Panama top court voids CK Hutchison ports contract in boost for Trump
Portuguese cargo ship MSC Maxine is seen at Balboa Port at the entrance to the Panama Canal in Panama City on April 23, 2025. The Port of Balboa is managed by Hong Kong-based CK Hutchison Holdings.
Martin Bernetti | Afp | Getty Images
Panama’s supreme court rules against Hong Kong-based C.K. HutchisonHe said the franchise held by a subsidiary of the firm to operate ports at both ends of the Panama Canal was unconstitutional.
The result is seen as a victory for the Trump administration’s security ambitions in the Western Hemisphere, as the United States seeks to counter China’s strategic influence in the region.
One short description In a report released late Thursday, Panama’s Supreme Court said terms under which Panama Ports Company (PPC), a subsidiary of CK Hutchison, operates the ports of Balboa on the Pacific coast and Cristóbal on the Atlantic violate the country’s constitution and are no longer valid.
The court said it reached the decision after “extensive deliberation” but did not provide further details about next steps.
This comes nearly a year after US President Donald Trump threatened to seize control of the Panama Canal, saying the critically important waterway was “vital to our country” and claiming it was “operated by China”.
The Trump administration has made blocking China’s influence on the Panama Canal one of its top priorities.
Shortly after US troops launched an operation to capture Venezuelan President Nicolás Maduro on January 3, Trump said earlier this month, “The Monroe Doctrine is a big deal, but we’re way, way past it. They call it the Donroe Doctrine now.”
“Under our new national security strategy, American dominance in the Western Hemisphere will never again be questioned,” Trump said.
China promised to take necessary measures
PPC, which has held the contract to operate the ports of Balboa and Cristóbal since the 1990s, said on Friday it had been notified of the court’s decision and criticized the outcome.
“The new decision, based on available information, lacks legal basis and jeopardizes not only PPC and its contract, but also the well-being and stability of thousands of Panamanian families directly and indirectly dependent on port activities, as well as the rule of law and legal certainty in the country,” PPC said in a statement, according to Reuters. he said.
CNBC has reached out to both PPC and CK Hutchison for a response to the court order.
CK Hutchison shares fell 4.8% on Friday, with Hong Kong’s Hang Seng index losing nearly 2% in the session.
China also quickly responded to the decision of Panama’s supreme court. Spokesperson of the Chinese Ministry of Foreign Affairs in question It said Friday that the decision “is contrary to the laws governing Panama’s approval of relevant franchises, and the companies will reserve all rights, including legal action.”
The spokesman added that Beijing will take all necessary measures to protect the legitimate rights and interests of Chinese companies.
— CNBC’s Anniek Bao contributed to this report.
