Summary
Panama's Supreme Court canceled contracts for a Hong Kong-based company to operate ports on the Panama Canal, calling the agreements unconstitutional. The move follows claims by President Donald Trump that China controlled the canal, which Panama denies. CK Hutchison, the company involved, disputes the legal basis of the court's decision.
Key Facts
- Panama's Supreme Court voided contracts for a Hong Kong company to manage ports on the Panama Canal.
- President Trump claimed China was controlling the canal, but Panama disagrees.
- CK Hutchison, through Panama Ports Company, has run two ports since the 1990s.
- The court found the laws allowing these operations were unconstitutional.
- The U.S. has been concerned about Chinese influence on the Panama Canal.
- CK Hutchison plans to sell its port interests to a U.S.-led group, but the court's decision could affect this.
- The Panama Canal Authority, a Panamanian agency, operates the canal.
- China is the second-largest user of the Panama Canal after the U.S.
