During the 1990s meetings of Central American presidents, an important element of the Central American peace process, were also directed towards issues relating to the Central American Integration System. These meetings extended participation to include neighbouring countries such as Belize, the Dominican Republic and Panama.

Panama and the Central American countries had signed bilateral partial preferential trade agreements in the 1970s.

The Central American countries and Panama agreed to initiate negotiations towards a free trade agreement on 12 July 1997 at the XIX Summit of Central American Presidents. Negotiations were initiated in July 1998, but were suspended in March 1999. Negotiations were relaunched in March 2000 at a meeting of Ministers of Central America and Panama. The first round of negotiations was held in April 2000 in Guatemala. Negotiations on the normative framework were concluded on 16 May 2001, after eight rounds of negotiations. The following year, bilateral negotiations took place between each of the Central American countries and Panama.

El Salvador and Panama concluded their bilateral negotiations in January 2002, signing a bilateral protocol to the agreement on 6 March 2002. Honduras and Panama concluded their bilateral negotiations and signed a bilateral protocol to the agreement on 15 June 2007. Costa Rica and Panama concluded negotiations on 22 June 2007 and signed a free trade agreement on 7 August 2007. Further rounds of negotiation have been held between Panama and the other Central American countries. The seventh round of negotiations between Nicaragua and Panama was held in Panama City on 12 October 2007. On 15 January 2009, Nicaragua and Panama signed a bilateral protocol to the agreement.

Documents relating to the negotiations
15 January 2009	Nicaragua y Panamá sign bilateral protocol
10 October 2007	Seventh round of negotiations between Nicaragua and Panama
07 August 2007	Costa Rica and Panama sign free trade agreement
22 June 2007	Costa Rica-Panama conclude negotiations
	Summary of market access results Sample of negotiated products
15 June 2007	Honduras and Panama sign bilateral protocol
27 April 2007	Panama City, Panama. Seventh round of the Costa Rica-Panama FTA negotiations
9-12 April 2007	San José, Costa Rica. Sixth round of Costa RIca-Panama FTA negotiations
24-27 October 2006	Panama City, Panama. Fifth round of Costa Rica-Panama FTA negotiations
25 September 2006	Guatemala City, Guatemala. Fourth round of Guatemala-Panama free trade agreement negotiations
18 August 2006	San José, Costa Rica. Fourth round of Costa Rica-Panama negotiations
22-26 June 2006	Guatemala City, Guatemala. Second round of Guatemala-Panama negotiations
16-19 July 2002	San Jose, Costa Rica. Round II of Costa-Rica Panama market access negotiations
03-05 April 2002	Panama City, Panama. Round I of Costa-Rica Panama market access negotiations
06 March 2002	El Salvador-Panama bilateral protocol signed
13 January 2002	Conclusion of El Salvador-Panama negotiations
02-06 September 2001	Final phase of El Salvador-Panama negotiations
March 2000	Re-launching of the Costa Rica -Panama FTA negotiations

Documents relating to the Central America-Panama negotiations
15-16 May 2001	Panama City, Panama. Eighth round of negotiations
13-16 March 2001	Panama City, Panama. Seventh round of negotiations
30 January - 02 February 2001	Managua, Nicaragua. Sixth round of negotiations
08-11 January 2001	Guatemala City, Guatemala. Second meeting of Investment and Services table
04-06 December 2000	Panama City, Panama. Specific rules of origin and customs procedures table
30 November - 01 December 2000	Panama City, Panama. Investment and Services table
24-26 October 2000	San Salvador, El Salvador. Fifth round of negotiations
22-24 August 2000	Panama City, Panama. Fourth round of negotiations
17-20 July 2000	San Jose, Costa Rica. Third round of negotiations
6-8 June 2000	Panama City, Panama. Second round of negotiations
27-28 April 2000	Guatemala City, Guatemala. First round of negotiations
20 March 2000	Meeting of Ministers of Central America and Panama
Source: Ministerio de Comercio e Industrias de Panamá; Ministerio de Comercio Exterior de Costa Rica (COMEX); Ministerio de Economía de El Salvador; Ministerio de Economía de Guatemala; Secretaría de Integración Económica Centroamericana (SIECA)

Previous preferential trade agreements between the Central American countries and Panama
08 June 1973	Costa Rica-Panama preferential trade agreement
02 June 1970	El Salvador-Panama preferential trade agreement
20 June 1974	Guatemala-Panama preferential trade agreement
08 November 1973	Honduras-Panama preferential trade agreement
26 July 1973	Nicaragua-Panama preferential trade agreement

The free trade agreement between El Salvador and Panama entered into force on 11 April 2003.

Costa Rica's Legislative Assembly approved the agreement with Panama on 14 October 2008. On 23 November 2008 the Costa Rica-Panama Free Trade Agreement entered into force.

On 09 January 2009, the Honduras-Panama Free Trade Agreement entered into force.

The free trade agreement between Guatemala and Panama entered into force on 22 June 2009.

On 21 November 2009, the Nicaragua-Panama bilateral protocol entered into force.

Documents relating to entry into force
21 November 2009	Nicaragua-Panama FTA enters into force
22 October  2009	Exchange of instruments of ratification between Nicaragua and Panama
22 June 2009	Guatemala-Panama FTA enters into force
21 May 2009	Guatemala-Panama formally exchange instruments of ratification
09 January 2009	Honduras-Panama FTA enters into force
23 November 2008	Costa Rica-Panama FTA enters into force
14 October 2008	Costa Rica approved a free trade agreement with Panama
11 April 2003	El Salvador-Panama free trade agreement enters into force
13 March 2003	Panama and El Salvador exchange notes
24 January 2003	Panama's Assembly ratifies El Salvador-Panama free trade agreement
03 October 2002	El Salvador's Assembly ratifies El Salvador-Panama free trade agreement
Source: Ministerio de Economía de El Salvador

Article 19.01 of the Agreement establishes an Administrative Commission to oversee the implementation and operation of the Agreement.

On 30 May 2006, El Salvador and Panama signed a protocol modifying the bilateral protocol to the free trade agreement that has been in effect since 2003.

On 13 August 2010, the Administrative Sub-Comission for the FTA met to assess the agreement and to prepare for the next ministerial meeting. The first meeting of the Administrative Comission took place in Guatemala on 07 October 2010.

Documents relating to implementation of the Agreement
08 October 2010	First Meeting of the Administrative Commission of the free trade agreement
13 August 2010	Panama City, Panama. Meeting of the Administrative Sub-Commission of the free trade agreement
30 May 2006	El Salvador and Panama signed a protocol modifying the bilateral free trade agreement
19 November 2003	El Salvador and Panama form Administrative Commission for the free trade agreement
Sources: Ministerio de Economía de El Salvador, Ministerio de Comercio Exterior de Costa Rica (COMEX)

• Ministerio de Comercio e Industrias de Panamá
• Ministerio de Comercio Exterior de Costa Rica (COMEX)
• Ministerio de Economía de El Salvador
• Ministerio de Economía de Guatemala
• Secretaría de Integración Económica Centroamericana (SIECA)