  
 WORLD TRADE  
ORGANIZATION  G/SCM/N/114/PAN 
7 July 2004 
 (04-2918) 
Committee on Subsidies and 
Countervailing Measures  Original:   Spanish 
 
  
SUBSIDIES 
 
Extension under SCM Article 27.4 of the Transition Period for the
 
Elimination of Export Subsidies Pursuant to the Procedures  
in Document G/SCM/39  
 
Updating Notification  
 
PANAMA 
  
 The following communication, dated 21 June 2004, is being circulated at the request of the 
delegation of Panama. 
 
_______________ 
 
 
 I have the honour to transmit herewith, on be half of the Government of the Republic of 
Panama, the following updating subs idy notification for 2003, pursuant  to subparagraph 1(d) of the 
Procedures for extensions under Article 27.4 of  the SCM Agreement for certain developing country 
Members. G/SCM/N/114/PAN 
Page 2  
 
 The Republic of Panama is submitting the following notification pursuant to subparagraph 
1(d) and paragraphs 3 and 4 of the Procedures for extensions under Article 27.4 for certain developing 
country Members (G/SCM/39) and the Decisions of 22 November 2002 on Export Processing Zones 
(G/SCM/85) and on the Official  Industry Register (G/SCM/84). 
 
 In accordance with its rights and obligations under the procedures for extending programmes 
that comprise subsidies classified as prohibited u nder Article 3.1 of the Agreement on Subsidies and 
Countervailing Measures (SCM) of the World Trade Organization (WTO), the Republic of Panama is 
submitting for the Committee's consideration the fo llowing notification in order to meet its 
obligations in respect of the extension of the tr ansition period for program mes subject to renewal. 
  Panama confirms that its programmes subj ect to extension comply with the standstill, 
favourability and transparency requirements under the procedures for extensions (G/SCM/39) in that 
none of these programmes has been modified so as to make it more favourable than it was at 
1 September 2001. 
 
Programmes 
 
I. EXPORT PROCESSING ZONES 
1. Description of the Programme 
 See paragraph II.1 of document G/SCM/N/95/PAN. 
 
2. Period of notification 
 2003 
 3. Objective of the programme 
 See paragraph II.3 of document G/SCM/N/95/PAN. 
 
4. Background and authority 
 See paragraph II.4 of document G/SCM/N/95/PAN. 
 
5. Form of subsidy 
 See paragraph II.5 of document G/SCM/N/95/PAN. 
 6. Beneficiaries and mechanism 
 See paragraph II.6 of document G/SCM/N/95/PAN. 
 
7. Estimated amount of the subsidy 
 No estimate available. 
 
8. Duration of the subsidy 
 See paragraph II.8 of document G/SCM/N/95/PAN. 
  G/SCM/N/114/PAN 
 Page 3 
 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 See paragraph II.9 of document G/SCM/N/95/PAN. 
 II. OFFICIAL INDUSTRY REGISTER 
1. Description of the subsidy 
 See paragraph III.1 of document G/SCM/N/95/PAN. 
 
2. Period of notification 
 2003. 
 
3. Objective of the programme 
 See paragraph III.3 of document G/SCM/N/95/PAN. 
 4. Background and authority 
 See paragraph III.4 of document G/SCM/N/95/PAN. 
 
5. Form of subsidy 
 See paragraph III.5 of document G/SCM/N/95/PAN. 
 
6. Beneficiaries and mechanism 
 See paragraph III.6 of document G/SCM/N/95/PAN. 
 
7. Estimated amount of the subsidy 
 
Table 2  
 VALUE OF TAX INCENTIVES GRANTED  
UNDER THE OFFICIAL INDUSTRY REGISTER 
2001 – 2003 
(in US$ million) 
YEAR  
TYPE OF BENEFIT  2001 2002 2003 
Import tax exemption or rebate 22.2 15.2 18.7 
Income tax exemption or rebate for reinvestment 11.3 11.5 8.7 
Other incentives* 6.6 6.9 9.8 
Total ……….  40.1 33.6 37.2  
 *Exemption from income tax only.     
Source : Fiscal Studies Department, Directorate-General of Revenue, Ministry of the Economy and Finance.  
 
8. Duration of the subsidy 
 See paragraph III.8 of document G/SCM/N/95/PAN. 
 G/SCM/N/114/PAN 
Page 4  
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 No statistical information available to assess the trade effects of the programme. 
 
__________ 
 
 