Canal threat is latest drama in Trump's Panama history

Donald Trump strained North American diplomatic relations over the weekend with a threat to retake the Panama Canal, two and a half decades after the US transferred control of the vital global trade route to Panama.

- JOSH MARCUS

In a series of posts on Truth Social, the president-elect accused the country of "ripping off" the US.

"Our Navy and Commerce have been treated in a very unfair and injudicious way," Mr Trump wrote. "The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US." Panamanian officials have pushed back against the threats, with President José Raúl Mulino saying in a statement on Sunday that "every square metre of the Panama Canal and its adjacent zone belongs to Panama, and will continue to do so". The dispute over the canal is just the latest chapter of Trump drama in Panama.

Before and throughout his first term in the White House, a highprofile Trump hotel project in the country was a seemingly unending source of scandal and financial problems, ranging from a partner's bankruptcy to money-laundering allegations to long-running legal battles.

In 2011, Mr Trump and his business partners cut the ribbon on the Trump Ocean Club International Hotel and Tower, a 70story, sail-shaped skyscraper that loomed large over Panama City and the Trump Organization itself. The tower, which was first conceived way back in 2005, was Mr Trump's first international hotel venture and one of the tallest buildings in Latin America.

Trump capital didn’t go towards building the development itself, but the tower used the Trump name for branding, and companies controlled by the Trump Organization would manage the property, which contained a casino, hotel rooms and condos.