Background of the Dispute
Panama’s Supreme Court recently declared the concession contracts allowing Panama Ports Company, a unit of CK Hutchison Holdings, to operate the Balboa and Cristóbal ports at either end of the Panama Canal “unconstitutional.” The ruling cited legal concerns over exclusive privileges and was part of a series of state actions that PPC says damaged its business.

Arbitration Action
In response, PPC has launched arbitration proceedings against the Republic of Panama under the rules of the International Chamber of Commerce (ICC). The company contends that Panama breached the concession agreement and relevant laws, and is seeking extensive financial damages to compensate for harm caused by the legal decisions and related actions.

Geopolitical and Strategic Context
The legal battle has wider implications amid rising U.S.–China tensions. The Panama ports dispute has raised questions about foreign investment protection, sovereignty over critical trade infrastructure, and how such disputes might affect large international transactions. A proposed $23 billion sale of CK Hutchison’s global port portfolio — including the Panama assets — has been delayed amid the dispute and geopolitical pressure.