Trump’s Interest in Panama

Donald Trump’s interest in Panama and the strategic importance of the Panama Canal also remains high on the international stage. We take a look at the historical partnership between Panama and the USA as well as current developments affecting the relationship between the two countries, particularly in the context of Trump’s involvement.

Historic Partnership between Panama and the USA

Panama’s relationship with the USA has a long history dating back over a century. The construction of the Panama Canal between 1904 and 1914 represents a crucial point in this relationship and was under US administration until December 31, 1999. It is of great importance for global trade and is a central source of income for Panama. The Torrijos-Carter Treaty of 1977, signed by Omar Torrijos and US President Jimmy Carter, finally secured Panama’s full sovereignty over the canal. This was an important achievement for Panama and strengthened its national identity.

Trump’s Interest in Panama: Current Developments in the Panama Canal

On February 2, 2025, an important meeting took place between US Secretary of State Marco Rubio and Panamanian President José Raúl Mulino in Panama City. Topics such as curbing illegal migration and competition for US companies were discussed. One sensitive topic was China’s influence on the Panama Canal. Trump and the US are expressing concerns about the presence of Chinese companies, in particular CK Hutchison Holdings, which also operates in the US. This situation is exacerbated by China’s involvement in the Silk Road Initiative, where it is investing in infrastructure. Panama has decided not to renew the existing contract with China regarding the Silk Road policy in 2026. In addition, the US has demanded lower canal transit fees in order to improve its trading conditions.

BlackRock acquires the Panama Ports

Now, an investment group led by BlackRock has acquired two of Panama’s largest port operations from Hong Kong-based CK Hutchison. The acquisition involves the Balboa and Cristóbal port operations, located at either end of the Panama Canal, and is part of a deal worth 22.8 billion dollars that includes a total of 43 ports in 23 countries. CK Hutchison had managed the Panamanian port operations for over two decades.

President Donald Trump has stated that the purchase was in response to his efforts to “regain control” of the Panama Canal, though the deal had reportedly been in the works for months. Company officials emphasized that Hutchison received numerous offers to purchase the ports. Furthermore, they clarified that the transaction was purely commercial in nature, as well as unrelated to recent political reports.

However, the acquisition is seen as a way to defuse tensions around the canal. With an American company controlling the two port operations, the rhetoric about “China’s control” of the canal could be softened. This could be an elegant solution for both sides.

Working together to tackle the Refugee Crisis

Another important aspect of bilateral relations is the joint work of the US and Panama to tackle the refugee crisis. Many refugees try to reach the USA via Central America, and both countries have agreed to control illegal migration flows and find humane solutions to the refugee situation in the region. This cooperation underlines the commitment of both nations, not only in economic but also in humanitarian matters.

Conclusion: Panama as a Key Player in the global Economy

Panama remains an important player in the global economy, and Trump’s interest in Panama and the strategic role of the Panama Canal influence geopolitical relations with the US. The challenges posed by China’s influence over the Panama Canal and strategic ports are relevant to U.S. foreign policy. Despite these tensions, both nations are working together to find a common path that serves their interests and promotes stability in the region.

Panama offers not only a historical and strategic position, but also an ideal environment for investors and expatriates. If you are thinking of starting life in Panama, we at FRAPAN-Invest are your contact. As the market leader in German-speaking Europe for real estate in Panama and visas in Panama, we support you in emigrating to Panama.

Whether you are buying a property in Panama or planning to acquire a residence permit in Panama, we can help you apply for the Friendly Nations Visa Panama or the Golden Investor Visa Panama. Take advantage of this opportunity and explore the best countries to emigrate to. Our experienced team and network of German-speaking partner attorneys are ready to help you every step of the way. Experience life abroad in Panama!

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FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

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