Panama is currently a member of the UN General Assembly (and most major UN agencies) and has served three terms in the UN Security Council. In November 2006 it was elected to serve a two year term on the Security Council, beginning January 1, 2007. It maintains membership in several international financial institutions, including the World Bank, the Inter-American Development Bank, and the International Monetary Fund.

Panama is a member of the Organization of American States and was a founding member of the Rio Group. Although it was suspended from the Latin American Economic System — known informally both as the Group of Eight and the Rio Group — in 1988 due to its internal political system under Manuel Noriega, Panama was readmitted in September 1994 as an acknowledgment of its present democratic credentials.

Panama also is one of the founding members of the Union of Banana Exporting Countries and belongs to the Inter-American Tropical Tuna Commission. Panama is a member of the Central American Parliament (PARLACEN) as well as the Central American Integration System (SICA). Panama joined its six Central American neighbors at the 1994 Summit of the Americas in signing the Alliance for Sustainable Development known as the Conjunta Centroamerica-USA or CONCAUSA to promote sustainable economic development in the region.

Panama is also a member of the International Criminal Court with a Bilateral Immunity Agreement of protection for the US-military (as covered under Article 98).

Bilateral Relations with the United States

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 come to the United States for higher education and advanced training.

In 2007, the U.S. and Panama partnered to launch a regional health worker training center. The center provides training to community healthcare workers in Panama and throughout Central America.

About 25,000 American citizens reside in Panama, many retirees from the Panama Canal Commission and individuals who hold dual nationality. There is also a rapidly growing enclave of American retirees in the Chiriqui Province in western Panama.