present at Trump’s address to a joint session of Congress in the House Chamber of the US Capitol in Washington DC, on Tuesday (Mar 4).

“Good luck, Marco,” Trump joked. “Now we know who to blame if anything goes wrong.”

(With inputs from agencies)