Panama has maintained good relations with power houses and international bodies in a bid to ensure trade and business. Ties with the United States of America have helped in developing economic, social, and political and security matters. In these days, many Panamanians go to the US for higher education and for other training courses. Similarly, many American citizens, retired employees of the Panama Canal Commission and people holding citizenship in both the countries also reside in Panama.



The Panama government's successful enforcement of intellectual property rights in the economic investment sector, has allowed it to sign a Bilateral Investment Treaty Amendment with USA and then another treaty with Overseas Private Investment Corporation. To strengthen its grip over money laundering and crimes, both local and international, Panama brought about significant reforms in 2000.

Arms trade and illegal narcotics are becoming a pressing issue for Panama. The geographic location of Panama makes it an important player in trade and transport but its proximity to narcotic drug producing countries makes it transit a destination for Cocaine etc. In May 2006, Pablo Rayo Montana, a Columbian born drug supplier, was arrested in Brazil, thanks to a three-year long investigation carried by the Drug Prosecutor Office, PTJ and many other agencies in and around that region. They confiscated the assets of Pablo and seized one of the biggest drug consignments of cocaine in the eastern Pacific approximating 38,000lbs at the east coast of Panama.

Panama is an active member of United Nations General Assembly and several other United Nations bodies. The UN Security Council was offered services by Panama for three terms. It started serving the Security Council on January 1, 2007. It was elected in November 2006 to serve the Security Council. Panama is also an associate member in several financial institutions like the World Bank, the International Monetary Fund and the Inter-American bank.

Panama is affiliated with the Organization of American States (OAS) and it was a charter associate of the Rio group. Rio group or the Group of Eight officially called as Latin American Economic System (SELA) is established in 1975 to promote economic development and social co-operation among Latin American countries. Panama was suspended from the league of SELA in 1988 because of its domestic political structure, under the leadership of Manuel Noriega. It got its membership status back in September 1994, with improved democratic political system.

Panama is an integral part Inter-American Tropical Tuna Commission. It is one of the club affiliates of the Union of Banana Exporting Countries. Panama is a chapter of the Central American Parliament also known as PARLACEN and Central American Integration System (SICA). Panama formed an allied force at 1994 summit of Americans with its six regional neighbors to promote economic development in the region, known as Conjunta Centroamerica-USA (CONCAUSA).

Being a member of International Criminal Court, Panama is in bilateral agreement of protection of the US security forces. As Panama Canal is a major flag status, the government had to make arrangements in various cities with large harbor traffic.

This shows the strong cultural relationship between Panama and the US. Recently in 2007, the US and Panama launched a joint regional health worker training center. The main aim of the center is to provide good healthcare to the workers residing in Panama and Central America.