CK Hutchison Holdings Limited (“CK Hutchison”) has commenced international arbitration proceedings against the Republic of Panama (“Panama”) over breaches of an investment protection treaty, alleging that sovereign acts targeting a decades-old ports concession destroyed the company’s investments in the country.

The Hong Kong-based conglomerate notified Panama of a treaty dispute on 4 February 2026, following what it describes as a year-long State attack campaign against its assets, and says it sought to resolve the dispute to no avail.

According to CK Hutchison, Panama’s campaign began suddenly in early 2025 and included:

• a sudden new investigation that lacked due process;
• a reversal of Panama’s longstanding legal position, which had protected the ports concession for three decades as a matter of law;
• a governmental assault on the constitutionality of its own “contract-law” and the concession; and
• the development of a scheme to replace CK Hutchison subsidiary Panama Ports Company, S.A. (“PPC”).

The company alleges that Panama has consistently sought to cover up its conduct through disinformation.

After the treaty dispute was notified in early 2026, Panama, rather than seeking resolution, intensified its State campaign through executive actions, culminating in a radical takeover of the Balboa and Cristóbal port terminals controlled by PPC on 23 February 2026. The takeover encompassed property, equipment, technology, employees, and proprietary and protected documents and materials, causing great damage and prompting CK Hutchison to send a supplemental treaty notice.

Even after the takeover and the supplemental treaty notice, CK Hutchison states, Panama failed to take steps to resolve the treaty dispute and instead continued its campaign of attacks and disinformation. Panama ultimately held only one perfunctory consultation meeting, more than six months after the treaty notice, and has made no offer of compensation or resolution.

CK Hutchison commenced the arbitration proceedings against Panama on 20 August 2026 (19 August in Panama), seeking damages of more than US$1.5 billion for breaches of treaty obligations and international law.

The company asserts that Panama has demonstrated it has become a risky country that disregards the rule of law, corporate form, the scope of parties to a contract, the scope of arbitration agreements, treaty rights, and the resolution of treaty disputes.

CK Hutchison emphasized that its treaty rights are distinct from PPC’s contract rights, which are being pursued in a separate contract arbitration that has proceeded apace. Panama previously sought, and failed, to force CK Hutchison into that contract arbitration — in disregard of corporate form and the applicable contract — as is a matter of public record. The distinction matters because the treaty case and the contract case address different legal frameworks, and CK Hutchison says both are continuing separately.

CK Hutchison said it is sharing these developments because of Panama’s dissemination of inaccurate information over time. The company added that it continues to seek resolution and permanently reserves all rights.

Source: CK Hutchison, via Hellenic Shipping News (Port News, 25/08/2026)