Panama held a general election on 7 May 1989, with the goal of electing both a new President of the Republic and a new Legislative Assembly. The two primary candidates in the presidential race were Guillermo Endara, who headed Democratic Alliance of Civic Opposition (ADOC), a coalition opposed to military ruler Manuel Noriega, and Carlos Duque, who headed the pro-Noriega Democratic Revolutionary Party (PRD).
However, the election was annulled before voting was completed by Noriega's government, and Endara and his running mate Guillermo Ford were attacked in front of foreign media by Noriega supporters, events that contributed to the US invasion of Panama in December of that year. During the invasion, Endara was declared the election's winner and sworn in as the new president of Panama.
The death of Arnulfo Arias in August 1988, a few days before his eighty-seventh birthday, removed a major obstacle to opposition unity, but also created several new problems. It left the opposition without a charismatic national leader to place at the head of any 1989 electoral ticket.
The PPA, Panama's leading opposition party, divided in December 1988. The Electoral Tribunal formally recognized the faction led by Hildebrando Nicosia Pérez as the legitimate party representative, entitling Nicosia and his colleagues to use the party symbols. According to the opposition, the government engineered the division in the party to sow confusion among the electorate. However, Nicosia's effort to present himself as the heir of Arias was singularly unsuccessful according to the opposition's election results, which showed him receiving less than one percent of the vote.
A majority of the PPA's hierarchy supported the anti-government Democratic Alliance of Civic Opposition (ADOC); the party's secretary-general, Guillermo Endara, was ADOC's presidential candidate. Denied use of the PPA symbol, Endara and the party's legislative candidates competed under the banner of the Authentic Liberal Party, which is the product of a schism that developed in the Liberal Party prior to the 1984 elections. The military rule of Manuel Noriega also provoked a split in the Republican Party (RP), but the majority of the legitimate leadership of the RP participated in the ADOC coalition. Two other major parties—the PDC and MOLIRENA—were also part of ADOC. ADOC also had the support of the small Popular Action Party (PAPA), and National Peoples Party (PNP), and defectors from the Liberal and Republican parties, and a dissident faction of the PPA. In addition to Endara, ADOC's electoral slate included Ricardo Arias Calderón of the PDC for first vice president and Guillermo Ford of MOLIRENA for second vice president.