Panama’s Supreme Court Revokes Hutchison’s Concession on Panama Canal Ports

On 27 February 2026, the Supreme Court of Panama ruled that the concession over seaports held by Hong Kong’s CK Hutchison was unconstitutional, citing ‘legal irregularities and tax arrears’ in the agreement. In 2021, Panama Ports Company (PPC), a local subsidiary of CK Hutchison, entered into a 25-year concession agreement to manage Panama’s two seaports at both ends of the Panama Canal: Balboa Port on the Pacific side and Cristobal Port on the Atlantic side.

PC denied any wrongdoing and insisted that it was awarded the contract after due process following an open international tender. The Chinese foreign ministry spokesperson GUO Jiakun told reporters that China would take all necessary measures to safeguard the legitimate rights and interests of Chinese companies.

Commenting on the Supreme Court’s ruling, Panamanian President Jose Mulion stated that his government will work with Panama Ports Company to ensure a smooth transition without interruption of port operations. Once the concession agreement is formally severed, the Government of Panama intends to transfer the operation to a subsidiary of AP Moller-Maersk.

The USA has been pressuring Panama to wrestle back control over ports along the Panama Canal; the Trump Administration has made it known that the Panama Canal is a top ‘National Security’ issue as itis a strategic waterway that connects the Atlantic Ocean to the Pacific Ocean. It is to be recalled that the first overseas mission of State Secretary Marco Rubio was to Panama. The move is in line with Trump’s new Monroe Doctrine that defines the Western Hemisphere as its ‘sphere of influence.’