Panama and the United States cooperate in promoting economic, political, security, and social development through international agencies.
[3] The agreement helped to establish a stronger American influence in the region, as the Polk administration sought to ensure that Great Britain would not dominate Central America.
In return, Panama signed the Hay–Bunau-Varilla Treaty three weeks later, granting the USA sovereign rights over the interoceanic canal that would be built over the following decade.
The process of transition, however, was made difficult by the existence of the de facto military rule of Manuel Noriega in Panama from 1982 to 1989.
On December 20, 1989, in order to arrest Manuel Noriega, the United States invaded Panama.
The military intervention helped to swear into power the winners of the elections of May 1989, President Guillermo Endara.
[5] The United States cooperates with the Panamanian government in promoting economic, political, security, and social development through U.S. and international agencies.
Cultural ties between the two countries are strong and many Panamanians go to the United States for higher education and advanced training.
The Panamanian Government has concluded agreements with the U.S. on maritime law enforcement, counter-terrorism, counter-narcotics, and stolen vehicles.
In March 2007, the United States Coast Guard, in cooperation with the Government of Panama, seized over 38,000 lbs.
In the beginning of August 2017, Vice President Pence visited Panama City, Panama to give a joint statement with President Varela regarding the two countries joint efforts to restore democracy in Venezuela, but more importantly reflect on the relationship between the two countries.
Although money laundering remains a problem, Panama passed significant reforms in 2000 intended to strengthen its cooperation against international financial crimes.
In 2015, former Panamanian president Ricardo Martinelli fled to the United States and asked for asylum.
Negotiations were held in Madrid and Beijing to escape surveillance by the US Embassy, and the US Ambassador was only told one hour before the public announcement.