Country Snapshot

Population: 2,960,784 (July 2003 est.) Size, comparable to U.S.: slightly smaller than South Carolina Per Capita GDP, not adjusted for PPP (year): 2002): $3,699 Income, wealthiest 10% / poorest 10%: 52.8/1.2 (1997) Population earning less than $2 a day: 17.9% Ranking, Transparency International Corruption Perceptions Index: 66 out of 133 Defense Expenditure as a percentage of GDP: 1.2 (2001) Size of armed forces: …,000 (2001-2002)

1999 marks the end of a century-long permanent U.S. military presence in Panama. In accordance with the 1979 Panama Canal Treaty, all U.S. facilities will be turned over to the Panamanian government by December 31, 1999. Over the past few years, U.S. bases in Panama have been closing and moving elsewhere. During 1999 the remaining facilities are being shut down, and in late 1999 only a “caretaker force” of a few hundred U.S. military personnel remains.

The withdrawal of the U.S. forces from Panama marks the end of an era. According to Gen. Charles Wilhelm, commander-in-chief of the U.S. Southern Command, “It will be necessary to completely reassess our security relationship with Panama as our forces depart. We have voiced strong support for increased security assistance funding for Panama to enable the maritime service to strengthen its capabilities, and we are prepared to intensify our engagement with the PPF (Panamanian Public Forces) to assist them in meeting other emerging security challenges."¹

As of late 1999, some in Congress continued to harbor hope of a continued U.S. presence in Panama. However, Ambassador Peter Romero, the acting assistant secretary of state for Western Hemisphere Affairs, said that even the possibility of placing a counter-drug forward operating location (FOL) in Panama is unlikely in the near future. "At this time Panama is not a realistic FOL option," Romero told a House subcommittee in September 1999.²

Panama has had no military since the 1989 U.S. invasion that removed dictator Manuel Noriega. The country’s police, or Public Force (FPP), especially its National Maritime Service (SMN) and National Air Service (SAN), participates in many U.S. military programs.

The State Department’s 2000 Congressional Presentation for Foreign Operations discusses the rationale behind one of these programs, International Military Education and Training (IMET).

The departure of U.S. forces in 1999 will increase the importance of our bilateral security relationship with Panama. International Military Education and Training (IMET) will provide training to further the professionalism of the Panamanian security forces and promote increased respect for human rights.³

According to the same document, however, the IMET program only expects to train four Panamanian individuals in 2000.

In fact, most training for Panama takes place outside of the IMET program, funded instead through counternarcotics accounts. According to the Foreign Military Training Report, the United States trained 350 SAN and SMN members in 1998 through other funding channels. These include the Defense Department’s “Section 1004” authority to provide counter-drug assistance, and the Central America regional fund of the State Department’s International Narcotics Control (INC) program.

One INC-supported project was a loan of six helicopters to the SAN for counternarcotics missions. In 1998, after a fatal crash of one helicopter revealed “faulty maintenance procedures by the SAN,” the State Department’s International Narcotics Control Strategy Report (INCSR) reports that the helicopters were withdrawn from Panama.⁴

SMN and SAN members worked with the U.S. Coast Guard in 1998 on joint operations to seize “go-fast boats” carrying drugs out of Colombia.⁵ In 1998 Panama participated with the United States in Operation Conjuntos, which the INCSR calls "a continuing series of counterdrug operations that exercise the existing bilateral agreement with Panama." The INCSR expected the series to continue in 1999.⁶ According to the State Department’s 2000 Congressional Presentation, “Panamanian officials have agreed to install a new coast guard (SMN) base in property being reverted on the Atlantic Coast. The upgrade will improve the capability of the SMN to cooperate with U.S. forces along the Atlantic littoral."⁷

Panamanians also participated in 1998 in "professional exchange missions such as “Opvista” and “Op Tiburon.” These operations are described as conducting “training with members of the host nation’s navy for one week and [providing] domestic support in the form of humanitarian aid."⁸

While it has no military, Panama participates in some of the U.S. Southern Command’s regular multilateral military exercises and seminars. U.S. bases also served as the site of many unilateral U.S. operational exercises.

Panama purchased only $16,000 in military equipment through the Foreign Military Sales (FMS) program in 1998, mostly spare parts for aircraft and vehicles.⁹ It licensed for purchase, during the same period, small arms and ammunition valued at $3,574,289 through the Direct Commercial Sales (DCS) program.¹⁰ In September 1999, a counternarcotics drawdown  authorized the transfer of $450,000 in assistance to Panama. This aid package was projected to include vehicles, night vision equipment, guns and a DEA training course.¹¹

Base closures are producing a significant amount of non-lethal excess defense property, much of which will be transferred elsewhere in Latin America under the Humanitarian Assistance program.

Sources:

¹ United States, Department of Defense, Statement of General Charles E. Wilhelm, United States Marine Corps Commander in Chief, United States Southern Command Before the Senate Foreign Relations Committee Subcommittee on Western Hemisphere, Peace Corps, Narcotics and Terrorism (Washington: June 22, 1999).

² United States, Department of State, Statement of Ambassador Peter F. Romero, Acting Assistant Secretary of State for Western Hemisphere Affairs, before the Western Hemisphere Subcommittee of the International Relations Committee, U.S. House of Representatives, September 29, 1999.

³ United States, Department of State, Office of Resources, Plans and Policy, Congressional Presentation for Foreign Operations, Fiscal Year 2000 (Washington: February 1999): 914.

⁴ United States, Department of State, Bureau for International Narcotics and Law Enforcement Affairs, International Narcotics Control Strategy Report, 1998 (Washington: February, 1999) <http://www.state.gov/www/global/narcotics_law/1998_narc_report/camex98_part3.html>.

⁵ Bureau for International Narcotics and Law Enforcement Affairs, International Narcotics Control Strategy Report, 1998.

⁶ International Narcotics Control Strategy Report, 1998.

⁷ Congressional Presentation for Foreign Operations, Fiscal Year 2000 915.

⁸ International Narcotics Control Strategy Report, 1998.

⁹ United States, Defense Security Cooperation Agency, FY 1998, Defense Articles (Including Excess) and Services (Including Training) Furnished Foreign Countries and International Organizations Under the Foreign Military Sales Provisions of the Arms Export Control Act, Chapter 2 (Washington: July, 1999): 172.

¹⁰ United States, Department of State, U.S. Arms Exports: Direct Commercial Sales Authorizations for Fiscal Year 98 (Washington: July 1999): 78.

¹¹ United States, Presidential Determination No. 99-43, Drawdown Under Section 506 (a) (2) of the Foreign Assistance Act to Provide Counter-Drug Assistance to Colombia, Peru, Ecuador and Panama, September 30, 1999 and working breakout of items requested.