Panama Canal Ports Set To Be Sold to U.S. Firm BlackRock

The Panama Canal is a man-made waterway that was developed as a shortcut for cargo ships looking to travel around North and Central America without having to make the entire trek around the continent.

The massive canal was built in a partnership between Panama and the U.S., and it helped advance commercial shipping ventures for countries all around the world.

And while the running of the canal has changed hands a few times, with the U.S. initially taking charge until they handed the reigns back to Panama in 1977, the Trump administration claims that they are now owed a chance to control the waterway after claiming that the U.S. was being overcharged to use the passage.

But, can the U.S. take control of the Panama Canal back from the country where it's based? Keep reading to find out more.

According to an archived document from the U.S. Department of State, a treaty from 1903 gave the U.S. the right to both build and operate the canal. Both the U.S. and Panama spent years negotiating the terms of that treaty, and in 1977, the U.S. government put an end to that agreement, beginning the process to transfer the full rights and authority back to the government of Panama.

As such, the U.S. ended its claim to the ownership of the canal in full on Dec. 31, 1999, including its ability to take control back. In short, no, the U.S. cannot "take back" the canal, since any claim they had over it was dissolved when the final transfer was completed in 1999.

The BBC reports that BlackRock has put in a bid on two major canal ports that are controlled by a Hong Kong-based company. Despite claims to the contrary, CK Hutchinson is neither owned nor run by the government of China but was instead founded by billionaire Li Ka-shing.

Despite the politically charged nature of the deal, which would see control of certain ports switch from Chinese to U.S.-based ownership, the port's owners say that the $22.8 billion sale is not politically motivated.

"I would like to stress that the transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports," a CK Hutchinson representative said in a statement read by the BBC.

While the canal was thrust back into the news thanks to the Trump administration, the canal has always been noteworthy. That's because the History Channel blog says that at least 25,000 people lost their lives while working on constructing the waterway.

Workers faced unforgiving conditions during the construction of the massive canal, and they often faced dangers including mudslides, falling rocks, and even disease.

One worker was quoted by the website as saying that things were so harrowing during construction that train cars made daily pilgrimages away from the worksite, loaded with the bodies of that day's casualties.

While the canal seems to have a haunted past that's filled with death and grief, the waterway has made life so much easier for those who rely on the goods that come through the ports.

Hopefully, the proposed deal between CK Hutchinson and BlackRock goes smoothly enough so that the estimated 14,000 cargo ships that travel through the passageway can continue to do so without a hitch.