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LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

March 12, 2025

Will a Deal to Buy Panamanian Ports Ease Tensions?

U.S.-based investment company BlackRock led a consortium to buy two ports on the Panama Canal (pictured) from a Hong Kong-based company. // File Photo: cascoly2 via Adobe Stock.

Q

A

Henry Ziemer, associate fellow at the Center for Strategic and International Studies: “The BlackRock-Hutchison deal goes a long way toward mitigating concerns that ports along the Panama Canal could be employed against the United States in a conflict with China. What remains to be determined is whether the deal will involve steps to remove or mitigate the associated physical and digital infrastructure that could still provide Beijing with a back door to monitor activity within former Hutchison ports. Security cameras, gantry cranes and inventory management programs could all still present cybersecurity risks, allowing China to collect intelligence on the movement of people and goods through the canal. Accordingly, merely handing the keys over to new owners is a necessary first step, but no substitute for more robust U.S.-Panama cooperation. There is reason for optimism— Panama has made clear its desire to be a closer partner…”

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