Hong Kong-based CK Hutchison has launched international arbitration against Panama, seeking more than HK$11.7 billion (US$1.5 billion) in damages over the government’s takeover of two strategic ports at the entrances to the Panama Canal.Announcing the move on Thursday, the Li Ka-shing family-backed conglomerate said Panama had breached an investment-protection treaty and international law through “sovereign acts” targeting its decades-old concession to operate the Balboa and Cristobal terminals, and “destroyed CK Hutchison’s investments in Panama”.“Panama has demonstrated that it has become a risky country that disregards the rule of law, corporate form, the scope of parties to a contract, the scope of arbitration agreements, treaty rights and the resolution of treaty disputes,” the conglomerate said in a statement.The latest claim is separate from contractual arbitration initiated by its 90 per cent-owned subsidiary, Panama Ports Company (PPC), which is seeking at least HK$15.6 billion (US$2 billion) in damages over what it called an illegal takeover of the operations.CK Hutchison said it notified Panama of the treaty dispute on February 4, following a year-long state campaign against its assets, but that efforts to reach a resolution had failed.Panama’s Supreme Court ruled in January that PPC’s concession to operate the ports was unconstitutional, annulling the contract. The government took control of the terminals on February 23.