CK Hutchison Sues Panama for $1.5B Over Port Seizure

President José Raúl Mulino's administration rejected the claims. The government said it had prepared a phased transition plan more than a year in advance, working with international port experts and temporarily handing operations to Maersk to keep the canal running. Panama cited national sovereignty and the rule of law in defending its actions.

CK Hutchison said it notified Panama of the dispute under an investment protection treaty but that the government had made no effort to resolve it. The company described a pattern of investigations without due process and a challenge to the constitutionality of Panama's own contract law. The Supreme Court ruled the concession unconstitutional after what it called “extensive deliberation.”

The arbitration is the latest escalation in a fight over control of one of the world's busiest trade routes. Panama Canal operations were not disrupted, but the legal battle puts a question mark over foreign investment protections in the country.