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CK Hutchison seeks over $1.5 billion in damages from Panama for seizure of canal ports.

CK Hutchison has initiated new arbitration proceedings against Panama to recover more than $1.5 billion in damages following the country's seizure of the Balboa and Cristobal ports. The Hong Kong conglomerate, controlled by the Li Ka-shing family, alleges that Panama breached an investment protection treaty through sovereign acts that targeted its decades-old concession to operate the ports. This action follows a year-long state campaign by Panama that resulted in the seizure of the ports in February, after the Supreme Court ruled the concession held by CK Hutchison’s subsidiary was unconstitutional. The ports became a central point of tension between the U.S. and China since President Trump returned to the office last year and alleged China was running the canal. While a separate arbitration proceeding by the subsidiary Panama Ports Company is seeking HK$15.6 billion in damages for contractual rights, this new claim focuses specifically on treaty rights. Legal experts suggest the arbitration process will likely take at least three years to reach a resolution.

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