Panama and NAFTA

The president also received broad bipartisan congressional backing for the brief U.S. invasion of Panama on December 20, 1989, that deposed dictator General Manuel Antonio Noriega. In the 1980s, addiction to crack cocaine reached epidemic proportions, and President Bush put the "War on Drugs" at the center of his domestic agenda. Moreover, Noriega, an especially brutal dictator, had attempted to maintain himself in power with rather crude displays of anti-Americanism. After seeking refuge in the Vatican embassy, Noriega turned himself over to U.S. authorities. He was later tried and convicted in U.S. federal court in Miami, Florida, of drug trafficking and racketeering.

On the economic front, the Bush administration negotiated the North America Free Trade Agreement (NAFTA) with Mexico and Canada. It would be ratified after an intense debate in the first year of the Clinton administration.