Ever since the early post-World War II period, Panama has been the recipient of some annual military aid under various programs established by the United States government (see table 19, Appendix A). In a diplomatic message accompanying the Panama Canal treaties, the United States agreed (pending congressional approval) to provide up to US$50 million in credits under the Foreign Military Sales (FMS) program. The credits were to be spread over the first ten years of the treaty period.

In fact, FMS deliveries to Panama have risen dramatically in the 1980s, from a mere US$187,000 in fiscal year (FY) 1980 to over US$12 million in FY 1986. Assistance under the International Military Education and Training Program also has registered a steady increase from US$270,000 in FY 1980 to US$575,000 in FY 1985, with a slight drop to US$507,000 in FY 1986.

In late 1987, however, it remained to be seen whether and under what circumstances Panama would continue to receive United States military aid. The United States suspended all military and economic aid to Panama in the summer of 1987, in response to Panama's failure to take steps toward a democratic, civilian-ruled government, in accordance with conditions associated with the Panama Canal treaties.

Data as of December 1987

NOTE: The information regarding Panama on this page is re-published from The Library of Congress Country Studies and the CIA World Factbook. No claims are made regarding the accuracy of Panama Foreign Military Assistance information contained here. All suggestions for corrections of any errors about Panama Foreign Military Assistance should be addressed to the Library of Congress and the CIA.