Hong Kong conglomerate CK Hutchison has launched international arbitration proceedings against Panama, seeking over $1.5 billion in damages after the government’s takeover of two ports along the Panama Canal.
The company alleges that Panama breached an international investment protection treaty through an unlawful, state-led campaign targeting its assets.
Panamanian authorities seized the Balboa and Cristobal ports in February after the Supreme Court ruled that the concession contract was unconstitutional.
CK Hutchison’s subsidiary, Panama Ports Company, had operated the facilities located at opposite ends of the canal since 1997 and had secured a 25-year extension in 2021.
The dispute highlights growing U.S.-China geopolitical friction surrounding critical global trade infrastructure.
The ports became a political flashpoint after U.S. President Donald Trump alleged that China exercised undue control over the Panamanian waterway.
CK Hutchison had previously agreed to a $23 billion deal to sell its global port portfolio, including the Panamanian sites, to a U.S. consortium involving BlackRock, but the transaction stalled amidst complex regulatory and diplomatic hurdles.
The $1.5 billion treaty
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