RESTRICTED
WORLD TRADE WT/SPEC/21
18March 1996
ORGANIZATION(96-0953)
Original: Spanish
ACCESSION OFPANAMA
TheStatement made byMr.Carlos E.Gonzales R.,special Ambassador ofPanama tothe
WTO,atthemeetingoftheWorkingPartyontheAccessionofPanamatotheWorldTradeOrganization,
heldon5March 1996, isreproduced hereunder.
_______________
Now, when Panama 'saccession totheWTO hasgonethrough important stages andismoving
ontospecific matters tobeincluded intheProtocol ofAccession, weconsider itrelevant tospeak
withthetwo-fold purpose ofsubmitting further proposals toMembers fortheirconsideration and
reporting onthestateofaffairs about which, inearlier Working Party discussions andalsoinbilateral
discussions, Members haveexpressed particular interest orconcern.
Panama hasonmany occasions emphasized theintensive legislative work ithasbeendoing
tobring Panamanian lawintolinewiththeUruguay Round Agreements andtheirimplementation.
Specific examples areLaw28of20June1995, eliminating legalprovisions inconsistent withtheWTO
Agreement onSubsidies; Law36of6July1995, eliminating theconsular invoice andestablishing
afixedrateof$70commensurate withtheservices rendered; Law41of13July1995, whereby Panama
adopted theParis Convention fortheProtection ofIndustrial Property; andLaw 45of
14November1995,eliminatingdifferentialtreatmentforPanamanianandimportedspirituousbeverages.
Since theWorking Party'slatest meeting, suchlegislative endeavours havecontinued andhave
improved domestic arrangements, making them compatible withtheWTO. Inthisrespect, weare
abletoannounce theenactment of:
- Law3of3January 1996, "adopting theBerne Convention fortheProtection ofLiterary
andArtistic Works, of9September 1886, asrevised inParis on24July1971 and
amended on28September 1979".
- Law29of1February 1996, "establishing rules onthedefence ofcompetition and
adopting other measures". Inthislaw, Panama hasestablished provisions on
competition, anti-dumping, countervailing andsafeguard measures inkeeping with
therelevant Codes intheFinal ActoftheUruguay Round. Thislawalsoestablishes
special tribunals withjurisdiction for,interalia,intellectual property disputes.
With theestablishment ofthespecial tribunals andthepassage ofthedraftLawonIndustrial
Property under discussion intheLegislative Assembly, Panama hasadjusted itslegislation totheWTO
rules.
TheFramework Lawfortheregulation ofimport licensing, procedures based ontheWTO
Licensing Code, hasbeenadopted bytheCabinet Council.WT/SPEC/21
Page2
Explanations anddescriptions requested
Some Members haveasked forfurther clarification onspecific topics. They willbeexplained
nowsothattheycanbeincluded intheWorking Party'sreport.
Notifications
Panama willsubmit notifications under theAgreements onAgriculture (including theSchedule
ofProducts), theApplication ofSanitary andPhytosanitary Measures, Import Licensing Procedures,
Implementation ofArticle VIIofGATT 1994(Customs Valuation), Technical Standards, andSubsidies
andCountervailing Measures atthetimeofitsaccession.
Price controls
Panama confirms thatprice controls ongoods andservices inPanama havebeeneliminated,
withtheexception oftheproducts included intheattached schedule, andundertakes that,inapplying
suchcontrols, andanythatareintroduced orre-introduced inthefuture, itwilltakeintoaccount the
interests ofWTO Members, asstipulated inArticle III.9ofGATT 1994.
From thedateofaccession, theuseofcustoms minimum import prices willbeeliminated,
inkeeping withtheAgreements onAgriculture andImplementation ofArticle VIIofGATT 1994;
andtheuseofsuchmeasures willnotbere-introduced.
Industrial subsidies
ItisPanama 'sintention toeliminate allsubsidies incompatible withtheprovisions ofArticle 3
oftheAgreement onSubsidies andCountervailing Measures notlaterthan31December 2002.
Nevertheless, wereserve therighttoasktheCommittee onSubsidies andCountervailing Measures
foranextension, ifnecessary, ofthephase-out period, inconformity withtheprovisions ofArticle 27.4
oftheAgreement onSubsidies andCountervailing Measures.
RoleoftheAgricultural Marketing Institute (IMA)
Some Members haverequested amore detailed explanation oftheIMA'sfunctions. Inthis
connection, weattach thedocument "Comparative Analysis ofthePresent LawontheAgricultural
Marketing Institute ofPanama (IMA) andtheNewDraft Law". Itdetails whattheIMA'snewobjectives
andfunctions willbe.Inaddition, theDeputy Minister ofAgricultural Development willmake a
statement inthisregard.
Intellectual property
Toclarify somequestions putbyMembers, Panama wishes toprovide thefollowing information
onintellectual property, sothatitwillbeincluded intheSecretariat 'sreport. ThedraftIndustrial
Property Lawisunder discussion intheLegislative Assembly andisscheduled foradoption during
thecurrent parliamentary session, which endsinJune1996. Changes, including changes suggested
byMembers, arebeing made soastoenhance therequisite procedures andguarantee enforcement
ofintellectual property rights. Inthisrespect, improvements arebeing introduced inthemeasures
tosuspend themovement ofgoods which infringe intellectual property rights andintheorganization
andadministration ofadministrative andjudicial procedures. Panama willprovide theSecretariat with
thecopyofthelawassoonasithasbeenenacted.WT/SPEC/21
Page3
Panama reiterates thatitwillprotect newplantvarieties bytheprovisions oftheInternational
Union fortheProtection ofNewVarieties ofPlants (UPOV). Atthepresent time, Panama isholding
anational Seminar onthenature andraison d'êtreofprotection ofplantvarieties, organized byUPOV
andtheMinistry ofTrade andIndustry oftheRepublic ofPanama. Itisaseminar being heldpreparatory
toPanama 'sapplication toUPOV. International agreements andtreaties enter intoforce byadoption
oftheLawbytheLegislativeAssembly.Suchimplementationisgenerallyimmediate(asfromenactment
oftheLaw), although theLawmayestablish aperiod oftransition, know asvacatio legis,before entering
intoforce.
Panama specifically protects computer programs under Law15of1994, theCopyright Law,
which wehavetransmitted totheSecretariat.
Lastly, under thedraftIndustrial Property Lawafamous orrenowned trade mark istaken to
mean onewhich, asaresult ofintensive market useandadvertising, hasbeenwidely circulated without
losing anyofitdistinctive force andisknown tothepublic atlarge. Awell-known mark isonewhich
hasthesame characteristics, butisknown bytheconsumer group towhich itisdirected.
Panama alsoproposes thatthefollowing commitments should beviewed asmatters forthe
Protocol ofAccession.
Non-tariff measures
TheGovernment ofPanama confirms that,asfrom accession totheWTO, theauthority for
suspending imports orexports orapplying licensing requirements thatmaybeusedtosuspend, prohibit
orinanywayrestrict theamount oftrade, willbeapplied inconformity withWTO requirements,
inparticular Articles VI,XI,XVIII, XIX,XXandXXIandtheMultilateral Agreements onAgriculture,
Sanitary andPhytosanitary Measures, Import Licensing Procedures andTechnical Barriers toTrade.
Asfromaccession, allnon-tariff measures, including prohibitions, quotas, permits, priorauthorizations
orlicences which cannot bejustified byWTO provisions willbeeliminated. Panama willapply the
samecontrols,criteriaandrulesontechnicalregulations,standardscertificationandlabellingtoimported
andtodomestic products andwillnot,inkeeping WTO provisions, usesuchregulations torestrict
imports. Panama willensure thatitstechnical, standards, certification andlabelling regulations are
notarbitrarily applied toimports insuchawayastodiscriminate between supplying countries inwhich
thesameconditionsapplyorasanimpedimenttointernationaltrade,inconformitywithWTOprovisions.
Panama undertakes that,asfromthedateofaccession, thecriteria forgranting licences orissuing any
requisite certificates orhealth registration forimported products willbepublished andavailable to
traders andthattheadministration ofhealth andother certificates willbetransparent, expeditious and
non-discriminatory. Panama willstand ready toconsult WTO Members ontheeffects ofthese
requirements ontheirtrade, forthepurpose ofsolving specific problems.
Agreement onTrade-Related Investment Measures
Panama hasnotidentified anymeasures incompatible withtheAgreement, forwhich reason
itdoesnotintend tonotify measures forprogressive elimination under theterms oftheAgreement.
TheColon FreeZone andtheexport processing zones formpartofPanamanian territory and,
assuch, arecovered bytheWTO Agreements andthecommitments intheProtocol andannexes,
including theenforcement commitments. Panama willcomply withtheenforcement commitments
insuchzones, including TRIPS commitments.
When goods produced orimported inthezones under special fiscal treatment areexported
toPanamanian fiscal territory, therelevant customs charges, duties andtariffs willbeapplied.WT/SPEC/21
Page4
Customs Valuation Code
InevaluatingthetimeneededtoadjustdomesticmechanismstoimplementtheCustomsValuation
Code, theGovernment will, on31July1996, issue adecree oncustoms valuation thatwillbein
conformity withtheAgreement onImplementation ofArticle VIIofGATT 1994anditwillenter into
force on1January 1997. Panama willnotneedfurther timetoimplement thisAgreement, norwill
reference listsorother price listsoranyother method notestablished intheAgreement beusedto
determine customs value. Iftheservices ofapreshipment inspection enterprise aretobeusedtoassist
Panama inimplementing customs procedures, theGovernment ofPanama willensure thattheoperations
ofsuchenterprisesareconsistentwiththeAgreementsonPreshipmentInspectionandCustomsValuation.
Industrial subsidies
TheGovernmentofPanamawillgraduallyeliminateallmeasuresregardedasprohibitedsubsidies
under theterms ofArticle 3ofAgreement onSubsidies andCountervailing Measures, including the
prohibited subsidies found inLaw3of1986(including registrations granted tofirms before theentry
intoforce ofthe"Law onUniversal Production Incentives", Law28of20June1995, andinthe"Law
onExport Promotion Incentives", Law 108of30December 1974, asamended byLaw 28of
20June1995. Toachieve thisobjective, Panama willprovide explanatory information initsannual
subsidies notification under Article 25oftheAgreement onSubsidies andArticle XVI:1 ofGATT 1994,
sothatMembers willbeinaposition toverify thegradual elimination oftheprogramme. These
measures willbenotified pursuant totheAgreement onSubsidies, atthetimeofaccession.
Agreement onTrade-Related Aspects ofIntellectual Property Rights (TRIPS)
Panama reiterates thatitwillapply theprovisions oftheAgreement onTrade-Related Aspects
ofIntellectual Property Rights, asfrom thedateofaccession.
Government Procurement Code
Panama, asanobserver intheCommittee oftheAgreement onGovernment Procurement and
afteranexamination oftheGovernment Procurement Code andthecorresponding national legislation,
willstartnegotiations tobecome aMember oftheAgreement six(6)months afteracceding totheWTO.
TheGovernment ofPanama willnotify theSecretariat eachyearoftheimplementation of
transitional periods, withfinaldates ofcompliance, andwillidentify anydelay inimplementation and
thereasons therefor.
Lastly, theGovernment ofPanama willfulfiltheprovisions ofArticle XXIV ofGATT 1994,
paragraph 3oftheEnabling Clause andArticle VoftheGeneral Agreement onTrade inServices,
making surethattheprovisions onnotification, consultations andother requirements relating to
preferential trade systems, free-trade areas andcustoms unions towhich Panama isaparty, willbe
complied withasfrom thedateofaccession.WT/SPEC/21
Page5
ANNEX I
EXPLANATION OFTHE CHANGE INTHE LAW ONTHE
AGRICULTURAL MARKETING INSTITUTE
Themodernization ofPanama 'sagricultural sector would beincomplete without agricultural
marketing, since market competitiveness isthemain factor forprofitable andsustainable output by
farmproducers.
InPanama, agricultural marketing wasaresponsibility oftheAgricultural Marketing Institute
(IMA) andwasmarked bydirect government participation, which distorted thepossibility ofcompetition
topromote better prices, quality andtheconsumer 'sopportunity tochoose whathethought bestfor
him.
Inview ofPanama 'snewpolicy andtheneedtofindnewmarkets fordomestic producers,
ithasbecome necessary toreconsider Law70,which established theAgricultural Marketing Institute,
andtoadjust ittothenewcircumstances andobjectives, which maybesummed upasfollows:
Identifying realvalid options forcompetitive andprofitable products; identifying obstacles in
infrastructures, services andinnovations thatcanbeadapted toPanama; coordinating andfacilitating
trade contacts andrelations between producers, buyers, sellers andinvestors; helping inthetraining
oftheagents involved intheprocess andcoordinating withspecialized bodies tooptimize thehelp
tothebodies concerned; andlastly, promoting asystem, based onmodern techniques, ofproviding
trade information fordomestic producers andthusfacilitating thefarming.
Wishing tospeak evenmoreclearly, wewould affirm thattheRepublic ofPanama isabrogating
alawwhich enabled aStatebodytoimport, buy,sell,store, stand assurety andfullyengage inatrade
activity, anditiscreating anewlawwhereby thatbody canengage onlyinaction tofacilitate and
orient agricultural marketing, which willbedeveloped exclusively byprivate enterprise.
Itshould benoted thatthisprocess hasalready began andwillbecompleted withtheadoption
ofthenewIMA Law.
Togiveaclearer idea,wehavedrawn upacomparative analysis oftheLawnowinforce and
thenewdraftLaw, inthematter ofobjectives andpowers, anditwillbepossible togainaproper
grasp ofdifference between them; thenewlawunderpins thePanamanian Government 'sfirmintention
ofcarrying outchanges tomodernize theeconomy, including theagricultural sector.WT/SPEC/21
Page6
COMPARATIVE ANALYSIS OFTHE PRESENT AND THE PROPOSED LAWS
ONTHE AGRICULTURAL FARMING INSTITUTE OFPANAMA (IMA)
Present Law Proposed Law
Objectives
Article 2. TheAgriculturalMarketingInstitute
shallhavethefollowing objectives:
(a) Topromote theimprovement ofmarketing
systems foragricultural output;
(b) Toimplement themarketing policies
formulated bytheMinistry ofAgricultural
Development;
(c) Toguarantee thedomestic orexternal
market for Panamanian agricultural
production atremunerative prices;
(d) Toorganize, modernize andcontrol the
marketing channels for Panamanian
agricultural production;
(e) Toregulate thesupply onthedomestic
market ofnational and imported
agricultural products tomeet domestic
market needs; and
(f) Toprotect andharmonize theinterests of
producers andconsumers inthemarketing
process.Objectives
Article 2.TheAgriculturalMarketingInstitute
shallhavethefollowing objectives:
(a) Toorient, facilitate andpromote the
improvement ofmarketing systems for
national agricultural output;
(b) Toimplement themarketing policies
formulated bythe Ministry of
Agricultural Development;
(c) Tostrengthen and foster suitable
conditions fortheparticipation ofthe
national agricultural sector inthe
domestic andinternational market;
(d) Topromote theorganization and
updating ofthemarketing channels for
national agricultural production;
(e) Todevelop atrade information system
thatwillkeep domestic andforeign
producersandinvestorsadvisedofprices
andother relevant characteristics ofthe
domestic andinternational markets for
agricultural products;
(f) Topromote themarketing training and
technology process for domestic
producers;
(g) Toimplementmarketingaidprogrammes
established forremote regions, in
accordance with budget and other
allocations made totheInstitute forthis
purpose;
(h) Toprovide agro-industrial services
throughplantsmaintainedbytheInstitute
andtoimplement measures tofacilitate
theincorporation ofproducer andother
user groups inadministering such
services;WT/SPEC/21
Page7
Present Law
Article 3.TheInstitute shallhavethefollowing
powers:
(a) Toacquire andtransfer itsproperty, totake
outloans with Panamanian orforeign
natural orlegalpersons andconclude any
contracts necessary toachieve the
objectives setoutintheLaw;
(b) Tousethemovables andimmovables
forming partofitsassets asguarantees and
toissuebonds andother negotiable papers
forthefinancing ofitsoperations;
(c) Toadminister theproperty forming its
assets andtoassign financial resources
granted totheInstitute fortheachievement
ofitsobjectives;
(d) Toprepare andimplement theagricultural
marketing policy established bythe
Ministry ofAgricultural Development;
(e) Toimport, withcomplete exemption from
duties, anyrestricted imports, provided the
quotas forsuch purposes have been
established bythecompetent bodies;
(f) Toexportagriculturalsurpluses,
Panamanian products which aresubject to
international commitments and all
agricultural goods which areintheinterest
ofthecountry;
(g) Tocharge foritsservices;
(h) Tobuild orimprove anyworks required
toachieve itsobjectives;Proposed Law
(i) Toprovide agro-industrial consultancy
services forproducer organizations that
require them asanecessary partof
improving thevolume, quality and
presentation oftheir products onthe
domestic andforeign markets.
Article 3.TheAgricultural Marketing Institute
shallhavethefollowing powers:
(a) Toacquire andtransfer itsproperty, to
take outloans with Panamanian or
foreign natural orlegal persons and
conclude contracts necessary toachieve
theobjectives setoutintheLaw;
(b) Tousethemovables andimmovables
forming part ofitsproperty as
guarantees andtoissuebonds andother
negotiable papers tofinance its
operations;
(c) Toadminister theproperty forming its
assets andtoassign financial resources
granted totheInstitute forthe
achievement ofitsobjectives;
(d) Toparticipate inthepreparation and
implementation oftheagricultural
marketing policy established bythe
Ministry ofAgricultural Development;
(e) Tocharge foritsservices;
(f) Tobuildorimprove anyworks required
toachieve itsobjectives;
(g) Topromote theestablishment and
strengthening ofprivate agricultural
marketing enterprises;
(h) Tocede, inpartorinwhole, anyofthe
activities referred toinArticle 2ofthis
Lawtojointventures or,inwhole, to
private capital;WT/SPEC/21
Page8
Present Law
(i) To establish agricultural marketing
enterprises andoperate themdirectly orin
collaboration with private individuals,
municipalities,communalandlocalboards;
(j) Toissue itsrules ofprocedure;
(k) Toexercise coactive jurisdiction;
(l) Toperform anyotherduties under theLaw
ortheregulations.Proposed Law
(i) Toinvestigate and report tothe
Executive ortotherelevant public
authority onthedevelopment of
economic activities intheagricultural
sector anditsrelationship with our
country 'smembership oftheWorld
Trade Organization;
(j) Toissue itsrules ofprocedure;
(k) Toexercise coactive jurisdiction; and
(l) Toperform anyother duties under the
Lawortheregulations.WT/SPEC/21
Page9
ANNEX II
SCHEDULE OFREGULATED PRODUCTS ASOF1MARCH 1996
Heading Description
1.Food
1006.20.00 Husked (brown) rice
1006.30.00 Semi-milled orwholly-milled rice, whether ornotpolished orglazed
1006.40.00 Broken rice
1701.99.90 Sugar, national (allvarieties)
0402.91.91 Evaporated, ofafatcontent, byweight, notexceeding 1.5% [Evaporated milk]
0402.91.92 Evaporated, ofafatcontent, byweight, exceeding 1.5% [Evaporated milk]
0402.99.91 Evaporated, ofafatcontent, byweight, notexceeding 1.5% [Evaporated milk]
0402.99.92 Evaporated, ofafatcontent, byweight, exceeding 1.5% [Evaporated milk]
0401 Milk andcream, notconcentrated norcontaining added sugar orother sweetening
matter [Pasteurized milk]
0402.10 Inpowder, granules orother solid forms, ofafatcontent, byweight, notexceeding
1.5% [Powdered milk]
0402.21 Notcontaining added sugar orother sweetening matter [inpowder]
0402.29 Other [inpowder]
1901.10.10 Modified milk [Infant formula]
1501.00.10 Lard andpigfat[Lard, national]
2501.00.30 Table orkitchen salt[Refined salt,national]
1604.20.10 Homogenized preparations forinfant use[Children 'sfood (allbrands)]
1901.10 Preparations forinfant use,putupforretail sale[Children 'sfood (allbrands)]
2104.20 Homogenized composite food preparations [Children 'sfood (allbrands)]
2106.10.10 Dietetic milk substitute preparations, forchild use[Children 'sfood (allbrands)]
2190.90.90 Other (Composite non-alcoholic preparations with abasis ofextracts ofsyrups for
thepreparation ofbeverages) [Children 'sfood (allbrands)]
1901.10 Preparations forinfant use,putupforretail sale[Cereals forbabies]
0407.00.20 Forhuman consumption, [Eggs, grade A]
1507 Soya-bean oilanditsfractions, whether ornotrefined, butnotchemically modified
[Edible vegetable oils]
1508 Ground-nut oilanditsfractions, whether ornotrefined, butnotchemically modified
[Edible vegetable oils]
1509 Olive oilanditsfractions, whether ornotrefined, butnotchemically modified
[Edible vegetable oils]
1510 Other oilsandtheir fractions, obtained solely from olives, whether ornotrefined,
butnotchemically modified, including blends ofthese oilsorfractions withoilsor
fractions ofheading 15.09 [Edible vegetable oils]WT/SPEC/21
Page10
Heading Description
1.Food (cont'd)
1511 Palm oilanditsfractions, whether ornotrefined, butnotchemically modified
[Edible vegetable oils]
1512 Sunflower-seed, safflower orcotton-seed oilandfractions thereof, whether ornot
refined, butnotchemically modified [Edible vegetable oils]
1513 Coconut (copra) palm kernel orbabassu oilandfractions thereof, whether ornot
refined, butnotchemically modified [Edible vegetable oils]
1514 Rape, colza ormustard oilandfractions thereof, whether ornotrefined, butnot
chemically modified [Edible vegetable oils]
1515 Fixed vegetable fatsandoils(including jojoba oil)andtheir fractions, whether ornot
refined, butnotchemically modified [Edible vegetable oils]
2301.20.00 Flours, meals andpellets, offishorofcrustaceans, molluscs orother aquatic
invertebrates [Fish meal (used inthepreparation offeedforpoultry, pigsandcattle)]
2.Articles forhousehold use
3402.20.20 Preparations putupforretail sale[Detergents, national (except special)]
3402.90 Other [Detergents, national (except special)]
3401.11 Fortoilet use(including medicated products) [Toilet soap]
3401.20.20 Forbathroom ortoilet use,including added bacteriostatic substances [Toilet soap]
3.Other
4820.20.10 Exercise books, broad line, double line, calligraphy, ruled insquares anddrawing
books [Stapled exercise books, national (except plastified)]
4820.20.90 Other, including notebooks [Stapled exercise books, national (except plastified)]
4901.99.00 Other [School texts, national andimported (except listed novels)]
3004 Medicaments (excluding goods ofheadings Nos. 30.02, 30.05 or30.06) consisting of
mixed orunmixed products fortherapeutic orprophylactic uses, putupinmeasured
doses orinforms orpackings forretail sale[Medicinal products]
2711 Petroleum gases andother gaseous hydrocarbons [Liquefied gas(25pound tax)]*
6203.42 Ofcotton [Official school uniforms]
6203.43 Ofsynthetic fibres [Official school uniforms]
6203.49 Ofother textile materials [Official school uniforms]
6204 Women 'sorgirls'suits, ensembles, jackets, blazers, dresses, skirts, divided skirts,
trousers, bibandbrace overalls, breeches andshorts (other thanswimwear) [Official
school uniforms]
6205.30.21 Forchildren 'sschool uniforms [Official school uniforms]
6205.90.21 Forchildren 'sschool uniforms [Official school uniforms]
6206.30.20 Forschool uniforms (ofcotton/up tosize16). Women 'sorgirls'blouses, shirts
andshirt-blouses) [Official school uniforms]WT/SPEC/21
Page11
Heading Description
3.Other (cont'd)
6206.40.20 Forschool uniforms (ofman-made fibres/(up tosize16),women 'sorgirls'blouses
shirts andshirt-blouses) [Official school uniforms]
6206.90.20 Forschool uniforms (oftextile materials/(up tosize16),women 'sorgirls'blouses,
shirts andshirt-blouses) [Official school uniform]
________________
*Afreight differential (transport cost)isapplied, depending ontheregion inwhich the25-pound liquefied gastankissold.