Panama’s comptroller general has filed two cases with the nation’s highest court regarding the operators of two key ports, which have become a focal point in a broader dispute involving the U.S. and China. The move may be interpreted as a step in favor of efforts to reduce Chinese involvement in the Panama Canal.
This action comes after a proposed sale of the ports to a group led by U.S. investment firm BlackRock and Swiss maritime company MSC fell through.
The ports, located at opposite ends of the canal, were originally granted to Hong Kong-based CK Hutchison in 1997. They gained increased attention in January when former U.S. president Donald Trump, during his inauguration speech, pledged to counter perceived Chinese control over the waterway. On the same day, Comptroller General Anel Flores announced an audit of Panama Ports Company, in which CK Hutchison owns a majority stake.
In March, BlackRock, the world’s largest asset manager, revealed its collaboration with MSC to acquire Panama Ports Company along with several other ports managed by CK Hutchison. The parties set a July deadline to finalize the agreement.
However, the proposed sale encountered resistance from Chinese authorities. In late March, China's competition watchdog stated it would assess the deal to ensure market fairness and public interests. Later reports suggested that Chinese officials sought to condition approval on the inclusion of a domestic shipping firm in the consortium.
Flores stated this week that Panama Ports’ contract was “unfavorable” and “exploitative,” alleging insufficient payments to the government and an improperly secured 25-year extension. One legal case aims to void the contract, while the other challenges its constitutionality.
When asked whether a Chinese firm might still join the deal, he remarked, “It does not seem right for foreign parties to negotiate over assets that belong to Panama.”
President José Raúl Mulino endorsed the comptroller’s decision, denying its connection to the ongoing ownership dispute. Nevertheless, the legal action could benefit U.S.-aligned bidders if the court rules in favor of invalidating the contract. If new bids are called, Panama may revise terms to better serve national interests, though legal challenges could arise.
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