Autoridad del Canal de Panamá ©
Political relations between the EU and Panama have been shaped by the San
José Dialogue, which was launched at an EU-Central America Ministerial Meeting
in Costa Rica in 1984. Panama is a signatory to the 1993 EU-Central America
Framework Cooperation Agreement and to the Political Dialogue and Cooperation Agreement signed in 2003 
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. It sits in as an observer on the
EU-Central America negotiations with a view to an Association Agreement,
including a free trade area.
The EU is the top foreign investor in Panama, the leading aid donor to the
country and its third trading partner. Due to its relatively high economic
development indicators, Panama is not considered a priority country for
cooperation by international donors. It has nevertheless been allocated €38
million from the EU budget for the years 2007-2013 (see the Country Strategy Paper [590 KB] 
. The objectives are: (1) to improve social cohesion focusing on social
policies and services in order to help reduce poverty; and (2) to support
regional integration with the Central American countries with a view to
sustaining Panama’s efforts to develop policies in line with those of the rest
of the region.
[24 KB] and the National Indicative Programme 2007-2013 for Panama [58 KB]
