A bill to restrict United States assistance for Panama.

(Measure indefinitely postponed in Senate)

Prohibits the provision of any U.S. assistance to Panama (including assistance obligated during FY 1987) unless the President certifies to the Congress that: (1) the Government of Panama has demonstrated substantial progress in efforts to assure civilian control of the armed forces and that the Panama Defense Forces and its leaders have been removed from nonmilitary activities and institutions; (2) freedom of the press and other constitutional guarantees, including due process of law, are restored to the Panamanian people; (3) a satisfactory agreement has been reached between the governing authorities and representatives of the opposition forces on conditions for free and fair elections; and (4) the Government of Panama is conducting an impartial investigation into allegations of illegal actions by members of the Panama Defense Forces.

Exempts from such prohibition: (1) assistance provided through private and voluntary organizations; (2) the donation of food or medicine; (3) disaster relief assistance; (4) refugee assistance; (5) assistance under the Inter-American Foundation Act; and (6) educational assistance for Panamanians in the United States.

Expresses the sense of the Congress that if such conditions have been certified as having been met, the U.S. assistance should be restored and increased levels of U.S. assistance should be furnished to Panama.

Prohibits the importation of any Panamanian sugar products during any period in which a quota is imposed on such imports. Permits such importation following a quota year if the President certifies that for the entire quota year, freedom of the press and other constitutional guarantees, including due process of law, have been restored to the Panamanian people. Authorizes the U.S. Trade Representative to reallocate Panama's quota to other eligible countries before the end of each quota year for which the President does not certify that constitutional guarantees have been restored.