Panama Supreme Court Cancels CK Hutchison’s Panama Canal Port Concession

The Panamanian Supreme Court on Thursday annulled the concession that allowed Hong Kong-based CK Hutchison Holdings to operate ports along the Panama Canal, a decision that comes a year after US President Donald Trump warned of seizing the strategic waterway, citing Chinese influence.

According to a court statement, the Supreme Court ruled that the laws enabling CK Hutchison to manage two of the canal’s five ports were “unconstitutional.” The ruling follows a lawsuit filed last year challenging the legality of the concession and alleging that the Hong Kong company had failed to meet tax obligations.

CK Hutchison’s Panama subsidiary, Panama Ports Company, currently oversees the ports of Cristobal on the Atlantic side and Balboa on the Pacific side. The concession for these ports was automatically renewed in 2021 for another 25 years, under terms that allowed the conglomerate to continue its operations without interruption.

The case drew renewed attention in 2025 after Trump, early in his second term, warned that the United States could reclaim the canal, which it built and controlled until handing it over to Panama in 1999. Trump argued that China, through companies like CK Hutchison, was effectively operating the canal, a claim that heightened scrutiny over foreign control of the strategic trade route.

CK Hutchison Holdings, one of Hong Kong’s largest conglomerates, has business interests spanning finance, retail, infrastructure, telecommunications, and logistics. The company has recently pursued a sale of the Panama Canal ports to a consortium led by US asset manager BlackRock, although no final transaction has been confirmed.

The Supreme Court’s decision is likely to have major implications for trade and investment in the region. The Panama Canal handles roughly 12 percent of global trade, and control over its ports has long been a point of strategic and economic interest for both regional and international stakeholders.

Analysts note that while CK Hutchison has maintained operations smoothly for years, the annulment of its concession introduces uncertainty for shipping companies that rely on the canal’s ports and for investors monitoring foreign involvement in Panama’s infrastructure.

The ruling also reflects ongoing domestic concerns in Panama over sovereignty and foreign business practices, especially regarding major assets linked to international conglomerates. Panama’s government and legal authorities may now face pressure to define new frameworks for foreign participation in critical infrastructure, particularly in areas that are vital to national and global commerce.

The situation remains dynamic, with potential negotiations or legal proceedings likely as the country considers next steps for managing the ports and ensuring uninterrupted canal operations.