Overview
- Panama’s Supreme Court found the 1997 concession for the Balboa and Cristóbal terminals unconstitutional, with the ruling still awaiting full execution and publication.
- Panama Ports Company began ICC arbitration, alleging a targeted state campaign and demanding extensive compensation based on financial data.
- China’s Hong Kong and Macao Affairs Office denounced the judgment as legally absurd and warned Panama would pay a high political and economic price.
- President José Raúl Mulino rejected Beijing’s statements, defended judicial independence, and said APM Terminals will manage a transition once the decision takes effect.
- Analysts say arbitration may last years, can award damages but cannot overturn the national ruling, and the clash complicates CK Hutchison’s planned ports sale involving BlackRock and partners.