Panama’s Supreme Court Petitioned to Nullify Hong Kong Firm’s Canal Port Contract
Department of Research, Strategic Studies and International Relations 05-02-2025
Legal Challenge Follows U.S. Pressure to Curb Alleged Chinese Influence.
Two Panamanian attorneys have filed a lawsuit with the country’s supreme court, seeking to annul a concession granted to a Hong Kong-based company for managing two ports at both ends of the Panama Canal.
The legal challenge was submitted just a day after U.S. Secretary of State Marco Rubio urged Panama’s President, José Raúl Mulino, to curb what Washington perceives as excessive Chinese influence over the canal. The petition contends that the port management contract is unconstitutional.
The ports in question have been operated since 1997 by a subsidiary of CK Hutchison Holdings, a corporation controlled by Hong Kong billionaire Li Ka-shing. Speaking to AFP, attorney Julio Macías, one of the individuals behind the legal action, stated: “After conducting a thorough review of the contract, we determined that filing an unconstitutionality lawsuit was the appropriate course of action.”
Following Rubio’s visit on Sunday, President Mulino agreed to implement stricter controls on irregular migration through the Darién Gap. Additionally, he committed to withdrawing Panama from China’s Belt and Road Initiative and, according to U.S. officials, allowing American military vessels free passage through the canal.
Despite these concessions, Trump later expressed dissatisfaction, stating he would speak with Mulino directly on Friday.
Should the port contract be revoked, Panama may face international arbitration, with claims that the move constitutes a politically driven expropriation. Furthermore, if Mulino authorizes preferential access for U.S. military ships, he could encounter further legal scrutiny. International law expert Alonso Illueca warned, “Such an action would violate the canal’s neutrality commitment by granting preferential treatment.”
