Panama tries to terminate the Hutchison port of unconstitutionality

The Attorney General of Panama, Luis Carlos Gomez, asked for the end of a license to be granted China’s Hutchison Port Holdings, and explained that the contract is unconstitutional.

In a formal submission to the country’s Supreme Court, Gomez argued that the agreement had publicly transferred the rights of the Panaman State and the effects on well -being, competition and economic interests.

He asked the court to confirm his unconstitutionality as a step in the termination of the agreement.

The Legal Challenge revolves around the Panama Ports Company (PPC), a subsidiary of CK Hutchison Holdings, who belongs to the billionaire from Hong Kong, Li Ka-Hing. The company has been running two important ports, Balboa on the Pacific side and Cristobal on the Atlantic since 1997.

The controversy strengthened after the Panamaic government had granted an automatic extension by 25 years without a competitive tender procedure.

Critics claim that the deal has granted unjustified tax advantages and monopolistic control over port companies.

Two separate lawsuits were submitted in front of the Supreme Court of Panama, which questioned the validity of the 2021 contract. Attorney General Gomez announced his opinion on February 19 to support these cases and claimed that the agreement against Panama’s national interests was.

The Supreme Court agreed to check the matter.

The examination of the contract follows repeated claims by the former US President Donald Trump that China heads the Panama Canal. Trump has proposed that the United States could take control of the waterway back, which she built and handed over to Panama in 1999.

In response to this, the Panamaic President Jose Raul Mulino pursued a double approach and, what he described as “lies and lies”, took the necessary steps to check Chinese investments in the country.

At the beginning of February, US Foreign Minister Marco Panama visited his first official trip. He met with officials from the Panama Canal Authority (ACP), including the channel administrator Ricaurte Vasquez Morales, at the Miraflores Locks.

During the visit, the ACP initially announced plans to coordinate with the US navy to prioritize the naval ship transits over the channel.

However, the United States withdrew this statement later after Panama had denied such an obligation.

When the tensions escalated, the Panamaic government officially retired from China’s belt and street initiative. The move was regarded as a direct reaction to the United States printing.

China reacted strongly and accused the Trump government to use “pressure and coercion” to influence Panama’s foreign policy.

In January, Anel Bolo Flores, General Comprehensiveer of Panama, announced that an examination of the Hutchison 2021 contract was underway. The review aims to check whether the contract extension was legally granted and whether the company has received inappropriate services.

References: Hong Kongfp, Channelewsasia

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