Panama Reviews Cancellation of Contract with Hong Kong-based Company Operating Canal Port
Panama authorities are reportedly considering canceling the contract with a Hong Kong-based company operating ports near the Panama Canal, Bloomberg reported on the 4th (local time). This move is interpreted as a response to U.S. President Donald Trump's pressure to reclaim control of the canal, claiming that China is operating the Panama Canal.
According to anonymous sources, the Panamanian government, led by Jos? Ra?l Mulino, is weighing whether to cancel the contract with Hutchison Port PPC, a subsidiary of the Hong Kong-based CK Hutchison Holdings, which holds operating rights for two of the five ports along the Panama Canal, taking into account commercial and political sensitivities.
Although no specific decision has been made yet, the Panamanian government is exploring ways to terminate the contract through lawful procedures without litigation.
Hutchison Port PPC operates two ports, Balboa and Crist?bal, located at both ends of the Panama Canal. The company extended its contract with Panamanian authorities in 2021, securing port operating rights until 2047. The United States built the canal under a treaty with Panama and managed and controlled it for over 80 years before handing over operating rights to Panama in 1999, on the condition of ensuring "permanent neutrality."
Since taking office, President Trump has repeatedly stated his intention to reclaim the Panama Canal, arguing that China controls the canal, which he claims violates the 1999 treaty between the U.S. and Panama.
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On the 2nd, U.S. Secretary of State Mike Rubio visited Panama as his first overseas trip since taking office and urged measures to curb China's unacceptable influence. According to the U.S. State Department, Secretary Rubio warned that if Panama does not show immediate changes, the U.S. will take necessary actions to protect its rights. The Panamanian president proposed forming a technical-level review committee to address U.S. concerns.
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