Summary
Panama's Supreme Court decided that the contracts allowing a Chinese company to operate ports on the Panama Canal are unconstitutional. President Donald Trump had previously expressed concerns over Chinese control of the canal, viewing it as a security threat. The ruling may require Panama to change its legal setup for port contracts.
Key Facts
- Panama’s Supreme Court ruled against contracts with a Chinese company operating Panama Canal ports.
- The decision involves facilities run by Hong Kong-based CK Hutchison.
- President Trump previously called for US control over the canal, seeing Chinese influence as a threat.
- CK Hutchison has managed these ports since the 1990s, with a 25-year contract renewed in 2021.
- The lawsuit argued that the company's operations were based on unconstitutional laws and unpaid taxes.
- An audit found accounting mistakes costing Panama around $300 million since 2021.
- The court ruling may lead Panama to restructure port operation contracts.
- CK Hutchison and China have rejected the court's decision, defending their position.
