Panama court annuls Hong Kong firm’s canal port concession

PANAMA CITY (AFP) — Panama’s Supreme Court annulled on Thursday the concession allowing Hong Kong-based CK Hutchison to operate ports at the Panama Canal, a year after United States President Donald Trump threatened to seize the crucial passageway claiming China controlled it.

The case came after Trump threatened just days into his second term to take back the canal — built by the US and handed to Panama in 1999 — as he said China was effectively “operating” it.

The Supreme Court found the laws which allowed CK Hutchison Holdings to operate two of the five ports of the canal “unconstitutional,” according to a court statement.

The CK Hutchison subsidiary concerned by the ruling rejected the judgement, saying that it “lacks legal basis.”

The ruling “jeopardizes not only PPC (Panama Ports Company) and its contract, but also the well-being and stability of thousands of Panamanian families who depend directly and indirectly on port activity,” it said.

China’s foreign ministry spokesperson Guo Jiakun told a regular briefing: “The Chinese side will take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies.”

The lawsuit to cancel the concession was brought before the Panamanian high court last year on allegations that it was based on unconstitutional laws and that the Hong Kong business was not paying taxes.

Panama Ports Company — a CK Hutchison Holdings subsidiary —manages the ports of Cristobal on the canal’s Atlantic entrance and Balboa on the Pacific side.

The concession was automatically renewed in 2021 for another 25 years.