Recently, the President of the United States Donald Trump has made some controversial statements about the Panama Canal. He has stated that Panama should return the canal, and that he would not rule out using the military to reclaim it. The Panama Canal is a canal in Panama which allows for passage between the Atlantic and Pacific oceans without having to go around all of South America.

In 1903, the United States and Panama signed a treaty that established permanent American rights to the region and planned canal. However, the Panamanian representative who agreed to this did so without a formal permission from the Government of Panama. This lead to many people doubting the validity of this treaty. The canal was then built and finished in 1914. This resulted in a better connected east and west coast for the United States.

For many years there was unrest in the area due to the US control. In 1978, President Jimmy Carter, with approval from the U.S. Senate, signed a treaty that would return control of the Panama Canal to Panama’s government by 1999. In 1999, Panama regained control of the canal.

Now, Panama has full control of the canal. Multiple Chinese companies help operate the canal, which has lead President Trump to say that the whole situation is unfair because China has gained control in violation of President Carter’s deal. President Trump has also claimed that the American ships transiting through the canal are being overcharged and paying too much. However, the administrator of the canal, Ricaurte Vásquez, has denied this claim and said in an interview that “there’s no discrimination in the fees.” The administrator has also said that there is an important distinction between having Chinese companies and direct Chinese control.

The question remains. What will Trump do?