The Republic of Panama held a general election on 6 May 1984, electing both a new President of the Republic and a new Legislative Assembly.
Under October 1978 legislation, eight parties had met quotas of 30,000 valid signatures by 1 April 1983, in order to legally nominate candidates in future elections.
On 24 April 1983, the electorate overwhelmingly approved by popular referendum a number of amendments to the 1972 Constitution. Among the changes proposed is the replacement of the existing 505-member National Assembly of Municipal Representatives by a national legislature of 70 members, and empowering this body to appoint high-ranking government officials, which until now was left to the President of the Republic.
In August 1983 law created an Electoral Tribunal consisting of one each member appointed by the executive, legislative and judicial branches. The tribunal was given ultimate authority to interpret and implement electoral rules. A national vote-counting board was formed to process election returns and report to the Electoral Tribunal.
General Paredes, in keeping with the new constitutional provision that no active Guard member could participate in an election, reluctantly retired from the Guard on 12 August 1983. He was succeeded immediately by Noriega, who was promoted to brigadier general. During the same month, Paredes was nominated as the PRD candidate for president. National elections were only five months away, and Paredes appeared to be the leading presidential contender. Nevertheless, in early September, President de la Espriella purged his cabinet of Paredes loyalists, and Noriega declared that he would not publicly support any candidate for president. These events convinced Paredes that he had no official government or military backing for his candidacy. He withdrew from the presidential race on 6 September 1983, less than a month after retiring from the Guard. Although Paredes subsequently gained the support of the Popular Nationalist Party (PNP) and was able to appear on the 1984 ballot, he was no longer a major presidential contender. Constitutional reforms notwithstanding, the reality of Panamanian politics dictated that no candidate could become president without the backing of the National Guard and, especially, its commander.