Panama's Supreme Court to Assess Constitutional Challenge Against Chinese Port Concession
Legal action initiated against Hutchison Holdings' operation of ports in the Panama Canal amid geopolitical tensions with the U.S.
In Panama City, a legal action has been filed requesting the Supreme Court to annul a concession that allows a Chinese company to operate two ports in the Panama Canal.
This case comes amidst rising scrutiny from the U.S. government, particularly from President Donald Trump, who has expressed concerns regarding Chinese influence in the region.
On Tuesday, Panama’s Supreme Court confirmed that the lawsuit, which argues the concession is unconstitutional, has passed initial procedural steps.
The president of the Supreme Court, María Eugenia López, indicated in an interview with local television channel TVN-2 that the case will be reviewed by a magistrate, who will determine the course of action.
The legal challenge was filed on Monday by two Panamanian lawyers claiming that the law under which Hutchison Port Holdings—based in Hong Kong—was granted a concession in 1997 violates ten articles of the Panamanian Constitution.
The concession, which allows Hutchison Holdings to operate the ports of Balboa and Cristóbal, was originally granted for 25 years but was extended for an additional 25 years in 2021. The company is currently under audit by Panama’s Comptroller's Office to determine compliance with its financial obligations to the state.
This legal movement coincides with President Trump’s statements indicating a desire to reassess control over the canal, which he claims is under Chinese influence, a situation the Panamanian government contests.
López stated that the court is prepared to handle any external pressures and emphasized that decisions will adhere strictly to legal requirements.
However, she added that the speed of the legal process will depend on the workload of the magistrate assigned to the case.
The Panama Canal, inaugurated in 1914, serves as a critical maritime route facilitating approximately five percent of global maritime trade.
Built by the United States, it was handed over to Panama in December 1999 as part of bilateral treaties.
Washington has historically viewed the operation of key infrastructure by foreign entities, especially Chinese companies, as a potential threat to national and regional security.
This ongoing case reflects the continuing geopolitical tensions surrounding the operations of the Panama Canal and the parties involved.
This case comes amidst rising scrutiny from the U.S. government, particularly from President Donald Trump, who has expressed concerns regarding Chinese influence in the region.
On Tuesday, Panama’s Supreme Court confirmed that the lawsuit, which argues the concession is unconstitutional, has passed initial procedural steps.
The president of the Supreme Court, María Eugenia López, indicated in an interview with local television channel TVN-2 that the case will be reviewed by a magistrate, who will determine the course of action.
The legal challenge was filed on Monday by two Panamanian lawyers claiming that the law under which Hutchison Port Holdings—based in Hong Kong—was granted a concession in 1997 violates ten articles of the Panamanian Constitution.
The concession, which allows Hutchison Holdings to operate the ports of Balboa and Cristóbal, was originally granted for 25 years but was extended for an additional 25 years in 2021. The company is currently under audit by Panama’s Comptroller's Office to determine compliance with its financial obligations to the state.
This legal movement coincides with President Trump’s statements indicating a desire to reassess control over the canal, which he claims is under Chinese influence, a situation the Panamanian government contests.
López stated that the court is prepared to handle any external pressures and emphasized that decisions will adhere strictly to legal requirements.
However, she added that the speed of the legal process will depend on the workload of the magistrate assigned to the case.
The Panama Canal, inaugurated in 1914, serves as a critical maritime route facilitating approximately five percent of global maritime trade.
Built by the United States, it was handed over to Panama in December 1999 as part of bilateral treaties.
Washington has historically viewed the operation of key infrastructure by foreign entities, especially Chinese companies, as a potential threat to national and regional security.
This ongoing case reflects the continuing geopolitical tensions surrounding the operations of the Panama Canal and the parties involved.
