Nepal and Panama established diplomatic relations on 15 February 1984. The Embassy of Nepal in Washington D.C., USA is currently accredited to Panama and Embassy of Panama in New Delhi, India is accredited to Nepal.
Nepal’s relations with Panama are marked by friendship, mutual respect and understanding. Contacts between the two countries primarily take place in the international forums such as the United Nations and the NAM. Both the countries believe that the UN should be strengthened and play an increasingly active role in maintaining peace and stability in the world. As active members of the NAM and G-77, both countries have been advocating the just cause of the developing world. Nepal and Panama are exploring possibilities of expanding cooperation in common areas, such as climate change.
Trade and investment
The size of interactions on trade, investment and tourism remains nominal at the moment. Some of the commodities imported by Nepal from Panama are cutlery, optical, photographic instruments, coffee etc. Nepal exports carpet and other textile floor covering, raw hides and skins and readymade garments to Panama. Trade volume between Nepal and Panama for the last few years is shown in the table below:
In USD
| Year | Export | Import | Balance |
| 2015 | 5562 | 1200 | 4362 |
| 2016 | 12793 | 1411 | 11382 |
| 2017 | 0 | 0 | 0 |
| 2018 | 17862 | 0 | 17862 |
| 2019 | 10093 | 0 | 10093 |
(Source: TEPC)
August 2020