Panama’s Supreme Court ruled late on Thursday that the concession held by a subsidiary of Hong Kong’s CK Hutchison Holdings to operate ports at both ends of the Panama Canal is unconstitutional.
Panama Ports Company (PPC), a CK Hutchison subsidiary, has held contracts since the 1990s to operate container terminals at the canal’s Pacific and Atlantic entrances, which are separate from the waterway’s operations.
The Supreme Court said that after “extensive deliberation,” it found the laws and acts underpinning the concession contract between the state and Panama Ports Company for the development, construction, operation, and management of the terminals at Balboa and Cristobal were unconstitutional.
The ruling comes amid a growing U.S.–China rivalry over global trade routes and is seen as a win for Washington, where President Donald Trump has pushed to curb Chinese influence over the Panama Canal, which carries about 5 percent of global maritime trade.