Manuel Noriega, who had served as the military leader of Panama since 1983, became a major figure in international drug trafficking in the 1980s. Known for his ties to various drug cartels, he was vital in facilitating the flow of cocaine into the United States. On February 5, 1988, U.S. authorities escalated their actions against him when a federal grand jury in Miami indicted him on multiple charges, including drug smuggling and money laundering. The indictment detailed accusations of conspiring to import cocaine and profiting illicitly from the drug trade. These actions were not only legal maneuvers but also part of a broader strategy to undermine Noriega's power in Panama.

The U.S. government, while publicly condemning drug trafficking, was entangled in complex relationships with Central American leaders, including Noriega, who had previously served as an ally during the Cold War. By indicting Noriega, the U.S. signaled a significant shift in its policy towards Panama, emphasizing the fight against narcotics. Soon after issuing the indictment, the U.S. proposed various methods to apprehend Noriega, including potential military intervention. The tensions escalated rapidly, leading to the U.S. invasion of Panama in late 1989, which culminated in Noriega's arrest and subsequent trial.

The indictment was significant in that it reflected the shift in U.S. policy regarding drug trafficking and highlighted the complicity of Central American leaders in these criminal activities. It served as a marker for the changing geopolitical landscape in Panama and the U.S. commitment to combating drug-related crime. Following his arrest, Noriega faced imprisonment in the U.S. and was eventually convicted on multiple drug charges, leading to a lengthy prison sentence and a re-evaluation of U.S. policy in Latin America.