PANAMA CITY, Jan 29 (Reuters) – Panama’s Supreme Court late on Thursday annulled key port contracts held by a subsidiary of Hong Kong-based CK Hutchison, ruling that the contracts were unconstitutional and leaving the future of the operations along the Panama Canal unclear.
Panama Ports Company, a CK Hutchison subsidiary, has held contracts since the 1990s to operate container terminals at the canal’s Pacific and Atlantic entrances, separate from the waterway’s operations.
The ruling comes amid growing U.S.-China rivalry over global trade routes, with about 5% of global maritime trade passing through the Panama Canal, and is seen as a win for Washington, where President Donald Trump has pushed to curb Chinese influence and boost U.S. control over the waterway.
Critics of the contracts, which were extended in recent years, argue that they are unconstitutional and put Panama at a disadvantage.
The Supreme Court’s decision could force Panama to restructure the legal framework needed to hold port operations contracts and potentially re-open the door to re-tender the terminals.
(Reporting by Elida Moreno and Natalia Siniawski; Editing by Himani Sarkar)
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