CK Hutchison seeks $1.5 billion from Panama in treaty dispute arbitration

CK Hutchison, a Hong Kong-based conglomerate, has launched international arbitration proceedings against Panama, demanding over $1.5 billion in damages. The company alleges that Panama violated an investment protection treaty through a series of actions over the past two years.

These measures, according to CK Hutchison, culminated in the "destruction of the concession contract for the ports of Balboa and Cristóbal and takeover of the port terminals." The conglomerate, owned by magnate Li Ka-shing, stated that it strongly disagrees with Panama's actions, which it views as a violation of the treaty.

The dispute stems partly from objections raised by former U.S. President Donald Trump regarding Chinese ownership of ports along the Panama Canal. This was followed by Panama's decision to cancel CK Hutchison's port concessions.

A subsidiary of the company, Panama Ports Company (PPC), had already initiated its own international arbitration in February after Panama's top court annulled its licenses to operate the Balboa and Cristobal terminals. PPC, which had managed these terminals near the Panama Canal for nearly three decades, has since increased its claims to over $2 billion, citing what it describes as the state's illegal seizure of the port terminals and company property.

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The board strongly disagrees with the measures taken by Panama in violation of the treaty