Simón Bolívar’s vision of a Gran Colombia is crippled in 1826 by the Congress of Panama, which he has organized so that Latin American countries could become closer and develop a unified policy towards Spain.

The Congress of Panama (often referred to as the Amphictyonic Congress, in homage to the Amphictyonic League of Ancient Greece), and held in Panama City from June 22 to July 15 of 1826, the meeting proposes creating a league of American republics, with a common military, a mutual defense pact, and a supranational parliamentary assembly.

It is attended by representatives of Gran Colombia (comprising the modern-day nations of Colombia, Ecuador, Panama, and Venezuela), Peru, the United Provinces of Central America (Guatemala, El Salvador, Honduras, Nicaragua, and Costa Rica), and Mexico.

Chile and the United Provinces of South America (Argentina) decline to attend, out of mistrust of Bolívar's enormous influence.

The Empire of Brazil does not send delegates, because it expects a hostile reception from its Hispanic neighbors due to its ongoing war with Argentina over modern Uruguay.

The isolationist Paraguay (which had refused previous delegates from Bolívar) had not been invited.

Haiti has actively assisted the independence movements of many Latin American countries—and secured a promise from the great liberator, Simón Bolívar, that he will free the enslaved after winning independence from Spain—the nation of former slaves is excluded from the hemisphere's first regional meeting of independent nations.

In the end, the grandly titled "Treaty of Union, League, and Perpetual Confederation" that emerges from the Congress is ultimately only ratified by Gran Colombia, and Bolívar's dream will soon founder irretrievably with civil war in that nation, the disintegration of Central America, and the emergence of national rivalries.

The Congress of Panama also has political ramifications in the United States.

President John Quincy Adams and Secretary of State Henry Clay had wanted the U.S. to attend the Congress—it had only been invited due to pressure on Bolívar—but, as Hispanic America has outlawed slavery, politicians from the Southern United States have held up the mission by not approving funds or confirming the delegates.

Despite their eventual departure, of the two U.S. delegates, one (Richard Clough Anderson, Jr.) dies en route to Panama, and the other (John Sergeant) only arrives after the Congress has concluded its discussions.

Thus Great Britain, which attends with only observer status, manages to acquire many good trade deals with Latin American countries.