Panama Canal Port Dispute: A Geopolitical Tug-of-War

Panamanian President José Raúl Mulino expressed hopes that a legal dispute with a Hong Kong-based firm over Panama Canal ports would not intensify, despite the Panamanian government's steadfast ruling against the company.

The controversy arose after Panama's Supreme Court found a concession by CK Hutchison Holdings' subsidiary unconstitutional, drawing both support from the U.S. and threats from China. This places Panama in the delicate position of balancing geopolitical interests in the strategic waterway.

The decision to cut the concession aligns with President Donald Trump's strategy to limit Chinese presence in the region. Mulino assured that until the Supreme Court's decision is enforced, port operations with CK Hutchison's subsidiary would continue, transitioning thereafter to Danish firm AP Moller-Maersk.