Bloomberg reported on the 4th (local time), citing anonymous sources, that Panama is considering whether to cancel its contract with the Hong Kong-based corporation CK Hutchison, which manages two ports at the entrance of the Panama Canal. It appears that comments made by U.S. President Donald Trump, who stated that he would not rule out military intervention to regain control of the Panama Canal, have influenced this decision. CK Hutchison operates two of the five ports adjacent to the Panama Canal, specifically Balboa and Cristobal in Panama, and has been managing these ports since 1997. The Panamanian government signed a contract with CK Hutchison in 2021 related to port operations until 2047.
Bloomberg noted, "The Panamanian government is weighing the possibility of canceling the contract with Hutchison Ports PPC, a subsidiary of CK Hutchison," and added, "No decision has yet been made, but the Panamanian government stated that it would proceed in a way that avoids litigation and follows due process." Bloomberg also remarked, "If Panama cancels the contract with CK Hutchison, it would be a significant gift for Trump, who claimed that 'China controls the Panama Canal.'"
This response from the Panamanian government is a measure conscious of Trump. Last December, Trump attended the 'America Fest 2024' organized by the youth conservative group 'Turning Point USA' in Phoenix, Arizona, where he claimed that Panama allowed Chinese soldiers to control the crucial maritime transport route connecting the Atlantic and Pacific Oceans and imposed excessive fees on U.S. vessels. He further stated that if Panama continues to charge 'astronomical prices' to U.S. vessels, the U.S. will demand 'complete, swift, and unquestionable' return of canal control.
Trump also criticized during a news conference on Jan. 7, saying, "The U.S. invested substantial funds and manpower to construct a 51-mile canal using a swamp infested with mosquitoes in the early 1900s," and added, "Yet former President Jimmy Carter transferred control of the Panama Canal to the Panamanian government." The U.S. constructed the Panama Canal in 1914 to facilitate the passage of commercial and military vessels, and subsequently transferred control of the Panama Canal to the Panamanian government on Dec. 31, 1999, under a treaty signed during Carter's presidency in 1977.
As Trump threatened to regain control of the Panama Canal, Panamanian authorities responded swiftly. In January, the authorities sent an audit team to Hutchison Ports PPC to review whether public resources are being used transparently. At that time, Hutchison Ports PPC stated, "We are committed to operating business in Panama and are cooperating with the audit."