Panama FOREIGN RELATIONS
A ship passes through the Panama Canal near the Culebra Cut
Courtesy Inter-American Development Bank
Panama's strategic location, the traditional domination of both
the economy and the political agenda by the canal, and the strong
influence exerted by the United States throughout most of Panama's
independent history have combined to magnify the importance of
foreign policy in the nation's political life. From the signing of
the Hay-Bunau-Varilla Treaty in 1903 until the ratification of the
Panama Canal treaties in 1978, Panama's overriding concern, both
domestically and internationally, was to gain sovereignty over the
Canal Zone and the control over the canal, itself. Determined to
obtain sovereignty over its entire national territory, but aware of
the limitations posed by its weakness in comparison with the United
States, Panama sought the support of other nations, particularly in
multilateral forums, in its efforts to renegotiate the canal
treaties. In pursuing this end, Panama gained an international
visibility much greater than that of most nations of similar size.
Traditionally, all other foreign policy matters were
subordinated to Panama's concern with the canal issue. Secondary
emphasis was given to commercial interests in dealings with other
nations. Vehicles of international trade, such as the Colón Free
Zone, international banking, and shipping were central factors in
Panama's foreign economic relations. In the 1980s, the issue of the
mounting foreign debt also had become the focus of increasing
attention and concern.
The experience and visibility gained in the long effort to
obtain international support for Panama's stance in the canal
negotiations were carried over into the years following the signing
of the new treaties, as exemplified by Panama's role in the 1978-79
Nicaraguan civil conflict, and its participation in the
Contadora peace process (see Glossary).
Panama also has tried, with limited
success, to appeal to the same Latin American and Third World
sentiments that won it support for its efforts to renegotiate the
Panama Canal treaties to gain support in subsequent disputes with
the United States. Although foreign policy concerns were not as
dominant in the 1980s as in previous decades, they occupied a high
priority for Panama's government and still centered on relations
with the United States. This pattern was likely to persist until at
least the year 2000.
Data as of December 1987
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