]! ^! Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821 and joined a union of Colombia, Venezuela, and Ecuador - named the Republic of Gran Colombia. When the latter dissolved in 1830, Panama remained part of Colombia. With US backing, Panama seceded from Colombia in 1903 and promptly signed a treaty with the US allowing for the construction of a canal and US sovereignty over a strip of land on either side of the structure (the Panama Canal Zone). The Panama Canal was built by the US Army Corps of Engineers between 1904 and 1914. In 1977, an agreement was signed for the complete transfer of the Canal from the US to Panama by the end of the century. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the subsequent decades. With US help, dictator Manuel NORIEGA was deposed in 1989. The entire Panama Canal, the area supporting the Canal, and remaining US military bases were transferred to Panama by the end of 1999. In October 2006, Panamanians approved an ambitious plan to expand the Canal. The project, which is to begin in 2007 and could double the Canal's capacity, is expected to be completed in 2014-15. 
]" ^" Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica ^# 9 00 N, 80 00 W ^$ Central America and the Caribbean ^% `! 78,200 sq km `" 75,990 sq km `# 2,210 sq km ^& slightly smaller than South Carolina ^' `! 555 km `Y Colombia 225 km, Costa Rica 330 km ^( 2,490 km ^) `$ 12 nm `M 24 nm `N 200 nm or edge of continental margin ^* tropical maritime; hot, humid, cloudy; prolonged rainy season (May to January), short dry season (January to May) ^+ interior mostly steep, rugged mountains and dissected, upland plains; coastal areas largely plains and rolling hills ^, `% Pacific Ocean 0 m `& Volcan de Chiriqui 3,475 m ^- copper, mahogany forests, shrimp, hydropower ^. `' 7.26% `( 1.95% `) 90.79% (2005) ^/ 430 sq km (2003) ^0 occasional severe storms and forest fires in the Darien area ^1 water pollution from agricultural runoff threatens fishery resources; deforestation of tropical rain forest; land degradation and soil erosion threatens siltation of Panama Canal; air pollution in urban areas; mining threatens natural resources _P `P Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling `Q Marine Life Conservation ^2 strategic location on eastern end of isthmus forming land bridge connecting North and South America; controls Panama Canal that links North Atlantic Ocean via Caribbean Sea with North Pacific Ocean 
]# ^3 3,242,173 (July 2007 est.) ^4 `+ 30% (male 496,195/female 476,508) `, 63.6% (male 1,044,139/female 1,016,805) `- 6.4% (male 97,365/female 111,161) (2007 est.) ^5 `! 26.4 years `. 26 years `/ 26.7 years (2007 est.) ^6 1.564% (2007 est.) ^7 21.45 births/1,000 population (2007 est.) ^8 5.44 deaths/1,000 population (2007 est.) ^9 -0.37 migrant(s)/1,000 population (2007 est.) ^: `0 1.05 male(s)/female `1 1.041 male(s)/female `, 1.027 male(s)/female `- 0.876 male(s)/female `2 1.021 male(s)/female (2007 est.) ^; `! 15.96 deaths/1,000 live births `. 17.33 deaths/1,000 live births `/ 14.54 deaths/1,000 live births (2007 est.) ^< `2 75.19 years `. 72.69 years `/ 77.8 years (2007 est.) ^= 2.66 children born/woman (2007 est.) ^> 0.9% (2003 est.) ^? 16,000 (2003 est.) ^@ less than 500 (2003 est.) ^A `3 Panamanian(s) `4 Panamanian ^B mestizo (mixed Amerindian and white) 70%, Amerindian and mixed (West Indian) 14%, white 10%, Amerindian 6% ^C Roman Catholic 85%, Protestant 15% ^D Spanish (official), English 14%; note - many Panamanians bilingual ^E `5 age 15 and over can read and write `2 92.6% `. 93.2% `/ 91.9% (2003 est.) 
]$ ^F `6 Republic of Panama `7 Panama `Z Republica de Panama `[ Panama ^H constitutional democracy ^I `8 Panama `9 8 58 N, 79 32 W `: UTC-5 (same time as Washington, DC during Standard Time) ^J 9 provinces (provincias, singular - provincia) and 1 territory* (comarca); Bocas del Toro, Chiriqui, Cocle, Colon, Darien, Herrera, Los Santos, Panama, San Blas*(Kuna Yala), and Veraguas ^K 3 November 1903 (from Colombia; became independent from Spain 28 November 1821) ^L Independence Day, 3 November (1903) ^M 11 October 1972; major reforms adopted 1978, 1983, 1994, and 2004 ^N based on civil law system; judicial review of legislative acts in the Supreme Court of Justice; accepts compulsory ICJ jurisdiction, with reservations ^O 18 years of age; universal and compulsory ^P `; President Martin TORRIJOS Espino (since 1 September 2004); First Vice President Samuel LEWIS Navarro (since 1 September 2004); Second Vice President Ruben AROSEMENA Valdes (since 1 September 2004); note - the president is both the chief of state and head of government `< President Martin TORRIJOS Espino (since 1 September 2004); First Vice President Samuel LEWIS Navarro (since 1 September 2004); Second Vice President Ruben AROSEMENA Valdes (since 1 September 2004) `= Cabinet appointed by the president `> president and vice presidents elected on the same ticket by popular vote for five-year terms (eligible for two more terms); election last held 2 May 2004 (next to be held on 3 May 2009); note - beginning in 2009, Panama will have only one vice president. `? Martin TORRIJOS Espino elected president; percent of vote - Martin TORRIJOS Espino 47.5%, Guillermo ENDARA Galimany 30.6%, Jose Miguel ALEMAN 17%, Ricardo MARTINELLI 4.9% `* government coalition - PRD (Democratic Revolutionary Party), PP (Popular Party) ^Q unicameral National Assembly or Asamblea Nacional (78 seats; members are elected by popular vote to serve five-year terms); note - in 2009, the number of seats will change to 71 `> last held 2 May 2004 (next to be held 3 May 2009) `? percent of vote by party - NA; seats by party - PRD 41, PA 17, PS 9, MOLIRENA 4, CD 3, PLN 3, PP 1 `* legislators from outlying rural districts are chosen on a plurality basis while districts located in more populous towns and cities elect multiple legislators by means of a proportion-based formula ^R Supreme Court of Justice or Corte Suprema de Justicia (nine judges appointed for 10-year terms); five superior courts; three courts of appeal ^S Democratic Change or CD [Ricardo MARTINELLI]; Democratic Revolutionary Party or PRD [Hugo GUIRAUD]; Liberal Party or PLN [Joaquin F. Franco VASQUEZ]; Nationalist Republican Liberal Movement or MOLIRENA [Gisela CHUNG]; Panamenista Party or PA [Juan Carlos VARELA] (formerly the Arnulfista Party); Patriotic Union Party or PUP [Jose Raul MULINO and Anibal GALINDO]; Popular Party or PP [Rene ORILLAC] (formerly Christian Democratic Party or PDC); Solidarity Party or PS ^T Chamber of Commerce; National Civic Crusade; National Council of Organized Workers or CONATO; National Council of Private Enterprise or CONEP; National Union of Construction and Similar Workers (SUNTRACS); Panamanian Association of Business Executives or APEDE; Panamanian Industrialists Society or SIP; Workers Confederation of the Republic of Panama or CTRP ^U CAN (observer), CSN (observer), FAO, G-77, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITU, ITUC, LAES, LAIA (observer), MIGA, NAM, OAS, OPANAL, OPCW, PCA, RG, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO ^V `R Ambassador Federico HUMBERT Arias `S 2862 McGill Terrace NW, Washington, DC 20008 `T [1] (202) 483-1407 `U [1] (202) 483-8416 `V Atlanta, Houston, Miami, New Orleans, New York, Philadelphia, San Francisco, San Juan (Puerto Rico), Tampa ^W `R Ambassador William A. EATON `_ Avenida Balboa and Calle 37, Apartado Postal 0816-02561, Zona 5, Panama City 5 `` American Embassy Panama, Unit 0945, APO AA 34002 `T [507] 207-7000 `U [507] 227-1964 ^X divided into four, equal rectangles; the top quadrants are white (hoist side) with a blue five-pointed star in the center and plain red; the bottom quadrants are plain blue (hoist side) and white with a red five-pointed star in the center 
]% ^Y Panama's dollarized economy rests primarily on a well-developed services sector that accounts for three-fourths of GDP. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. A slump in the Colon Free Zone and agricultural exports, the global slowdown, and the withdrawal of US military forces held back economic growth in 2000-03; growth picked up in 2004-06 led by export-oriented services and a construction boom stimulated by tax incentives. The government has implemented tax reforms, as well as social security reforms, and backs regional trade agreements and development of tourism. Unemployment remains high. In October 2006, voters passed a referendum to expand the Panama Canal to accommodate ships that are now too large to transverse the transoceanic crossway. Not a CAFTA signatory, Panama in December 2006 independently negotiated a free trade agreement with the US, which, when implemented, will help promote the country's economic growth. ^Z $25.29 billion (2006 est.) ^[ $16.2 billion (2006 est.) ^\ 6.3% (2006 est.) ^] $7,900 (2006 est.) ^^ `@ 7.2% `A 16.4% `B 76.4% (2006 est.) ^_ 1.441 million `* shortage of skilled labor, but an oversupply of unskilled labor (2006 est.) ^` `@ 20.8% `A 18% `B 61.2% (1995 est.) ^a 8.8% (2006 est.) _! 37% (1999 est.) _" `C 1.2% `D 35.7% (1997) _d 56.4 (2000) _# 2.6% (2006 est.) _V 17.5% of GDP (2006 est.) _$ `E $4.157 billion `F $4.489 billion; including capital expenditures of $471 million (2006 est.) _% 61.3% of GDP (2006 est.) _& bananas, rice, corn, coffee, sugarcane, vegetables; livestock; shrimp _' construction, brewing, cement and other construction materials, sugar milling _( 3% (2006 est.) _) 7.545 billion kWh (2004) _* 6.888 billion kWh (2004) _+ 207 million kWh (2004) _, 78 million kWh (2004) _- 0 bbl/day (2004 est.) _. 79,000 bbl/day (2004 est.) _/ NA bbl/day _0 NA bbl/day _1 0 cu m (2004 est.) _2 0 cu m (2004 est.) _Q $-467 million (2006 est.) _3 $8.087 billion f.o.b.; note - includes the Colon Free Zone (2006 est.) _4 bananas, shrimp, sugar, coffee, clothing _5 US 44.9%, Spain 8.9%, Sweden 5.6%, Netherlands 4.9%, Costa Rica 4% (2005) _6 $9.365 billion f.o.b. (includes the Colon Free Zone) (2006 est.) _7 capital goods, foodstuffs, consumer goods, chemicals _8 US 27.5%, Netherlands Antilles 11.4%, Costa Rica 4.7%, Japan 4.5% (2005) _[ $1.236 billion (2006 est.) _9 $9.993 billion (2006 est.) _: $197.1 million (1995) _; balboa (PAB); US dollar (USD) _< balboas per US dollar - 1 (2006), 1 (2005), 1 (2004), 1 (2003), 1 (2002) _= calendar year 
]& _> 440,100 (2005) _? 1.352 million (2005) _@ `G domestic and international facilities well developed `H NA `I country code - 507; 1 coaxial submarine cable; satellite earth stations - 2 Intelsat (Atlantic Ocean); connected to the Central American Microwave System _A AM 101, FM 134, shortwave 0 (1998) _B 38 (including repeaters) (1998) _C .pa _D 7,149 (2006) _E 300,000 (2005) 
]' _F 117 (2006) _G `! 53 `a 1 `J 1 `b 5 `c 18 `W 28 (2006) _R `! 64 `b 1 `c 10 `W 53 (2006) _e `! 355 km `m 77 km 1.435-m gauge `n 278 km 0.914-m gauge (2005) _H `! 11,643 km `K 4,028 km `L 7,615 km (2000) _b 800 km (includes 82 km Panama Canal) (2005) _S `! 5,473 ships (1000 GRT or over) 146,511,342 GRT/219,940,567 DWT by type: barge carrier 1, bulk carrier 1,776, cargo 992, chemical tanker 476, combination ore/oil 2, container 663, liquefied gas 193, livestock carrier 7, passenger 49, passenger/cargo 77, petroleum tanker 518, refrigerated cargo 299, roll on/roll off 123, specialized tanker 23, vehicle carrier 274 `X 4,922 (Anguilla 1, Argentina 9, Australia 3, Bahamas, The 2, Belgium 11, Bermuda 1, Bulgaria 1, Canada 4, Chile 9, China 420, Colombia 5, Croatia 5, Cuba 11, Cyprus 14, Denmark 34, Egypt 16, Estonia 3, France 15, Gabon 1, Germany 35, Greece 524, Hong Kong 169, India 19, Indonesia 50, Iran 4, Ireland 2, Israel 6, Italy 15, Japan 2007, Jordan 13, South Korea 291, Kuwait 2, Latvia 3, Lebanon 2, Lithuania 5, Malaysia 13, Maldives 1, Malta 3, Mexico 5, Monaco 9, Morocco 1, Netherlands 21, Nigeria 7, Norway 66, Pakistan 3, Peru 15, Philippines 13, Poland 15, Portugal 10, Qatar 1, Romania 9, Russia 7, Saudi Arabia 8, Singapore 67, South Africa 3, Spain 53, Sri Lanka 5, Sudan 1, Sweden 5, Switzerland 226, Syria 18, Taiwan 308, Thailand 9, Trinidad and Tobago 1, Turkey 42, UAE 105, UK 37, Ukraine 8, US 94, Venezuela 14, Vietnam 4, Yemen 3) `d 1 (Venezuela 1) (2006) _I Balboa, Colon, Cristobal 
]( _J an amendment to the Constitution abolished the armed forces, but there are security forces (Panamanian Public Forces or PPF includes the Panamanian National Police, National Maritime Service, and National Air Service) _K males age 18-49: 751,065 (2005 est.) Manpower fit for military service: males age 18-49: 591,604 (2005 est.) _L males age 18-49: 29,724 _U 1.1% (2006 est.) _M on 10 February 1990, the government of then President ENDARA abolished Panama's military and reformed the security apparatus by creating the Panamanian Public Forces; in October 1994, Panama's Legislative Assembly approved a constitutional amendment prohibiting the creation of a standing military force, but allowing the temporary establishment of special police units to counter acts of "external aggression" 
]) _N organized illegal narcotics operations in Colombia operate within the remote border region with Panama _O major cocaine transshipment point and primary money-laundering center for narcotics revenue; money-laundering activity is especially heavy in the Colon Free Zone; offshore financial center; negligible signs of coca cultivation; monitoring of financial transactions is improving; official corruption remains a major problem 