Hong Kong govt lodges strong protest against Panama for seizing CK Hutchison ports

The Hong Kong SAR government has lodged a strong protest and condemnation after the Panamanian government forcibly took over two ports operated by a subsidiary of CK Hutchison and revoked key operating contracts.

Secretary for Commerce and Economic Development Algernon Yau Ying-wah on Tuesday raised a formal protest with the Consul General of Panama in Hong Kong over the takeover of the Balboa and Cristobal terminals near the Panama Canal. The terminals had been operated for nearly three decades by Panama Ports Company, a subsidiary of CK Hutchison.

In a statement, the SAR government expressed strong dissatisfaction and opposition to Panama’s actions, saying the move undermined the spirit of contracts and harmed the legitimate rights of Hong Kong enterprises operating overseas.

It emphasized that it would firmly support and safeguard the lawful interests of Hong Kong companies abroad.

A government spokesman reiterated that the earlier ruling by Panama’s Supreme Court declaring the port operations unconstitutional was “completely contrary to the facts” and amounted to a breach of trust.

Although the company has initiated arbitration proceedings, the Panamanian government proceeded with the takeover on Sunday, the spokesman noted.

The spokesperson said the forced seizure of the two ports has severely undermined the lawful rights and interests of Hong Kong enterprises and violated the spirit of contractual agreements. The SAR government strongly condemned what it described as a “rude and unreasonable” act.

The government again urged Panama to respect the sanctity of contracts and provide a fair and just business environment for enterprises operating lawfully in the country, ensuring that their legitimate rights and interests are not interfered with.

The spokesman added that the company has made substantial investments in Panama over the years and created numerous local jobs. The ruling and subsequent actions by the Panamanian government were said to damage the country’s credibility and seriously undermine international trade rules.

Read more: Panama takes control of canal ports from CK Hutchison