Panama Supreme Court Nullifies Port Contracts with Hong Kong Firm

Mon Feb 02 2026 16:18:44 GMT+0200 (Eastern European Standard Time)

In a significant legal ruling, Panama's Supreme Court has voided contracts that allowed a Hong Kong-based company to operate container ports on the Panama Canal, raising political and economic implications.

Panama's Supreme Court has annulled contracts with CK Hutchison Holdings, enabling the company to operate key container ports on the Panama Canal. This follows claims from US officials about China's influence in the region, despite Panama's repeated denials that it succumbs to foreign control over its vital maritime route.

Panama's Supreme Court has annulled contracts allowing a Hong Kong-based company to operate container ports on the Panama Canal.

The ruling comes a year after US President Donald Trump claimed China was 'operating the Panama Canal' - the main shipping link between the Atlantic and Pacific oceans - in his inaugural speech.

CK Hutchison Holding, through subsidiary Panama Ports Company (PPC), has operated two of the five ports since the 1990s. It had previously agreed to sell them to a group led by a US investment firm under a wider deal.

The court found that laws allowing the firm to operate the ports were 'unconstitutional', but PPC said the ruling 'lacks legal basis'.

Trump has made repeated claims that the central American canal is under Chinese control. During his address last January, he said: 'China is operating the Panama Canal and we didn't give it to China. We gave it to Panama and we're taking it back.'

Panama has previously rejected the US government claims and President Jose Raul Mulino has said the canal 'is and will remain' in his country's hands.

The ruling is likely to be seen as a victory for Washington amidst ongoing rivalry between the US and China over global trade routes.

In a statement published on its website, Panama's Supreme Court said that after 'extensive deliberation', it had found laws which underpin a concession contract between the state and PPC were unconstitutional.

In response, PPC expressed concern that the ruling would affect thousands of Panamanian families relying on port activity. Its statement noted that the company had invested over $1.8 billion in infrastructure and technology since it began operating the ports.

The court decision could disrupt CK Hutchison's plans to sell its interests in ports worldwide to a consortium led by US investment firm BlackRock.

Markets reacted swiftly, with CK Hutchison's shares falling significantly amid heightened investor concerns about political risks.

The Panama Canal, which serves as a crucial maritime shortcut, is operated by the Panama Canal Authority, an agency of the Panamanian government. The waterway handles about 5% of global maritime trade volume.