In Panama City, President José Raúl Mulino addressed the nation's ongoing legal confrontation with a subsidiary of Hong Kong's CK Hutchison Holdings concerning the operation of ports at the Panama Canal. During a morning briefing, Mulino expressed hope that the dispute would not intensify further but emphasized the government's resolve to uphold the recent Supreme Court ruling against the company.
"Panama is a country that values its dignity and will not accept threats from any nation on the globe," the president declared, directly responding to criticisms from the Chinese government.
This development follows last week's landmark judgment by Panama's highest court, which invalidated a concession granted to CK Hutchison's subsidiary in connection with canal port operations. The court's decision aligns with strategic objectives championed by U.S. President Donald Trump aimed at limiting Chinese influence over this critical maritime passage, thereby placing Panama at a strategic crossroads amid a broader geopolitical struggle.
The Chinese government reacted sternly, warning that upholding Panama's judicial decision would incur "a heavy price." In tandem, CK Hutchison Holdings openly contested the verdict, with its subsidiary commencing international arbitration procedures against Panama earlier this week.
President Mulino outlined that until the ruling is formally implemented—a timeline he did not specify—Panama’s Maritime Authority will continue collaborating with the existing operator, Panama Ports Company, to ensure uninterrupted management of the canal ports.
Following the formal cessation of the concession, stewardship of the ports will transition temporarily to a local arm of the Danish logistics giant A.P. Moller-Maersk. This interim phase will remain in effect until a new concession process is organized and a suitable operator is selected.
The contested Panamanian ports are integral components of a larger $23 billion transaction involving the sale of CK Hutchison's 43 global ports to a consortium that includes U.S. investment firm BlackRock. Announced in March of the previous year, the deal has experienced setbacks due to the Panamanian court ruling and escalating geopolitical tensions between Washington and Beijing.
Market analysts suggest that CK Hutchison's initiation of arbitration procedures may serve as a strategy to prolong proceedings while seeking alternative solutions regarding the broader sale of port assets.