The two 0.10 PAB stamps were issued in 2003 celebrating the centenary of Republic of Panama,showing the first national flag.
Panama is the southernmost country of both Central America and, in turn, North America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The capital is Panama City.
In the first eighty years following independence from Spain, Panama was a department of Colombia. When the Senate of Colombia rejected the Hay-Herran Treaty, the United States decided to support the Panamanian independence movement. In November 1903, Panama proclaimed its independence and concluded the Hay/Bunau-Varilla Treaty with the United States. The treaty granted rights to the United States "as if it were sovereign" in a zone roughly 10 miles wide and 50 miles long. In that zone, the U.S. would build a canal, then administer, fortify, and defend it "in perpetuity." In 1914, the United States completed the existing 83-kilometer (52-mile) canal.
The 0.03 PAB stamp is from 2007 Tourism issue.
The 0.40 PAB stamp on the right corner was issued in 2000 celebrating the reversion of Panama Canal to Panama since Dec.31,1999.
The concept of a canal near Panama dates to the early 16th century. The first attempt to construct a canal began in 1880 under French leadership, but was abandoned after 21,900 workers died, largely from disease and landslides. The United States launched a second effort, incurring a further 5,600 deaths but succeeding in opening the canal in 1914. The US controlled the canal and the Canal Zone surrounding it until the 1977 Torrijos–Carter Treaties provided for the transition of control to Panama. From 1979 to 1999 the canal was under joint US-Panamanian administration, and from 31 December 1999 command of the waterway was assumed by the Panama Canal Authority, an agency of the Panamanian government.