Hong Kong-based CK Hutchison Holdings 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 either end of the Panama Canal.Legal experts said investment treaty arbitration was “notoriously lengthy” and that the process was likely to take at least three years.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 the country.“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 subsidiary, Panama Ports Company (PPC), which is seeking at least HK$15.6 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.