RESTRICTED
WORLD TRADE WT/SPEC/19
23January 1996
ORGANIZATION(96-0187)
Original: Spanish
ACCESSION OFPANAMA
Communication from theGovernment ofPanama
TheGovernmentofPanamahassubmittedtheproposalentitled"PossibleelementsoftheProtocol
ofAccession totheWorld Trade Organization" reproduced hereunder.
_________________
PROPOSAL BYTHE GOVERNMENT OFPANAMA
POSSIBLE ELEMENTS OFTHE PROTOCOL OFACCESSION
TOTHE WORLD TRADE ORGANIZATION
General remarks
1. TheRepublic ofPanama isintheprocess ofmodifying itsinternational trade policy soasto
promote anincrease intrade thatwillleadtogreater efficiency andcompetitiveness inthedomestic
economy.
2. Withtheaimofcompleting theaccession process assoonaspossible andpursuant totheefforts
Panama hasmade toadapt itslegislation totherequirements oftheWorld Trade Organization, Panama
hastaken theinitiative ofpreparing adocument thatmaybeusedasabasis fordiscussing possible
elements ofthereport oftheWorking Party andtheProtocol ofAccession.
National treatment
3. When reviewing Panama 'sdomestic legislation, some Members pointed outinconnection with
stamp dutythatcertain provisions applied toliquor andcigarettes could beconsidered discriminatory
andwerecontrary totheprovisions onnational treatment laiddown bytheWTO. Inorder toremedy
thissituation, Panama adopted LawNo.45of14November 1995, which abolished application ofthis
stamp duty, repealing Chapters VIandXXIofBook IVoftheFiscal Code andCabinet Decrees Nos. 35
of1970 and22of1972.
Export subsidies
4. Some Members indicated thatapplication oftheTaxCredit Certificate (CAT) inPanama could
beconsidered anexport subsidy. Following theguidelines setoutintheAgreement onSubsidies and
Countervailing Measures, Panama decided progressively toeliminate these taxbenefits byrescinding
theprovisions inforce andadopting LawNo.28of20June1995, which laysdown thefollowing
principles:WT/SPEC/19
Page2
- TheCAT willbe20percentofdomestic value added until31December 2000;
- theCAT willbereduced to15percentofdomestic value added between 2001 and
2002;
- theCAT willbeabolished in2003;
- inaddition, enterprises benefiting from theCAT arenotentitled toexemption from
income taxunder anyother legalprovision.
Sanitary andphytosanitary measures
5. When reviewing Panamanian legislation onanimal andplanthealth, Members expressed their
concernatprovisionsthatweredeemedtobemutuallycontradictoryandcontrarytotheWTOprovisions.
Panama submitted forMembers 'consideration twodraftLaws forreview. Theremarks made by
some Members wereincorporated andtheExecutive transmitted bothdrafts totheLegislative Assembly
forapproval. Thedrafts bring thelegislation intolinewiththerelevant rulesoftheWTO, adopting
international standards andlaying down thebases forsimplification ofprocedures related toanimal
andplant health. Atpresent, these drafts arebeing considered bytheLegislative Assembly.
Technical barriers totrade (technical standards)
6. TheRepublic ofPanama doesnothaveanylegislation ontechnical standards applicable to
imports, therefore, inorder toensure correct implementation oftheAgreement onTechnical Barriers
toTrade andwithaview toharmonizing Panama 'sstandards andquality levels withinternational
standards, theExecutive isdrawing upalawtoadapt therelevant legislation andmake itconsistent
withtheAgreement onTechnical Barriers toTrade. Inaddition, Panama joined theInternational
Organization forStandardization (ISO) inJanuary 1995.
Implementation ofArticle VIoftheGATT 1994 (anti-dumping), Agreement onSubsidies and
Countervailing Measures andAgreement onSafeguards
7. During thereview ofPanamanian legislation inthisarea,several Members stated thatDecree 15
of1987 ondumping, countervailing measures andsafeguards didnotdevelop certain concepts toa
satisfactory extent, particularly those relating tosuchimportant elements asproof ofinjury andthe
application ofsafeguards. Inorder tomake goodthese lacunae, Panama submitted toWTO Members
fortheirconsideration adraftlawtobring thedomestic legislation intolinewiththecorresponding
WTO Agreements. After receiving comments fromsome Members andincluding them, thedraftlaw
wastransmitted totheLegislative Assembly forapproval.
Implementation ofArticle VIIoftheGATT 1994 (customs valuation)
8. MemberspointedoutthatPanamanianlegislationoncustomsvaluationwasbasedontheBrussels
Convention andwould havetobeupdated inaccordance withtheAgreement onArticle VIIofthe
GATT. TheExecutive therefore submitted totheLegislative Assembly adraftframework lawonthe
customs statute inorder toregulate thefunctioning ofthecustoms service. Thisisthebasiclawrequired
forsubsequent enactment ofthedecree thatwilladopt avaluation mechanism based ontheAgreement
onImplementation ofArticle VIIoftheGeneral Agreement onTariffs andTrade 1994. Panama will
adopt itwithin three years ofacceding toWTO.WT/SPEC/19
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Import licensing
9. During thereview ofPanama 'simport licensing system, Members indicated thatthecurrent
legislation onimport permits didnotregulate thisareasuitably. Consequently, Panama submitted to
Members adraftframework lawfortheirconsideration. After incorporating thecomments received
from Members, theExecutive willtransmit thedraftlawtotheAssembly; ittakes intoaccount all
theprinciples setoutintheAgreement onImport Licensing Procedures, simplifies theprocedure for
obtaining licences andeliminates anydiscrimination arising from theirapplication.
Agreement onTrade-Related Aspects ofIntellectual Property Rights
10. When reviewing Panama 'scurrent legislation onintellectual andindustrial property, Members
pointed outthatitwasdispersed overseveral legalinstruments, wascontrary tointernational standards
andwasoutofdateasithadbeeninforce forseveral decades. Inorder toupdate, harmonize and
adopt international provisions inthisfield, LawNo.15of8August 1994 oncopyright wasenacted
andtheExecutive submitted adraftlawonindustrial property totheLegislative Assembly forapproval.
Thetwolegalinstruments represent aradical change intheareaofprotection, simplify procedures
andgiveinventors, owners oftrademarks andauthors security. Panama recently acceded totheParis
Convention fortheProtection ofIndustrial Property (Law No.41of13July1995). Withthese laws,
Panama hascomprehensively adapted itsdomestic legislation totheTRIPS.
Article IIandArticle VIIIoftheGeneral Agreement onTariffs andTrade 1994
11. Some Members pointed outthattheneedtoobtain aconsular invoice forimports wascontrary
toGATT Articles IIandVIIIbecause thecostwasdetermined bythevalue ofthegoods. Inorder
toovercome thisproblem, Panama abolished consular invoices inLawNo.36of6July1995, adapting
itsimport regime totheparameters laiddown inGATT Article VIII.