A bill to impose sanctions against the Republic of Panama.

Prohibits the importation of any products of Panama. Prohibits the exportation to Panama of any U.S. goods or technology, except for medicine and humanitarian assistance.

Requires the President to notify the Government of Panama that he will order the revocation of the rights of any air carrier to provide service pursuant to any aviation agreement between the United States and Panama. Requires the President to direct the Secretary of Transportation to: (1) revoke such rights; (2) refuse to permit any U.S. air carrier to provide service between the United States and Panama; (3) prohibit the landing in the United States of any foreign air carrier owned by the Panamanian Government or any aircraft of a foreign air carrier that has taken off from Panama within the preceding 48 hours; and (4) prohibit the takeoff and landing in Panama of any aircraft of any air carrier owned or controlled by a U.S. national or corporation. Allows exceptions to such prohibitions in emergency situations.

Prohibits any depository institution from transferring any funds to any financial institution located in, or organized under the laws of, Panama.

Specifies that such prohibitions shall not apply with respect to activities which the President determines to be necessary to enable the Panama Canal Commission, the Department of Defense, or any other U.S. Government agency to carry out its responsibilities with respect to Panama and the Panama Canal.

Terminates such sanctions if the President certifies to the Congress that: (1) General Noriega has been extradited to the United States to stand trial on drug trafficking charges; or (2) progress toward genuine democracy has been achieved in Panama.

Specifies that nothing in this Act shall be deemed to affect the status of the 1977 Panama Canal Treaty or related agreements, or the 1977 Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal.