Relationship dossier
Panama
United States
Relationship assessment
A close but historically complicated relationship shaped by the canal, trade, and U.S. intervention
Panama toward United States
+35Panama participates in the bilateral canal framework established by the 1977 treaties and maintains trade and security cooperation with the United States. The two countries’ trade promotion agreement, in force since 2012, provides a durable basis for economic cooperation.
United States toward Panama
+35The United States negotiated the 1977 treaties providing for Panama’s eventual control of the canal and completed the transfer in 1999. It also maintains trade and security ties with Panama, including through the trade promotion agreement in force since 2012. The 1989 U.S. invasion remains a major episode of hostility in the relationship.
Overall relationship
+35The relationship has durable cooperative foundations in the canal treaties, the transfer of canal control, and the bilateral trade agreement, alongside longstanding security ties. The 1989 U.S. invasion was a severe rupture and remains central to the relationship’s historical context. These features support a broadly cooperative but historically complicated assessment.
How to read these scores
Scores are rough judgments, not objective measurements or current verification. Directional scores describe government policy and conduct, not public opinion. The overall score is an independent estimate, never an average.
- −100
- Extreme sustained hostility
- −50
- Substantially adversarial
- 0
- Mixed or neutral, supported by knowledge
- +50
- Substantially cooperative
- +100
- Exceptionally close sustained partnership
“Not assessed” means there is no recorded score. Pair existence makes no claim about diplomatic recognition or established relations.
Relationship context
Overview
Panama and the United States have a substantial relationship shaped by the Panama Canal, trade, and security cooperation. The 1977 canal treaties established a framework for transferring control to Panama, completed in 1999. The United States invaded Panama in 1989, a major rupture in the relationship. A bilateral trade promotion agreement entered into force in 2012, reinforcing economic ties.
Areas of tension
- The 1989 U.S. invasion of Panama and its continuing significance for sovereignty and bilateral relations.
Key developments
Panama and the United States signed the treaties providing for the eventual transfer of canal control to Panama.
The United States invaded Panama.
The Panama Canal was transferred to Panamanian control under the canal treaties.
The U.S.–Panama Trade Promotion Agreement entered into force.
Major uncertainties
- The scope and implementation of current bilateral security and migration cooperation are unclear.
- The continuing effects of historical disputes over U.S. intervention and canal sovereignty on bilateral policy are difficult to gauge.