Panama and the United States have had a long and fruitful bilateral relationship. Panama’s President Torrijos said that the United States and Panama would continue to strengthen their bilateral relationship through dialogue, adding that there would always be frankness and sincerity when various issues are discussed.

As U.S. Secretary of State Rice said on the 30th anniversary of the return of the Panama Canal and its administration to Panama, June 4, 2007, the relationship between the two countries “is exemplified best by the fact that we continue to improve our relations and we do look forward to Congress’s ratification of the free trade agreement which would put our economic relations on an even more sound footing.”

She added that she thinks that the Panama Canal Treaty “has been a great success for world commerce, for commerce in the region but also for the bilateral relationship between the United States and Panama.”

There are over 26, 000 Americans living in Panama and the number of those having a second home and doing business in Panama City is increasing as Panama’s annual growth rate attains 8 percent and may even exceed that figure in 2007.

Speaking at the Center for Hemispheric Policy at the Greater Miami Chamber of Commerce sponsored event in Miami, October 12, 2007, President Bush said:

“Panama has the fastest-growing economy in Central America, with a growth rate of more than 8 percent last year. Our nations have strong ties, dating back to the construction of the Panama Canal. Trade has always been a key part of our relationship. Last year alone, our nations exchanged nearly $3 billion worth of goods.

“The free trade agreement with Panama will build on this vibrant trade relationship. It will immediately eliminate tariffs on 88 percent of our industrial and consumer goods exports to Panama. It will open a new market for American farmers and ranchers, including fruit growers here in Florida. It will increase access to Panama’s service sector, including its key financial services market. It will open opportunities for American businesses to participate in the Panama Canal expansion project. This is a good agreement, and we will continue to work closely with Congress and the government of Panama to address the issues necessary to get it approved.”

When President Bush visited Panama in November 2005, he told President Torrijos, that trade is one way the two countries can continue to expand their relations.

During his visit, President Bush had the opportunity to visit the Panama Canal. He said he was “most impressed by the management of the Canal. Those who are responsible for the Panama Canal have done an excellent job, and this is beneficial to the world.” He indicated that he thought that the government of Panama was wise to “consider modernizing the Canal. Things have changed since the Canal was first built,” adding that it is “in the interest of those who run the Canal not only to modernize it but to make sure it’s used properly.”

The expansion of the Canal will create a new lane of traffic along the Canal.