"Panama's Supreme Court has ruled that the contracts under which a Chinese company operates ports on the Panama Canal are unconstitutional. The decision regarding the facilities run by Hong Kong-based CK Hutchison was announced late on Thursday. It comes one year after United States President Donald Trump threatened to seize control of the crucial passageway, claiming it was effectively under Chinese control and therefore a security threat."
"The court ruled that the laws and acts underpinning the concession contracts between the state and the Panama Ports Company (PPC) for the development, construction, operation and management of the two port terminals violated the country's constitution. The CK Hutchison subsidiary has held the contracts, which allow it to operate the container ports of Balboa on the Pacific side of the Panama Canal and Cristobal on the Atlantic side, since the 1990s."
"However, as he returned to the White House at the start of 2025, Trump was quick to push Panama to curb Chinese influence and boost US control of the strategic canal, which the US built but handed to Panama in 1999. The waterway carries an estimated 5 percent of global maritime trade. The lawsuit to cancel PPC's contracts was brought before the Panamanian court last year, based on allegations that the contracts were based on unconstitutional laws."
Panama's Supreme Court ruled that the laws and acts underpinning the concession contracts with Panama Ports Company (PPC) for two Panama Canal port terminals violate the constitution, rendering the contracts unconstitutional. The PPC subsidiary of Hong Kong-based CK Hutchison has operated the Balboa and Cristobal container ports since the 1990s, with the concession automatically renewed in 2021 for 25 years. The ruling follows a lawsuit brought last year alleging unconstitutional legal bases and unpaid taxes, and an audit that identified accounting errors and irregularities reportedly costing Panama about $300m. The decision unfolded amid US pressure and presidential threats to curb Chinese influence and assert control over the strategic waterway, which carries roughly 5% of global maritime trade.
Read at www.aljazeera.com
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