CK Hutchison Holdings Ltd. commenced international arbitration proceedings against Panama, seeking more than $1.5 billion in damages over the loss of its investments in two ports on the country's strategic canal. The company said Thursday that Panama breached an investment protection treaty through measures taken in 2025 and this year. Those actions culminated in the termination of the concession for the ports of Balboa and Cristobal and the takeover of the terminals.

The arbitration marks a significant escalation in the dispute over the Panama Canal assets. CK Hutchison argues that Panama's actions violated treaty protections for foreign investors. The ports of Balboa and Cristobal are critical infrastructure at the Pacific and Atlantic entrances to the canal.

Panama's government has not yet publicly responded to the arbitration filing. The case will be heard under international arbitration rules, with both sides expected to present evidence on the treaty breach allegations and valuation of the seized assets.