By Wilson Shum Ho-kit
Imagine if you have operated a school canteen for years, the principal suddenly challenges your legitimate right in the accusation of an unlawful contract. Ironically, it happens in the Panama Ports, when the country's Supreme Court recently annulled the contract held by CK Hutchison subsidiary Panama Ports Company (PPC).
It is undeniable that the Supreme Court's ruling infringes on the spirit of the contract in the first place. CK Hutchison first won the government's deal in the 1990s to operate the Balboa and Cristobal terminals at either end of the strategic waterway. If the agreement was unconstitutional right from the beginning, how come PPC can run the business under the eyes of the Panama authorities illegally for over 20 years? Will the Panamanian administration compensate CK Hutchison for its mistake?
In fact, the Supreme Court's ruling is nothing more than the political outcome of foreign interference. It does not need a genius to know that Donald Trump was behind all these sagas, as he had expressed his strong desire to take over the Panama Canal in the US Presidential Election. Panama subsequently issued an audit in the accusation that PPC deprived the country of more than US$1.3 billion through a decades-old ports concession. Sad but true, it happened on January 20, the same day Donald Trump was inaugurated as the US President. It is difficult for the international society not to question the political intention behind.
Moreover, the ruling of Panama's Supreme Court not only opens the back door for further US intervention in the territory, but also enhances the ambition of Washington officials to threaten other countries as well. Several American media outlets describe it as a major victory for Washington in curbing Beijing's influence. The Wall Street Journal, for instance, even states that other countries "might re-examine their ties to the world's second-biggest economy." All these comments underline US's blatant intervention, detrimental to other jurisdictions.
Seemingly, the Supreme Court selected the so-called easiest outcome amid Sino-US rivalry by sacrificing CK Hutchison's commercial interest. However, in the longer term, the Panama administration also ruins its country's business environment. Let us put aside CK Hutchison's background. If the government can overthrow the legitimate rights of foreign enterprises amid US interference, who else dares to invest? To what extent does the ruling expose the existing assets of Non-US companies to the danger from the Trump administration? The Panamanian government should understand the devastating effect once the Pandora box has been opened.
Given the latest ruling, the Hong Kong SAR government quickly aired grievances to show its support for local enterprises. The spokesperson emphasises the opposition to any coercive, repressive, or other unreasonable means that seriously harm the legitimate business interests of Hong Kong companies. Besides, the Foreign Ministry also made it clear that this behaviour is unacceptable and condemned the same by using the strongest possible words.
Once again, we should not underestimate the repercussions of the ruling under the US invisable hands. It is not simply a Sino-US issue. It marks US hegemonic arrogance and intrusion into foreign affairs, putting non-US companies into potential danger.
As we all know, the cruz of the international commercial law is certainty. Different countries allow foreign companies to operate in compliance with laws. If no one abides by the rules, international law will further decline into the law of the jungle, harming people's interests all over the world.
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