UPDATE 1-Panama court voids CK Hutchison port contracts

Panama's Supreme Court late ‌on Thursday annulled key port contracts held by a subsidiary of Hong Kong-based ⁠CK Hutchison, ruling that the contracts were unconstitutional and leaving the future of the operations along the Panama Canal unclear. Panama ​Ports Company, a CK Hutchison subsidiary, has held contracts ‍since the 1990s to operate container terminals at the canal's Pacific and Atlantic entrances, separate from the waterway's operations.

Panama's Supreme Court late ‌on Thursday annulled key port contracts held by a subsidiary of Hong Kong-based ⁠CK Hutchison, ruling that the contracts were unconstitutional and leaving the future of the operations along the Panama Canal unclear.

Panama ​Ports Company, a CK Hutchison subsidiary, has held contracts ‍since the 1990s to operate container terminals at the canal's Pacific and Atlantic entrances, separate from the waterway's operations. The ruling comes amid ⁠growing ‌U.S.-China rivalry ⁠over global trade routes, with about 5% of global maritime trade passing through ‍the Panama Canal, and is seen as a win ​for Washington, where President Donald Trump has pushed to ⁠curb Chinese influence and boost U.S. control over the waterway.

Critics of the ⁠contracts, which were extended in recent years, argue that they are unconstitutional and put Panama at a disadvantage. The ⁠Supreme Court's decision could force Panama to restructure the legal ⁠framework needed ‌to hold port operations contracts and potentially re-open the door to re-tender the terminals.