US pressure a challenge in CK Hutchisons arbitration against Panama: experts
Pressure from the United States remains a major challenge in CK Hutchison Holdings’ arbitration against Panama and it may take years to resolve the dispute, legal and political experts have said of the continuing controversy over the Hong Kong conglomorate’s ports. The company, led by billionaire Li Ka-shing’s family, said on Wednesday that its subsidiary,…
Pressure from the United States remains a major challenge in CK Hutchison Holdings’ arbitration against Panama and it may take years to resolve the dispute, legal and political experts have said of the continuing controversy over the Hong Kong conglomorate’s ports.
The company, led by billionaire Li Ka-shing’s family, said on Wednesday that its subsidiary, Panama Ports Company (PCC), had initiated arbitration against Panamanian authorities over a court judgment declaring its concessions to operate two ports at the ends of a strategic waterway “unconstitutional”.
The move came in the wake of a ruling delivered by the country’s Supreme Court of Justice last week, which could take effect this month, stripping PCC’s of its concession to operate the Balboa and Cristobal terminals at either end of the Panama Canal.
In a statement, PCC said the arbitration, filed according to the arbitration rules of the International Chamber of Commerce (ICC), was launched because of Panamanian authorities’ alleged breach of contract, and prompted the company to seek extensive damages incurred by the ruling.
But legal and political experts in Hong Kong said the legal action faced significant challenges, given the political pressure from the United States.
Professor Lau Siu-kai, a consultant to the semi-official Chinese Association of Hong Kong and Macau Studies think tank, said CK Hutchison was unlikely to retain the concession over the ports through legal actions and seeking “reasonable compensation” would be a more practical goal.
