U.S. Ambassador Kevin Marino Cabrera is celebrating a decision by Panama’s highest court that a concession given a Hong Kong company to run ports at both ends of the canal violates the country’s constitution.
“The decision by Panama’s Supreme Court of Justice to nullify CK Hutchison’s concession for the Balboa and Cristobal ports strongly affirms the rule of law. It confirms that Panama’s independent judiciary enforces legal compliance, transparency, and public-interest obligations – holding all private operators accountable. This ruling strengthens Panama’s national security and investment climate by boosting predictability, fairness, and legal confidence. Investors gain assurance that valid contracts are protected and improper ones corrected, making Panama more attractive for quality, long-term investment,” Cabrera writes.
The Associated Press reports that Hutchison was considering bringing in a Chinese investor, months after exploring a sale to a consortium that included BlackRock.
Cabrera is upbeat about the aftermath of the ruling.
“The decision enables a review of port governance and transparent, competitive processes to attract world-class investors that bring innovation, efficiency, quality jobs, and reinforce Panama’s role as a leading logistics hub. We respect Panama’s right to regulate and protect its critical infrastructure under its laws. This outcome enhances the integrity of Panama’s legal framework and supports sustainable, rule-based economic growth,” he says.
However, China, Hong Kong, and the Hutchison subsidiary Panama Ports Company have all condemned the ruling.
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The Associated Press contributed reporting. Republished with permission.
