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Panama: Political and Economic Conditions and U.S. Relations [November 27, 2012]
"With five successive elected civilian governments, the Central American nation of Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Antonio Noriega from power. Current President Ricardo Martinelli of the center-right Democratic Change (CD) party was elected in May 2009, defeating the ruling center-left Democratic Revolutionary Party (PRD) in a landslide. Martinelli was inaugurated to a five-year term on July 1, 2009. Martinelli's Alliance for Change coalition with the Panameñista Party (PP) also captured a majority of seats in Panama's National Assembly. Panama's service-based economy has been booming in recent years--with a growth rate of 7.6% in 2010 and 10.6% in 2011--largely because of the ongoing Panama Canal expansion project, now slated for completion in early 2015. […] The United States has close relations with Panama, stemming in large part from the extensive linkages developed when the Canal was under U.S. control and Panama hosted major U.S. military installations. The current relationship is characterized by extensive counternarcotics cooperation; support to promote Panama's economic, political, and social development; and a bilateral free trade agreement (FTA) that entered into force at the end of October 2012. U.S. bilateral assistance amounted to $3 million in FY2011 and an estimated $2.8 million for FY2012 while the FY2013 request is for $3.7 million. This funding does not include health assistance to combat HIV/AIDS and malaria funded under regional programs or assistance allocated to Panama under the Central America Regional Security Initiative (CARSI) that assists countries in their efforts to combat drug trafficking and organized crime. A number of U.S. agencies provide additional support to Panama."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2012-11-27
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Panama: Political and Economic Conditions and U.S. Relations [August 17, 2011]
"With five successive elected civilian governments, the Central American nation of Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Noriega from power. Current President Ricardo Martinelli of the center-right Democratic Change (CD) party was elected in May 2009, defeating the ruling center-left Democratic Revolutionary Party (PRD) in a landslide. Martinelli was inaugurated to a five-year term on July 1, 2009. Martinelli's Alliance for Change coalition also captured a majority of seats in Panama's National Assembly. Panama's service-based economy has been booming in recent years, largely because of the ongoing Panama Canal expansion project (slated for completion in 2014), but economic growth slowed in 2009 because of the global financial crisis and U.S. economic recession. Nevertheless, the economy rebounded in 2010, with a growth rate of 7.5%, and strong growth is continuing in 2011. […] The United States and Panama signed a bilateral FTA [free trade agreement] in June 2007, and Panama's National Assembly approved the agreement in July 2007. Neither the 110th nor the 111th Congress considered the agreement. In the 112th Congress, congressional concerns regarding the FTA have included Panama's labor rights and tax transparency, but the Administration's efforts to resolve these issues with Panama resulted in the Administration moving forward to work with Congress on draft implementing legislation for the agreement. Both the House Ways and Means Committee and Senate Finance Committee approved draft implementing legislation in 'mock markups' held on July 7, 2011. Introduction of the official bill awaits congressional agreement on how to deal with consideration of trade adjustment assistance (TAA) legislation. Early in the 112th Congress, several measures were introduced that would express support for the FTA: S.Res. 20, S. 98, and H.Res. 86. For additional information, see CRS [Congressional Research Service] Report RL32540, 'The Proposed U.S.-Panama Free Trade Agreement'; CRS Report R40622, 'Agriculture in Pending U.S. Free Trade Agreements with Colombia, Panama, and South Korea'; and CRS Report R41731, 'Central America Regional Security Initiative: Background and Policy Issues for Congress.'"
Library of Congress. Congressional Research Service
Sullivan, Mark P.; Marples, Donald; Wilk, Eliana M.
2011-08-17
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Panama: Political and Economic Conditions and U.S. Relations [May 11, 2011]
"With five successive elected civilian governments, the Central American nation of Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Noriega from power. Current President Ricardo Martinelli of the center-right Democratic Change (CD) party was elected in May 2009, defeating the ruling center-left Democratic Revolutionary Party (PRD) in a landslide. Martinelli was inaugurated to a five-year term on July 1, 2009. Martinelli's Alliance for Change coalition also captured a majority of seats in Panama's National Assembly. Panama's service-based economy has been booming in recent years, largely because of the ongoing Panama Canal expansion project (slated for completion in 2014), but economic growth slowed in 2009 because of the global financial crisis and U.S. economic recession. Nevertheless, the economy rebounded in 2010, with a growth rate approaching 7%, and strong growth is continuing in 2011."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2011-05-11
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Panama: Political and Economic Conditions and U.S. Relations [April 22, 2011]
"The United States has close relations with Panama, stemming in large part from the extensive linkages developed when the Canal was under U.S. control and Panama hosted major U.S. military installations. The current relationship is characterized by extensive counternarcotics cooperation; support to promote Panama's economic, political, and social development; and a proposed bilateral free trade agreement (FTA). U.S. bilateral assistance amounted to $7.3 million in FY [fiscal year] 2010 while the FY2011 request is for $10.6 million and the FY2012 request for $2.6 million. This funding does not include assistance in FY2008 and FY2009 under the Mérida Initiative to assist Central American countries in their efforts to combat drug trafficking, gangs, and organized crime; beginning in FY2010, Panama has been receiving assistance under the successor Central America Regional Security Initiative. [...] The United States and Panama signed a bilateral FTA in June 2007, and Panama's National Assembly approved the agreement in July 2007. Neither the 110th nor the 111th Congress considered the agreement, but the 112th Congress could consider the agreement this session. Issues that have raised congressional concern relate to worker rights and to Panama's tax transparency. In the 112th Congress, several measures have been introduced that would express support for the FTA with Panama: S.Res. 20 (Johanns) and S. 98 (Portman), both introduced January 25, 2011; and H.Res. 86 (Frelinghuysen), introduced February 11, 2011."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2011-04-22
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Panama: Political and Economic Conditions and U.S. Relations [March 1, 2011]
"With five successive elected civilian governments, the Central American nation of Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Noriega from power. Current President Ricardo Martinelli of the center-right Democratic Change (CD) party was elected in May 2009, defeating the ruling center-left Democratic Revolutionary Party (PRD) in a landslide. Martinelli was inaugurated to a five-year term on July 1, 2009. Martinelli's Alliance for Change coalition also captured a majority of seats in Panama's National Assembly. Panama's service-based economy has been booming in recent years, largely because of the ongoing Panama Canal expansion project (slated for completion in 2014), but economic growth slowed in 2009 because of the global financial crisis and U.S. economic recession. Nevertheless, the economy rebounded in 2010, with a growth rate approaching 7%, and strong growth is continuing in 2011. President Martinelli still retains high approval ratings, but he has been criticized by some civil society groups for taking a heavy-handed approach toward governing and for not being more consultative. The country experienced labor unrest in July 2010 after the government approved legislation that would have allowed companies to suspend contracts of striking workers and hire replacement workers during strikes, but the government ultimately agreed to repeal the provisions. In February 2011, the government amended the country's mining law to allow foreign investment. Indigenous groups have protested the change even though President Martinelli has vowed that his administration would not approve any mining concessions in indigenous areas."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2011-03-01
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Panama: Political and Economic Conditions and U.S. Relations [February 2, 2011]
"With five successive elected civilian governments, the Central American nation of Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Noriega from power. Current President Ricardo Martinelli of the center-right Democratic Change (CD) party was elected in May 2009, defeating the ruling center-left Democratic Revolutionary Party (PRD) in a landslide. Martinelli was inaugurated to a five-year term on July 1, 2009. Martinelli's s Alliance for Change coalition also captured a majority of seats in Panama's National Assembly that will increase the chances that the President will be able to secure enough votes to enact his legislative agenda. A significant challenge facing the Martinelli government has been dealing with the economic fallout stemming from the global economic recession, but while the growth of Panama's servicebased economy has slowed, it has avoided the economic contraction experienced by many Latin American economies. The Panama Canal expansion project has played a large role in stimulating economic growth. President Martinelli has called for a number of large public infrastructure projects, including a subway for Panama City, and the government has begun to move ahead on some of these projects. In March 2010, President Martinelli secured legislative approval of a tax reform measure that reduces corporate and individual income taxes while raising sales and other taxes that overall is expected to increase government revenue."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2011-02-02
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Panama: Political and Economic Conditions and U.S. Relations [May 5, 2010]
"With five successive elected civilian governments, the Central American nation of Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Noriega from power. Current President Ricardo Martinelli of the center-right Democratic Change (CD) party was elected in May 2009, defeating the ruling center-left Democratic Revolutionary Party (PRD) in a landslide. Martinelli was inaugurated to a five-year term on July 1, 2009. […]. The United States has close relations with Panama, stemming in large part from the extensive linkages developed when the canal was under U.S. control and Panama hosted major U.S. military installations. The current relationship is characterized by extensive counternarcotics cooperation, assistance to help Panama assure the security of the Canal, and a proposed bilateral free trade agreement (FTA). […]. In June 2007, the United States and Panama signed a proposed bilateral FTA, and Panama's National Assembly overwhelmingly approved the agreement in July 2007. While the 111th Congress could consider implementing legislation for the FTA, a number of observers believe that it is unlikely that it will be considered this year. Final issues being worked out relate to worker rights and to Panama's bank secrecy laws. H.Res. 987 (Frelinghuysen), introduced in December 2009, would express the sense of the House that the FTA with Panama should be implemented immediately, and H.Res. 1124 (Mack), introduced in February 2010, would call on President Obama to submit the Panama FTA to Congress and work to ensure that it is approved."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2010-05-05
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Panama: Political and Economic Conditions and U.S. Relations [Updated July 15, 2009]
"With five successive elected civilian governments, the Central American nation of Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Noriega from power. The current President, Ricardo Martinelli of the centrist Democratic Change (CD) party was elected in May 2009, defeating the ruling Democratic Revolutionary Party (PRD) in a landslide. Martinelli was inaugurated to a fiveyear term on July 1, 2009. His Alliance for Change coalition also captured a majority of seats in Panama's National Assembly that will increase the chances that the new President will be able to secure enough votes to enact his legislative agenda."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2009-07-15
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Panama: Political and Economic Conditions and U.S. Relations [Updated July 31, 2008]
"With four successive elected civilian governments, the Central American nation of Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Noriega from power. The current President, Martín Torrijos of the Democratic Revolutionary Party (PRD), was elected in May 2004 and inaugurated to a five-year term in September 2004. [...]. The most significant challenges facing the Torrijos government have included dealing with the funding deficits of the country's social security fund; developing plans for the expansion of the Panama Canal; and combating unemployment and poverty. In April 2006, the government unveiled its ambitious plans to build a third lane and new set of locks that will double the Canal's capacity. In an October 2006 referendum on the issue, 78% of voters supported the expansion project, which officially began in September 2007. Panama's service-based economy has been booming in recent years, but income distribution remains highly skewed, with large disparities between the rich and poor. The United States has close relations with Panama, stemming in large part from the extensive linkages developed when the Panama Canal was under U.S. control and Panama hosted major U.S. military installations. The current bilateral relationship is characterized by extensive counternarcotics cooperation, assistance to help Panama assure the security of the Canal, and negotiations for a bilateral free trade agreement (FTA)."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2008-07-31
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Panama: Political and Economic Conditions and U.S. Relations [Updated January 28, 2008]
"With four successive elected civilian governments, the Central American nation of Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Noriega from power. The current President, Martín Torrijos of the Democratic Revolutionary Party (PRD), was elected in May 2004 and inaugurated to a five-year term in September 2004. [...]. The most significant challenges facing the Torrijos government have included dealing with the funding deficits of the country's social security fund; developing plans for the expansion of the Panama Canal; and combating unemployment and poverty. In April 2006, the government unveiled its ambitious plans to build a third lane and new set of locks that will double the Canal's capacity. In an October 2006 referendum on the issue, 78% of voters supported the expansion project, which officially began in September 2007. Panama's service-based economy has been booming in recent years, but income distribution remains highly skewed, with large disparities between the rich and poor. The United States has close relations with Panama, stemming in large part from the extensive linkages developed when the Panama Canal was under U.S. control and Panama hosted major U.S. military installations. The current bilateral relationship is characterized by extensive counternarcotics cooperation, assistance to help Panama assure the security of the Canal, and negotiations for a bilateral free trade agreement (FTA)."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2008-01-28
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Panama: Political and Economic Conditions and U.S. Relations [Updated September 4, 2007]
"The United States has close relations with Panama, stemming in large part from the extensive linkages developed when the Panama Canal was under U.S. control and Panama hosted major U.S. military installations. The current bilateral relationship is characterized by extensive counternarcotics cooperation, assistance to help Panama assure the security of the Canal, and negotiations for a bilateral free trade agreement (FTA). The United States provided Panama with $9.4 million in foreign aid in FY2006 and an estimated $12.2 million in FY2007. The FY2008 request is for $5.1 million. After 10 rounds of negotiations, the United States and Panama announced the conclusion of an FTA on December 19, 2006, although U.S. officials stated the agreement was subject to additional discussions on labor and that the Administration would work with Congress to ensure strong bipartisan support. Subsequently, congressional leaders and the Bush Administration announced a bipartisan deal on May 10, 2007, whereby pending FTAs, including that with Panama, would include enforceable key labor and environmental standards. On June 28, 2007, the United States and Panama signed the FTA, which included the enforceable labor and environmental provisions. Panama's Legislative Assembly overwhelmingly approved the agreement on July 11, 2007 by vote of 58 to 3, with 1 abstention. The U.S. Congress could consider implementing legislation as early as September 2007."
Library of Congress. Congressional Research Service
Sullivan, Mark P.; Olhero, Nelson
2007-09-04
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Panama: Political and Economic Conditions and U.S. Relations [Updated August 22, 2007]
"With four successive elected civilian governments, the Central American nation of Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Noriega from power. The current President, Martín Torrijos of the Democratic Revolutionary Party (PRD), was elected in May 2004 and inaugurated to a five-year term in September 2004. Torrijos, the son of former populist leader General Omar Torrijos, won a decisive electoral victory with almost 48% of the vote in a four-man race. He succeeded President Mireya Moscoso of the Arnulfist Party, elected in 1999, whose administration was tainted by several high-profile corruption scandals. Torrijos' electoral alliance also won a majority of seats in the unicameral Legislative Assembly. The most significant challenges facing the Torrijos government have included dealing with the funding deficits of the country's social security fund; developing plans for the expansion of the Panama Canal; and combating unemployment and poverty. In April 2006, the government unveiled its ambitious plans to build a third lane and new set of locks that will double the Canal's capacity. In an October 2006 referendum on the issue, 78% of voters supported the expansion project. Panama's service-based economy has been booming in recent years, but income distribution remains highly skewed, with large disparities between the rich and poor. The United States has close relations with Panama, stemming in large part from the extensive linkages developed when the Panama Canal was under U.S. control and Panama hosted major U.S. military installations."
Library of Congress. Congressional Research Service
Sullivan, Mark P.; Olhero, Nelson
2007-08-22
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Panama: Political and Economic Conditions and U.S. Relations [Updated January 16, 2007]
"The most significant challenges facing the Torrijos government have included dealing with the funding deficits of the country's social security fund; developing plans for the expansion of the Panama Canal; and combating unemployment and poverty. After protests and a protracted strike by construction workers, doctors, and teachers in 2005, the Torrijos government was forced to modify its plans for reforming the social security fund. In April 2006, the government unveiled its ambitious plans to build a third lane and new set of locks that will double the Canal's capacity. In an October 2006 referendum on the issue, 78% of voters supported the expansion project. The United States has close relations with Panama, stemming in large part from the extensive linkages developed when the Panama Canal was under U.S. control and Panama hosted major U.S. military installations. The current bilateral relationship is characterized by extensive cooperation on counternarcotics efforts, assistance to help Panama assure the security of the Canal and its border with Colombia, and negotiations for a bilateral free trade agreement. The United States provided Panama with $19 million in foreign aid in FY2005, and an estimated $14.4 million in FY2006. The FY2007 request is for $17.4 million, with $4 million under the Andean Counterdrug Initiative and $3.2 million in development assistance. After 10 rounds of negotiations, the United States and Panama announced the conclusion of a free trade agreement on December 19, 2006."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2007-01-16
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Panama: Political and Economic Conditions and U.S. Relations [Updated November 16, 2006]
"With four successive elected civilian governments, Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Noriega from power. The current President, Martin Torrijos of the Democratic Revolutionary Party (PRD), was elected in May 2004 and inaugurated to a 4-year term on September 1, 2004. The most significant challenges facing the Torrijos government have included dealing with the funding deficits of the country's social security fund; developing plans for the expansion of the Panama Canal; and combating unemployment and poverty. After protests and a protracted strike by construction workers, doctors, and teachers in 2005, the Torrijos government was forced to modify its plans for reforming the social security fund. In April 2006, the government unveiled its ambitious plans to build a third lane and new set of locks that will double the Canal's capacity. A constitutionally required referendum on the expansion project was held on October 22, 2006, with 78% of voters supporting the project. The United States has close relations with Panama, stemming in large part from the extensive linkages developed when the Panama Canal was under U.S. control and Panama hosted major U.S. military installations. The current bilateral relationship is characterized by extensive cooperation on counternarcotics efforts, assistance to help Panama assure the security of the Canal and its border with Colombia, and negotiations for a bilateral free trade agreement."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2006-11-16
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Panama: Political and Economic Conditions and U.S. Relations [Updated November 1, 2006]
"The United States has close relations with Panama, stemming in large part from the extensive linkages developed when the Panama Canal was under U.S. control and Panama hosted major U.S. military installations. The current bilateral relationship is characterized by extensive cooperation on counternarcotics efforts, assistance to help Panama assure the security of the Canal and its border with Colombia, and negotiations for a bilateral free trade agreement. The United States provided Panama with $19 million in foreign aid in FY2005, and an estimated $14.4 million in FY2006. The FY2007 request is for $17.4 million, with $4 million under the Andean Counterdrug Initiative and $3.2 million in development assistance."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2006-11-01
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Panama: Political and Economic Conditions and U.S. Relations [Updated September 22, 2006]
"The United States has close relations with Panama, stemming in large part from the extensive linkages developed when the Panama Canal was under U.S. control and Panama hosted major U.S. military installations. The current bilateral relationship is characterized by extensive cooperation on counternarcotics efforts, assistance to help Panama assure the security of the Canal and its border with Colombia, and negotiations for a bilateral free trade agreement. The United States provided Panama with $19 million in foreign aid in FY2005, and an estimated $14.4 million in FY2006. The FY2007 request is for $17.4 million, with $4 million under the Andean Counterdrug Initiative and $3.2 million in development assistance."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2006-09-22
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Panama: Political and Economic Conditions and U.S. Relations [Updated May 24, 2006]
"With four successive elected civilian governments, the Central American nation of Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Noriega from power. The current President, Martín Torrijos of the Democratic Revolutionary Party (PRD), was elected in May 2004 and inaugurated to a four-year term on September 1, 2004. Torrijos, the son of former populist leader General Omar Torrijos, won a decisive electoral victory with almost 48% of the vote in a four-man race. He succeeded President Mireya Moscoso of the Arnulfist Party (PA), elected in 1999, whose administration was tainted by several high-profile corruption scandals. Torrijos' electoral alliance also won a majority of seats in the unicameral Legislative Assembly."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2006-05-24
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Panama: Political and Economic Conditions and U.S. Relations [January 20, 2006]
"With four successive elected civilian governments, the Central American nation of Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Antonio Noriega from power. The current President, Martín Torrijos of the Democratic Revolutionary Party (PRD), was elected in May 2004 and inaugurated on September 1, 2004. Torrijos, the son of former populist leader General Omar Torrijos, won a decisive electoral victory with almost 48% of the vote in a four-man race. He succeeded President Mireya Moscoso of the Arnulfist Party (PA), elected in 1999, whose administration was tainted by several high-profile corruption scandals. Torrijos' electoral alliance also won a majority of seats in the unicameral Legislative Assembly. […] U.S.-Panamanian negotiations for a bilateral free trade agreement began in late April 2004. A ninth round held in Washington ended on January 13, 2006, with disagreement on sanitary control systems for U.S. products and animals to enter the Panamanian market. Panama is seeking an FTA as a means of increasing U.S. investment in the country, while the Bush Administration has stressed that an FTA, in addition to enhancing trade, would further U.S. efforts to strengthen support for democracy and the rule of law. Since Panama has a service-based economy, it traditionally has imported much more than it exports to the United States. In the second session of the 109th Congress, congressional interest will likely focus on the status of bilateral free trade negotiations. If negotiations are completed and an agreement is signed this year, Congress could consider implementing legislation. For additional information, see CRS [Congressional Research Service] Report RL32540, 'The Proposed U.S.-Panama Free Trade Agreement', by J.F. Hornbeck."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2006-01-20
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Panama: Political and Economic Conditions and U.S. Relations [Updated May 20, 2005]
"With four successive elected civilian governments, the Central American nation of Panama has made notable political and economic progress since the 1989 U.S. military intervention that ousted the regime of General Manuel Antonio Noriega from power. The current President, Martín Torrijos of the Democratic Revolutionary Party (PRD, was elected in May 2004 and inaugurated on September 1, 2004. Torrijos, the son of former populist leader General Omar Torrijos, won a decisive electoral victory with almost 48% of the vote in a four-man race. He succeeded President Mireya Moscoso of the Arnulfist Party (PA), elected in 1999, whose administration was tainted by several high-profile corruption scandals. Torrijos' electoral alliance also won a majority of seats in the unicameral Legislative Assembly."
Library of Congress. Congressional Research Service
Sullivan, Mark P.
2005-05-20
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