Panama Court Cancels CK Hutchison Port Contract, Hong Kong Summons Envoy

Hong Kong’s commerce chief summoned the Panamanian Consul General in the city on Friday to protest a court ruling that annulled CK Hutchison’s contract to operate two ports at the Panama Canal. The move follows warnings from China’s Hong Kong and Macau Affairs Office that Panama could face “heavy prices” over the decision.

During the meeting, Hong Kong Secretary for Commerce and Economic Development Algernon Yau Ying-wah expressed “strong dissatisfaction and opposition” to the Panama Supreme Court’s ruling” to Jose Ramon de Jesus Varela Fabrega, the Panamanian Consul General. Yau emphasized that CK Hutchison had made significant investments and created jobs in Panama over many years and criticized the ruling for damaging Panama’s national credibility, undermining international trade rules, and harming the country’s business environment and economic development.

Yau urged the Panamanian government to uphold the spirit of the contract and provide a fair and just business environment for legally operating companies, stating that Hong Kong companies investing in Panama should receive fair treatment and protections.

CK Hutchison has responded by challenging the ruling, with its Panama Ports Company unit initiating international arbitration proceedings. Meanwhile, Panamanian President Jose Raul Mulino described the court’s decision as definitive and said he did not expect the situation to escalate, affirming that Panama “is a dignified country and will not allow itself to be threatened by any country on earth.”