  
  
WT/REG384/1 /Rev.1  
12 April 2019  
(19-2445) Page: 1/65 
Committee on Regional Trade Agreements   
 
   
FACTUAL PRESENTATION  
ACCESSION OF PANAMA TO THE CENTRAL AMERICAN COMMON MARKET (CACM)  
(GOODS)  
Report by the Secretariat  
Revision  
This report, prepared for the consideration of the Protocol Incorporating the 
Republic  of Panama into the Economic Integration Subsystem of the Central American 
Integration System  has been drawn up by the WTO Secretariat on its own responsibility 
and in full consultation with the Parties . The factual prese ntation reproduces as closely 
as possible the terminology used in the Agreement and in the comments provided and 
does not imply official endorsement or acceptance by the Secretariat of such 
terminology . The report has been drawn up in accordance with the r ules and procedures 
contained in the Decision for a Transparency Mechanism for Regional Trade Agreements 
(WT/L/671) and thus does not imply any value judgement by the Secretariat regarding 
the contents of the Agreement.  
Any technical questions arising from  this report may be addressed to Alberto Osnago 
(tel.: +41 22 739 6969) . Any statistical questions arising from this report may be 
addressed to Rowena Cabos  (tel.: +41 22 739 5185). 
 
 
  WT/REG384/1 /Rev.1  
- 2 - 
 
  TABLE OF CONTENTS  
Page 
1  TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ .......................  9 
2.1  Background Information  ................................ ................................ ................................  9 
3  PROVISIONS ON TRADE IN GOODS  ................................ ................................ ............  11 
3.1  Trade between the parties  ................................ ................................ ...........................  11 
3.1.1   General provisions  ................................ ................................ ................................ ... 11 
3.1.2   Liberalization of trade and tariff lines  ................................ ................................ .........  12 
3.1.2.1   Panama  ................................ ................................ ................................ ...............  12 
3.1.2.2   Central America  ................................ ................................ ................................ .... 14 
3.1.3   Liberalization schedule  ................................ ................................ .............................  17 
3.1.3.1   Panama  ................................ ................................ ................................ ...............  17 
3.1.3.2   Central America  ................................ ................................ ................................ .... 20 
3.1.4   Tariff rate quotas  ................................ ................................ ................................ ..... 26 
3.2  Trade with third parties  ................................ ................................ ...............................  27 
3.2.1   General provisions  ................................ ................................ ................................ ... 27 
3.2.2   Common external tariff ................................ ................................ .............................  28 
3.2.2.1   Structure  ................................ ................................ ................................ .............  28 
3.3  Rules of origin  ................................ ................................ ................................ ............  30 
3.4  Export duties and charges, and quantitative restrictions  ................................ ..................  31 
3.5  Regulatory Provisions of the Agreement  ................................ ................................ ........  31 
3.5.1   Standards  ................................ ................................ ................................ ...............  31 
3.5.1.1   Sanitary and phytosanitary measures  ................................ ................................ ...... 32 
3.5.1.2   Technical barriers to trade  ................................ ................................ .....................  33 
3.5.2   Safeguard mechanisms  ................................ ................................ ............................  33 
3.5.2.1   Global safeguards  ................................ ................................ ................................ . 33 
3.5.2.2   Bilateral safeguards ................................ ................................ ...............................  34 
3.5.2.3   Safeguards in agriculture  ................................ ................................ .......................  34 
3.5.2.4   Other special safeguards  ................................ ................................ ........................  34 
3.5.2.5   Balance -of-payments safeguards  ................................ ................................ ............  34 
3.5.3   Anti-dumping and countervailing measures  ................................ ................................ . 34 
3.5.4   Subsidies and State -aid ................................ ................................ ............................  36 
3.5.5   Customs -related procedures  ................................ ................................ .....................  36 
3.5.6   Other regulations  ................................ ................................ ................................ ..... 36 
3.6  Sector -Specific Provisions of the Agreem ent ................................ ................................ .. 37 
3.6.1   Agriculture  ................................ ................................ ................................ ..............  37 
4  GENERAL PROVISIONS OF THE AGREEMENT  ................................ ..............................  37 
4.1  Transparency  ................................ ................................ ................................ .............  37 
4.2  Institutional framework  ................................ ................................ ...............................  37 
4.3  Dispute settlement  ................................ ................................ ................................ ..... 38 WT/REG384/1 /Rev.1  
- 3 - 
 
  4.4  Relationship with other agreements concluded by the Parties  ................................ ...........  39 
4.5  Government procurement  ................................ ................................ ............................  42 
4.6  Intellectual Property Rights  ................................ ................................ ..........................  42 
4.7  Current payments and capital movements  ................................ ................................ ..... 42 
4.8  Exceptions  ................................ ................................ ................................ .................  42 
4.9  Accession and Withdrawal  ................................ ................................ ...........................  42 
4.10  Other provisions  ................................ ................................ ................................ ....... 42 
4.10.1   Competition  ................................ ................................ ................................ ..........  42 
4.10.2   Services and investment  ................................ ................................ .........................  43 
4.10.3   Environment  ................................ ................................ ................................ .........  43 
4.10.4   Innovation  ................................ ................................ ................................ ............  43 
ANNEX 1  ................................ ................................ ................................ ........................  44 
 
 
  WT/REG384/1 /Rev.1  
- 4 - 
 
   
Key Facts  
 
Parties to the Agreement:  Costa Rica, El Salvador, Guatemala, 
Honduras, Nicaragua and Panama  
 
Date of Signature:  29 June 2012 
 
Date of Entry into Force:  6 May 2013 
 
Date of Notification:  24 April 2017 
 
Full implementation  2025 for Panama – Costa Rica  
(tariff reduction  2013 for Panama – El Salvador  
schedules):  2026 for Panama – Honduras  
2028 for Panama – Guatemala  
2024 for Panama – Nicaragua  
 
1  TRADE ENVIRONMENT  
1.1.  In 2016 , Panama was the third largest Party with a GDP estimated at US$55,122  million. I n 
the same year, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua's GDPs were estimated 
at US$58,109  million , US$26,709  million , US$68,175  million , US$21,364  million  and 
US$13,049  million  respectively . Panama also had the largest GDP per capita followed by Costa  Rica 
(US$13,117 and US$11,326 respectively on average over the 2014 -2016 period) . El Salvador, 
Guatemala, Honduras and Nicaragua's GDPs  per capita over the sam e period were US$4,211, 
US$3,907, US$2,550 and US$2,057 respectively.  
1.2.  In 2016, Panama  ranked 84th in global exports while Costa Rica, El Salvador, Guatemala, 
Honduras and Nicaragua ranked 88th, 101st, 82nd, 91st, and 108th respectively . The ranking s in terms 
of global imports were very similar , with Panama being 75th, Costa Rica 81st, El Salvador 92nd, 
Guatemala 77th, Honduras 90th and Nicaragua 107th. In terms of trade openness, Panama, Honduras 
and Nicaragua were slightly more open than Costa Rica, El Salvador and Guatemala . The 
trade -to-GDP ratio of the first group of countries during 2014 -2016 was, in order , of 53, 47 and 
41 compared to 32, 34 and 26  of the second group.1 
1.3.  Manufactures form ed the largest import sector  for all countries  with a share ran ging from 91 % 
(Panama in 2015) to 57 % (Nicaragua in 2015) . Manufactures were also the main exports of Panama 
(93%), Costa Rica (53 %), El Salvador (76 %) and Honduras (60 %) while agricultural products were 
the main exports of Guatemala (46 %) and Nicaragua (47%). 
1.4.  Trade between the Panama and the other Parties is relatively small in terms of their overall 
trade . The largest source of imports among the Parties for Panama is Costa Rica (5 % of overall 
imports) followed by Guatemala and El Salvador (2 % and 1.3 % respectively) .2 Costa Rica is also 
the largest destination market in the region for Panama with 6 % of exports .3 Nicaragua and 
Guatemala follow with 2.5 % and 1.8 %. O n the other hand, Panama is the source of 3 % of total 
imports for Guatemala, 2 % for Costa Ric a and El Salvador, 0.5 % for Nicaragua and 0.3 % for 
Honduras .4 As a destination market, Panama absorbs 6 % of total exports from Costa  Rica, 
2.3% from El Salvador and Guatemala and almost  1% from Honduras and Nicaragua.5 
                                                
1 Source: WTO Trade Profiles 2018.  
2 The largest sources of imports for Panama are the United States of A merica (32%), the 
European  Union (14%) and China (12%).  
3 The European Union and the US are the largest destination markets for Panama with 31 % and 21% of 
total exports respectively.  
4 The US is the largest source of imports for all the Parties with shares  ranging from 18 % (Nicaragua) to 
39% (Guatemala).  
5 The US is also the largest destination market for all the Parties with shares ranging from 
35% (Guatemala) to 54%  (Nicaragua).  WT/REG384/1 /Rev.1  
- 5 - 
 
  1.5.  Chart 1.1  and Chart 1.2  show the Part ies global and bilateral balance of trade in goods during 
the period 2000 -2016. Panama has had a widening global and bilateral trade deficit with all the other 
Parties for much of this period . All the other Parties registered a global trade surplus which remained 
relatively steady over time . Costa Rica is the only Party with a consistent trade surplus with Panama . 
All the other Parties tended to have a trade deficit with Panama with the exception of Honduras and 
Nicaragua in the last few years of the sampl e. 
Chart 1.1 Panama, bilateral trade with Central America and trade with world, 2000 -2016  
 
Note:  Total trade excludes trade under zona libre de colon, zona libre de petroleo, zonas procesadoras and 
empresas de ensamblaje.  
Source:  Instituto Nacional de Estadística and Censos (INEC).  
 
WT/REG384/1 /Rev.1  
- 6 - 
 
  Chart 1.2 Central America, bilateral trade with Panama and trade with world, 2000 -2016  
 
Source:  UNSD, COMTRADE database and Global Trade Atlas (GTA) database (Honduras 2008, 2013 and 
Nicaragua 2016).  
1.6.  Chart 1.3  shows the product composition of annual merchandise trade by broad HS Section 
categories during 2010 -2012. Before the Agreement entered into force Panama's main imports from 
the world were machinery, vehicles, base metals, chemicals and prepared foods which together 
accounted for around 67 % of its global imports  (top left panel of the chart) . Prepared foods 
accounted for at least 19% of imports of Panama from each Central American country  (top centre 
panel of the chart) . Chemicals were important i mports from Guatemala, El Salvador and Costa Rica 
accounting for more than 20 % of bilateral imports . Machinery is a relevant Panama's import from 
Nicaragua and Honduras while live animals are important imports from Honduras and Guatemala 
and plastics from Honduras and Costa Rica . Of all these products, only prepared foods are relatively 
important global exports for all Central American countries (top right panel of the chart) . Other 
important global exports of Central American countries are vegetables ( for all countries), machinery 
02468101214161820
0.000.100.200.300.400.500.600.70
2000 2002 2004 2006 2008 2010 2012 2014 20161. Costa Rica trade with Panama and world, 
2000 -2016
(US$ billion)
024681012
0.000.050.100.150.200.25
2000 2002 2004 2006 2008 2010 2012 2014 20162. El Salvador trade with Panama and world,
2000 -2016
(US$ billion)
02468101214161820
0.000.100.200.300.400.500.600.700.80
2000 2002 2004 2006 2008 2010 2012 2014 20163. Guatemala trade with Panama and world,
2000 -2016 
US$ billion)
012345678910
0.000.050.100.150.200.250.300.350.40
2000 2002 2004 2006 2008 2010 2012 2014 20164. Honduras trade with Panama and world,
2000 -2016
(US$ billion)
01234567
0.000.020.040.060.080.100.120.14
2000 2002 2004 2006 2008 2010 2012 2014 20165. Nicaragua trade with Panama and world,
2000 -2016
(US$ billion)
WT/REG384/1 /Rev.1  
- 7 - 
 
  (for Honduras and Costa Rica), textiles (for Nicaragua, Guatemala and El  Salvador), live animals (for 
Nicaragua and Honduras) and minerals (for Honduras and El  Salvador).  
1.7.  The bottom left panel of the chart shows that Panama's larg est exports  were live animals 
(24%), vegetables (22 %), precious stones (14 %), base metals (13 %) and prepared foods (12 %). 
At a bilateral level , chemicals, minerals, machinery and textiles represented important exports to at 
least four Central American countries . Exports of live animals and wood pulp represented 20 % and 
19% respectively of exports to Nicaragua . Vehicles we re an important export to Costa  Rica with 16 % 
of total bilateral exports (bottom centre panel of the chart) . Machinery, minerals and c hemicals were 
among the top five sectors in terms of global imports for all Central American countries (bottom 
right panel of the chart) . Textiles represented at least 8 % of global imports for Costa Rica, 
El Salvador and Guatemala and prepared foods accoun ted for more than 7 % of global imports for 
El Salvador, Honduras and Nicaragua.  
Chart 1.3 Panama – Central America : product composition of merchandise trade, annual 
average (2010 -2012)  
 
Note:  Panama's global trade excludes trade under zona libre de colon, zona libre de petroleo, zonas 
procesadoras y empresas de ensamblaje.  
Source:  UNSD, COMTRADE  database and Instituto Nacional de Estadística y Censos (INEC).  
26
22
1296248
41
14552523
15
12179249
39
8873023
14
12261214Central America's global 
exports (%)
Total: Costa Rica: US$ 10.2 b illion
El Salvador :US$5.0 billion
Guatemala: US$9.6 billion
Honduras:US$3.8 billion
Nicaragua : US$2.9 billionCRISLVGTMHNDNIC
23
14
10109644415Panama's global imports (%)
Total: US$ 7,730 m illion31
2112972120
25
9111322
44
195781721
13
15
13162325
13
14181416Panama's imports from Central 
America (%)
Total: Costa Rica: US$508 million
El Salvador :US$101 million
Guatemala: US$193 million
Honduras: US$28 million
Nicaragua: US$15 millionCRISLVGTMHNDNIC
28
13
10873313
18
12
1573616
20
13873614
24
146103216
24
157830Central America's global 
imports (%)
Total: Costa Rica: US$16.8 billion
El Salvador: US$9.6 billion
Guatemala: US$15.8 billion
Honduras: US$8.0 billion
Nicaragua: US$5.1 billion CRISLVGTMHNDNIC
18
16
1212113213
17
3511618
35
248562220
7
2417102213
16
20
91922Central America's imports from 
Panama (%)
Total: Costa Rica: US$388 million
El Salvador: US$203 million
Guatemala: US$486 million
Honduras: US$54 million
Nicaragua: US$14 millionCRISLVGTMHNDNIC
24
22
14131215Panama's global exports (%)
Total: US$752 million
Prepared foodsVegetablesLive animals
PlasticsChemicalsMinerals
FootwearTextilesWood pulp
MachineryBase metalsPrecious stones
MiscellaneousOpticalVehicles OtherWT/REG384/1 /Rev.1  
- 8 - 
 
  1.8.  The composition of annual merchandise trade by broad  HS Section categories is relatively 
similar during 2014 -2016, especially for global imports and exports  (Chart 1.4 ). The most notable 
differences in Panama's imports from Central America are the increased importance of prepared 
foods from Costa Rica and Guatemala,  mainly to the expense of imports of c hemicals ; of wood pulp 
from Honduras to the expense of base metal, prepared foods, machinery and plastics ; and of live 
animals from Nicaragua to the expense of mach inery, minerals and vegetables . As to 
Central  America's imports from Panama, t he share of imports of chemicals increased for all countries 
and especially for Costa Rica and El Salvador . The share of Costa Rica's imports of vehicles from 
Panama sharply decreased . Also the share of Nicaragua's imports of wood pulp from Panama 
decreased while the share of animal or vegetables fats and oils increased.  
Chart 1.4 Panama – Central America : product composition of merchandise trade, annual 
average (2014 -2016)  
 
Note:  Panama's global trade excludes trade under zona libre de colon, zona libre de petroleo, zonas 
procesadoras y empresas de ensamblaje.  
Source:  UNSD, COMTRADE database and Instituto Nacional de Estadística y Censos (INEC).  
25
22
13136225
14
6
4652323
19
151292331
15
91172714
13
11
282014Central America's global 
exports (%)
Total: Costa Rica: US$ 10.2 b illion
El Salvador :US$5.4 billion
Guatemala: US$10.7 billion
Honduras:US$4.3 billion
Nicaragua : US$4.8 billionCRISLVGTMHNDNIC
29
251513613Panama's global exports (%)
Total: US$ 690 m illion32
2314552230
19
811191329
3061251715
9
11
7401921
518758Panama's imports from Central 
America (%)
Total: Costa Rica: US$470 million
El Salvador :US$123 million
Guatemala: US$183 million
Honduras: US$39 million
Nicaragua: US$37 millionCRISLVGTMHNDNIC
22
12
10993814
12
15
1583717
14
16
773917
14
18
1173317
16
15 
81034Central America's global 
imports (%)
Total: Costa Rica: US$16 billion
El Salvador: US$10.3 billion
Guatemala: US$17.6 billion
Honduras: US$8.1 billion
Nicaragua: US$5.8 billion CRISLVGTMHNDNIC21
14
11
101034Panama's global imports (%)
Total: US$9,729 million
25
14
121092928
25 1261019
40
1712662022
433961618
24
17101219Central America's imports from 
Panama (%)
Total: Costa Rica: US$311 million
El Salvador: US$153 million
Guatemala: US$617 million
Honduras: US$26 million
Nicaragua: US$22 millionCRISLVGTMHNDNIC
Prepared foodsVegetablesLive animals
PlasticsChemicalsMinerals
FootwearTextilesWood pulp
MachineryBase metalsWood and 
articles of wood
Articles of stone, 
plaster, cementOpticalVehiclesAnimal or vegetable 
fats and oils
OtherWT/REG384/1 /Rev.1  
- 9 - 
 
  2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  The Protocol In corporating the Republic of Panama into the Economic Integration Subsystem 
of the Central American Integration System (hereinafter the Agreement) was signed on 
29 June 2012 and notified to the WTO on 24 April 2017 under Article XXIV(7) of the GATT 1994  
(hereinafter GATT) . The Agreement entered into force on 6 May 2013.6 It includes four sections and 
nine annexes which form an integral part of the Agreement ( Box 2.1 ). The Agreement is one of 
16 regional trade agreements (RTAs) notified by Panama and one of 1 3 notified by Costa Rica, 11  by 
El Salvador, 9 by Guatemala, 10 by Honduras and 9 by Nicaragua .7 Of these RTAs, 14 cover both 
trade in goods and trade in services for Panama, 8 for El  Salvador and Guatemala, and 11, 9  and 7 
for Costa Rica, Honduras and Nicaragua respectively.  
Box 2.1 Structure of the Agreement  
Section I  Initial Provisions  
Section II  Legal Instruments of the Central American Economic Integration  
Section III  Institutional and Administrative Provisions  
Section IV Final Provisions  
Annex 3.2 Legal Instruments of the Central American Economic Integration adopted by 
Panama in force from the date of entry into force of the Protocol  
Appendix 3.2(d) Deadlines and conditions established by the Republic of Panama for the 
implementation of the CAUCA and the RECAUCA  
Annex 3.3 Legal Instruments of the Central American Economic Integration adopted by 
Panama in Force not later than 1 January  2017 
Annex 4.2 Goods in Transition to Free Trade  
Annex 4.3 List of Goods in Conf ormity with Article IV of the TGIEC  
Appendix to 
Annexes 4.2 and 4.3  Bilateral import quotas applied by the Republic of Panama and each  
State Party  
Annex 5.1  Exceptions to the Application of the Code and Description of the 
Central  American Import Tariff  
Annex 5.2  Exceptions to the Harmonization of Customs Duties  
Annex 6 (a) Regime of Origin  
Annex 7.1  Central American T echnical Regulations and other i nstruments that Panama 
puts into force in no more than six months from the entry into force of the 
Protocol  
Annex 7.2  Central American Technical Regulations and other instruments subject to 
revision by Panama and the other countries of the economic integration 
subsystem that enter into force in no more than two years from the entry into 
force of the Protocol  
 
2.2.  Before entry into force of the Agreement a ll the original signatories of the Central American 
Common Market (CACM) and Costa Rica had already  signed Bilateral Protocols to the 
Free Trade  Agreement within Central America with Panama (hereinafter th e Bilateral Protocols) . The 
Bilateral Protocols  form the basis for the accession of Panama to the CACM . The negotiations for the 
accession of Panama essentially incorporated the Bilateral Protocols  into the common market with 
the commitment to further liberalize trade through negotiations to establish a timetable for the 
gradual and full liberaliza tion of all excluded products (A rticle 4.5).  
                                                
6 The text of the Agreement is available at: 
http://www.mici.gob.pa/detalle.php?cid=15&sid=57&clid=193&id=4133 . 
7 The numbers include the Agreement establishing the Central American Common Market (CACM) and 
exclude accessions; each Bilateral Protocol to the Free Trade Agreement within Central America with Panama is 
counted separately.  WT/REG384/1 /Rev.1  
- 10 - 
 
  2.3.  Starting from the entry into force of the Agreement, all e conomic and trade relationships 
between Panama and the other Parties are regulated by the norms and legal instruments of the 
Central American Economic Integration Subsystem . At the same time, the Free Trade Agreement 
within Central America with Panama and the Bilateral Protocols  discipline  all the issues  that are not 
covered under the Subsystem until their incorporation (Article  11). 
2.4.  Article 3 of the Agreement establishes which legal instruments of the Central America Economic 
Integration enter into force f or Panama . Panama puts in to force the Protocol of Guatemala 
(hereinafter  PG) of 1993 and its amendment s at the entry into force of the Agreement (Article 3.1) 
and it is incorporated in to the Central American Economic Integration Subsystem in conformity wit h 
Article IV of Title VI of the PG (Article 1) . Panama also adopts and puts into force the General Treaty 
of Central American Economic Integration (hereinafter the TGIEC) of 1960, the Agreement on the 
Central American Tariff and Customs Regime (hereinafter  CRAAC) of 1984  and the Framework 
Agreement for the Creation of a Central American Customs Union (hereinafter the Framework 
Agreement) of 2007 .8 To facilitate the understanding of the treaties between the Parties adopted by 
Panama through the Agreement , Table 2.1  lists the names in Spanish and English and the terms 
used in this FP of the main agreements regulating trade between the Parties and with third countries.  
Table 2.1 Summary of agreements and main legal instruments adopted by Panama  
Extended Name in Spanish  Extended Name in English  Reference term 
used in the FP  Original date of 
signature  
Protocolo de Incorporación  de 
la Republica de Panamá  al 
Subsistema de Integración  
Económica  del Sistema de la 
Integración  Centroamericana  Protocol Incorporating  the 
Republic of Panama to the 
Economic Integration 
Subsystem of the Central 
American Integration System  the Agreement  29 June 2012 
Tratado General de 
Integración  Económica  
Centroamerican a General Treaty of Central  
American Economic 
Integration  TGIEC  13 December  1960 
Convenio sobre el Régimen 
Arancelario y Aduanero 
Centroamericano  Agreement on the Central 
American Tariff and Custom 
Regime  CRAAC  27 December  1984 
Protocolo al Tratado General 
de Integración Económica 
Centroamericana (Protocolo 
de Guatemala)  Protocol to the General Treaty 
on Central American 
Integration (Protocol of 
Guatemala)  PG 29 October  1993 
Convenio Marco para el 
Establecimiento de la Unión 
Aduanera Centroamericana  Framework Agreement for the 
Establishment of the Central 
American Customs Union  the Framework 
Agreement  12 December  2007 
Protocolos Bilaterales al 
Tratado de Libre Comercio 
entre Centroamérica y 
Panamá  Bilateral Protocols to the Free 
Trade Agreement within 
Central America with Panama  the Bilateral 
Protocols  7 August  2007 
(Costa Rica - Panama)  
 
6 March  2002 
(El Salvador -Panama)  
 
26 February  2008 
(Guatemala -Panama)  
 
15 June 2007 
(Honduras -Panama)  
 
15 January  2009 
(Nicaragua -Panama)  
 
2.5.  The Central American Economic Integration  Subsystem  aims at achieving fair and sustainable 
economic and social development that improves welfare and growth through a process that enables 
the transformation and modernization of productive, social and technological structures , increase s 
competitiveness and achieves efficient a nd dynamic integration into the international economy 
(Article 3 of the PG). This objective is to be reached by committing to macroeconomic equilibrium 
and internal and external stability through the application of consistent  and convergent 
macroeconomic p olicies (article 4 of the PG). The pace at which an Economic  Union between the 
                                                
8 The TGIEC, the CRAAC and the F ramework Agreement are listed in Annex 3.2 of the Agreement and as 
such they enter into force on the date of entry onto force of the Agreement.  WT/REG384/1 /Rev.1  
- 11 - 
 
  Parties is achieved is flexible and each Party decides at which speed it intends to progress towards 
such integration (Article 6 of the PG). 
2.6.  Article 2 of the Framework Agreement reiterates that a customs union will be created in a 
gradual and progressive manner through (i) the promotion of the free circulation of goods and trade 
facilitation, (ii) the modernization of legislation and normative convergence, and (iii) institutional 
development . The general principles and objectives for the promotion of free circulation of goods 
and trade facilitation include the application of trade facilitation measures, the application of legal 
mechanisms, the e stablishment of IT and logistics infrastructures, the adoption of common principles 
in terms of quotas, and the prohibition of the application of non -tariff measures (e.g. permits, 
licences, quotas, etc.). (Title III of the Framework Agreement) . In terms o f modernization and 
normative convergence, the Parties endeavour to harmonize the common external tariff on all 
product s, create customs entry points for goods from third parties, harmonize regional norms in all 
areas included in the Framework Agreement an d promote the gradual convergence of the RTAs 
signed by each Party with third countries (Title IV) .9 The Parties finally strive to establish the 
appropriate institutional framework for the functioning, administration and consolidation of the 
customs union (Title V).  
2.7.  At the entry into force of the Agreement, the legal instruments listed in Annex 3.2 to the 
Agreement enter ed into force . These instruments cover rules of origin, institutional provisions , tariff  
regime, trade defence, dispute settlement , SPS, TB T, customs transit and  non-tariff measures . 
Panama also adopt ed the instruments listed in Annex 3.3 on 1 January  2017 the latest . These 
instruments include agreements on street signs, temporary imports of vehicles, road circulation, sea 
products, minimum or reference prices, administration of quotas for agricultural products and 
donation of food and agricultural supplies.  
2.8.  The Agreement  also foresees that Panama would agree with the other Parties the conditions to 
join the Agreement on Investment and Trade in Services within six months of the entry into force of 
the Agreements ( Article 8) . The Parties have reported that negotiations have been held between the 
countries but have not yet been concluded.  
3  PROVISIONS ON TRADE IN GOODS  
3.1  Trade between the parties  
3.1.1   General provisions  
3.1.  Article 7 of the PG states that the free trade area between the Parties shall be improved for all 
originating products through the gradual elimination of all tariffs, non -tariff measures, all 
quantitative restrictions and any other measure  with equivalent effect . Moreover, national treatment 
is granted to all originating goods . The Parties also commit to achieve  regional harmonization of all 
technical regulations.  
3.2.  In terms of market access, Panama grants duty free treatment to all originating goods at the 
entry into force of the Agreement with the exception of the lines listed in Annexes 4.2 and 4.3  
(Article  4.1).10 The products in Annex 4.2 are subject to gradual elimination of tariffs according to 
the schedule specified therein . Products excluded from liberalization are listed in Annex 4.3 . Panama 
will negotiat e with the other Parties to establish a timetable for the gradual elimination of all tariffs 
included in the Annexes (Article 4.5) . The Parties have reported that, in relation to Annex  4.2, tariff 
reductions are continuing in accordance with the schedule established in that Annex for each country , 
while bilateral negotiations have been held with Panama for liberalization of the excluded  products 
(Annex 4.3) . The bilateral negotiations between Costa Rica and Panama and between Guatemala 
and Panama have been concluded and the negotiations between Panama and El  Salvador, Nicaragua 
and Honduras are ongoing .11 Agreement was also reached on mak ing subject to free trade, in 2029, 
the fats and oils that were excluded from free trade under Panama's bilateral regime with Honduras, 
                                                
9 The Parties have reported that, to date, convergence of the FTA between Central America and Mexico 
has been ac hieved.  
10 Annexes 4.2 and 4.3 of the Agreement are equivalent to Annex A of the TGIEC.  
11 In the case of Costa Rica and Panama, the respective resolution of the Executive Committee for 
Economic Integration was signed.  WT/REG384/1 /Rev.1  
- 12 - 
 
  Costa Rica, Guatemala and Nicaragua, through respective signature of the Resolution of the 
Executive Committee for Econo mic Integration.12 
3.3.  The Parties reiterate the prohibition on the application of minimum or reference prices (or  other 
denominations having similar effects) in exchanges between them (Resolution No. 103-2002).  
3.4.  Non-tariff measures such as permits, licences, qu otas and other measures of equivalent effect 
that limit trade between the Parties are prohibited under Article 6 of the Framework Agreement.  
3.5.  The Procedure for the Revision , Analysis and Resolution of Non-Tariff Barriers in Intra-regional 
Central  American T rade is set out in COMIECO Agreement No. 01-2011. The Central  American 
Economic Integration Secretariat is in charge of regularly updating and publishing a matrix including 
information about the complaining Party, the Party applying the measures, the measure itself, the 
legal disposition that has been violated and th e justification of the denounced Party (Article 6 of the 
Agreement No. 01-2011) . A measure is removed from the matrix when the complaint is resolved, if 
the complaining Party request its removal or if the measure has been eliminated by the applying 
Party.  
3.1.2   Liberalization of trade and tariff lines  
3.1.2.1   Panama  
3.6.  Table 3.1  summarizes Panama's tariff elimination commitments under the Agreement for each 
Central  American partner .13 In 2013, 3,062 lines (or 34.5 %) were already duty free on an MFN 
basis.14 Before the entry i nto force of the Agreement, a number of lines ranging from 
2,800  (Honduras) to 7,762 (Costa Rica), corresponding to 34.5 % and 86.9 % of the tariff 
respectively, were already duty free under the respective Bilateral Protocols . In terms of average 
value  of imports in the period 2010 -2012, the share of imports entering Panama duty free under the 
Bilateral Protocols ranged between 12 % (Honduras) to 92 % (El Salvador) . The Agreement spurs 
further liberalizations with different implementation period s across partner .15 After ten years of 
implementation (by 2022), Panama will liberalize tariffs on an additio nal 935 lines (Costa Rica), 
111 lines (El  Salvador), 1,220 lines (Guatemala), 4,837 lines (Honduras), and 346 lines (Nicaragua) . 
By 2026  when the Agreement is fully  implemented , 2.5% of tariff lines  will remain dutiable for 
Costa  Rica corresponding to 2.3 % of imports . Liberalization for imports from El  Salvador ended in 
2013 leavi ng 17 .5% of tariffs dutiable (corresponding to 3.3 % of imports) . The share of tariff lin es 
that will remain dutiable for imports from Guatemala after implementation in 2028 is 2.5 % which is 
equivalent to 3.7 % of imports in 2010 -2012. 12.8 % of the tariff (or 4.7 % of imports) will remain 
dutiable for Honduras after 2026 . The corresponding figur e for Nicaragua is 9.4 % of dutiable tariff 
lines (or 2.2 % of imports)  in 2024.  
                                                
12 Signature of the agreement with El Sa lvador is pending.  
13 MFN and preferential data come from different datasets and therefore the information cannot be 
directly compared. The data on preferential tariffs come from the lists of reductions under the Bilateral 
Protocols provided by the Panamani an authorities within the context of the preparation of the factual 
presentations on the Bilateral Protocols.  
14 Panama's MFN tariff in 2013 consisted  of 8,881 tariff lines at the 8 -digit level, of which 8,853 were 
ad valorem  and 28 were specific duties.  
15 All tariffs are ad valorem  and imports under 20 lines are prohibited from El Salvador.    
  WT/REG384/1 /Rev.1  
- 13 - Table 3.1 Panama, Tariff elimination commitments under the Agreement and corresponding average trade  
Partner  Costa Rica* (HS 2002)  El Salvador (HS 1996)  Guatemala* (HS 2002)  Honduras* (HS 2002)  Nicaragua* (HS 2007)  
 
No of  
lines  
% Share  
Avg 
 imports 
(US$   
million ) 
% Share  
No of  
 lines  
% Share  
Avg 
 imports  
(US$  
 million ) 
% Share  
No of  
lines  
% Share  
Avg 
 imports  
(US$  
 million ) 
% Share  
No of  
 lines  
% Share  
Avg 
 imports  
(US$  
 million ) 
% Share  
No of  
 lines  
% Share  
Avg  
imports  
(US$  
million ) 
% Share  
MFN 2013 duty-freea (HS 2012)  3,062  34.5   3,062  34.5   3,062  34.5   3,062  34.5   3,062  34.5   
Duty -free under the Bilateral 
Protocol  7,762  86.9 491.0  87.2 6,947  81.2 93.2 92.4 7,358  82.5 121.7  66.8 2,800  31.3 3.5 12.2 7,747  86.5 10.7 69.5 
2013 158 1.8 5.3 0.9 111 1.3 4.3 4.2 214 2.4 6.6 3.6 4,450  49.8 19.5 68.6     
2014                 76 0.8 0.0 0.0 
2015         1 0.0 2.8 1.5 2 0.0 0.0 0.0     
2016 24 0.3 5.0 0.9     11 0.1 10.9 6.0         
2017         1 0.0 4.3 2.4         
2018 715 8.0 32.3 5.7     984 11.0 19.6 10.8 385 4.3 0.1 0.3     
2019 9 0.1 13.0 2.3     9 0.1 0.8 0.4     270 3.0 2.3 15.0 
2020 17 0.2 2.6 0.5                 
2021 12 0.1 0.4 0.1                 
2023 4 0.0 0.0 0.0     77 0.9 8.4 4.6 152 1.7 4.0 14.2     
2024 3 0.0 0.0 0.0             22 0.2 2.0 13.3 
2025 5 0.1 0.4 0.1     2 0.0 0.1 0.0         
2026 2 0.0 0.0 0.0     1 0.0 0.0 0.0 7 0.1 0.0 0.0     
2028         40 0.4 0.1 0.1         
Remain dutiable  225 2.5 12.9 2.3 1,502b 17.5 3.3 3.3 220 2.5 6.8 3.7 1,142  12.8 1.3 4.7 842 9.4 0.3 2.2 
Total 8,936  100.0  562.9  100.0  8,560  100.0  100.8  100.0  8,918  100.0  182.2  100.0  8,938  100.0  28.4 100.0  8,957  100.0  15.4 100.0  
a The MFN 2013 information is a separate dataset from the preferential tariffs and was counted separately.  
b Of these lines, 20 are prohibited/restricted (13019020, 13021110, 13021190, 13021920, 13021930, 29034610, 29034620, 29034630,  49070052, 87100000, 
89060010, 89080010, 93010000, 93059010, 93063010, 93069010, 93070010, 95041011, 95043010 and 95049011) . Prohibited lines are excluded from the calculation 
of the average tariff rate but are included in the tariff line count.  
Note:  * Tariff lines subject to in -quota rates are excluded in the computation.  
Source:  WTO-IDB and data provided by the Panama authorities . The data on preferential tariffs have been provided by the Panamanian authorities within the context of the 
preparation of  the factual presentations on the Bilateral Protocols.  WT/REG384/1 /Rev.1  
- 14 - 
 
  3.1.2.2   Central  America  
3.7.  Tables 3.2 -3.6 show tariff and trade liberalization by each Central American country for imports 
from Panama under the Agreement . The tables also highlight the number and the share of tariff lines 
that were already liberalized under each Bilateral  Protocol .16 Before the Agreement entered into force 
in 2013, only 2% of Costa Rica's tariff was zero for imports from MFN sources, which corresponded 
to 16.5 % of its average imports from Panama during 2010 -2012 (Table  3.2).17 Before the entry into 
force of the Agreement, 5,717 lines (or 90.7 % of the tariff) had already been liberalized under the 
Bilateral Protocol . In 2013, the share of duty free lines was 89.9 % and it slightly increased to 90.1% 
in 2016, corresponding to 7 4.1% of its average imports from Pa nama . An additional 353  lines are 
to be liberalized in 2018, which amounted for 7.2% of Costa Rica 's imports from Panama in 
2010-2012. The remaining 46 lines under the liberalization programme are to be liberalized between 
2019 and 2025, which correspond t o 1.8% of Costa  Rica's  imports from Panama . Following full 
implementation of the Agreement, 2.2% of Costa  Rica's tariff ( 151 lines) will remain subject to 
duties ; these lines correspond , on average,  to 1.8% of Costa Rica 's imports from Panama in 
2010-2012. 
Table 3.2 Costa Rica, Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out period  Number 
of lines  % of 
total 
lines in 
Costa 
Rica's 
tariff 
schedule  Value of Costa 
Rica's imports 
from  Panama  
(2010 -2012)  
US$ million  % of Costa Rica's 
total imports from  
Panama  
2010 -2012  
MFN 2013  142 2.0 46.4 16.5 
2013 6,270  89.9 207.2  73.7 
2016 16 0.2 1.1 0.4 
2018 353 5.1 20.3 7.2 
2019 7 0.1 1.1 0.4 
2020 21 0.3 0.0 0.0 
2021 6 0.1 0.0 0.0 
2023 6 0.1 0.0 0.0 
2024 2 0.0 0.0 0.0 
2025 4 0.1 0.0 0.0 
Remain dutiable  151 2.2 5.0 1.8 
Total  6,978  100.0  281.1  100.0  
Duty -free under the Bilateral Protocola 5,717  90.7   
a Based on the HS 2002 no menclature (Table III.1 of WT/REG264/1, page 13).  
Note:  Tariff lines subject to in -quota rates are excluded in the computation . 
 Based on the HS  2012 nomenclature.  
Source:  WTO estimates based on data provided by the Costa Rica n authorities.  
3.8.  In 2013, 47.7 % of El Salvador's  MFN tariff was duty free, corresponding  to 54.4 % of its average 
imports from Panama during 2010 -2012 (Table 3.3) .18 Before the entry into force of the Agreement, 
4,946 lines (or 82.6 % of the tariff) had already been liberalized under the Bilateral  Protocol . In 2013, 
when the Agreement entered into force , a total of 37% (2,674) of lines was liberalized on a 
preferential basis for imports from Panama, corresponding to 34.3 % of imports . There are currently 
1,098 lines or 15.2 % of the tariff, corresponding to 11.4 % of imports from Panama during 
2010-2012, subject to duties.  
                                                
16 With the exception of the case of Nicaragua, the number of lines and the percentage liberalized under 
the Bilateral Protocol is not comparable to the rest of the table s because of differences in nomenclatures. For 
Nicaragua, although the HS nomenclature are the same between the Bilateral Protocol and the Agreement, 
there are slight differences in the tariff line structure since the Bilateral Protocol was based on HS 201 2 as of 
the year 2010 and the Agreement is based on HS 2012 nomenclature as of the year 2013.  
17 In 2013 Costa Rica's MFN applied tariff consisted of 6,978 lines at the 8 -digit level. All lines were 
ad valorem.  
18 In 2013 El Salvador's MFN applied tariff con sisted of 7,213 lines at the 10 -digit level. All lines were 
ad valorem.  WT/REG384/1 /Rev.1  
- 15 - 
 
  Table 3.3 El Salvador, Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out period  Number 
of lines  % of total 
lines in 
El Salvador's 
tariff 
schedule  Value of El 
Salvador's 
imports from 
Panama  
(2010 -2012)  
US$ million  % of El 
Salvador's total 
imports from  
Panama  
2010 -2012  
MFN 2013  3,441  47.7 110.0  54.4 
2013 2,674  37.1 69.4 34.3 
Remain dutiable  1,098  15.2 23.0 11.4 
Total  7,213  100.0  202.4  100.0  
Duty -free under the Bilateral Protocola 4,946  82.6   
a Based on the HS 1996 n omenclature  (Table II.3 of WT/REG196/3, pages 16 -17). 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS  2017 nomenclature.  
Source:  WTO estimates based on data provided by El Salvador authorities.  
3.9.  In 201 4, 50% of Guatemala's MFN tariff lines w as duty free, corresponding to 34 % of its 
average imports from Panama during 201 1-2013 (Table 3.4) .19 Guatemala had already liberalized 
5,487 lines (o r 87% of the tariff) under the Bilateral Protocol before the entry into force of the 
Agreement . Under the Agreement, Guatemala liberalized 40. 7% of its tariff for imports from Panama 
(corresponding to 5 3% of imports from Panama in 201 1-2013) immediately up on entry into force . 
By 2017, Guatemala had liberalized a further 519 lines or 7.4% of the tariff, corresponding to almost 
13% of its imports from Panama . In 2018 an additional seven  lines are to be liberalized . Between 
2022 and 2027 all the remaining tariff lines except 42 will be duty free, which correspond to a 
marginal value of its imports from Panama in 201 1-2013. 
Table 3.4 Guatemala, Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out period  Number 
of lines  % of total 
lines in 
Guatemala's 
tariff 
schedule  Value of 
Guatemala's 
imports from 
Panama  
(2011 -2013)  
US$ million  % of Guatemala's 
total imports from  
Panama  
2011 -2013  
MFN 2014  3,451  49.6 179.1  33.9 
2014 2,829  40.7 278.9  52.8 
2015 3 0.0 0.1 0.0 
2016 1 0.0 0.2 0.0 
2017 515 7.4 67.8 12.8 
2018 7 0.1 0.1 0.0 
2022 60 0.9 2.0 0.4 
2024 1 0.0 0.0 0.0 
2025 3 0.0 0.0 0.0 
2027 39 0.6 0.0 0.0 
Remain dutiable  42 0.6 0.1 0.0 
Total  6,951  100.0  528.3  100.0  
Duty -free under the Bilateral Protocola 5,487  87.1   
a Based on the HS 20 02 nomenclature  (Table 3.1D of WT/REG336/1/Rev.1, pages 19 -20). 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS  2012 nomenclature.  
Source:  WTO estimates based on data provided by the Guatemala authorities, the WTO -IDB and UNSD, 
Comtrade database.  
3.10.   As of 201 3, 48% of Honduras' tariff was zero for imports from MFN sources, which 
corresponded to 41 % of its average imports from Panama during 2010 -2012 ( Table  3.5).20 Before 
the Agreement entered into force 5,299 lines (or 81 % of the tariff) had already been liberalized 
                                                
19 In 2013 Guatemala's MFN applied tariff consisted of 6,951 lines at the 8 -digit level. All lines were 
ad valorem.  
20 In 2014 Honduras' MFN applied tariff consisted of 7,215 lines at th e 10-digit level. All lines were 
ad valorem.  WT/REG384/1 /Rev.1  
- 16 - 
 
  under the Bilateral Protocol . In 201 3, the share of Honduras' duty -free lines under the Agreement  
was 34%, corresponding to 35.2 % of its imports during 2010 -2012 from Panama . An additional 
3.2% of tariffs will be duty free by the end of 2018, corresponding to 3.2% of its average imports 
from Panama. 94 lines are to be liberalized by the end of the implementation period in 2026  while 
984 lines , corresponding to 20% of Honduras'  imports from Panama,  will remain dutiable . 
Table 3.5 Honduras, Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out period  Number 
of lines  % of total 
lines in 
Honduras' 
tariff 
schedule  Value of 
Honduras' 
imports from 
Panama  
(2010 -2012)  
US$ million  % of Honduras' 
total imports from  
Panama  
2010 -2012  
MFN 201 3 3,459 47.9 20.2 41.3 
2013 2,444 33.9 17.2 35.2 
2015 2 0.0 0.0 0.1 
2018 232 3.2 1.6 3.2 
2023 92 1.3 0.1 0.2 
2026 2 0.0 0.0 0.0 
Remain dutiable  984 13.6 9.7 19.9 
Total  7,215  100.0  48.8 100.0  
Duty -free under the bilateral protocola 5,299  80.7   
a Based on the HS 2007 n omenclature  (Table 3.1B of WT/REG278/1/Rev.1, page 18).  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS  2017 nomenclature.  
Source:  WTO estimates based on data provided by Honduras authorities.  
3.11.   In 2013, 46.4% of Nicaragua 's MFN tariff was duty free for imports, corr esponding to 6 8% of 
its average imports from Panama  during 201 0-2012 (Table 3.6) .21 Before the entry into force of the 
Agreement, 6,577 lines corresponding to 89.4 % was duty free on an MFN basis or under the Bilateral 
Protocol . In 2013, when the Agreement entered into force the number of lines liberalized by 
Nicaragua was 3,166 (or 43% of the tariff ), corresponding to 28.2% of its imports from Panama . In 
2019 and 2024  an additional 200 lines are to be liberalized, which correspond  to a marginal value 
of its imports from Panama in 2010 -2012. At the end of implementation 533 lines or 7.2% of the 
tariff will remain subject to duties for imports from Panama ; this corresponds to 3.4% of Nicaragua 's 
imports from Panama . 
Table 3.6 Nicaragua, Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out period  Number 
of lines  % of total 
lines in 
Nicaragua's 
tariff 
schedule  Value of 
Nicaragua's 
imports from 
Panama  
(2010 -2012)  
US$ million  % of 
Nicaragua's 
total imports 
from  
Panama  
2010 -2012  
MFN 2013  3,419  46.4 9.5 68.1 
2013 3,166  43.0 3.9 28.2 
2014 50 0.7 0.0 0.0 
2019 189 2.6 0.0 0.3 
2024 11 0.1 0.0 0.0 
Remain dutiable  533a 7.2 0.5 3.4 
Total  7,368  100.0  13.9 100.0  
Duty -free under the Bilateral Protocolb 6,577  89.4   
a Of these lines, two are prohibited (1302110000 and 1302199000 ). Prohibited lines are excluded 
from the calculation of the average tariff rate but are included in the tariff line count.  
b Based on the HS 2012 nomenclature  (Table 3.1C of the WT/REG331/1/Corr.1, page 1) . 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS  2012 nomenclature.  
Source:  WTO estimates based on data provided by Nicaragua authorities.  
                                                
21 In 2013 Nicaragua's MFN applied tariff consisted of 7,368 lines at the 10 -digit level, two of which 
were prohibited while all the others were ad valorem . WT/REG384/1 /Rev.1  
- 17 - 
 
  3.1.3   Liberalization schedule  
3.1.3.1   Panama  
3.12.   Liberalization by Panama is shown , for each Party,  by broad HS Section in  Tables 3.7 -3.10 
and Table 3.11  and by HS Chapter in Chart 3.1  below . In 2013, Panama's liberalization under the 
Agreement and the Bilateral Protocols covered all HS Sections  for all the Parties . Further 
liberalization will occur in various HS sections for imports from Costa Rica, Guatemala, Honduras 
and Nicaragua . At the end of the implementation periods of the Agreement, most of the tariffs 
remaining w ill be in HS Sections I -IV and XVII for all Parties as well as HS  Section XI for El  Salvador, 
Honduras and Nicaragua and HS Section XV for Honduras . The average MFN 2013 duties of these 
lines range from 8.5 % for HS XI from El Salvador to 96.7 % in HS Sectio n I from Guatemala.  
Table 3.7 Panama : Tariff elimination under the Agreement for Costa Rica, by HS Section  HS 
Section  MFN 2013a 
Total 
lines  Number of duty -free lines under the Agreement  
Remain 
dutiable  
Avg. Final 
Tariff  
(Dutiable
) Average  
% Duty -free 
lines  
2013  
2016  
2018  
2019  
2020  
2021  
2023  
2024  
2025  
2026  
I 20.0 38 400 328  28  10  4 3  2 25 68.7 
II 9.9 160 429 402  7  6    2  12 61.8 
III 8.6 20 71 43  4        24 18.8 
IV 12.0 92 572 478 7 55 5 1 12   3  11 57.3 
V 6.8 87 199 193  6          
VI 2.4 884 1,268  1,237  3 28          
VII 4.2 218 460 457  3          
VIII 11.8 4 121 121            
IX 7.3 63 176 176            
X 7.9 139 485 470 1 10 4         
XI 6.9 463 1,285  701 13 571          
XII 9.8 10 164 164            
XIII 9.1 44 294 294            
XIV 7.2 24 66 66            
XV 7.4 321 930 927  3          
XVI 4.8 293 1,029  1,029             
XVII 5.9 159 358 205          153 12.5 
XVIII  9.0 36 306 306            
XIX 14.6 0 27 27            
XX 10.9 3 287 287            
XXI 6.9 4 9 9            
Total  7.6 3,062  8,936  7,920  24 715 9 17 12 4 3 5 2 225 24.2 
a The MFN 2013 information is based on the HS 2012 nomenclature which is a separate dataset from 
the preferential tariffs.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Preferential tariffs are based on the HS 2002 nomenclature.  
Source:  WTO-IDB and data provided by the Panama authorities.  
Table 3.8 Panama : Tariff elimination under the Agreement for El Salvador, by HS Section  
HS Section  MFN 2013a Total 
lines Number of 
duty-free 
lines under 
the 
Agreement 
2013  Remain 
dutiableb Avg. Final 
Tariff  
(Dutiable)  Average  
% Duty -free 
lines  
I 20.0 38 376 236 140 29.6 
II 9.9 160 423 403 20 52.6 
III 8.6 20 68 44 24 18.6 
IV 12.0 92 540 447 93 19.6 
V 6.8 87 186 186   
VI 2.4 884 1,229 1,226  3  
VII 4.2 218 419 419   
VIII 11.8 4 126 126   
IX 7.3 63 167 167   
X 7.9 139 423 422 1  
XI 6.9 463 1,253 126 1,127 8.5 
XII 9.8 10 164 164   
XIII 9.1 44 292 292   
XIV 7.2 24 65 65   WT/REG384/1 /Rev.1  
- 18 - 
 
  HS Section  MFN 2013a Total 
lines Number of 
duty-free 
lines under 
the 
Agreement 
2013  Remain 
dutiableb Avg. Final 
Tariff  
(Dutiable)  Average  
% Duty -free 
lines  
XV 7.4 321 920 920   
XVI 4.8 293 1,018 1,018    
XVII 5.9 159 275 189 86 14.6 
XVIII 9.0 36 300 300   
XIX 14.6 0 24 19 5  
XX 10.9 3 283 280 3  
XXI 6.9 4 9 9   
Total  7.6 3,062  8,560  7,058  1,502  12.2 
a The MFN 2013 information is based on the HS 2012 nomenclature which is a separate dataset from 
the preferential tariffs.  
b Of these lines, 20 are prohibited (13019020, 13021110, 13021190, 13021920, 13021930, 
29034610, 29034620, 29034630, 49070052, 87100000, 89060010, 89080010, 93010000, 
93059010, 93063010, 93069010, 93070010, 95041011, 95043010 and 9504 9011) . Prohibited lines 
are excluded from the calculation of the average tariff rate but are included in the tariff line count.  
Note:  Preferential tariffs are based on the HS 1996 nomenclature.  
Source:  WTO-IDB and data provided by the Panama authorities.  
Table 3.9 Panama : Tariff elimination under the Agreement for Guatemala, by HS Section  HS Section  MFN 2013a 
Total lines  Number of duty -free lines under the Agreement  
Remain 
dutiable  
Avg. Final 
Tariff  
(Dutiable)  
Average  
% Duty -free 
lines 
2013  
2015  
2016  
2017  
2018  
2019  
2023  
2025  
2026  
2028  
I 20.0 38 401 254    89  14  1 37 6 96.7 
II 9.9 160 429 394  1  19  1 2   12 61.8 
III 8.6 20 71 42    12      17 20.0 
IV 12.0 92 572 471 1 5  25 3 49   3 15 48.5 
V 6.8 87 199 190    9        
VI 2.4 884 1,268  1,238   4 1 25        
VII 4.2 218 449 445      4      
VIII 11.8 4 121 121            
IX 7.3 63 176 175    1        
X 7.9 139 485 472  1  6 6       
XI 6.9 463 1,285  682    603        
XII 9.8 10 164 63    101        
XIII 9.1 44 294 281    13        
XIV 7.2 24 66 66            
XV 7.4 321 926 893    24  9      
XVI 4.8 293 1,028  1,028             
XVII 5.9 159 358 140    48      170 12.0 
XVIII 9.0 36 305 305            
XIX 14.6 0 27 27            
XX 10.9 3 285 276    9        
XXI 6.9 4 9 9            
Total  7.6 3,062  8,918  7,572  1 11 1 984 9 77 2 1 40 220 20.1 
a The MFN 2013 information is based on the HS 2012 nomenclature which is a separate dataset from 
the preferential tariffs.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Preferential tariffs are based on  the HS 2002 nomenclature.  
Source:  WTO-IDB and data provided by the Panama authorities.  WT/REG384/1 /Rev.1  
- 19 - 
 
  Table 3.10 Panama : Tariff elimination under the Agreement for Honduras, by HS Section  HS Section  MFN 2013a 
Total lines  Number of duty -free lines under the 
Agreement  
Remain 
dutiable  
Avg. Final 
Tariff  
(Dutiable)  
Average  
% Duty -free 
lines 
2013  
2015  
2018  
2023  
2026  
I 20.0 38 400 260  6 37 7 90 42.2 
II 9.9 160 429 395  12 2  20 39.9 
III 8.6 20 71 43  5   23 19.1 
IV 12.0 92 572 420 2 49 65  36 28.5 
V 6.8 87 199 189  4 6    
VI 2.4 884 1,269  1,227   28 14    
VII 4.2 218 460 454  6     
VIII 11.8 4 121 121       
IX 7.3 63 176 161  15     
X 7.9 139 485 424  53 8    
XI 6.9 463 1,285  515     770 12.5 
XII 9.8 10 164 104  60     
XIII 9.1 44 294 222  61 11    
XIV 7.2 24 66 66       
XV 7.4 321 930 848  30 9  43 10.8 
XVI 4.8 293 1,030  1,028   2     
XVII 5.9 159 358 177  21   160 12.0 
XVIII 9.0 36 306 306       
XIX 14.6 0 27 0  27     
XX 10.9 3 287 281  6     
XXI 6.9 4 9 9       
Total  7.6 3,062  8,938  7,250  2 385 152 7 1,142  15.8 
a The MFN 2013 information is based on the HS 2012 nomenclature which is a separate dataset from 
the preferential tariffs.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Preferential tariffs are based on the HS 2002 nomenclature.  
Source:  WTO-IDB and data provided by the Panama authorities.  
Table 3.11 Panama : Tariff elimination under the Agreement for Nicaragua, by HS Section  HS 
Section  MFN 2013a Total lines  Number of duty -free lines 
under the Agreement  Remain 
dutiable  Avg. Final Tariff  
(Dutiable)  
Average  
% Duty -free 
lines  2014  2019  2024  
I 20.0 38 424 316 20  88 44.4 
II 9.9 160 431 399 3 13 16 45.4 
III 8.6 20 70 35 5  30 14.8 
IV 12.0 92 574 474 62 9 29 27.9 
V 6.8 87 195 191 4    
VI 2.4 884 1,255  1,230  25    
VII 4.2 218 459 459     
VIII 11.8 4 116 116     
IX 7.3 63 193 193     
X 7.9 139 495 479 16    
XI 6.9 463 1,220  698 59  463 11.3 
XII 9.8 10 157 157     
XIII 9.1 44 294 294     
XIV 7.2 24 66 66     
XV 7.4 321 917 917     
XVI 4.8 293 1,033  1,033      
XVII 5.9 159 456 181 59  216 15.1 
XVIII 9.0 36 285 285     
XIX 14.6 0 26 26     
XX 10.9 3 282 265 17    
XXI 6.9 4 9 9     
Total  7.6 3,062  8,957  7,823  270 22 842 17.1 
a The MFN 2013 information is based on the HS 2012 nomenclature which is a separate dataset from 
the preferential tariffs.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Preferential tariffs are based on the HS 2007 nomenclatu re. 
Source:  WTO-IDB and data provided by the Panama authorities.  WT/REG384/1 /Rev.1  
- 20 - 
 
  3.13.   Chart 3.1  shows the average duties of tariff lines remaining subject to duties after the end of 
implementation by HS Chapter . Because of differences in the source of MFN and preferential dat a, 
a comparison between the average MFN rate and the average of dutiable preferential tariffs could 
not be done . Panama maintains tariffs for all other Parties in HS Chapters 2, 7, 9, 10, 15, 17, 21 
and 87 . Panama also has dutiable preferential tariffs for imports from some but not all the other 
Parties  in other HS Chapters . Imports of  products from El Salvador in a number of Chapters  are 
prohibited  and not included in the Chart . The average rate of duty varies across pa rtner with the 
highest average import tariffs found in HS 2 (imports of meat from Guatemala  which face average 
tariffs of up to 260 %) and HS 10 (especially imports of cereals from El  Salvador  which face average 
tariffs of up to 100 %, and Costa Rica and Gua temala  which face tariffs of almost 90 %). 
Chart 3.1 Panama -Central America : Average of dutiable preferential tariffs by the end of 
implementation period, by HS chapter  
 
Note:  * Panama -El Salvador : HS Chapters 13, 29, 49, 89, 93 and 95 contain tariff lines which are 
prohibited.  
Source:  Panama authorities.  
3.1.3.2   Central America  
3.14.   Liberalization by each Central American Party is shown by broad HS Section in  
Tables  3.12-3.16 and by HS Chapter in Chart 3.2 , Chart  3.3, Chart 3.4 , Chart 3.5  and Chart 3.6  
below.  
3.15.   Costa Rica liberalized most of its tariff ( 6,270 lines) by the  entry into force of the Agreement 
in 201 3 (Table 3.12) . The liberalization covered all HS Sections . At the end of implementation of the 
Agreement , most of the tariffs remaining will be in HS Sections I -IV as well as HS  Section  XVII. The 
average final duties of these lines will range from 5.3% for HS XVII to 58.6% in HS Section I.  
020406080100120140160180200220240260280
1
2
4
7
9
10
11
12
*13
15
16
17
19
21
22
*29
*49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
72
73
87
*89
*93
*95Average rate of duty (%)
HS Chapter
Costa Rica *El Salvador Guatemala Honduras NicaraguaWT/REG384/1 /Rev.1  
- 21 - 
 
  Table 3.12 Costa Rica, Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines 
under 
the 
MFN 
2013  Number of duty -free lines under the Agreement  
Remain 
dutiable  
Avg. Final 
Tariff  
(Dutiable)  2013  
2016  
2018  
2019  
2020  
2021  
2023  
2024  
2025  
I 19.6 449  383  31  8  6 2 2 17 58.6 
II 9.4 419  377 1 8  13    1 19 27.7 
III 8.9 57  33         24 12.1 
IV 14.1 299  253 4 24 4  6   1 7 37.1 
V 3.3 187 10 174  3         
VI 2.7 1,128  2 1,115  1 10         
VII 5.0 337  335  2         
VIII 8.8 108  108           
IX 8.8 139  139           
X 5.6 292  283 1 5 3        
XI 9.9 918  644 9 265         
XII 13.0 64  64           
XIII 6.9 176  176           
XIV 7.5 54  54           
XV 3.9 702  699  3         
XVI 2.8 980 116 864           
XVII 5.9 234 2 148         84 5.3 
XVIII 4.5 234 12 222           
XIX 15.0 21  21           
XX 11.0 171  169  2         
XXI 8.2 9  9           
Total  6.9 6,978  142 6,270  16 353 7 21 6 6 2 4 151 16.7 
Note:  Tariff lines subject to in -quota  rates are excluded in the computation . 
 Based on the HS  2012 nomenclature.  
Source:  WTO estimates based on data provided by Costa Rica authorities.  
3.16.   Chart 3. 2 shows the average duties of tariff lines remaining subject to duties after the end of 
implementat ion by HS Chapter . For all of these HS Chapters the average MFN (in 2013) and 
preferential duties on the tariff lines remaining subject to duties are the same, suggesting no 
additional liberalization of these imports from Panama . The average rates on prefe rential tariffs 
remaining range from 5 % in HS 87, to 78 % in HS Chapter 2.  
Chart 3.2 Costa Rica, average of dutiable rates, by HS Chapter  
 
Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data provided by Costa  Rica authorities.  
0102030405060708090
2 4 7 9 10 15 17 21 87Average Duty Rate (%)
HS ChapterPreferential MFNWT/REG384/1 /Rev.1  
- 22 - 
 
  3.17.   El Salvador liberalized tariffs across all HS Sections by 2013 ( Table 3.13) . It still maintains 
tariffs on imports from Panama for products under HS Sections I -IV, XI, XVII and XX . The average 
duties remaining after implementation will range from 11.1 % in Section XI to 35.8 % in Section IV.  
Table 3.13 El Salvador, Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free lines 
under the  
MFN 2013  Number of duty -free 
lines under the 
Agreement  Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  
I 14.9 508 48 352 108 24.2 
II 9.0 431 152 255 24 20.2 
III 7.3 58 20 14 24 12.7 
IV 16.2 302 36 220 46 35.8 
V 2.5 187 119 68   
VI 1.8 1,184  937 247   
VII 4.3 341 155 186   
VIII 8.3 108 19 89   
IX 7.4 172 45 127   
X 5.1 294 150 144   
XI 9.6 928 119 18 791 11.1 
XII 12.8 64 3 61   
XIII 6.5 181 82 99   
XIV 6.9 54 15 39   
XV 3.2 702 464 238   
XVI 2.1 1,005  824 181   
XVII 6.5 246 71 73 102 12.6 
XVIII 3.8 234 150 84   
XIX 30.0 21  21   
XX 10.6 184 32 149 3 15.0 
XXI 7.8 9  9   
Total  6.3 7,213  3,441  2,674  1,098  13.8 
Note:  Tariff lines subject to in -quota rates are excluded in the computation . 
 Based on the HS  2017 nomenclature.  
Source:  WTO estimates based on data provided by El Salvador authorities.  
3.18.   As shown in Chart 3.3 , the final average preferential and MFN tariffs (in 201 3) remain the 
same  for all HS Chapters except 2 and 16 , indicating  marginal  liberalization for imports from Panama 
of these products . The aver age rates on preferential tariffs remaining range from 7% in HS 53, to 
40% in HS Chapter 19 . 
Chart 3.3 El Salvador : Average of dutiable rates, by HS Chapter  
Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on dat a provided by El Salvador authorities.  
0102030405060
1
2
4
7
9
10
11
15
16
17
19
21
22
50
51
52
53
54
55
56
57
58
59
60
61
62
63
87
96Average Duty Rate (%)
HS ChapterPreferential MFNWT/REG384/1 /Rev.1  
- 23 - 
 
  3.19.   Guatemala  liberalized tariffs across all the Sections by 201 4 (Table 3.14) . At the end of 
implementation of the Agreement, the tariffs remaining will be in HS Sections I -IV as well as 
HS Section XVII . The average final duties o n these lines  will range from 8.8% for HS Section I to 
23.4% in HS Section IV.  
Table 3.14 Guatemala : Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines 
under the  
MFN 2014  Number of duty -free lines under the Agreement  
Remain 
dutiable  
Avg. Final 
Tariff  
(Dutiable)  2014  
2015  
2016  
2017  
2018  
2022  
2024  
2025  
2027  
I 11.2 442 45 290   53  10  3 37 4 8.8 
II 8.8 414 149 226 1  21  3 1   13 17.3 
III 7.2 53 19 10   11      13 11.5 
IV 12.4 295 37 193 1  11 4 36   2 11 23.4 
V 2.6 187 119 53   15        
VI 1.9 1,125  887 225  1 12        
VII 4.4 336 152 173   11        
VIII 8.3 108 19 89           
IX 8.5 139 28 110   1        
X 5.1 292 149 136 1  3 3       
XI 9.6 918 118 509   291        
XII 12.8 64 3 33   28        
XIII 6.3 176 81 89   6        
XIV 6.9 54 15 39           
XV 3.1 702 476 207   8  11      
XVI 2.1 979 804 175           
XVII 2.6 232 172 19   40      1 10.0 
XVIII  3.8 234 150 84           
XIX 15.0 21  21           
XX 10.7 171 28 139   4        
XXI 7.8 9  9           
Total  5.6 6,951  3,451  2,829  3 1 515 7 60 1 3 39 42 16.1 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by the Guatemala authorities and the WTO -IDB. 
3.20.   Chart 3.4  shows the average duties of tariff lines remaining subject to duties after the end of 
implementation by HS Chapter . For all HS Chapters except 2, 15 and 2 1 the average MFN  (in 2014) 
and preferential duties on the tariff lines remaining subject to duties are the same . The average 
rates on preferential tariffs remaining will range from 7.5% in HS Section 2, to 40% in 
HS Chapter  22. WT/REG384/1 /Rev.1  
- 24 - 
 
  Chart 3.4 Guatemala : Average of dutiable rates, by HS Chapter  
Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data provided by Guatemala authorities and the WTO -IDB. 
3.21.   With the exception of Section XIX which will be li beralized in 2018, Honduras liberalized tariffs 
across all the Sections by 201 3 (Table 3.15 ). At the end of the implementation period, it will maintain 
tariffs on imports from Panama for products under HS Sections I -IV, XI, XII, XV, XVII and XX . The 
averag e duties remaining after implementation will range from 8.3 % in Section XVII to 29 % in 
Section I.  
Table 3.15 Honduras : Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines under 
the 
MFN 2013  Number of duty -free lines under the 
Agreement  
Remain 
dutiable  
Avg. Final Tariff  
(Dutiable)  
2013  2015  2018  2023  2026  
I 13.6 508 48 350  6 34 2 68 29.0 
II 9.0 431 153 235  17 4  22 21.1 
III 8.2 57 11 22  3   21 12.9 
IV 12.4 302 37 189 2 24 32  18 26.3 
V 2.7 187 119 61  4 3    
VI 1.7 1,184  971 190  19 4    
VII 4.4 342 153 181  8     
VIII 8.3 108 19 89       
IX 7.9 172 44 115  13     
X 5.1 294 149 114  26 5    
XI 9.6 928 118 96     714 11.2 
XII 12.8 64 3 44  16   1 15.0 
XIII 6.5 181 81 75  24 1    
XIV 6.9 54 15 39       
XV 3.1 702 471 158  24 9  40 11.3 
XVI 2.1 1,005  827 177  1     
XVII 6.0 246 56 69  23   98 8.3 
XVIII 3.8 234 150 84       
XIX 15.0 21    21     
XX 10.5 186 34 147  3   2 15.0 
XXI 7.8 9  9       
Total  6.0 7,215  3,459 2,444 2 232 92 2 984 12.7 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS  2017 nomenclature.  
Source:  WTO estimates based on data provided by Honduras authorities.  
051015202530354045
1 2 7 9 10 15 17 21 22 87Average Duty Rate (%)
HS ChapterPreferential MFNWT/REG384/1 /Rev.1  
- 25 - 
 
  3.22.   Chart 3.5  shows the average duties of tariff lines remaining subject to duties after the end of 
implementation by HS Chapter . For almost all these HS Chapters the average MFN (in 2014) and 
preferential duties on the tariff lines remaining subject to duties are the same . The Agreement has 
brought about an  additional marginal liberalization in a number of lines in Chapters 4, 61 and 87 for  
imports from Panama . The average rates on preferential tariffs remaining range from 7.2 % in HS 53, 
to 164 % in HS Chapter 16.  
Chart  3.5 Honduras : Average of dutiable rates, by HS Chapter  
Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on data provided by Honduras authorities.  
3.23.   Nicaragua liberalized tariffs across all HS Sections by 2013 ( Table 3.16 ). At the end of 
implementation of the Agreement, the tariffs remaining will be in HS Sections I -IV as well as 
HS Sections XI, XVII and XX . The average MFN 2013 duties of these lines range from 8.5 % for 
HS XVII to 35.5 % in HS Section IV.  
Table 3.16 Nicaragua : Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines under 
the 
MFN 2013  Number of duty -free lines under the 
Agreement  Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  2013  2014  2019  2024  
I 15.1 486 45 330 2 33  76 30.5 
II 10.0 443 125 258 33 2 5 20 28.6 
III 9.8 83 9 15  3  56 12.1 
IV 12.9 345 37 260  22 6 20 35.5 
V 2.7 199 125 66 3 5    
VI 2.1 1,174  925 232 2 15    
VII 4.7 360 150 210      
VIII 8.1 111 22 89      
IX 7.9 141 29 112      
X 5.0 312 163 140 2 7    
XI 9.6 926 119 547  24  236 14.9 
XII 12.7 65 3 62      
XIII 6.3 176 80 95 1     
XIV 6.9 54 15 39      
XV 3.1 714 480 228 6     
XVI 2.2 996 813 182 1     
XVII 6.0 314 77 49  72  116 8.5 
XVIII 3.7 243 159 84      
XIX 15.0 21  21      
020406080100120140160180
24791011151617192150515253545556575859606162636472738796Average Duty Rate (%)
HS ChapterPreferential MFNWT/REG384/1 /Rev.1  
- 26 - 
 
  HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines under 
the 
MFN 2013  Number of duty -free lines under the 
Agreement  Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  2013  2014  2019  2024  
XX 10.2 196 43 138  6  9 15.0 
XXI 7.8 9  9      
Total  6.2 7,368  3,419  3,166  50 189 11 533a 16.7 
a Of these lines, two are prohibited (1302110000 and 1302199000) . Prohibited lines are excluded 
from the calculation of the average tariff rate but are included in the tariff line count.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS  2012 nomenclature.  
Source:  WTO estimates based on data provided by Nicaragua authorities.  
3.24.   Chart 3.6  shows the average duties of tariff lines remaining subject to duties after the end of 
implementation by HS Chapter . For all these HS Chapters the average MFN (in 2013) and preferential 
duties on the tariff lines remaining subject to duties are the same, suggesting no additional 
liberalization of these imports from Panam a. The average rates on preferential tariffs remaining 
range from 8.5 % in HS Chapter 87, to 51 % in HS Chapter 10 . Two lines in HS  Chapter  13 are 
prohibited  from import . 
Chart 3.6 Nicaragua : Average of dutiable rates, by HS Chapter  
 
* Only prohibited lines . 
Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data provided by Nicaragua authorities.  
3.1.4   Tariff rate quotas  
3.25.   The Appendix to A nnexes 4.2 and 4.3 include s Panama's  tariff rate  quotas  (TRQs)  with respect 
to imports from the other Parties .22 Lines 61, 8, 41, 28 and 23 are subject to quotas for imports 
from Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua re spectively . Products subject to 
TRQs include, among others, pork meat and beef, milk, palm oil, toilet paper, socks, tomato sauce, 
cheese, chicken wings, and onions .23 The in-quota imports access the market duty free while tariffs 
on out -of-quota pro ducts a re those established in Annexes 4.2 and 4.3 of the Agreement . The share 
of lines with out-of-quota tariff rates equal to the MFN rate is 38 % for Costa  Rica, 100% for 
                                                
22 In the case of imports from El Salvador, Panama's tar iff rate quotas are listed in the remarks column 
of each tariff line subject to quotas in Annex 4.3.  
23 The details of the tariff -rate quotas can be found in the Factual Presentation of the Bilateral Protocols 
(documents WT/REG264/1 for Costa Rica and WT/RE G336/1/Rev.1 for Honduras, Guatemala and Nicaragua).  
0102030405060
2 4 7 9 10 11 13* 15 17 21 22 61 62 63 87 96Average Duty Rate (%)
HS ChapterPreferential MFN
* Only prohibited linesWT/REG384/1 /Rev.1  
- 27 - 
 
  El Salvador, 20% for Guatemala, 89% for Honduras and 39% for Nicaragua . The duties of all the 
other lines subject to quotas are lower than the MFN duties and will eventually become duty free  at 
the end of implementation . 
3.26.   Resolution No. 144-2005 of the Council of Ministers for Economic Integration approves the 
general principles for the administ ration of import quotas on agricultural products within the 
framework of the Central American Customs Union . The general principles for the imposition of 
quotas on agricultural products and in case of shortages shall be in line with the multilateral 
commit ments under the WTO and other free trade and preferential agreements in force .24 The quotas 
shall be implemented and applied in conformity with Article XIII of GATT, its interpretative note s 
and the WTO Agreement on Import Licensing Procedures . For transpar ency purposes, the competent 
authority must publish on its webpage and notify other Parties as soon as possible the details of 
quotas and the periodicity of the measures.  
3.2  Trade with third parties  
3.2.1   General provisions  
3.27.   The Customs Union shall adopt a single ta riff system with the same nomenclature and tariff 
rates across all Parties for the products coming from third parties (Article 8 of the 
Framework  Agreement) . The customs regime will be as established in the CRAAC and will be 
regulated by the rules contained therein and by the provisions of  Chapter III of the 
Framework  Agreement (Article  11 of the Framework Agreement) . During the transition to the full 
harmonization of tariffs, the Parties shall set up the necessary mechanisms for the administration of 
the tariff regime ( Article 27 of the Framework Agreement).  
3.28.   The Central American Tariff and Customs Regime between the Parties is established through 
the CRAAC . Such regime is constituted by the Central American Import Tariff  (hereinafter ACI) , the 
Uniform Central American Customs Code ( hereinafter  CAUCA) and its regulation ( hereinafter  
RECAUCA) and the decisions , the common tariff and  the customs dispositions derived from  the 
CRAAC (Article 3 of the CRAAC).  
3.29.   Article 13 of the CRAAC defines the ACI (in Ann ex A of the CRAAC) as the instrument that 
includes the official nomenclature of products, the Central American Customs Duties on Imports 
(hereinafter DAI) and the norms regulating its application . The official nomenclature for the 
classification of goods f or import and export at the Central American level is the Central American 
Tariff System ( hereinafter  SAC) defined in Article 14 of the CRAAC . The SAC is based on the 
Harmonized System nomenclature . Panama applies the nomenclature of the ACI at the entry i nto 
force with the exception of the products listed in Annex 5.1 which should be harmonized through 
negotiation with the other Parties no later than one year after the entry into force of the Agreement 
(Article 5.1).  
3.30.   According to Article 17 of the CRAAC , all imports of goods by a Party are subject to the ACI. 
All tariffs are ad valorem  and the Parties commit  not to apply any tariff that is different from th at 
included in the Central American Import Tariff (Article 18 of the CRAAC) . Panama applies the DAI 
established in Part I of the Central American Import Tariffs with the exception of the products listed 
in Annex 5.2 which should be harmonized within two years from the entry into force of the 
Agreement through negotiations with the other Parties (Article 5 .2).25 The Parties have reported 
that, as a result of the negotiation process, Panama adopted the Central American tariff for 
2,198  tariff lines . For the rest of the products, negotiations are ongoing.  
3.31.   The Parties commit to improve the ACI in order to incre ase efficiency in sectors of production 
and contribute to the achievement of the common trade policy ( Article 10 of the PG). The Parties 
put effort in to achieving gradual and flexible coordination and harmonization of their commercial 
                                                
24 At the multilateral level, Costa Rica applied quotas to some poultry products, milk, butter, some 
cheese, sausages and ice cream in 2017; El Salvador applied quotas to some cheese products in 2016; 
Honduras did not apply any tariff quota in 2015; Guatemala applied quotas to maize and rice in husk in 2015; 
Nicaragua applied quotas to milk and rice in 2016; and Panama applied quotas to pork and poultry meat, 
milk products, potatoes, tomatoes, beans and ri ce in 2016.  
25 Part I of the Central American Import Tariff includes goods with a common external tariff. Part  II lists 
those goods for which there is no common external tariff.  WT/REG384/1 /Rev.1  
- 28 - 
 
  relationships with th ird parties with the final objective of achieving a common commercial policy 
(Article 11 of the PG). 
3.32.   Resolution No. 26-96 of the Council of Ministers of Economic Integration (incorporated 
through Annex 3.2) provides  the general parameters for the revision of tariffs .26 In particular, it 
establishes that unprocessed  primary, intermediate and capital goods shall be duty free ; tariffs on 
processed  primary goods shall be 5 %; tariffs on pro cessed  intermediate and capital g oods shall be 
10%; and tariffs on final goods shall be 15 %. In special cases, such as multilateral rights acquired 
at the WTO or specific supply chains, other parameters can be used.  
3.33.   In their trade relationship with third countries, the Parties commit to f ollow common trade 
policies especially in terms of rules of origin, trade remedies, safeguards and technical regulation 
(Article 12 of the PG). Article 15 of the PG establishe d the intention of the Parties to create a Customs 
Union to be reached gradually on the basis of programs adopted by consensus . Article 16 of the PG 
foresees the creation of a Common Customs Service in charge of the application of procedures, 
administrative systems and common guidelines . Divergence in terms of tariffs, taxes and other 
issues affecting intra -regional trade should be eliminated by flexibly and gradually harmonizing 
policies (Article 17 of the PG).  
3.2.2   Common external tariff  
3.2.2.1   Structure  
3.34.   Table 3.17  provides information  on the number of tariff lines for which a harmonized CET 
applies  in each Party , as well as on the number and share of lines that are duty free . The total 
number of lines in the ACI is 7,212 of which almost 94 % are aligned for all the Parties except 
Panama . The share of Panama's lines excepted from the DAI is around 70 %, most of which are 
dutiable.  
Table 3.17 Summary of Panama and CACM's total lines under the Agreement (CET and 
exceptions)  
 
No. of tariff lines  % of total lines  
CET Exceptionsa CET Exceptions  
Duty -free Dutiable  Duty -free Dutiable  Duty -free Dutiable  Duty -free Dutiable  
Panama  1,516  631 1,152 3,913 21.0 8.7 16.0 54.3 
Costa Rica  3,402  3,355  133 322 47.2 46.5 1.8 4.5 
El Salvador  3,402  3,355  35 420 47.2 46.5 0.5 5.8 
Guatemala  3,402  3,355  164 291 47.2 46.5 2.3 4.0 
Honduras  3,402  3,355  58 397 47.2 46.5 0.8 5.5 
Nicaragua  3,402 3,355  79 376 47.2 46.5 1.1 5.2 
a Panama : extracted from Annex 5.2 of the Agreement, approximately aligned with the HS 2017 
nomenclature.  
Note:   Based on HS 2017 nomenclature at the HS 10 -digit tariff line level.  
Source:  WTO Secretariat estimates based on the WTO -IDB, Annex 5.2 of the Agreement, and submission by 
Costa Rica (file containing the CET and exceptions for the Central America).  
3.35.   Table 3.18  shows the nu mber and share of Panama's duty -free lines by HS section before and 
after the entry into force of the Agreement . The table also includes Panama's pre - and post -accession 
applied MFN tariff rates by HS section , the latter being, in fa ct, the CET . In 2012 b efore the accession 
to CACM, 32% (or 2,786) of tariff lines  were duty free and the average MFN  rate was 8 %. In 2013, 
the share of lines that were duty free increased to more than 39 %, corresponding to 2,839 lines .27 
Panama's average MF N rate in 2013 was lower than in 2012 in the majority of HS Sections ; 
exceptions are represented by Sections III, IV, VII, XI, XII, XIX and XXI . In 2013, Panama's MFN 
rates tend ed to be relatively similar to those of all the other Parties in all HS Section s. 
                                                
26 As established in Article 55 of the PG, resolutions are binding legal instrum ents through which the 
Council of Ministers of Economic Integration adopts its decisions. The resolutions enter into force on the date of 
their adoption unless otherwise specified.  
27 The difference in the total number of lines between 2012 and 2013 is due to different HS 
nomenclature used.    
  WT/REG384/1 /Rev.1  
- 29 - Table 3.18 Panama : MFN tariffs before and after accession to the CACM and CACM's average tariffs, by HS Section  
HS 
Section  MFN 2012, Pre -CACM  MFN 2013, CACM  Share of 
duty-free lines 
(%) MFN average (%)  
No. of lines  Duty -free Dutiable  No. of 
lines  CET Exceptiona 
Duty -free Dutiable  Duty -free 
Dutiable  
2012  
2013  
Panama  
(Pre- CACM)  CACM  Panama  
Costa Rica  
El Salvador  
Guatemala  
Honduras  
Nicaragua  
I 507 32 475 508 13 162 55 278 0.4 0.9 22.0 19.2 18.4 14.0 11.4 13.6 14.1 
II 447 143 304 431 80 107 72 172 1.6 2.1 10.6 10.0 9.2 8.9 8.5 8.9 9.0 
III 71 22 49 57 4 6 8 39 0.3 0.2 8.3 9.0 8.4 7.5 7.5 8.2 8.3 
IV 589 86 503 302 13 48 33 208 1.0 0.6 12.4 13.7 13.8 16.2 12.5 12.4 13.1 
V 195 81 114 187 54 16 17 100 0.9 1.0 7.0 2.6 2.5 2.5 2.6 2.6 2.6 
VI 1,244  810 434 1,184  721 22 158 283 9.3 12.2 2.5 1.7 1.8 1.8 1.8 1.7 1.7 
VII 452 259 193 341 97 7 91 146 3.0 2.6 3.8 4.3 4.3 4.3 4.3 4.3 4.3 
VIII 115 3 112 108 1 11 3 93 0.0 0.1 12.0 8.3 8.3 8.3 8.3 8.3 8.3 
IX 171 54 117 172 22 17 64 69 0.6 1.2 7.8 7.2 7.9 7.4 7.9 7.9 7.4 
X 376 134 242 294 40 18 37 199 1.5 1.1 8.0 5.0 5.1 5.1 5.1 5.1 5.0 
XI 1,205  442 763 928 52 63 425 388 5.1 6.6 7.1 9.6 9.6 9.6 9.6 9.6 9.6 
XII 152 5 147 64 2 14 8 40 0.1 0.1 10.3 12.8 12.8 12.8 12.8 12.8 12.8 
XIII 288 41 247 181 19 10 19 133 0.5 0.1 9.3 6.5 6.5 6.5 6.5 6.5 6.5 
XIV 66 24 42 54 12 5 13 24 0.3 0.5 7.2 6.9 6.9 6.9 6.9 6.9 6.9 
XV 897 321 576 702 164 30 95 413 3.7 0.3 7.4 3.1 3.1 3.2 3.1 3.1 3.1 
XVI 1,031  134 897 1,005  185 28 84 708 1.5 3.6 5.8 2.1 2.1 2.1 2.1 2.1 2.1 
XVII 328 169 159 246 15 9 120 102 1.9 3.7 5.9 2.5 5.1 6.5 2.4 5.7 5.0 
XVIII 280 19 261 234 22 19 3 190 0.2 1.9 9.5 3.8 3.8 3.8 3.8 3.8 3.8 
XIX 24  24 21    21 0.0 0.3 14.6 15.0 15.0 30.0 15.0 15.0 15.0 
XX 293 3 290 184  38 14 132 0.0 0.0 11.2 10.6 10.6 10.6 10.6 10.6 10.3 
XXI 9 4 5 9  1 4 4 0.0 0.2 7.2 7.8 7.8 7.8 7.8 7.8 7.8 
Total  8,740  2,786  5,954  7,212  1,516  631 1,323  3,742  31.9 39.4 8.0 6.3 6.3 6.2 5.7 5.9 6.0 
a Extracted from Annex 5.2 of the Agreement, approximately aligned with the HS 2017 nomenclature.  
Note:  Based on HS 2017 nomenclature at the HS 10 -digit tariff line level for 2013 and 8 -digit tariff line level based on HS 2012 for Panama 2012.  
Source:  WTO Secretariat estimates based on the WTO -IDB, Annex 5.2 of the Agreement, and submission by Costa Rica (file containing the CET  and exceptions for the 
Central  America).  
 WT/REG384/1 /Rev.1  
- 30 - 
  3.3  Rules of origin  
3.36.   Chapter IV of the Framework Agreement set s out the rules of origin regime of the 
Customs  Union . Once the Customs Union is formed, no requirements of rules of origin shall apply 
for trade between the Parties (Article 14 of the Framework Agreement) . The Council of Ministers of 
Economic Integration i s in charge of taking the necessary actions to achieve the convergence of the 
different rules of origins of the Parties.  
3.37.   Panama adopts the Central American Rules  on the Origin of Goods with the exceptions listed 
in Section II of Annex 6(a) .28 The exceptions  are specific to each bilateral relationship and are in 
conformity with each Bilateral Protocol .29 Negotiations to harmonize the exceptions are set to take 
place no later than six months from the entry into force of the Agreement ( Article 6  of the 
Agreement ). The Parties have reported that of the 95 rules of origin that Panama excepted in 
Annex  6(a) of the Protocol of Incorporation, it has to date adopted 78 . Of the remaining 17 rules of 
origin, Panama adopted seven rules of origin corresponding to fats and oils, as from 2029 . 
Negotiations are ongoing to adopt the rest of the excepted rules of origin.  
3.38.   The rules of origin are based on a change of tariff classification and other specific rules  listed 
in the annex (Article 3) .30 The basis for tariff classificatio n is the SAC  (Article 5) . The value of goods 
and material s to determine the origin of a product  is established according to the procedures in the 
Agreement on Implementation of Article VII of GATT 1994 and its interpretative notes . 
3.39.   Unless otherwise specified, a product is considered originating if it is (Article 6):  
i. wholly obtained or produced in the territory of one or more Parties;  
ii. produced in the territory of one or more Parties using originating materials exclusively;  
iii. produced in the territory of  one or more Parties using non -originating materials as long 
as they comply with a change in tariff classification  (CTC) , regional value add ed or a 
combination of both or other specific rules  listed in the Annex ; 
iv. produced in the territory of one or more Pa rties using non -originating materials that 
do not comply with the CTC criterion as long as the regional value content is not less 
than 30 % unless otherwise specified in the Annex.31 
The production of a good from non -originating material s that satisfy the CT C criterion  or other 
specific rules must be done in its entirety in one or more Parties and the regional value content of a 
good must be met in its totality in one or more Parties . The formula for the calculation of regional 
value content is described in Article 10.  
 
3.40.   Part II of the Annex of the Central American Rules on the Origin of Goods contains specific 
rules for determining origin . The rules are arranged by HS Chapters and apply at the six -digit 
(subheadings) and four -digit (headings) levels . The CTC must be at the heading or subheading level 
in order to confer origin . In a number of cases across many Chapters, however, changes in specific 
headings or subheadings do not confer origin .32 In some cases, specific processes confer origin .33 
                                                
28 The Central American Rules on the Origin of Goods and the specific rules of origin in its annex have 
been modified with the adoption of Resolutions No.  156-2006 and No.  377-2016.  
29 Exceptions can be found for all other Parties in HS Chapters 2 to 4, 9, 21, 22, 60, 62 and 63. Other 
exceptions to the common rules hold for only some Party in the following Chapters: 11, 20, 23, 25, 27, 32 to 
34, 39, 41, 43, 48, 52, 61, 64, 72, 82 and 84 . 
30 Unless otherwise specified, all articles in the remaining of this subsection refer to articles in the 
Central American Regulation on the Origin of Goods.  
31 To be eligible in this category, the non -compliance to the CTC rules must be due to the fact tha t the 
product was imported without being assembled or disassembled and was classified as a product assembled in 
conformity with rule 2 (a) of the General Rules for the interpretation of the SAC; the good and its parts were 
classified under the same heading (as long as it is not divided into subheadings); or the good and its parts 
were classified under the same subheading. This rule does not apply to Chapters fr om 50 to 63 of SAC.  
32 Examples can be found in Chapters 2 (meat), 11 (products of the milling indus try), 19 (preparations 
of cereals), 20 (preparation of vegetables), 22 (beverages), 40 (rubber), 48 (paper) and 72 (iron and steel).  
33 For example, agricultural products (HS Chapters 6 to 14) grown in the territory of a Party shall be 
considered as origina ting in the territory of that Party if they have been grown from seeds, bulbs, rhizomes, WT/REG384/1 /Rev.1  
- 31 - 
  For two HS Headin gs in Chapter 87 (87.11 and 87.12) there is a specific alternative  rule requiring a 
minimum RVC of 30 %. There are also supplementary specific rules for certain products.34 
3.41.   Accumulation of origin is governed by Section I of Annex 6(a) of the Agreement which provides 
that goods and materials originating in a Party incorporated in the goods in the territory of another 
Party are considered as originating if such goods and materials (i) are not included in the list of 
exceptions to the Central American Rules on t he Origin of Goods, (ii) are not included in Annexes  4.2 
and 4.3 and (iii) the goods and materials are duty free and at least two Parties have agreed specific 
common rules of origin  with Panama . 
3.42.   The Agreement also has a de minimis  provision , by which p roducts incorporating 
non-originating materials, whose value does not exceed 10 % of the value of the good, may be 
considered originating goods even if they do not comply with the CTC rule (Article 11).35 
3.43.   Operations and processes that do not confer origin in clude manipulations needed to ensure 
conservation during transport, removal of dust, labelling, mixing, disassembly, etc. (Article 7) . 
Indirect materials are considered as originating independently of their place of production or 
elaboration (Article 8) .36 When a product is subject to regional value content requirements, the value 
of indirect material is the cost recorded in the balance sheet of the producer of the good.  
3.44.   Articles 12 through 17 contain disciplines on fungible goods, merchandise assortment, 
accessories, spare parts and tools, sets of goods, packaging materials and containers for retail sale, 
packing materials and containers for shipment, and direct transport.  
3.45.   Chapter IV provides for the customs procedures related to rules of origin . It includes , among 
others, certification and declaration of origin (Article 18), exceptions (Article 19), obligations with 
respect to imports and exports (Article s 20 and 21), billing by an operator outside the territory of 
the exporting country (Article 22), omissio n of and errors in the certificate of origin (Article 23), 
marking of goods (Article 25), procedures to verify origin (Article 27), etc.  
3.4  Export duties and charges, and quantitative restrictions  
3.46.   The Parties agree to work towards the convergence and gradual harmonization of their policies 
for the development of exports ( Article 14 of PG ). There are no provisions on export duties and 
charges and quantitative restrictions in the Agreement.  
3.5  Regulatory Provisions of the Agreement  
3.5.1   Standards  
3.47.   Annex 7.1 lists all the  Central American technical regulations and other instruments adopted 
by Panama and put in to force not later than 6 months after the entry into force of the Agreements 
(Article 7.1) .37 Annex 7.2 includes a list of technical regulations and other instruments  that shall be 
revised by Panama with the other Parties in no more than two years from the entry into force of the 
Agreement (Article 7.2).38 
                                                
cuttings, shoots or other living parts of plants imported from a Party or a non -Party. A similar criterion holds 
also for Fish and crustaceans, molluscs and other aqua tic invertebrates (Chapter 3).  
34 For example, hides and skins (except fur skins) and leather (HS 41.04 -41.06); for plastics, paper and 
paperboard, the process of rolling or laminating, including with other materials of the same heading confers 
origin (HS 39.20, 39.21, 48.02, 48.10 and 48.11); and for some electrical machinery and equipment, assembly 
from un assembled kits also confers origin (HS subheadings 8517.11 -8517.80, 8519.10 -8521.90, 
8525.10 -8526.92 and 8527.12 -8528.30).  
35 For Chapters between 50 and 63 of SAC, the de minimis  percentage refers to the weight of the fibres 
and yarns relative to the weigh t of the product.  
36 Indirect materials are products used in the production, verification or inspection of another product 
that are not physically incorporated in it. Examples of indirect materials include fuels, inspection equipment, 
gloves, glasses and ot her safety devices, etc.  
37 The Parties have reported that Panama has adopted 26 Central American technical regulations and 
has three instruments pending adoption.  
38 The Parties have reported that Panama has adopted four technical regulations and that the r est of the 
regulations are undergoing revision.  WT/REG384/1 /Rev.1  
- 32 - 
  3.48.   Moreover, the Parties commit to harmonize and adopt common market technical rules and 
regulations concerning the protection of  human, animal and plant health, the protection of the 
environment, safety and minimum standards of quality (Article 26 of the PG). They shall also develop 
a common regime of sanitary and phytosanitary (SPS) measures and technical barriers to tr ade 
(TBT) starting from the domestic regulations in force and the SPS and TBT Agreements of the WTO 
(Article 16 of the Framework Agreement) . The Parties have reported that, to date, they have adopted 
common SPS measures as well as Central American technical regulations, which regulate a range of 
items such as labelling, good manufacturing practices, product registration and characteristics for a  
variety of goods including  beverages, foods, pharmaceutical products, textiles  and agri -chemicals.39 
3.5.1.1   Sanitary and phytosanitary measures  
3.49.   The Central American Regulation on Sanitary and Phytosanitary Measures and Procedures 
(adopted through Resolution No. 271-2011) disciplines the SPS measures that could affect , directly 
or indirectly , trade between the Parties . It also sets out the legal framework to harmonize gradually 
and voluntarily SPS measures and procedures with the objective of safeguarding human, an imal and 
plant life  in conformity with the provisions in the PG and the WTO SPS Agreement (Article 1) .40 
Article 2 provides that the general principles of the regulations are those established by the WTO 
SPS Agreement.  
3.50.   SPS measures adopted by a Party should  not have the objective or effect of creating 
unnecessary barriers to trade (Article 4) . Article 4 also specifies that  the measures should be based 
on scientific principles and risk analysis  and they shall not restrict trade more than necessary . A 
Party th at wants to adopt or modify an SPS measure shall notify  it to the competent authority of 
each affected Party at least 60 days in advance  (Article 5) . If a Party applies an SPS  measure that 
causes or threaten s to cause an unnecessary barrier to trade, technical consultations shall be held 
within 15 days from the entry into force of the measure in order to find a prompt solution ; if no 
solution is reached, the affected Party or Parties can refer the matter to the SPS Committee 
(established under Article 20) or to the Central American Dispute Settlement Mechanism (Article  7). 
3.51.   Article 9 provides for the harmonization of SPS measures following the prescriptions in 
Article 3 of the WTO SPS Agreement . The Parties shal l sign agreements for the equivalence of 
SPS regulations taking into account the WTO SPS Agreement and other international agreements on 
the matter (Article 11) . Chapter IV establishes SPS procedures, including import requirements 
(Article 12), control, in spection, approval and certification procedures (Article 13), and the 
recognition of areas free of diseases (Article 15) . Finally, Article 20 establishes an SPS Committee 
in charge of the application of the Central American Regulation s on Sanitary and Phyt osanitary 
Measures and Procedures , the facilitation of consultations and negotiations related to SPS and the 
release of relevant recommendations.  
3.52.   Among other regulations  listed in Annex 7.1 , Panama adopts the agreements on 
SPS measures (Resolution No. 117-2004)41, the list of product and sub -products of vegetal origin 
that are exempt from import authorization and SPS certificate s for export due to their nature 
(Resolution No. 175-2006),  general principles of good manufacturing practices  for processed food s 
and beverages  (Resolution No. 176-2006), specifications on flours, fats and oils (Regulations 
No. 201-2007 and 2015 -2007), requirements for the production and commercialization of grains and 
soy beans (Resolution No. 259-2010), registry of commercial variet ies (Resolution No. 265-2011) 
and practice of good hygiene for non -processed and semi -processed food (Resolution 
No. 276-2011) . The instruments in Annex 7.2 include, among others, dispositions for the recognition 
of sanitary registries for processed food a nd beverages (Resolution No. 121-2004), microbiological 
criteria for food safety (Resolution No. 402-2018), sanitary and control requirements  for products  
                                                
39 All Central American regulations on SPS and TBT may be viewed at:  
http://www.sieca.int/index.php/integracion -economica/integracion -economica/libre -
comercio/reglamentaciones -tecnicas . 
40 Unless otherwise spec ified, all articles in the remaining of this subsection refer to articles in the 
Central American Regulation on Sanitary and Phytosanitary Measures and Procedures.  
41 The agreements on SPS measures include, among other things, zoosanitary rules for aquatic animals, 
the handbook of good livestock practices in primary production, etc. Panama has adopted seven of the nine 
annexes included in the resolution. The annexes yet to be adopted are Annex  7 (Animal health standard for 
equine animals) and Annex  8 (Sanita ry criteria for the commercial exchange of animals, their products and 
by-products).  WT/REG384/1 /Rev.1  
- 33 - 
  used in animal food  (Resolution No. 282-2012) and  food additives (Resolution No. 283-2012)  
currently being updated for adoption . 
3.5.1.2   Technical barriers to trade  
3.53.   The Parties commit to maintain  the application of current technical regulations and agree to 
establish a harmonization process without imposing obstacles to intra -regional trade ( Article 7 of 
the PG). 
3.54.   As indicated in Annex 3.2 of the Agreement, Panama adopts the Central American Regulation 
on Normalization Measures, Metrology and Authorization Procedures, the Central  American 
Guidelines for the Redaction and Presentation of Technic al Regulations , and the Central America n 
Procedure for the Elaboration , Adoption and Approval of T echnical Regulations and Conformity 
Assessment.  
3.55.   The Central American Regulation on Normalization Measures, Metrology and Authorization 
Procedures  (adopted through Resolution No. 37-99) develops the relevant disciplines included in the 
PG and the WTO TBT Agreement . Such measures shall not introduce or cause unnecessary obstacles 
to trade between the Parties (Articles 1 and 4) .42 Two or more Parties c an sign harmonization and 
mutual recognition agreements in order to strengthen Central American integration and facilitate 
intra-regional trade (Article 5) . The Parties strive to harmonize their normalization and metrology  
measures and their authorization procedures without reducing the level of safety and protection of 
human, animal and plant life and health, the environment and consumers (Article 9) . Article 9 also 
provides for mutual recognition of technical regulation s when the importing Party determine s that 
the regulation s comply with its legitimate objectives . Each Party shall accept the results of conformity 
assessment procedure s carried out in the other Parties as long as they provide a satisfactory 
guarantee that the good or service compl ies with t he relevant technical regulation or norm 
(Article 10). In terms of transparency, the Parties shall ensure that there is at least one information 
centre in its territory capable of answer ing any question or request (Article 13) and they commit to 
notify, th rough the Central American Economic Integration Secretariat , the measures that they 
intend to adopt, derogate or modify before the entry into force of such measures (Article 14) . The 
regulation also includes provisions on risk evaluation (Article 8) and  technical cooperation 
(Article  15). 
3.56.   Among other regulations  listed in Annex 7.1 of the Agreement , Panama adopts technical 
regulations on labelling of pharmaceutical products (Resolution No. 166-2006), validation and 
analytical methods for quality evaluation of pharmaceuticals and natural medicaments, other 
regulations on pharmaceutical products (Resolutions No. 188-2006,  214-2007, 256 -2010, 270 -2011 
and 275 -2011),  registration and labelling of hy gienic products (Resolution No. 230-2008), 
requirements for registry and control of veterinarian medications (Resolution No. 257-2010), 
registration requirements and procedure s for recognition of registr ation of pesticides for domestic 
use and pesticides f or professional use (Resolution No. 258-2010) . Annex 7.2 include s, among other  
regulations in the process of being updated for adoption in Panama , specifications for petroleum 
products (Resolution No. 142-2005), regulations on the transport of liquid hydro carbon s over land 
(Resolution No. 152-2005), quality control for cosmetic products (Resolution No.231 -2008) and 
labelling requirements for  pesticides for domestic use and for professional use (Resolution 
No. 273-211).  
3.5.2   Safeguard mechanisms  
3.5.2.1   Global safeguards  
3.57.   The Parties shall develop a regional safeguard mechanism in order to impose trade defence 
measures with respect to imports from third parties (Article 17 of the Framework Agreement) . 
Intra-RTA trade shall be excluded from this mechanism.  
3.58.   Resolution No. 194-2007 modifies the Central American Regulation on Safeguard Measures 
which implements the provisions under Article XIX of the GATT, the WTO Safeguard Agreement, the 
                                                
42 Unless otherwise specified, all articles in the remaining of this subsection refer to articles in the 
Central American Regulation on Normalization Measures, Metrology an d Authorization Procedures.  WT/REG384/1 /Rev.1  
- 34 - 
  PG and the CRAAC (Article 2) .43 The Regulation covers safeguard measures applied to imports  from 
third Parties (Article 3) . Chapter II specifies the procedure for the application of safeguard measures . 
The objective of the investigation is to determine if it is appropriate to impose a safeguard measure 
when the absolute or relative increase in i mports of a product form a third  party causes or threaten 
to cause serious injury to the national producti on of similar products (Article  6). A causal link 
between the increase in imports and the serious injury (or threat of) must be established to impose 
a safeguard measure (Article 34) . Before the application of a definitive safeguard measure, 
consultations with WTO Members having a substantial interest in the issue shall be guaranteed within 
30 days and the Parties may agree on adequate compensation (Art icle 30). The measures are 
exceptional and temporary and their application cannot last more than four years unless extended 
(Article 32).44 
3.5.2.2   Bilateral safeguards  
3.59.   The Parties retain their right to apply temporary unilateral safeguard measures in case of 
marke t disruption , unfair trade practices or any other situation that is liable to develop into a national 
emergency (Article 26 of the CRAAC) . Such measures are authorized by the Council of Ministers of 
Economic Integration (Article 22 of the CRAAC) . Similarly , Article 57 of the PG allows the Parties to 
suspend the application of one or more provisions of the PG with the authorization of the Council of 
Ministers of Economic Integration if the implementation of such provision or provisions is considered 
to be se riously affecting some sector of the economy.  
3.5.2.3   Safeguards in agriculture  
3.60.   The Parties can adopt, if necessary, measures to counteract unfair competition due to the 
agricultural or commercial policies of third countries ( Article 23 of the PG). 
3.5.2.4   Other special safeguards  
3.61.   Article 26 of the CRAAC allows Parties to adopt , unilaterally,  safeguard measures in case of 
sudden shortages of primary materials and basic final goods  or of market disruption . 
3.5.2.5   Balance -of-payments safeguards  
3.62.   In case of serious balance -of-paymen ts difficulties  between the Parties , the Council of 
Ministers of Economic Integration  analyses the situation in collaboration with the Central Banks with 
the objective of recommending a satisfactory solution compatible with free trade ( Article  X of the 
TGIEC). 
3.63.   The adoption of balance -of-payments safeguards with respect to imports from third parties is 
allowed under Article 26 of the CRAAC.  
3.5.3   Anti-dumping and countervailing measures  
3.64.   The Parties commit to improve and apply common policies regarding subsidies, a nti-dumping 
and other unfair trade practices ( Article 8 of the PG). Such policies would be approved by the Council 
of Ministers of Economic Integration and applied by the Executive  Committee of Economic 
Integration.45 
3.65.   The Parties shall neither grant any direct or indirect subsidy to exports destined for  another 
Party nor establish or maintain any system resulting in the dumping of goods (Article XI of the 
TGIEC) . The Parties  shall avoid, through available legal instrume nts, the export of goods to other 
Parties at a price below the normal price that caus es or threaten to cause injury to production in the 
                                                
43 Unless otherwise specified, all articles in the remaining of this subsection refer to articles in the 
Central American Regulation on Safeguard Measures.  
44 Article 20 provides for the possible application of provisional measure s which shall not last more than 
200 days. Such measures must take the form of tariff increases guaranteed by a deposit which shall be return 
if the investigation does not determine that the rise in imports caused or threatened to cause serious injury.  
45 The Executive Committee of Economic Integration depends on the Council of Economic Integration 
Ministries and is composed by a permanent representative and an alternate nominated by the economic 
cabinets of each Party (Article 42 of the PG).  WT/REG384/1 /Rev.1  
- 35 - 
  other Parties or hampers the establishment of a local or Central American industry ( Article  XII of the 
TGIEC).46 
3.66.   If a Party considers that other Parties are engaging in unfair trade practices different from 
subsidies or dumping , it cannot unilaterally prohibit trade but it shall raise the issue with the Council 
of Ministers of Economic Integration which examines the situ ation and deliberates within 60  days 
(Article XIII of the TGIEC) . After the deliberation, the Council of Ministers of Economic Integration 
informs the Parties involved whether trade remed ies need to be applied (Article  XIV of  the TGIEC).  
3.67.   With respect to impor ts from third parties , the Parties can impose necessary compensatory 
measures to counterbalance unfair trade practices, especially dumping and export subsidies, that 
cause or threaten to cause injury to the production in Central America (Article 25 of the CRAAC).  
3.68.   Resolution No. 193-2007 modifies the Central American Regulation on Unfair Trade Practices 
which implements the relevant provisions under the WTO, the PG and the CRAAC (Article 2) .47 The 
investigation process to determine the existence and the effects of unfair trade practices is to be in 
conformity with those established under  the WTO Agreements (Article 3).  
3.69.   Chapter I of Title II of the Regulation establishes the procedure in relation to trade with 
third parties . The investigating authority  is in charge of indicating, analysing and evaluating unfair 
practices and decides whether to recommend the imposition of antidumping or countervailing 
measures which can be imposed if the unfair trad e practices cause or threaten injury , or materially 
retard the establishment of a domestic industry  (Article 5) .48 The national representative of the 
concerned sector can request an investigation (Article 6) . The investigating authority directly informs 
the exporting country about the investigation request (Article 9) . The governments of the countries 
involved can engage in consultation s at any time before and during the investigation (Article  10). 
During the investigation, the investigating authority can re commend the adoption of provisional  
measure s in conformity with the WTO Agreements (Article 16) for the shortest necessary period 
which cannot  normally  exceed four months  (Article 18) . The time -limit can be extended up to six 
months if the exports involved represent a significa nt percentage of trade .49 
3.70.   Chapter II of Title II of the Regulation governs the procedure for trade between the Parties . 
In the case of the imposition of an antidumping or co untervailing measure , the investigating 
authority transmits a summary to the Central American Economic Integration Secretariat that 
notifies  the Parties and calls for a meeting of the Executive Committee  within  eight days (Article s 23 
and 24) . The affected  Party p resents its justification to the Executive Committee within 15 days from 
the notification  (Article 25) . The Executive Committee make s a recommendation within 30 days 
(Article 27) .50 Chapter III defines a regional procedure in the case in which a ny other  Party is 
affected.  
3.71.   All antidumping and compensatory duties shall be applied to the extent that it is necessary to 
counteract the unfair practice and are therefore exceptional and temporary (Article 37) . In any case, 
all definitive measures must be eliminated within five years from the imposition of the provisional 
measures (Article 40) . For the adoption of a measure, the existence of a causal link, as in the 
WTO Agreement, is necessary (Article 38) . The duration can be exceptionally extended  if the 
conditions that triggered the measures are still in place . The investigating authority shall notify the 
procedu ral acts as required under the R egulation and th e WTO Agreements (Article 45) . The Part y 
                                                
46 The price of a product is considered to be lower than normal if it is lower than (i) the domestic price 
of a similar product in normal trade conditions, (ii) the highest price of a si milar product exported to 
third countries in normal trade conditions or (iii) the cost  of domestic production plus reasonable selling 
expenses.  
47 All artic les in the remaining of the sub section refer to articles of the Central American Regulation on 
Unfair Trade Practices unless otherwise specified.  
48 The investigating authority is the Dire ctorate in charge of Central American economic integration of 
the Parties or the Technical Unit in charge of the investigation of unfair trade practices. In the case of regional 
procedures, the investigating authority is the SIECA.  
49 If the authorities rec kon that a duty lower than the dumping margin is enough to eliminate the injury, 
the maximum duration of the provisional measures are extended to six and nine months.  
50 If the Executive Committee needs more elements, it requests them through SIECA which ha s 30 days 
to submit a report.  WT/REG384/1 /Rev.1  
- 36 - 
  that is affected by an antidumping or compensatory measure  can appeal to the Central American 
Dispute Settlement Mechanism or to the WTO Dispute Settlement Body (Article 47).  
3.5.4   Subsidies and State -aid 
3.72.   Direct and indirect export subsidies are prohibited under Article XI of  the TGIEC . Price 
discrimination practices that translate into export prices that are lower than domestic prices are 
considered to be indirect export subsidies . On the other hand, tax exemptions for the promotion of 
production and exemptions on exported goods that are re-exported to a third country are not 
considered as export subsidies . If a good produced with under -priced inputs is imported, the affected 
Party can raise the issue with the Executive Council in order to determine if it is facing an unfair 
trade practice . Currently, in accordance with Article  8 of the PG, this function falls to the Executive 
Committee of Economic Integration (CEIE) . The Executive Council makes a decision in five days and, 
in case of unfair trade practices, authorizes the temporary suspens ion of free trade for 30 days.  
3.73.   Existing State monopolies remain subject to local legislations and the special treatments 
established in Annex A of the TGIEC whereas, in case of the creation of new State monopolies, the 
Parties will engage in consultations to establish special regimes (Article VIII of TGIEC).  
3.5.5   Customs -related procedures  
3.74.   All originating goods benefit ing from preferential treatment under the Agreement need to be 
accompanied by a customs declaration indicating their origin and be validated by th e customs 
officials (Article V of the TGIEC) .51 Each Party guarantees free transit through its territory to all 
products directed to any other Party (Article XV of TGIEC) . Goods in transit are exempt of any transit 
tax or contribution independently of the d estination but they are subject to taxes normally paid for 
the provision of services . Freedom of transit is reiterated in Article 28.2 of the PG.  
3.75.   The Parties shall coordinate their customs services with the objective of applying common 
procedures, rules, documentation, requirements and treatment of information taking into 
consideration the best international practices in the matter (Article 12 of the Framework Agreement) . 
The Parties shall also harmonize procedures, operations and documentation of sanitary , veterinary, 
quality control or other services (Article 13 of the Framework Agreement).  
3.76.   The CAUCA  establishes the fundamental customs regulations applied to all persons, goods 
and means of transport that cross the customs territory of the Parties  in confo rmity with the 
requirements of the CACM and the instruments of regional integration, in particular  the CRAAC  
(Articles 1 and  2 of the CAUCA) .52 With Resolution No. 224-2008, the Parties adopt ed the RECAUCA . 
Appendix 3.2(d) to Annex 3.2 of the Agreement spec ifies the deadlines and conditions for the 
implementation of the CAUCA and the RECAUCA by Panama.  
3.77.   Resolution No. 63-2000 determines the documents needed for the intra -regional exchange of 
originating merchandise and agricultural products and for the transi t of merchandise from 
third countries . It also lists the products for whic h an import licens e is needed.53 
3.5.6   Other regulations  
3.78.   The Parties can levy taxes of the same amount on imported originating goods whenever locally 
produced goods are subject to domestic taxes (Article VI of  the TGIEC ).54 The Parties shall not 
introduce or maintain any regulations that discriminate in favour of originating goods with respect 
to similar local or third part y goods (Article VII of TGIEC ). 
                                                
51 The customs declaration form is available in Annex B of the TGIEC and it has been modified with 
Resolution No.  18-96. 
52 The CAUCA was originally subscribed in 1963 and it has been modified by its Second Protocol of 
Amendment  in 2000 and Resolution No.  223-2008.  
53 The products subject to licensing are cane sugar (for all Parties), wheat flour and ethyl alcohol (for 
some bilateral relationships).  
54 The article also establishes criteria for the levy of domestic taxes on goods in  the absence of domestic 
production.  WT/REG384/1 /Rev.1  
- 37 - 
  3.79.   The Parties shall regulate their tax regime based on the principle of the country of destination 
and agree on mechanisms for the collection of taxes from intra -regional and international 
transactions (Article 15 of the Framework Agreement).  
3.80.   The Parties also intend to establish mechanisms for t he protection of consumers' rights 
(Article  27 of the PG). 
3.6  Sector -Specific Provisions of the Agreement  
3.81.   Chapter II of the PG outlines general principle s to improve  policies and  competitiveness in 
tourism (Article 20 of the PG) and  in industrial and commercial sectors in general (A rticles 24 and 
25 of the PG respectively).  
3.6.1   Agriculture  
3.82.   The Parties commit to gradually implement a Central American agricultural policy  to 
modernize and increase the efficiency and competitiveness of production system s (Article 21 of  
the PG). They shall adopt measures to counteract the unfair foreign competition caused by 
agricultural and commercial policies of third countries (Article 23 of  the PG). 
3.83.   Resolution No. 144-2005 approve s the General Principles for the Application of Import  Quotas 
on Agricultural Products . Import quotas on agricultural products shall be implemented and 
administered in conformity with Article XIII of GATT and the WTO Agreement on Import Licensing 
Procedures . Resolution No. 145-2005 approves the G eneral Principles for the Administration of 
Donations of Food and Agricultural Supplies . 
4  GENERAL PROVISIONS OF THE AGREEMENT  
4.1  Transparency  
4.1.  The Agreement does not contain any provision on transparency per se . Article 55 of the PG 
provides that resolutions, r egulations and agreements shall be provided by the Parties.  
4.2  Institutional framework  
4.2.  The Council of Ministers of Economic Integration ( hereinafter  COMIECO ) is composed of the 
Ministers in charge of economic integration of each Party and is in charge of the coordination, 
harmonization, convergence and unification of the economic policies of the Parties  (Article 38 of the 
PG).55 As established in the amendment to the PG of 2002,  the COMIECO subrogate s the Central 
American Tariff and Customs Council and all other bodies previously created .56 The decisions of the 
COMIECO shall be adopted by consensus of its members (Article 52 of the PG). Consensus does not 
prevent the adoption of decisions by a subset of  Parties.  
4.3.  The Central American Economic Integration Secretariat ( hereinafter SIECA)  is the technical and 
administrative body for the economic integration process of Central America (Article 43 of the  PG). 
It will ensure the correct application of juridical  instruments in the context of the CACM, is in charge 
of the execution  of the decisions of the COMIECO  and has the capacity to make proposals for 
economic integration . The COMIECO  can mandate other functions to the SIECA . 
4.4.  Article 23  of the Framework Agreement  gives the general principles for the establishment of 
the institutions necessary for the functioning, administration and consolidation of the 
Customs  Union . The Parties shall develop the necessary adjustment to the current regio nal 
                                                
55 Panama adheres to the Rules of Organization and Operation of the Council of Ministers of Economic 
Integration, the Intra -sectoral and Sectoral Councils of Economic Integration and their subsequent 
modifications of 199 9 and 2005.  
56 The bodies in charge of different aspects of economic integration include the Council of Ministers of 
Economic Integration and the sectoral and intersectoral councils. With the 2002 amendment of the PG, the 
composition of the Council of Minis ters of Economic Integration changed. It also took over the functions of 
other economic integration bodies established under previous legal instruments, including the Central American 
Economic Council, established under Article XX of the TGIEC.  WT/REG384/1 /Rev.1  
- 38 - 
  institutional framework to respond to the evolution of the process of integration . They also monitor 
the process to avoid unnecessary expenses and to guarantee transparency.  
4.5.  Article XVIII of the TGIEC  establishes the creation of the Central American Ba nk for Economic 
Integration with the objective of financing and promoting economic growth .57 The Parties shall 
establish an International Structural and Investment Fund with the objective of stimulating the 
sustainable development of the Central American co untries and of achieving the best use of the 
benefit of economic integration, especially within the Customs Union, and of trade with third  parties 
(Article 24 of the Framework Agreement).  
4.3  Dispute settlement  
4.6.  Among the regulations listed in Annex 3.2 of the Agreement, Panama adopts the Dispute 
Settlement Mechanism within Central America (Resolution No. 170-2006) and the regulation of fees 
and tariffs of the dispute settleme nt mechanism (R esolution No. 205-2007)  at the entry into force 
of the Agreement . 
4.7.  The objective of the Dispute Settlement Mechanism  within Central America is to preserve the 
rights and obligations derived from the instruments of economic integration , i.e. the treaties, 
agreements and all related legal instruments  on Central American economic integration , in order to 
give stability and certainty to intra -regional trade (Article 2) .58 The Parties shall try to reach an 
agreement on the interpretation and application of the legal instruments of economic integration 
through cooperation and consultations and they shall strive to reach a mutually satisfactory solution . 
All settlements must be compatible with the legal instruments of economic integration and they 
should not hamper the ir benefit s. 
4.8.  The procedures of the dispu te settlement me chanism are applied with the purpose of 
prevent ing and resolv ing disputes on the interpretation and the application of the legal instruments  
of economic integration . The mechanism can also be invoked when a Party considers that a measure 
(in force or proposed) of another Party could be incompatible with the obligat ions derived from the 
legal instruments of economic integration or when, even though compatible with the obligations, it 
causes or could cause the nullification or impairment o f the benefits of the legal instruments of 
economic integration (Article 3) .59 
4.9.  The complaining Party may select the forum in which to settle a trade dispute concerning issues 
covered by the WTO or any other international agreement to which the Parties are  party. Once the 
complaining Party has requested the establishment of an Arbitration  Tribunal under any international 
agreement or under the WTO, the corresponding procedures shall be used to the exclusion of others 
(Article 4).  
4.10.   Any Party can request consultatio ns with one or more Parties on any existing or planned 
measure or on any other issue that could affect the functioning of the legal instruments of economic 
integration  (Article 9) . Any interested Party can participate in the consultations (Article  10). If the 
Party complained against does not reply with a proposed date for consultation s within ten  days after 
notification of the request, the consulting Party can request the intervention of the COMIECO or the 
establishment of an Arbitration Tribunal (Article 12.1). Any consulting Party can request  the 
intervention of the COMIECO as long as the conditions in Article 12.1 apply or the issue has not been 
resolved within 30 days (or any period agreed by the Parties) from the request of the consultations 
(Article 1 3). After one year from the last meeting of the COMIECO, in the absence of additional 
information and if the issue persists, the consulting Party must request new consultations . The 
COMIECO can help the Parties to find a mutually satisfactory solution  through the use of good offices, 
conciliation, mediation and recommendations (Article 14).  
4.11.   Any Party can r equest the establishment of an A rbitration Tribunal if the conditions in 
Article  12.1 apply ; within 30 days (or any period agreed by the consulting Parties) following the 
                                                
57 The Const itutional Agreement of the Central American Bank for Economic Integration is open to the 
accession of any Central American country.  
58 Unless otherwise specified, the articles in this section refer to articles in the Dispute Settlement 
Mechanism in Central America.  
59 Nullification and impairment are intended in conformity with the jurisprudence on paragraph 1b of 
GATT Article XXIII.  WT/REG384/1 /Rev.1  
- 39 - 
  notification of the consultation request ; if the issue  has not been resolved within 30 days (or any 
period agreed by the Parties) after the request of a meeting of the COMIECO or if the m eeting does 
not happen within ten  days from the request ; if there is no consensus between the Parties regarding 
the alternative solutions proposed by the COMIECO ; if the issue has not been resolved within 30  days 
after the meeting of the COMIECO ; or if the Party that requested the intervention of the COMIECO 
considers that no measures complying with the recommendations of the COMIECO have been taken 
or the measures are incompatible with the instruments of economic integration (Article  16). The 
Tribunal shall not be requested for any matter relating to a proposed measure.  
4.12.   Any Party that intends  to participate as a third party in the arbitration shall communicate it s 
request  to the SIECA within ten  days from the notification of the request for the esta blishment of 
the Arbitration Tribunal  (Article 17) . The Parties agree on a list of arbitrators (satisfying the 
requirements in Article 19 ) who are designated for a period of three years  (Article  18). 
The Arbitration Tribunal , whose terms of reference are given in Article 21,  is composed of 
three  members . Each Party selects an arbitrator ( of nationality different from that of the Party ) from 
the list of arbitrators and the Parties jointly agree on the election of a President of the Tribunal (of 
nationality different from the Parties involved) (Article 20).60 
4.13.   Unless otherwise agreed by the Parties, the Tribunal shall base its report on the applicable 
provisions of the legal instruments of economic integration , the arguments of the Parties and any 
relevant info rmation and technical advice . The report shall be delivered within 90 days from the 
notification of the constitution of the Tribunal unless otherwise agreed by the Parties . The report 
cannot be appeal ed (Article 23).  
4.14.   The report of the Tribunal is binding o n the Parties in the terms and timelines outlined in it . If 
the Tribunal declares that a measure is incompatible with the instruments  of economic integration, 
the Party complained against shall abstain from applying the measure or it shall remove it. If the 
Tribunal finds that the measure causes nullification or impairment of the benefits of the legal 
instruments of economic integration , it shall determine the degree thereof and can, if so requested,  
suggest adjustment s deemed by it to be mutually satis factory  (Article 24).  
4.15.   The complaining Party can immediately suspend the benefits unless the Parties notif y 
compliance with the Tribunal report within five days from its notifi cation (Article  25). The suspension 
of benefits shall last until the Party compla ined against complies with the Tribunal report or the 
Parties involved mutually agree on the resolution of the dispute.  
4.4  Relationship with other agreements concluded by the Parties  
4.16.   Panama reaffirms the application of the Central American Exception Clause me aning that it 
will extend to other Parties only preferences granted under RTAs signed after the entry into force of 
the Agreement (Article 10) . Therefore all preferences given by Panama to other countries under 
agreements signed before 6 May 2013 are not e xtended to the other Parties.  
4.17.   The Agreement does not affect any act, resolution, decision and instrument that Panama 
signed within the Central American Integration System before the entry into force of the Agreement 
(Article 12).  
4.18.   The Parties  retain their r ight to negotiate agreements with third parties as long as 
the Executive Committee of Economic Integration  is informed and they agree  on a mechanism of 
coordination and information on the status of negotiation s (Article 12 of the PG). When negotiating 
such agreements, the Parties commit to follow common rules especially in terms of rules of origin, 
unfair trade practices, safeguards and technical regulations.  
4.19.   The Parties agree not to sign unilaterally trade agreements with countries outside 
Central  America that may affect the economic integration of the region (Article  XXV of the TGIEC).  
4.20.   Table 4.1  lists the notified and non -notified (if any) trade agreements that have Panama or 
any other Party as members (excluding the current Agreement) . The first panel in the table lists the 
                                                
60 If the Parties fail to select an arbitrator or do not agree on the President, the members are randomly 
drawn from the list of arbitrators excluding the nationals of the Parties involved.  WT/REG384/1 /Rev.1  
- 40 - 
  agreements jointly signed by two or more Parties with third countries . The second part of the table 
lists the agreements signed individually by each Party.  
Table 4.1 Participation in other RTAs (notified and  non-notified in force), as of 
9 August  2018 
RTA Name  Date of entry 
into force  Coverage  GATT/WTO Notification  
Year WTO Provision  
CACM Member States – Collectively  
EFTA – Central America  
(Costa Rica and Panama)  19-Aug-14a Goods & Services  2014 GATT Art. XXIV & 
GATS Art . V 
EU – Central America  
(all CACM Member States)  01-Aug-13b Goods & Services  2013 GATT Art . XXIV & 
GATS Art . V 
Mexico – Central America  
(all CACM Member states, except Panama)  01-Sep-12c Goods & Services  2014 GATT Art . XXIV & 
GATS Art. V 
Dominican Republic – 
Central  America – United States 
Free Trade Agreement (CAFTA  – 
DR) 
(all CACM Member states, except Panama)  01-Mar-06d Goods & Services  2006 GATT Art . XXIV & 
GATS Art . V 
Panama – Central Americae 11-Apr-03 Goods & Services  2009 GATT Art . XXIV & 
GATS Art . V 
Chile – Central Americaf 
(all CACM Member states, except Panama)  15-Feb-02 Goods & Services  2002 GATT Art . XXIV & 
GATS Art . V 
Dominican Republic – Central 
America  
(all CACM Member states, except Panama)  04-Oct-01g Goods & Services  2012 GATT Art . XXIV & 
GATS Art . V 
CACM Member States – Individually  
Costa Rica  
Costa Rica – Colombia  01-Aug-16 Goods & Services  2016 GATT Art . XXIV & 
GATS Art . V 
Costa Rica – Singapore  01-Jul-13 Goods & Services  2013 GATT Art . XXIV & 
GATS Art . V 
Costa Rica – Peru 01-Jun-13 Goods & Services  2013 GATT Art . XXIV & 
GATS Art . V 
China – Costa Rica  01-Aug-11 Goods & Services  2012 GATT Art . XXIV & 
GATS Art . V 
Canada – Costa Rica  01-Nov-02 Goods  2003 GATT Art . XXIV 
Costa Rica – CARICOM  15-Nov-05 Goods  Not notified  
Costa Rica – Venezuela  
[LAIA, AAP.A25TM N o. 26] 27-Jul-94 Goods  Not notified  
El Salvador  
El Salvador – Ecuador  16-Nov-17 Goods  2018 Enabling Clause  
El Salvador – Cuba 01-Aug-12 Goods  2013 Enabling Clause  
Colombia – Northern Triangle  
(El Salvador, Guatemala, Honduras)  12-Nov-09 Goods & Services  2012 GATT Art . XXIV & 
GATS Art . V 
El Salvador – Honduras – 
Chinese  Taipei  01-Mar-08 Goods & Services  2010 GATT Art . XXIV & 
GATS Art . V 
Guatemala  
Colombia – Northern Triangle  
(El Salvador, Guatemala, Honduras)  12-Nov-09 Goods & Services  2012 GATT Art . XXIV & 
GATS Art . V 
Guatemala – Chinese Taipei  01-Jul-06 Goods & Services  2011 GATT Art . XXIV & 
GATS Art . V 
Ecuador – Guatemala  
[LAIA, AAP.A25TM No. 42] 19-Feb-13 Goods  Not notified  
Belize – Guatemala  04-Apr-10 Goods  Not notified  
Guatemala – Cuba 
[LAIA, AAP.A25TM No. 36] 18-May-01 Goods  Not notified  
Guatemala – Venezuela  
[LAIA, AAP.A25TM No. 23] 10-Apr-86 Goods  Not notified  
Mexico – Guatemala  
[LAIA, AAP.A25TM N o. 37] n/a Goods  Not notified  
Honduras  
Canada – Honduras  01-Oct-14 Goods & Services  2015 GATT Art . XXIV & 
GATS Art . V 
Colombia – Northern Triangle  
(El Salvador, Guatemala, Honduras)  12-Nov-09 Goods & Services  2012 GATT Art . XXIV & 
GATS Art . V WT/REG384/1 /Rev.1  
- 41 - 
  RTA Name  Date of entry 
into force  Coverage  GATT/WTO Notification  
Year WTO Provision  
El Salvador – Honduras – 
Chinese  Taipei  01-Mar-08 Goods & Services  2010 GATT Art . XXIV & 
GATS Art . V 
Peru – Honduras  01-Jan-17 Goods  Not notified  
Honduras – Venezuela  
[LAIA, AAP.A25TM N o. 16] 22-Sep-86 Goods  Not notified  
Nicaragua  
Nicaragua – Chinese Taipei  01-Jan-08 Goods & Services  2009 GATT Art . XXIV & 
GATS Art . V 
Global System of Trade Preferences 
among Developing Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Nicaragua – Venezuela  
[LAIA, AAP.A25TM N o. 25] 18-Jan-74 Goods  Not notified  
Panama  
Mexico – Panama  01-Jul-15 Goods & Services  2016 GATT Art . XXIV & 
GATS Art . V 
Canada – Panama  01-Apr-13 Goods & Services  2013 GATT Art . XXIV & 
GATS Art . V 
United States – Panama  31-Oct-12 Goods & Services  2012 GATT Art . XXIV & 
GATS Art . V 
Panama – Peru 01-May-12 Goods & Services  2012 GATT Art . XXIV & 
GATS Art . V 
Panama – Chile 07-Mar-08 Goods & Services  2008 GATT Art . XXIV & 
GATS Art . V 
Panama – Singapore  24-Jul-06 Goods & Services  2007 GATT Art . XXIV & 
GATS Art . V 
Panama – Chinese Taipei  01-Jan-04 Goods & Services  2009 GATT Art. XXIV & 
GATS Art . V 
Panama – Dominican Republic  08-Jun-87 Goods  2016 Enabling Clause  
Panama – Trinidad and Tobago  04-Jul-16 Goods  Not notified  
LAIA – Accession of Panama  03-May-12 Goods  Not notified  
Panama – Israel  06-Oct-10 Goods  Not notified  
Panama – Cuba 
[LAIA, AAP.CE No. 71] 20-Aug-09 Goods  Not notified  
Colombia – Panama  
[LAIA, AAP.A25TM N o. 29] 01-Jan-95 Goods  Not notified  
n/a Not available . 
a  Dates of entry into force : For Costa Rica, Panama and Norway : 19-Aug-14; For Costa Rica, Panama, 
Liechtenstein and Switzerland : 29-Aug-14; For Costa Rica, Panama and Iceland : 5-Sept-14. 
 On 5 February  2016, Costa Rica, Guatemala, Panama and the Member States of EFTA informed the 
Members of the WTO that Guatemala and the Parties to the EFTA -Central America Free Trade 
Agreement had signed a Protocol of Accession to the FTA on 2 2 June 2015. 
b  The notifications made in February  2013 (see WT/REG332/N/1 and S/C/N/680) stated that : 
"Provisional application of the Agreement by all signatory parties is  expected in the course of the 
second quarter 2013" ; Further notifications to confirm the dates of entry into force between the EU 
and Central American countries are awaited.  
c  Dates of entry into force between Mexico and El Salvador : 01-Sep-12; and Nicar agua: 01-Sep-12; 
and Honduras : 01-Jan-13; and Costa Rica : 01-Jul-13; and Guatemala : 01-Sept-13. 
d  Dates of entry into force : For El Salvador and the United States : 01-Mar-06; For Honduras and 
Nicaragua : 01-Apr-06; For Guatemala : 01-Jul-06; For the Dominican Republic : 01-Mar-07; For 
Costa Rica : 01-Jan-09. 
e  The bilateral Protocols to the Free Trade Agreement between Panama and Central America have 
been notified to the WTO separately . Dates of entry in force between Panama and Costa Rica : 
23-Nov-08; and El Salvador : 11-Apr-03; and Guatemala : 20-Jun-09; and Honduras : 09-Jan-09; and 
Nicaragua : 21-Nov-09. 
f  The bilateral Protocols to the Free Trade Agreement between Chile and Central America have been 
notified to the WTO separately . Dates of entry in fo rce between Chile and Costa Rica : 15-Feb-02; 
and El Salvador : 01-Jun-02; and Honduras : 19-Jul-08; and Guatemala : 23-Mar-10; and Nicaragua : 
19-Oct-12. 
g  Dates of entry into force between the Dominican Republic and El Salvador : 04-Oct-01; and 
Guatemala : 15-Oct-01; and Honduras : 19-Dec-01; and Costa Rica : 07-Mar-02; and Nicaragua : 
03-Sept-02. 
Source:  WTO Secretariat.  WT/REG384/1 /Rev.1  
- 42 - 
  4.5  Government procurement  
4.21.   The Parties guarantee to nationals of other Parties treatment no less favourable than to local 
nationals for Government procurement contracts  (Article 19 of the Framework Agreement) . The 
Parties shall also ensure the transparency of the participation process for public contract s. 
4.6  Intellectual Property Rights  
4.22.   The Parties shall develop regional regulation s for intellectual property (Article 20 of the 
Framework Agreement) . They shall harmonize their legislation on intellectual and industrial property 
rights and their registries (Article 30 of the PG). 
4.7  Current payments and capital movements  
4.23.   The Parties agree to ensure freedom of movement of labour and capital in the region through 
approval of the policies necessary to that end (Article 18 of the PG) . Moreover, the Parties aim at 
the freedom and stability of exchange rates and the functioning of a free market of nat ional currency 
in the region in order to facilitate payments across countries (Article 9 of the PG) . In order to 
gradually reach monetary and financial integration, the Parties also agree to maintain the freedom 
of payments within the area, promote the use  of national currencies for intra -regional transactions 
and facilitate capital transfers (Article 19 of the PG).  
4.8  Exceptions  
4.24.   The Parties retain their rights and obligation in relation to the introduction of prohibitions or 
restriction to protect public mora ls and safety, national treasures of artistic or archaeological value, 
intellectual property and the environment as long as they do not constitute discriminatory or 
unjustified obstacles to trade (Article 5 of the Framework Agreement) . Moreover, the Framew ork 
Agreement does not affect the rights of the Parties to apply the exceptions in GATT  Article XX . The 
Parties also retain their right to introduce measures for security, pol ice and health reasons (Article  7 
of the PG).  
4.9  Accession and Withdrawal  
4.25.   The TGIEC and the Protocol of Guatemala are  open for the accession of any Central  American 
country (Article XXXIII of the TGIEC  and Article 60 of the PG, respectively ). Accession to the 
Framework Agreement is open to any member of the Central American Integration System subject 
to the terms agreed between the acceding c ountry and the Parties (Article  26 of the Framework 
Agreement).  
4.26.   The duration of the TGIEC was originally 20 years after which it was extended indefinitely 
(Article  XXXI of the TGIEC) . After the first  20 years from the entry into force, a Party c ould exit 
the TGIEC which would become inactive five  years later for the exiting Party only . The duration of 
CRAAC was originally ten years after which it has been  subject to tacit renewal every ten  years . 
After the first ten years from the entry into force, a Party could  exit the CRAAC which would become 
inactive two years later for the exiting Party only . The Protocol of Guatemala and the Framework 
Agreement have indefinite duration (Article 59 of PG and Artic le 25 of the Framework Agreement) . 
Any Party can exit the PG or the Framework Agreement which would become i nactive five  years later 
for the exiting Party only.  
4.10  Other  provisions  
4.10.1   Competition  
4.27.   The Parties shall develop regional regulation s for competition  (Article 25 of the PG and 
Article  21 of the Framework Agreement) . The Parties  have reported that they are working on a draft 
set of Central American Competition Regulations.  WT/REG384/1 /Rev.1  
- 43 - 
  4.10.2   Services and investment  
4.28.   Panama will carry out the corresponding procedures to adhere to the Agreement  on 
Investment and Trade in Services (hereinafter  AITS) and its protocols within no more than 
six months from the entry into force of the Agreement (Article 8) . The Parties have r eported that 
negotiations have been held among the countries, but that they have thus far not been completed . 
As part of the accession process, Panama present ed an offer of  annexes of non -conforming measures 
and future measures . The said lists of measures must meet the following conditions : they must  not 
imply a level of non -conformity higher than or a commitment lower than those agreed in the Bilateral 
Protocols and in the list of measures that comply with the MFN principle established in the AITS. 
Until the accession of Panama to the AITS is completed, the relevant provisions in the Bilateral 
Protocols shall apply  (Article 11.3) . 
4.29.   The Parties agree to harmonize their legislations related to, among others, banking and 
finance, stock exchange and insurance (A rticle 30 of the PG). The Parties agree to also harmonize 
their legislation to allow for the free exercise of university professions in any countr y in the region 
(Article  31 of the PG). 
4.30.   The Parties promote the development of energy, transport and telecommunications 
infrastructures with the objective of improving the efficiency and competitiveness of such sectors at 
the national and regional level (Article 28 of the PG).61 
4.10.3   Environment  
4.31.   The Parties agree to develop common strategies for the valorisatio n and protection of natural 
resources in the region, sustainable development, the use of natural resources and the strengthening  
of ecological equilibrium ( Article 35 of the PG). For these purposes, the Parties endeavour to improve 
and harmonize the ir respective national environmental legislation and to finance project s for the 
conservation of the environment.  
4.10.4   Innovation  
4.32.   The Parties commit to implement a regional strategy to incorporate science and technology in 
the production process through, among other t hings, improvements in technical training, research 
and the development of financial mechanisms to incentivize technological innovation  by firms 
(Article  34 of the PG).  
 
                                                
61 The Parties also agree to harmonize their policies on the provisio n of services in the infrastructure 
sectors.  WT/REG384/1 /Rev.1  
- 44 - 
  ANNEX 1  
1. Table A1.1  shows tariff liberalization by Panama for imports from Central America while 
Table  A1.2, Table A1.3 , Table A1.4 , Table A1.5  and Table A1.6  show tariff liberalization by each 
Central American country for imports from Panama . The indicators are presented by all, agricultural 
and non -agricultural products and compared to the average MFN tariff in the year of entry into force 
of the Agreement.  
2. In 2013, Panama's overall average MFN tariff was 7.6 %. Information about the average 
MFN tariff in 2017 is also shown in the table suggesting that the market access conditions at the 
multilateral level remained essentially stable over time .1 The average MFN tariff on agricultural 
products was 13.7 %, more than twice the average MFN rate on non -agricultural products which was  
6.4%. A lmost 35 % of tariff lines were duty free on an MFN basis . The share of tariff lines on 
agricultural and non -agricultural product was, respectively, 23.5 % and 36.6 %. The share of duty 
free lines substantially increased for all Parties  under the Bilateral Protocols and the Agreement .2 
With the entry into force of the Agreement in 2013, t he overall share of duty fr ee lines ranged from 
81% for Honduras to 88.6 % for Costa Rica ; the share of duty free lines in agricultural products 
ranged from 73.3 % for Honduras to 84.2 % for Costa Rica ; and the share of duty free lines in 
non-agricultural products ranged from 82.6 % for Honduras to 89.4 % for Costa Rica . The overall 
average tariff for imports from all Parties also decreased thanks to the Bilateral Protocols and the 
entry into force of the Agreement . In 2013 t he average overall preferential tariff ranged from 1.3 % 
for Cost a Rica to 2.5 for Honduras, from 4 % to 6% for agricultural products and from 0.8 % and 
1.9% for the same countries . At the end of implementation the share of duty free tariff lines will 
range from 82.5 % for imports from El Salvador to 97.5 % for imports from Costa Rica and 
Guatemala . The share of duty free lines in agricultural products will range from 79.4 % for imports 
from El Salvador to 96.4 % for imports from Guatemala ; the share of duty free lines in 
non-agricultural products will range f rom 83 % for imports from El Salvador to 98 % for imports from 
Costa Rica.  
Table A1. 1 Panama : Indicators of MFN tariff rates and preferential rates for imports 
from Central America  
Origin of 
goods  Year ALL PRODUCTS  Agricultural pr oductsa Non-agricultural products  
Average 
applied tariff  
Share of 
duty-free 
tariff lines 
(%) Average  
applied tariff  
Share of 
duty-free 
tariff lines 
(%) Average 
applied tariff  
Share of 
duty-free 
tariff lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFNb 2013b 7.6 11.6 34.5 13.7 17.9 23.5 6.4 10.2 36.6 
 2017c 7.7 11.9 35.3 14.8 19.1 22.8 6.4 10.2 37.6 
Costa Rica  
Under the Bilateral protocold 1.5 11.2 86.9 4.3 20.7 79.1 0.9 8.1 88.3 
 2013 1.3 11.4 88.6 4.0 25.1 84.2 0.8 7.7 89.4 
 2014 1.2 10.3 88.6 3.7 23.6 84.2 0.7 6.6 89.4 
 2015 1.0 9.1 88.6 3.5 22.1 84.2 0.6 5.5 89.4 
 2016 0.9 8.2 88.9 3.3 21.4 84.7 0.5 4.6 89.7 
 2017 0.8 7.1 88.9 3.0 19.9 84.7 0.4 3.5 89.7 
 2018 0.7 21.2 96.9 2.8 32.9 91.4 0.3 12.3 97.9 
 2019 0.6 21.4 97.0 2.7 33.2 91.8 0.3 12.5 98.0 
 2020 0.6 22.4 97.2 2.6 37.8 93.0 0.3 12.5 98.0 
 2021 0.6 23.2 97.3 2.6 42.3 93.9 0.3 12.5 98.0 
 2022 0.6 23.1 97.3 2.6 41.9 93.9 0.3 12.5 98.0 
 2023 0.6 23.3 97.4 2.5 43.5 94.2 0.3 12.5 98.0 
 2024 0.6 23.6 97.4 2.5 45.0 94.4 0.3 12.5 98.0 
 2025 0.6 24.0 97.5 2.5 47.9 94.7 0.3 12.5 98.0 
 2026 0.6 24.2 97.5 2.5 49.1 94.9 0.3 12.5 98.0 
                                                
1 Comparisons between MFN in 2013 and 2017 cannot be done directly as the nomenclatures and 
sources of data differ.  
2 The share of duty free lines under MFN and the Agreements and the corresponding average MFN and 
preferential tariffs are not directly comparable since the sources of data are different.  WT/REG384/1 /Rev.1  
- 45 - 
  Origin of 
goods  Year ALL PRODUCTS  Agricultural pr oductsa Non-agricultural products  
Average 
applied tariff  
Share of 
duty-free 
tariff lines 
(%) Average  
applied tariff  
Share of 
duty-free 
tariff lines 
(%) Average 
applied tariff  
Share of 
duty-free 
tariff lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
El Salvador  
Under the Bilateral protocold 2.1 11.4 81.2 5.4 21.6 74.6 1.5 8.6 82.4 
 2013 2.1 12.2 82.5 5.4 26.5 79.4 1.5 8.9 83.0 
Guatemala  
Under the Bilateral protocold 1.9 10.9 82.5 5.9 20.3 71.1 1.2 7.6 84.6 
 2013 1.7 11.1 84.9 5.4 24.2 77.9 1.0 7.2 86.2 
 2014 1.5 9.8 84.9 4.9 22.2 77.9 0.8 6.1 86.2 
 2015 1.3 8.6 84.9 4.4 20.1 78.0 0.7 5.1 86.2 
 2016 1.1 7.3 85.0 4.0 18.3 78.4 0.6 4.1 86.3 
 2017 0.9 6.0 85.1 3.5 16.2 78.4 0.4 3.1 86.3 
 2018 0.7 18.1 96.1 3.0 26.4 88.6 0.3 11.1 97.5 
 2019 0.7 18.1 96.2 2.9 26.1 88.8 0.3 11.3 97.6 
 2020 0.7 17.8 96.2 2.8 25.3 88.8 0.3 11.3 97.6 
 2021 0.7 17.4 96.2 2.8 24.7 88.8 0.3 11.2 97.6 
 2022 0.7 17.0 96.2 2.7 23.9 88.8 0.3 11.2 97.6 
 2023 0.5 17.9 97.1 1.9 28.9 93.4 0.3 12.0 97.7 
 2024 0.5 17.7 97.1 1.9 28.2 93.4 0.3 12.0 97.7 
 2025 0.5 17.6 97.1 1.8 28.2 93.5 0.3 12.0 97.7 
 2026 0.5 17.5 97.1 1.8 27.8 93.6 0.3 12.0 97.7 
 2027 0.5 17.2 97.1 1.7 27.2 93.6 0.3 12.0 97.7 
 2028 0.5 20.1 97.5 1.7 47.8 96.4 0.3 12.0 97.7 
Honduras  
Under the Bilateral protocold 8.3 12.1 31.3 14.6 18.9 22.5 7.1 10.6 33.0 
 2013 2.5 13.4 81.1 6.0 22.3 73.3 1.9 10.9 82.6 
 2014 2.5 13.0 81.1 5.8 21.6 73.3 1.8 10.5 82.6 
 2015 2.4 12.6 81.1 5.6 21.0 73.4 1.8 10.2 82.6 
 2016 2.3 12.2 81.1 5.4 20.3 73.4 1.7 9.9 82.6 
 2017 2.2 11.7 81.1 5.2 19.6 73.4 1.7 9.5 82.6 
 2018 2.1 14.7 85.4 5.0 23.4 78.5 1.6 12.0 86.7 
 2019 2.1 14.5 85.4 4.9 22.9 78.5 1.6 12.0 86.7 
 2020 2.1 14.4 85.4 4.8 22.4 78.5 1.6 11.9 86.7 
 2021 2.1 14.2 85.4 4.7 21.9 78.5 1.6 11.9 86.7 
 2022 2.0 14.1 85.4 4.6 21.5 78.5 1.6 11.8 86.7 
 2023 2.0 15.8 87.1 4.5 32.1 86.0 1.6 12.4 87.4 
 2024 2.0 15.7 87.1 4.5 32.0 86.0 1.6 12.4 87.4 
 2025 2.0 15.7 87.1 4.5 31.9 86.0 1.6 12.4 87.4 
 2026 2.0 15.8 87.2 4.5 33.0 86.5 1.6 12.4 87.4 
Nicaragua  
Under the Bilateral protocold 2.0 15.0 86.5 5.6 25.3 78.0 1.4 11.5 88.1 
 2013 2.0 14.5 86.5 5.3 24.3 78.0 1.3 11.1 88.1 
 2014 1.9 14.9 87.3 5.1 26.9 81.0 1.3 11.1 88.5 
 2015 1.8 14.5 87.3 5.0 26.2 81.0 1.2 10.9 88.5 
 2016 1.8 14.1 87.3 4.8 25.5 81.0 1.2 10.6 88.5 
 2017 1.7 13.8 87.3 4.7 24.8 81.0 1.2 10.3 88.5 
 2018 1.7 13.4 87.3 4.6 24.0 81.0 1.2 10.1 88.5 
 2019 1.6 17.1 90.4 4.4 33.7 86.9 1.1 12.5 91.0 
 2020 1.6 17.0 90.4 4.4 33.3 86.9 1.1 12.5 91.0 
 2021 1.6 16.9 90.4 4.3 32.9 86.9 1.1 12.5 91.0 
 2022 1.6 16.8 90.4 4.3 32.6 86.9 1.1 12.5 91.0 
 2023 1.6 16.7 90.4 4.2 32.2 86.9 1.1 12.5 91.0 
 2024 1.6 17.1 90.6 4.2 36.1 88.5 1.1 12.5 91.0 
a WTO d efinition.  
b The MFN 2013 information is based on the HS 2012 nomenclature which is a separate dataset from 
the preferential tariffs.  
c The MFN 2017 information is based on the HS 2017 nomenclature which is a separate dataset from 
the preferential tariffs . 
d Prior to Panama's accession to CACM.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation for all the Central American 
partners except El Salvador.  
Preferential tariffs are based on the HS 2002 nomenclature for Costa Rica, Guatemala, Honduras ; 
HS 1996 for El Salv ador and HS 2007 for Nicaragua.  
Source:  WTO-IDB and data provided by the Panama authorities.  WT/REG384/1 /Rev.1  
- 46 - 
  3. In 2013, Costa Rica's overall average MFN tariff was 6.9 %, and higher for agricult ural products 
at 14 % compared to 5.7 % for non -agricultural products . The average MFN rates in 2017 were 
relatively similar . No tariff lines on agricultural products were duty free on an MFN basis in 2013 but 
22% of tariff lines on agricultural products wer e MFN duty free in 2017 . In 2013, 2.4% of the tariff  
lines for non -agricultural products were duty free  at the MFN level while almost 55 % were duty free 
in 2017 . The liberalization under the Bilateral  Protocol continued under the Agreement . In 2013,  the 
share of duty free lines rose to almost 92 % overall, of which 82.7% for agricultural products and 
93.5% for non -agricultural products . The overall average tariff for imports from Panama  fell to 1 %, 
4% for agricultural products and 0.4% for non -agricul tural products . Panama's exporters as a result 
had a relative margin of preference of 85.5% overall, and 71.4% and 93% respectively for 
agricultural and non -agricultural products . As a result of further liberalization, by the end of the 
implementation peri od, 97.8% of Costa Rica 's overall tariff will be duty free in 2025 , of which 93.5% 
of agricultural tariff lines and 98.6% of non -agricultural tariff lines.  
Table A1. 2 Costa Rica : Indicators of MFN tariff rates and preferential rates for imports 
from Panama  
Origin of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural 
products  
Average 
applied 
tariff  Share of 
duty-free 
tariff lines 
(%) Average 
applied tariff  Share of 
duty-free 
tariff lines 
(%) Average 
applied tariff  Share of 
duty-free 
tariff 
lines (%)  Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2013 6.9 7.1 2.0 14.0 14.0 0.0 5.7 5.8 2.4 
 2017 6.7 13.1 48.7 16.2 20.8 21.9 4.6 10.1 54.6 
Panama  Bilateral protocolb 1.1 12.1 90.7 4.4 20.2 78.2 0.6 7.8 92.8 
 2013 1.0 12.0 91.9 4.0 23.3 82.7 0.4 6.8 93.5 
 2014 0.9 10.6 91.9 3.7 21.5 82.7 0.4 5.7 93.5 
 2015 0.8 9.3 91.9 3.4 19.7 82.7 0.3 4.5 93.5 
 2016 0.6 8.2 92.1 3.1 18.4 83.2 0.2 3.5 93.7 
 2017 0.5 6.8 92.1 2.8 16.6 83.2 0.1 2.3 93.7 
 2018 0.4 15.2 97.2 2.5 23.2 89.3 0.1 5.2 98.5 
 2019 0.4 15.0 97.3 2.3 22.7 89.7 0.1 5.3 98.6 
 2020 0.4 16.1 97.6 2.2 26.8 91.7 0.1 5.3 98.6 
 2021 0.4 16.2 97.7 2.1 27.9 92.3 0.1 5.3 98.6 
 2022 0.4 15.9 97.7 2.1 27.2 92.3 0.1 5.3 98.6 
 2023 0.4 16.2 97.8 2.0 28.6 92.9 0.1 5.3 98.6 
 2024 0.4 16.3 97.8 2.0 29.3 93.1 0.1 5.3 98.6 
 2025 0.4 16.7 97.8 2.0 31.0 93.5 0.1 5.3 98.6 
a WTO definition.  
b Based on the HS 2002 nomenclature (Table A I.1 of the WT/REG264/1, page 57).  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Costa Rica authorities  and WTO -IDB. 
4. In 2013, El Salvador's overall average MFN tariff was 6.3 %, and  higher for agricultural 
products at 12.4 % compared to 5.2 % for non -agricultural products . Over 47.7 % of the tariff was 
duty free (27.7 % for agricultural products and 51.1 % for non -agricultural products) . MFN rates and 
the share of duty -free lines on an MF N basis were essentially the same in 2018 . In 2013, a s a result 
of the implementation of the Bilateral Protocol  and the entry into force of the Agreement , the share 
of duty free lines for Panama rose to almost 85 % overall, of which 80.7 % for agricultural p roducts 
and 85.5 % for non -agricultural products . The overall average tariff for imports from Panama fell to 
2.1%, 4.8% for agricultural products and 1.6 % for non -agricultural products . Panama's exporters 
had a relative margin of preference of 67.7 % overall, and 61.3 % and 69.2 % respectively for 
agricultural and non -agricultural products.  WT/REG384/1 /Rev.1  
- 47 - 
  Table A1. 3 El Salvador : Indicators of MFN tariff rates and preferential rates for imports 
from Panama  
Origin 
of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural 
products  
Average 
applied 
tariff  Share of 
duty-free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-free 
tariff 
lines 
(%) Average 
applied 
tariff  Share of 
duty-free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2013 6.3 12.0 47.7 12.4 17.2 27.7 5.2 10.7 51.1 
 2018 6.3 12.0 47.7 12.4 17.2 27.6 5.2 10.7 51.1 
Panama  Bilateral protocolb 3.4 19.7 82.6 4.9 20.2 75.7 3.2 19.6 83.7 
 2013 2.1 13.8 84.8 4.8 25.0 80.7 1.6 11.2 85.5 
a WTO definition.  
b Based on the HS 1996 nomenclature  (Table AI.2 of the WT/REG196/3, page 46).  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by El Salvador authorities  and WTO -IDB. 
5. In 201 4, Guatemala's overall average MFN tariff was 5.7 %, and higher for agricultural 
products at 9.6 % compared to 5 % for non -agricultural products . Around 2 8% and 53 % of the tariff 
lines for agricultural and non-agricultural products respectively were duty free . MFN rates and the 
share of duty -free lines on an MFN basis remained essentially the same in 201 5. The process of 
liberalization under the Bilateral Protocol co ntinued under the Agreement . In 201 4, the share of duty 
free lines rose to more than 90 % overall, of which 77% for agricultural products and 9 2.6% for 
non-agricultural products . The overall average tariff for imports from Panama fell to less than  1%, 
2.1% for agricultural products and 0. 3% for non -agricultural products . Panama's exporters as a 
result had a relative margin of preference of 8 9.5% overall, and 7 7% and 94% respectively for 
agricultural and non -agricultural products . As a result of further liberalization, by the end of the 
implementation period, 99.4% of Guatemala's overall tariff will be du ty free in  2027, of which 9 6% 
of agricultural tariff lines and 100% of non -agricultural tariff lines.  
Table A1. 4 Guatemala : Indicators of MFN tariff rates and preferential rates for imports 
from Panama  
Origin 
of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural 
products  
Average 
applied 
tariff  Share of 
duty-free 
tariff lines 
(%) Average 
applied tariff  Share of 
duty-free 
tariff lines 
(%) Average 
applied 
tariff  Share of 
duty-free 
tariff lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2014 5.7 11.2 49.6 9.6 13.2 28.3 5.0 10.7 53.3 
 2015 5.7 11.2 49.6 9.5 13.2 27.9 5.0 10.7 53.4 
Panama  Bilateral protocolb 1.2 9.2 87.1 3.0 10.4 71.1 0.9 8.5 89.9 
 2014 0.6 6.1 90.3 2.2 9.6 77.0 0.3 4.2 92.6 
 2015 0.5 5.0 90.4 2.0 8.9 77.2 0.2 2.9 92.6 
 2016 0.4 3.8 90.4 1.8 8.0 77.2 0.1 1.5 92.6 
 2017 0.2 11.2 97.8 1.6 11.9 86.4 0.0 3.9 99.7 
 2018 0.2 11.0 97.9 1.5 11.6 86.8 0.0 3.8 99.8 
 2019 0.2 10.3 97.9 1.5 10.9 86.8 0.0 3.1 99.8 
 2020 0.2 9.6 97.9 1.4 10.3 86.8 0.0 2.3 99.8 
 2021 0.2 9.0 97.9 1.3 9.6 86.8 0.0 1.6 99.8 
 2022 0.1 11.1 98.8 0.9 11.1 91.7 0.0 10.0 100.0  
 2023 0.1 10.5 98.8 0.9 10.5 91.7 0.0 10.0 100.0  
 2024 0.1 10.0 98.8 0.8 10.0 91.8 0.0 10.0 100.0  
 2025 0.1 9.7 98.8 0.8 9.7 92.1 0.0 10.0 100.0  WT/REG384/1 /Rev.1  
- 48 - 
  Origin 
of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural 
products  
Average 
applied 
tariff  Share of 
duty-free 
tariff lines 
(%) Average 
applied tariff  Share of 
duty-free 
tariff lines 
(%) Average 
applied 
tariff  Share of 
duty-free 
tariff lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
 2026 0.1 9.1 98.8 0.7 9.1 92.1 0.0 10.0 100.0  
 2027 0.1 17.0 99.4 0.7 17.2 95.9 0.0 10.0 100.0  
 2028 0.1 17.0 99.4 0.7 17.2 95.9 0.0 10.0 100.0  
a WTO definition.  
b Based on HS 2002 nomenclature (Table A1.4 of the WT/REG336/1/Rev.1, pages 75 -76). 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by the Guatemala authorities, World Integrated Trade 
Solution (WITS) and the WTO -IDB. 
6. In 2013, Honduras' overall average MFN tariff was 6%, and higher for agricultural products  at 
10.7% compared to 5. 2% for non -agricultural products . Almost 48% of the tariff was duty free 
(27.5% for agricultural products and 51. 5% for non -agricultural products) . The averages of the MFN 
rates were relatively similar in 2014 . As a result of the im plementation of the Bilateral Protocol and 
the entry into force of the Agreement , the share of duty free lines for Panama in 201 3 rose to 81.8% 
overall, of which 75.6% for agricultural products and 82.9 % for non -agricultural products . The 
overall average t ariff for imports from Panama fell to 2 %, 4% for agricultural products and 1. 7% for 
non-agricultural products . Panama's exporters had a relative margin of preference of 6 5% overall, 
and 61.7% and 67.3% respectively for agricultural and non -agricultural products . By the end of 
implementation the share of duty free lines for imports from Panama is expected to be 86.4 % overall, 
87.6% and 86.2 % respectively for agricultural and non -agricultural products.  
Table A1. 5 Honduras : Indicators of MFN tariff rates and preferential rates for imports 
from Panama  
Origin 
of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural 
products  
Average 
applied tariff  Share of 
duty-free 
tariff lines 
(%) Average 
applied tariff  Share of 
duty-free 
tariff 
lines (%)  Average 
applied tariff  Share of 
duty-free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2013 6.0 11.5 47.9 10.7 14.7 27.0 5.2 10.6 51.5 
 2014 5.9 11.5 48.2 10.7 14.7 27.5 5.1 10.6 51.7 
Panama  Bilateral protocolb 2.2 11.4 80.7 4.2 17.3 75.5 1.9 10.1 81.6 
 2013 2.1 11.4 81.8 4.1 16.9 75.6 1.7 10.0 82.9 
 2014 2.0 11.1 81.8 4.0 16.3 75.6 1.7 9.8 82.9 
 2015 2.0 10.8 81.8 3.8 15.9 75.8 1.6 9.6 82.9 
 2016 1.9 10.5 81.8 3.7 15.4 75.8 1.6 9.3 82.9 
 2017 1.9 10.2 81.8 3.6 14.8 75.8 1.6 9.1 82.9 
 2018 1.8 12.0 85.1 3.4 17.8 80.7 1.5 10.7 85.8 
 2019 1.8 11.9 85.1 3.4 17.4 80.7 1.5 10.7 85.8 
 2020 1.8 11.8 85.1 3.3 17.1 80.7 1.5 10.6 85.8 
 2021 1.8 11.7 85.1 3.2 16.7 80.7 1.5 10.6 85.8 
 2022 1.7 11.7 85.1 3.1 16.3 80.7 1.5 10.6 85.8 
 2023 1.7 12.6 86.3 3.1 24.4 87.4 1.5 10.8 86.2 
 2024 1.7 12.6 86.3 3.1 24.3 87.4 1.5 10.8 86.2 
 2025 1.7 12.6 86.3 3.1 24.3 87.4 1.5 10.8 86.2 
 2026 1.7 12.7 86.4 3.0 24.7 87.6 1.5 10.8 86.2 
a WTO d efinition.  
b Based on the HS 2007 nomenclature (Table A1.2 of the WT/REG278/1/Rev.1, page 74).  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Honduras authorities  and WTO -IDB. WT/REG384/1 /Rev.1  
- 49 - 
  7. In 2013 Nicaragua's overall average MFN tariff was 6.2 % and 12 % and 5.2 % respectively for 
agricultural and non -agricultural products . More than 46 % of its overall tariff was duty free ; 21.7% 
and 51 % of its agricultural and non -agricultural tariff respectively was duty free . The average MFN 
rates and the shares of MFN duty -free lines in 2017 was relatively similar to 2013 . The share of duty 
free lines rose under the Bilateral Protocol and it reached 89.4% overall, and 76.9 % and 91.7 % 
respectively for agricultural and non -agricultural products under the Agreement in 2013 . The overall 
average duty for imports from Panama fell to 1.4 % (4.3% for agricultural products and 0.9 % for 
non-agricultural products) . As a result the relative margin of preference for Panama exporters was 
77.4% overall, 64.2 % for agricultural products and 82.7 % for non -agricultural products . Once the 
Agreement is fully implemented almost 93 % of Nicaragua's tariff is expected to be duty  free for 
imports from Panama . For agricultural and non -agricultural imports from Panama, the figure is 
expected to be 85 % and 94 % respectively.  
Table A1. 6 Nicaragua : Indicators of MFN tariff rates and preferential rates for imports 
from Panama  
Origin 
of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural products  
Average 
applied tariff  Share of 
duty-fre
e tariff 
lines 
(%) Average applied 
tariff  Share of 
duty-free 
tariff 
lines (%)  Average applied 
tariff  Share of 
duty-free 
tariff 
lines (%)  Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2013 6.2 11.6 46.4 12.0 15.3 21.7 5.2 10.5 51.0 
 2017 6.2 11.7 47.1 11.8 15.5 24.0 5.1 10.6 51.3 
Panama  Bilateral 
protocolb 1.5 13.8 89.4 4.5 19.6 77.1 0.9 10.8 91.7 
 2013 1.4 13.4 89.4 4.3 18.9 76.9 0.9 10.6 91.7 
 2014 1.4 13.8 90.1 4.2 20.9 79.9 0.9 10.6 91.9 
 2015 1.3 13.5 90.1 4.1 20.4 79.9 0.8 10.3 91.9 
 2016 1.3 13.2 90.1 4.0 19.9 79.9 0.8 10.1 91.9 
 2017 1.3 12.8 90.1 3.9 19.4 79.9 0.8 9.8 91.9 
 2018 1.2 12.5 90.1 3.8 19.0 79.9 0.8 9.5 91.9 
 2019 1.2 16.4 92.6 3.7 23.6 84.2 0.7 12.8 94.2 
 2020 1.2 16.4 92.6 3.7 23.5 84.2 0.7 12.8 94.2 
 2021 1.2 16.4 92.6 3.7 23.5 84.2 0.7 12.8 94.2 
 2022 1.2 16.4 92.6 3.7 23.4 84.2 0.7 12.8 94.2 
 2023 1.2 16.4 92.6 3.7 23.4 84.2 0.7 12.8 94.2 
 2024 1.2 16.7 92.8 3.6 24.8 85.2 0.7 12.8 94.2 
a WTO d efinition.  
b Based on Table A1.3 of the WT/REG331/1/Corr.1, page 3 . Note: Tariff lines subject to in -quota rates 
are excluded in the computation . Two prohibited lines (1302110000 and 1302199000 ) are excluded 
from the calculation of the average tariff rate but are included in the tariff line count.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Nicar agua authorities  and WTO -IDB. 
8. Table A1.7 , Table A1.8 , Table A1.9 , Table A1.10  and Table A1.11  show market access 
opportunities for each Central American country's top 25 global exports in Panama as a result of the 
Agreement .3 Costa Rica's top 25 global exports accounted for more than 63 % of its total exports  
most of which were already duty free on an MFN level in 2013 . The top 25 products are covered by 
110 tariff lines in Panama's tariff, 5 of which were subject to duties at the entry into force of the 
Agreement  while 105 were duty free by 2013  (Table  A1.7). Two dutiable lines became duty free at 
the beginning of 2018 while three  lines remain dutiable  (coffee which faced an MFN tariff of 30 % in 
2013, crude palm oil with 20% MFN duty in 2013 and raw cane sugar with MFN duty of 144 % in 
2013) . 
                                                
3 In all tables, the comparison between MFN and preferential rates co uld not be done because of 
differences in nomenclatures.  WT/REG384/1 /Rev.1  
- 50 - 
  Table A1. 7 Panama : Market access opportunities under the agreement for Costa Rica's 
top 25 exports to the world  
Costa Rica's top export products  
in 2010 -2012  Access Conditions to 
Panama's import markets  
HS number and description of the product  
Share in global 
exports (%)  Average 
applied 
MFN 
2013 
rate 
(%)a Entry into force 
(2013)  
Remain dutiable  
No. of lines  dutiable  Duty -free 
2013  2018  
854229  Electronic integrated circuits, monolithic, analogue or analogue and digital  9.2 0.0  1   
080430  Fresh or dried pineapples  7.2 0.0  2   
080300  Bananas, incl. plantains, fresh or dried  7.0 0.0  4   
854221  Monolithic integrated circuits, digital  6.9 0.0  1   
901839  Needles, catheters, cannulae and the like, used in medical, surgical, dental 
or veterinary sciences  5.5 0.0  1   
090111  Coffee (excl. roasted and decaffeinated)  3.5 30.0 1   1 
210690  Food preparations, n.e.s.  2.9 0.0  22   
847330  Parts and accessories of automatic data processing machines or for other 
machines of heading 8471, n.e.s.  2.7 0.0  1   
901890  Instruments and appliances used in medical, surgical or veterinary 
sciences, n.e.s.  2.7 0.0  4   
902139  Artificial parts of the body  2.1 0.0  1   
300490  Medicaments consisting of mixed or unmixed products for therapeutic or 
prophylactic purposes, put up in measured doses  1.8 0.0  5   
854459  Electric conductors, for a voltage > 80 v but <= 1.000 v, insulated, not 
fitted with connectors, n.e.s.  1.5 0.0  7   
401110  New pneumatic tyres, of rubber, of a kind used for motor cars, incl. station 
wagons and racing cars  1.4 0.0  1   
151110  Crude palm oil  1.3 20.0 1   1 
481840  Sanitary towels and tampons, napkins and napkin for babies and similar 
sanitary articles, of paper pulp, paper, cellulose wadding or webs of 
cellulose fibres  1.1 0.0  5   
620711  Men's or boys' underpants and briefs of cotton  0.9 9.0 2  2  
170111  Raw cane sugar (excl. added flavouring or colouring)  0.7 144.0  1   1 
080719  Fresh melons (excl. watermelons)  0.7 0.0  1   
701090  Carboys, bottles, flasks, jars, pots, phials and other containers, of glass, of 
a kind used for the commercial conveyance  0.7 0.0  15   
300210  Antisera and other blood fractions and modified immunological products, 
whether or not obtained by means of biotechnological processes  0.6 0.0  5   
902190  Articles and appliances, which are worn or carried, or implanted in the 
body, to compensate for a defect or disability  0.6 0.0  1   
392690  Articles of plastics and articles of other materials of heading 3901 to 3914, 
n.e.s 0.6 0.0  19   
060290  Live plants, incl. their roots, and mushroom spawn  0.6 0.0  2   
071410  Fresh, chilled, frozen or dried roots and tubers of manioc "cassava", 
whether or not sliced or in the form of pellets  0.6 0.0  1   
210390  Preparations for sauces and prepared sauces ; mixed condiments and 
seasonings  0.6 0.0  6   
 Total  63.3  5 105 2 3 
a The MFN 2013 information is based on the HS 2012 nomenclature which is a separate dataset from 
the preferential tariffs.  
 The rest of the data are based on HS 2002 nomenclature.  
b Based on the preferential tariffs for 2012.  
Source:  WTO estimates based on data provided by Panama authorities and UNSD, Comtrade database.  
9. El Salvador's top 25 global exports accounted for 54 % of its total exports and most of the m 
were subject to positive MFN duties in 2013 . The exports were covered by 79 tariff lines in Panama's 
tariff, of which 62 were duty free under the Agreement in 2013 ( Table A1.8 ). The remaining 17 lines 
are still subject to duty to date . These lines concern some textiles and clothing products, coffee, and 
raw cane sugar for which average MFN tariffs in 2013 were less than 14% for all but coffee which 
had a rate of 30 % and raw cane sugar which had  a rate of 144 %. WT/REG384/1 /Rev.1  
- 51 - 
  Table A1. 8 Panama : Market access opportunities under the agreement for El Salvador's 
top 25 exports to the world  
El Salvador's top export products  
in 2010 -2012  Access Conditions to Panama's 
import markets  
HS number and description of the product  
Share in global 
exports (%)  Average 
applied 
MFN 2013 
rate (%)a Entry into 
force 
(2013)  
Remain dutiable  
No. of lines  
Dutiable  Duty -
free 
610910  T-shirts, singlets and other vests of cotton, knitted or crocheted  14.1 10.0 2  2 
090111  Coffee (excl. roasted and decaffeinated)  6.4 30.0 1  1 
611592  Full-length or knee -length stockings, socks and other hosiery, 
incl. stockings for varicose veins and footwear without applied 
soles, of cotton, knitted or crocheted  3.1 13.3 1  1 
271000  Petroleum oils and oils obtained from bituminous minerals  2.8 4.5  21  
853221  Fixed electrical capacitors, tantalum (excl. power capacitors)  2.7 0.0  1  
611020  Jerseys, pullovers, cardigans, waistcoats and similar articles, of 
cotton, knitted or crocheted  2.4 10.0 2  2 
481810  Toilet paper in rolls of a width of <= 36 cm  2.0 10.0  1  
610711  Men's or boys' underpants and briefs of cotton, knitted or 
crocheted  1.8 10.0 2  2 
392330  Carboys, bottles, flasks and similar articles for the conveyance 
or packaging of goods, of plastics  1.7 2.5  5  
711210  Waste and scrap of gold, incl. metal clad with gold, and other 
waste and scrap containing gold or gold compounds, of a kind 
used principally for the recovery of precious metal  1.5 0.0  1  
160414  Prepared or preserved tunas, skipjack and atlantic bonito, 
whole or in pieces (excl. minced)  1.5 0.0  2  
300490  Medicaments consisting of mixed or unmixed products for 
therapeutic or prophylactic purposes, in measured doses or put 
up for retail sale  1.4 0.0  5  
220290  Non-alcoholic beverages (excl. water, fruit  or vegetable juices 
and milk)  1.3 10.0  4  
611030  Jerseys, pullovers, cardigans, waistcoats and similar articles, of 
man-made fibres, knitted or crocheted  1.2 10.0 2  2 
190590  Bread, pastry, cakes, biscuits and other bakers' wares, whether 
or not containing cocoa ; communion wafers, empty cachets of 
a kind suitable for pharmaceutical use, sealing wafers, rice 
paper and similar products  1.1 8.8  8  
170111  Raw cane sugar (excl. added flavouring or colouring)  1.1 144.0  1  1 
621210  Brassieres of all types of textile materials, whether or not 
elasticated, incl. knitted or crocheted  1.0 10.0 1  1 
610462  Women's or girls' trousers, bib and brace overalls, breeches 
and shorts of cotton, knitted or crocheted (excl. panties and 
swimwear)  1.0 10.0 1  1 
392321  Sacks and bags, incl. cones, of polymers of ethylene  0.9 15.0  2  
610990  T-shirts, singlets and other vests of textile materials, knitted or 
crocheted (excl. cotton)  0.9 10.0 2  2 
611511  Panty hose and tights of synthetic fibres, knitted or crocheted, 
measuring per single yarn < 67  decitex  0.9 13.8 2  2 
853229  Fixed electrical capacitors  0.8 0.0  1  
110220  Maize "corn" flour  0.8 5.0  2  
190410  Prepared foods obtained by swelling or roasting cereals or 
cereal products, e.g. corn flakes  0.8 8.6  7  
721420  Bars and rods, of iron or non -alloy steel, with indentations, 
ribs, groves or other deformations produced during the rolling 
process "ecsc"  0.8 5.0  2  
 Total  54.0  
17 62 17 
a The MFN 2013 information is based on the HS 2012 nomenclature  which is a separate dataset from 
the preferential tariffs.  
 The rest of the data are based on HS 1996 nomenclature.  
b Based on the preferential tariffs for 2012.  
Source:  WTO estimates based on data provided by Panama authorities and UNSD, Comtrade databa se. WT/REG384/1 /Rev.1  
- 52 - 
  10. Guatemala's top 25 global exports accounted for more than 57 % of its total exports and most 
were subject to MFN duties in Panama in 2013. The exports are covered by 87 tariff lines in Panama's 
tariff, 23 of which were dutiable at the entry into force of the Agreement  (Table A1.9 ). 46 lines 
became duty free in 2013 and further liberalization of one and 17 lines occurred in 2016 and 2018 
respectively . After the end of the implementation of the Agreement, five lines will remain dutiable : 
coffee (which had  an MFN average applied duty of 30 % in 2013), raw cane sugar (MFN applied duty 
of 144 %), crude palm oil (MFN duty of 20 %) and undenatured ethyl alcohol (18 %). 
Table A1. 9 Panama : Market access opportunities under the agreement for Guatemala's 
top 25 exports to the world  
Guatemala's top export products  
in 2010 -2012  Access Conditions to Panama's import 
markets  
HS number and description of the product  
Share in global 
exports (%)  Average 
applied 
MFN 
2013 
rate 
(%)a Entry into force (2013)  
Remain dutiable  
No. of lines  dutiable  Duty -free 
2013  2016  2018  
090111  Coffee (excl. roasted and 
decaffeinated)  9.5 30.0 1    1 
170111  Raw cane sugar (excl. added 
flavouring or colouring)  7.5 144.0  1    1 
261610  Silver ores and concentrates  6.9 10.0  1    
080300  Bananas, incl. plantains, fresh or 
dried 5.1 14.0  4    
610610  Women's or girls' blouses, shirts and 
shirt-blouses of cotton, knitted or 
crocheted  3.9 12.5 2   2  
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude  3.0 0.0  1    
090830  Cardamoms  2.8 7.5  2    
400122  Technically specified natural rubber 
"tsnr"  2.3 15.0  1    
610510  Men's or boys' shirts of cotton, knitted 
or crocheted  1.8 10.0 1   1  
151110  Crude palm oil  1.7 20.0 1    1 
300490  Medicaments consisting of mixed or 
unmixed products for therapeutic or 
prophylactic purposes, put up in 
measured doses "incl. those in the 
form of transdermal administration" 
or in forms or packings for retail sale  1.5 0.0  5    
080719  Fresh melons (excl. watermelons)  1.3 15.0  1    
620463  Women's or girls' trousers, bib and 
brace overalls, breeches and shorts of 
synthetic fibres  1.1 10.0 6   6  
481910  Cartons, boxes and cases, of 
corrugated paper or paperboard  1.0 10.0 1  1   
220710  Undenatured ethyl alcohol, of actual 
alcoholic strength of >= 80%  1.0 18.0 2 1   2 
610620  Women's or girls' blouses, shirts and 
shirt-blouses of man -made fibres, 
knitted or crocheted (excl. t -shirts 
and vests)  1.0 12.5 2   2  
400110  Natural rubber latex,  whether or not 
prevulcanised  0.9 0.0  2    
271112  Propane, liquefied  0.8 0.0  1    
600622  Dyed cotton fabrics, knitted or 
crocheted, of a width of > 30 cm  0.7 0.0  1    
210410  Soups and broths and preparations 
therefor  0.7 6.2  17    
220210  Waters, incl. mineral and aerated, 
with added sugar, sweetener or 
flavour, for direct consumption as a 
beverage  0.7 10.0 2   2  WT/REG384/1 /Rev.1  
- 53 - 
  Guatemala's top export products  
in 2010 -2012  Access Conditions to Panama's import 
markets  
HS number and description of the product  
Share in global 
exports (%)  Average 
applied 
MFN 
2013 
rate 
(%)a Entry into force (2013)  
Remain dutiable  
No. of lines  dutiable  Duty -free 
2013  2016  2018  
340220  Surface -active preparations, washing 
preparations, auxiliary washing 
preparations and cleaning 
preparations put up for retail sale  0.6 6.9 3 4  3  
610520  Men's or boys' shirts of man -made 
fibres, knitted or crocheted  0.6 10.0 1   1  
240120  Tobacco, partly or wholly 
stemmed/stripped, otherwise 
unmanufactured  0.6 0.0  1    
761290  Casks, drums, cans, boxes and similar 
containers, incl. rigid or collapsible 
tubular containers, of aluminium, for 
any material (other than compressed 
or liquefied gas), of a capacity of <= 
300 l, n.e.s.  0.5 12.0  4    
 Total  57.4  23 46 1 17 5 
a The MFN 2013 information is based on the HS 2012 nomenclature which is a separate dataset from 
the preferential tariffs.  
 The rest of the data are based on HS 2002 nomenclature.  
b Based on the preferential tariffs for 2012.  
Source:  WTO estimates based on data provided by Panama authorities and UNSD, Comtrade database.  
11. Honduras' top 25 global exports accounted for more than 73% of its total exports  and most 
of the products were subject to MF N tariffs  in Panama . The exports are covered by 37 tariff lines in 
Panama's tariff , 12 of which were dutiable and 25 were already duty free in 2013  (Table A1.10 ). The 
liberalization of seven  additional lines in 2023 will leave five lines subject to duties under the 
Agreement  (palm oil products, coffee, and raw cane sugar) . These products in 2013 were subject to 
average MFN rates ranging from 10 -20% for palm oil, 30 % for coffee and 144 % for raw cane sugar.  
Table A1. 10 Panama : Market access opportunities under the agreement for Honduras' 
top 25 exports to the world  
Honduras' top export products  
in 2010 -2012  Access Conditions to Panama's import 
markets  
HS number and description of the product  
Share in global  
exports (%)  Average 
applied 
MFN 
2013 
rate 
(%)a Entry into force (2013)  
Remain dutiable  
No. of lines  dutiable  Duty -free 
2013  2023  
090111  Coffee (excl. roasted and 
decaffeinated)  29.0 30.0 1   1 
854430  Ignition wiring sets and other wiring  
sets for vehicles, aircraft or ships  6.9 10.0  1   
271112  Propane, liquefied  5.0 0.0  1   
080300  Bananas, incl. plantains, fresh or dried  4.1 14.0 1 3 1  
151110  Crude palm oil  3.3 20.0 1   1 
710812  Gold, incl. gold plated with platinum, 
unwrought, for  non-monetary 
purposes (excl. gold in powder form)  2.6 0.0  1   WT/REG384/1 /Rev.1  
- 54 - 
  Honduras' top export products  
in 2010 -2012  Access Conditions to Panama's import 
markets  
HS number and description of the product  
Share in global  
exports (%)  Average 
applied 
MFN 
2013 
rate 
(%)a Entry into force (2013)  
Remain dutiable  
No. of lines  dutiable  Duty -free 
2013  2023  
030613  Frozen shrimps and prawns, whether 
in shell or not, incl. shrimps and 
prawns in shell, cooked by steaming 
or by boiling in water  2.6 15.0  1   
711291  Waste and scrap of gold, incl. metal 
clad with gold, and other waste and 
scrap containing gold or gold 
compounds, of a kind used principally 
for the recovery of precious metal  2.3 0.0  1   
151190  Palm oil and its fractions, whether or 
not refined (excl. chemically modified 
and crude)  2.0 10.0 1   1 
030611  Frozen rock lobster and other sea 
crawfish "palinurus spp.", "panulirus 
spp." and "jasus spp.", whether in 
shell or not, incl. rock lobster and 
other sea crawfish in shell, cooked by 
steaming or by boiling in water  1.6 15.0  1   
340119  Soap and organic surface -active 
products and preparations, in the 
form of bars, cakes, moulded pieces 
or shapes, and paper, wadding, felt 
and nonwovens, impregnated, coated 
or covered with soap or detergent  1.6 9.6 5  5  
240210  Cigars, cheroots and cigarillos 
containing tobacco  1.3 15.0  1   
080719  Fresh melons (excl. watermelons)  1.2 15.0  1   
481910  Cartons, boxes and cases, of 
corrugated paper or paperboard  1.1 10.0 1  1  
260800  Zinc ores and concentrates  1.0 10.0  1   
170111  Raw cane sugar (excl. added 
flavouring or colouring)  1.0 144.0  1   1 
282110  Iron oxides and hydroxides  0.8 0.0  1   
870899  Parts and accessories, for tractors, 
motor vehicles for the transport of ten 
or more persons, motor cars and 
other motor vehicles principally 
designed for the transport of persons, 
motor vehicles for the transport of 
goods and special purpose motor 
vehicles, n.e.s.  0.8 2.5  3   
080430  Fresh or dried pineapples  0.8 15.0  2   
030420  Frozen fish fillets  0.8 15.0  2   
240220  Cigarettes, containing tobacco  0.8 15.0  1   
760200  Waste and scrap, of aluminium  0.7 10.0  1   
261610  Silver ores and concentrates  0.7 10.0  1   
870829  Parts and accessories of bodies for 
tractors, motor vehicles for the 
transport of ten or more persons, 
motor cars and other motor vehicles 
principally designed for the transport 
of persons, motor vehicles for the 
transport of goods and special 
purpose moto r vehicles  0.7 2.5  2   
151321  Crude palm kernel and babassu oil  0.6 20.0 1   1 
 Total  73.2  12 25 7 5 
a The MFN 2013 information is based on the HS 2012 nomenclature which is a separate dataset from 
the preferential tariffs.  
 The rest of the data are based on HS 2002 nomenclature.  
b Based on the preferential tariffs for 2012.  
Source:  WTO estimates based on data provided by Panama authorities and UNSD, Comtrade database.  WT/REG384/1 /Rev.1  
- 55 - 
  12. Nicaragua's top 25 global exports accounted for more than  79% of its total exports , almost 
entirely subject to MFN duties . A total of 63 tariff lines in Panama's tariff  cover the exports 
(Table  A1.11 ). 39 lines were dutiable before the entry into force while 24 lines were duty free under 
the Agreement in 2013 . In 2019 and 2024, Panama liberalized 15 additional lines, leaving 24 lines 
subject to duties.  
Table A1. 11 Panama : Market access opportunities under the agreement for Nicaragua's 
top 25 exports to the world  
Nicaragua's top export products  
in 2010 -2012  Access Conditions to Panama's import markets  
HS number and description of the product  
Share in global 
exports (%)  Average 
applied 
MFN 
2013 
rate 
(%)a Entry into force (2013)  
Remain dutiable  
No. of lines  dutiable  
Duty -free 
2013  2019  2024  
090111  Coffee (excl. roasted and 
decaffeinated)  14.9 30.0 1    1 
710812  Gold, incl. gold plated with platinum, 
unwrought, for non -monetary 
purposes  11.7 0.0  1    
020230  Frozen, boneless meat of bovine 
animals  10.5 25.0 1  1   
854420  Coaxial cable and other coaxial 
electric conductors, insulated  5.2 3.0  2    
170111  Raw cane sugar  3.9 144.0  1    1 
620630  Women' s or girls ' blouses, shirts and 
shirt-blouses of cotton  3.5 11.7 3    3 
120220  Shelled groundnuts, whether or not 
broken  3.3 2.5  2    
610463  Women's  or girls ' trousers, bib and 
brace overalls, breeches and shorts 
of synthetic fibres, knitted or 
crocheted  2.9 10.0 1    1 
020130  Fresh or chilled bovine meat, 
boneless  2.9 30.0 1  1   
030613  Frozen shrimps and prawns, whether 
in shell or not, incl. shrimps and 
prawns in shell, cooked by steaming 
or by boiling in water  2.8 15.0 1  1   
240210  Cigars, cheroots and cigarillos 
containing tobacco  1.7 15.0  1    
620433  Women's  or girls' jackets and blazers 
of synthetic fibres  1.6 5.0 1  1   
170199  Cane or beet sugar and chemically 
pure sucrose, in solid form  1.6 79.5 2    2 
071333  Dried, shelled kidney beans 
"phaseolus vulgaris", whether or not 
skinned or split  1.6 0.0 3 1 3   
030611  Frozen rock lobster and other sea 
crawfish "palinurus spp.", "panulirus 
spp." and "jasus spp.", whether in 
shell or not, incl. rock lobster and 
other sea crawfish in shell, cooked 
by steaming or by boiling in water  1.5 15.0 1  1   
610990  T-shirts, singlets and other vests of 
textile materials, knitted or 
crocheted (excl. cotton)  1.5 10.0 2    2 
040221  Milk and cream in solid forms, of a 
fat content by weight of > 1,5%, 
unsweetened  1.4 23.8 4    4 
620342  Men's  or boys'  trousers, bib and 
brace overalls, breeches and shorts, 
of cotton  1.3 11.0 10    10 
040610  Fresh cheese "unripened or uncured 
cheese", incl. whey cheese, and curd  1.3 30.0  2    
040690  Cheese  1.0 23.8  4    WT/REG384/1 /Rev.1  
- 56 - 
  Nicaragua's top export products  
in 2010 -2012  Access Conditions to Panama's import markets  
HS number and description of the product  
Share in global 
exports (%)  Average 
applied 
MFN 
2013 
rate 
(%)a Entry into force (2013)  
Remain dutiable  
No. of lines  dutiable  
Duty -free 
2013  2019  2024  
190590  Bread, pastry, ca kes, biscuits and 
other bakers'  wares, whether or not 
containing cocoa ; communion 
wafers, empty cachets of a kind 
suitable for pharmaceutical use, 
sealing wafers, rice paper and similar 
products  0.8 8.8 7 1  7  
150810  Crude groundnut oil  0.7 10.0  1    
040120  Milk and cream of a fat content by 
weight of > 1% but <= 6%, not 
concentrated nor containing added 
sugar or other sweetening matter  0.7 60.0  3    
010290  Live bovine animals (excl. pure -bred 
for breeding)  0.7 7.5  4    
150200  Fats of bovine animals, sheep or 
goats  0.6 0.0  2    
 Total  79.7  39 24 8 7 24 
a The MFN 2013 information is based on the HS 2012 nomenclature which is a separate dataset from 
the preferential tariffs.  
 The rest of the data are based on HS 2007 nomenclature.  
Source:  WTO estimates based on data provided by Panama authorities and UNSD, Comtrade database.  
13. Table A1.12 , Table A1.13 , Table A1.14 , Table A1.15  and Table A1.16  show market access 
opportunities for Panama's top 25 global exports in each Central American market in 2010 -2012. 
Panama's top 25 global exports accounted for 52.1 % of its total  exports and were covered by 
38 tariff lines in Costa Rica's tariff, all of which were subject to duties on an MFN basis ( Table  A1.12 ). 
In 2013 when the Ag reement entered into force 31 lines became duty free for imports from Panama . 
Further liberalization will result in seven  lines becoming duty free in 2018 and, as a result, before 
the end of implementation all of Panama's top 25  exports will be duty free  in Costa Rica. 
Table A1. 12 Costa Rica : Market access opportunities under the agreement for Panama's 
top 25 exports to the world  
Panama's top export products  
in 2010 -2012  Access Conditions to Costa Rica's import markets  
HS number  and description of the 
product  Share in 
global 
exports 
(%) MFN 2013  No. of duty free 
lines under the 
agreement  
2013  
Average 
MFN 
applied 
rate (%)  No. of 
duty 
free 
lines  No. of 
dutiable 
lines  2013  2018  
294190  Antibiotics  12.9 1.0  1 1  
293500  Sulphonamides  5.6 1.0  1 1  
300490  Medicaments consisting of 
mixed or unmixed products for 
therapeutic or prophylactic 
purposes, put up in measured 
doses "incl. those in the form of 
transdermal administration" or 
in forms or packings for retail 
sale  5.1 3.5  6 6  WT/REG384/1 /Rev.1  
- 57 - 
  Panama's top export products  
in 2010 -2012  Access Conditions to Costa Rica's import markets  
HS number  and description of the 
product  Share in 
global 
exports 
(%) MFN 2013  No. of duty free 
lines under the 
agreement  
2013  
Average 
MFN 
applied 
rate (%)  No. of 
duty 
free 
lines  No. of 
dutiable 
lines  2013  2018  
300439  Medicaments containing 
hormones or steroids used as 
hormones but not antibiotics, 
put up in measured doses "incl. 
those in the form of 
transdermal administration" or 
in forms or packings for retail 
sale 3.6 3.5  2 2  
330300  Perfumes and toilet waters  3.5 15.0  1 1  
640299  Footwear with outer soles and 
uppers of rubber or plastics  2.6 15.0  2 2  
292249  Amino -acids and their esters ; 
salts thereof  1.9 1.0  1 1  
640411  Sports footwear, incl. tennis 
shoes, basketball shoes, gym 
shoes, training shoes and the 
like, with outer soles of rubber 
or plastics and uppers of textile 
materials  1.3 15.0  1 1  
540710  Woven fabrics of high -tenacity 
yarn, nylon, other polyamides 
or polyeste rs, incl. 
monofilament of >= 67  decitex 
and with a  cross sectional 
dimension of <= 1 mm  1.2 1.0  1 1  
611090  Jerseys, pullovers, cardigans, 
waistcoats and similar articles, 
of textile materials, knitted or 
crocheted  1.1 15.0  1  1 
220830  Whiskies  1.1 12.5  2 2  
852871  Reception apparatus for 
television, whether or not 
incorporating radio -broadcast 
receivers or sound or video 
recording or reproducing 
apparatus, not designed to 
incorporate a video display or 
screen  1.0 10.3  3 3  
852872  Reception apparatus for 
television, colour, whether or 
not incorporating 
radio-broadcast receivers or 
sound or video recording or 
reproducing apparatus, 
designed to incorporate a video 
display or screen  1.0 8.0  2 2  
611020  Jerseys, pullovers, cardigans, 
waistcoats and similar articles, 
of cotton, knitted or cro cheted  1.0 15.0  1  1 
640319  Sports footwear, with outer 
soles of rubber, plastics, 
leather or composition leather 
and uppers of leather  1.0 15.0  1 1  
620462  Women's or girls' trousers, bib 
and brace overalls, breeches 
and shorts of cotton  0.9 15.0  1  1 
620469  Women's or girls' trousers, bib 
and brace overalls, breeches 
and shorts of textile materials  0.9 15.0  1  1 
620342  Men's or boys' trousers, bib and 
brace overalls, breeches and 
shorts, of cotton  0.9 15.0  1  1 WT/REG384/1 /Rev.1  
- 58 - 
  Panama's top export products  
in 2010 -2012  Access Conditions to Costa Rica's import markets  
HS number  and description of the 
product  Share in 
global 
exports 
(%) MFN 2013  No. of duty free 
lines under the 
agreement  
2013  
Average 
MFN 
applied 
rate (%)  No. of 
duty 
free 
lines  No. of 
dutiable 
lines  2013  2018  
640291  Footwear covering the ankle, 
with outer soles and uppers of 
rubber or plastics  0.8 15.0  2 2  
620349  Men's or boys' trousers, bib and 
brace overalls, breeches and 
shorts of textile materials  0.8 15.0  1  1 
852580  Television cameras, digital 
cameras and video camera 
recorders  0.8 1.0  2 2  
620690  Women's or girls' blouses, 
shirts and shirt -blouses of 
textile materials  0.8 15.0  1  1 
294110  Penicillins and their derivatives 
with a penicillanic acid 
structure ; salts thereof  0.8 1.0  1 1  
910219  Wrist-watches, whether or not 
incorporating a stop -watch 
facility, electrically operated, 
with combined mechanical and 
opto-electronic display  0.7 15.0  1 1  
852190  Video recording or reproducing 
apparatus, whether or not 
incorporating a video tuner  0.7 15.0  1 1  
 
Total  52.1  0 38 31 7 
Note:  Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data provided by Costa Rica authorities and UNSD, Comtrade database.  
14. Panama's top 25 global exports were covered by 37 tariff lines in El Salvador 's tariff, of which 
12 were a lready duty free on an MFN basis ( Table A1.13 ). In 2013 when the Agreement entered into 
force 20 lines became duty free for imports from Panama . The remaining five lines which concern 
textiles and clothing products  remain  subject to duty ; the average MFN rate for these products was 
15% in 2013 . 
Table A1. 13 El Salvador : Market access opportunities under the agreement for Panama's 
top 25 exports to the world  
Panama's top export products  
in 2010 -2012  Access Conditions to El Salvador's import 
markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2013  No. of duty 
free lines 
under the 
agreement  
2013  
Remain 
dutiable  
Average 
MFN 
applied 
rate (%)  No. of 
duty 
free 
lines  No. of 
dutiable 
lines  
294190  Antibiotics  12.9 0.0 1    
300439  Other medicaments containing 
hormones or steroids  3.6 5.0  2 2  
330300  Perfumes and toilet waters  3.5 15.0  1 1  
300460  - Other, containing antimalarial 
active principles  2.6 5.0  1 1  
300490  Other medicaments consisting 
of mixed or unmixed products 
for therapeutic or prophylactic 
purposes  2.6 5.0  6 6  
640299  Other footwear with outer soles 
and uppers of rubber or plastics  2.6 15.0  2 2  WT/REG384/1 /Rev.1  
- 59 - 
  Panama's top export products  
in 2010 -2012  Access Conditions to El Salvador's import 
markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2013  No. of duty 
free lines 
under the 
agreement  
2013  
Remain 
dutiable  
Average 
MFN 
applied 
rate (%)  No. of 
duty 
free 
lines  No. of 
dutiable 
lines  
292249  Other amino -acids and their 
esters ; salts thereof  1.9 0.0 1    
640411  Sports footwear, incl. tennis 
shoes, basketball shoes, gym 
shoes, training shoes and the 
like, with outer soles of rubber 
or plastics and uppers of textile 
materials  1.3 15.0  1 1  
540710  Woven fabrics of high -tenacity 
yarn, nylon, other polyamides 
or polyesters  1.2 0.0 1    
611090  Jerseys, pullovers, cardigans, 
waistcoats and similar articles, 
of textile materials, knitted or 
crocheted  1.1 15.0  1  1 
220830  Whiskies  1.1 30.0  2 2  
852871  Reception apparatus for 
television, not designed to 
incorporate a video display or 
screen  1.0 5.0 2 1 1  
852872  Reception apparatus for 
television, colour  1.0 7.5 1 1 1  
611020  Jerseys, pullovers, cardigans, 
waistcoats and similar articles, 
of cotton, knitted or crocheted  1.0 15.0  1  1 
640319  Other sports footwear, with 
outer soles of rubber, plastics, 
leather or composition leather 
and uppers of leather  1.0 15.0  1 1  
293510  N-methylperfluorooctane 
sulphonamide  0.9 0.0 1    
293520  N-ethylperfluorooctane 
sulphonamide  0.9 0.0 1    
293530  N-ethyl-n-(2-hydroxyethyl) 
perfluorooctane sulphonamide  0.9 0.0 1    
293540  N-(2-hydroxyethyl) -n-methylpe
rfluorooctane sulphonamide  0.9 0.0 1    
293550  Perfluorooctane sulphonamides  0.9 0.0 1    
293590  Sulphonamides (excl. 
perfluorooctane 
sulphonamides)  0.9 0.0 1    
620462  Women's or girls' trousers, bib 
and brace overalls, breeches 
and shorts of cotton  0.9 15.0  1  1 
620469  Women's or girls' trousers, bib 
and brace overalls, breeches 
and shorts of textile materials  0.9 15.0  1  1 
620342  Men's or boys' trousers, bib and 
brace overalls, breeches and 
shorts, of cotton  0.9 15.0  1  1 
640291  Footwear covering the ankle, 
with outer soles and uppers of 
rubber or plastics  0.8 15.0  2 2  
 
Total  47.5  12 25 20 5 
Note:  Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on data provided by El Salvador authorities and UNSD, Comtrade database.  WT/REG384/1 /Rev.1  
- 60 - 
  15. Panama's top 25 global exports were covered by 3 8 tariff lines i n Guatemala's tariff, of which 
eight were already duty free on an MFN basis (Table A1.14 ). In 201 4, 15 lines became duty free for 
imports from Panama while the remaining 1 5 lines became duty free in 2017  and, as a result, before 
the end of implementation all of Panama's top 25  exports became  duty free in Guatemala.  
Table A1. 14 Guatemala : Market access opportunities under the agreement for Panama's 
top 25 exports to the world  
Panama's top export products  
in 2011 -2013  Access Conditions to Guatemala's import 
markets  
HS number and description of the 
product  Share 
in 
global 
exports 
(%) MFN 2014  No. of duty 
free lines 
under the 
agreement  
Average 
MFN 
applied 
rate (%)  No. of 
duty 
free 
lines  No. of 
dutiable 
lines  2014  2017  
294190  Antibiotics  10.3 0.0 1    
293500  Sulphonamides  9.3 0.0 1    
300490  Medicaments consisting of 
mixed or unmixed products 
for therapeutic or prophylactic 
purposes, put up in measured 
doses "incl. those in the form 
of transdermal 
administration" or in forms or 
packings for retail sale  6.3 5.0  6 6  
292249  Amino -acids and their esters; 
salts thereof  3.9 0.0 1    
330300  Perfumes and toilet waters 
(excl. aftershave lotions, 
personal deodorants and hair 
lotions)  3.6 15.0  1 1  
300439  Medicaments containing 
hormones or steroids used as 
hormones but not antibiotics, 
put up in measured doses 
"incl. those in the form of 
transdermal administration" 
or in forms or packings for 
retail sale  3.2 5.0  2 2  
640299  Footwear with outer soles and 
uppers of rubber or plastics  2.3 15.0  2  2 
640411  Sports footwear, incl. tennis 
shoes, basketball shoes, gym 
shoes, training shoes and the 
like, with outer soles of 
rubber or plastics and uppers 
of textile materials  1.5 15.0  1  1 
220830  Whiskies  1.3 22.5  2 2  
852872  Reception apparatus for 
television, colour, whether or 
not incorporating radio -
broadcast receivers or sound 
or video recording or 
reproducing apparatus, 
designed to incorporate a 
video display or screen  1.2 7.5 1 1 1  
540710  Woven fabrics of high -
tenacity yarn, nylon, other 
polyamides or polyesters, 
incl. monofilament of >= 67 
decitex and with a cross 
sectional dimension of <= 1 
mm 1.2 0.0 1    WT/REG384/1 /Rev.1  
- 61 - 
  Panama's top export products  
in 2011 -2013  Access Conditions to Guatemala's import 
markets  
HS number and description of the 
product  Share 
in 
global 
exports 
(%) MFN 2014  No. of duty 
free lines 
under the 
agreement  
Average 
MFN 
applied 
rate (%)  No. of 
duty 
free 
lines  No. of 
dutiable 
lines  2014  2017  
611020  Jerseys, pullovers, cardigans, 
waistcoats and similar 
articles, of cotton, knitted or 
crocheted  1.0 15.0  1  1 
611090  Jerseys, pullovers, cardigans, 
waistcoats and similar 
articles, of textile materials, 
knitted or crocheted  1.0 15.0  1  1 
640291  Footwear covering the ankle, 
with outer soles and uppers of 
rubber or plastics  0.9 15.0  2  2 
620469  Women's or girls' trousers, 
bib and brace overalls, 
breeches and shorts of textile 
materials  0.8 15.0  1  1 
620462  Women's or girls' trousers, 
bib and brace overalls, 
breeches and shorts of cotton  0.8 15.0  1  1 
620342  Men's or boys' trousers, bib 
and brace overalls, breeches 
and shorts, of cotton  0.8 15.0  1  1 
640319  Sports footwear, with outer 
soles of rubber, plastics, 
leather or composition leather 
and uppers of leather  0.8 15.0  1  1 
620349  Men's or boys' trousers, bib 
and brace overalls, breeches 
and shorts of textile materials  0.8 15.0  1  1 
841510  Window or wall air 
conditioning machines, self -
contained  or "split -system"  0.7 15.0  1 1  
620690  Women's or girls' blouses, 
shirts and shirt -blouses of 
textile materials  0.7 15.0  1  1 
910219  Wrist-watches, whether or not 
incorporating a stop -watch 
facility, electrically operated, 
with combined mechanical 
and opto -electronic display  0.7 15.0  1 1  
620590  Men's or boys' shirts of textile 
materials  0.7 15.0  2  2 
852871  Reception apparatus for 
television, whether or not 
incorporating radio -broadcast 
receivers or sound or video 
recording or reproducing 
apparatus, not designed to 
incorporate a video display or 
screen  0.7 7.5 1 1 1  
852580  Television cameras, digital 
cameras and video camera 
recorders  0.6 0.0 2    
 
Total  54.7  8 30 15 15 
Note:  Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data provided by the Guatemala authorities, the WTO -IDB and UNSD, 
Comtrade database.  WT/REG384/1 /Rev.1  
- 62 - 
  16. Panama's top 25 global exports were covered by 37 tariff lines in Honduras ' tariff, of which 2 0 
were already duty free on an MFN basis ( Table A1.15 ). By 2018, 1 2 lines became  duty free for 
imports from Panama while the remaining five lines will still be su bject to duties . The five lines relate 
to textiles and clothing and all had an average MFN applied tariff of 15 % in 2013.  
Table A1. 15 Honduras : Market access opportunities under the agreement for Panama's 
top 25 exports to the w orld 
Panama's top export products  
in 2010 -2012  Access Conditions to Honduras' import 
markets  
HS number and description of the product  Share 
in 
global 
exports 
(%) MFN 2014  No. of duty 
free lines 
under the 
agreement  
Remain dutiable  
Average 
MFN 
applied 
rate (%)  
No. of duty 
free lines  
No. of 
dutiable 
lines  
2014  
2018  
294190  Antibiotics  12.9 0.0 1     
300439  Other medicaments containing hormones or 
steroids  3.6 0.0 2     
330300  Perfumes and toilet waters  3.5 15.0  1 1   
300460  - Other, containing antimalarial active 
principles  2.6 0.0 1     
300490  Other medicaments consisting of mixed or 
unmixed products for therapeutic or 
prophylactic purposes  2.6 0.0 6     
640299  Other footwear with outer soles and uppers 
of rubber or plastics  2.6 15.0  2 1 1  
292249  Other amino -acids and their esters ; salts 
thereof  1.9 0.0 1     
640411  Sports footwear, incl. tennis shoes, 
basketball shoes, gym shoes, training shoes 
and the like, with outer soles of rubber or 
plastics and uppers of textile materials  1.3 15.0  1 1   
540710  Woven fabrics of high -tenacity yarn, nylon, 
other polyamides or polyesters  1.2 0.0 1     
611090  Jerseys, pullovers, cardigans, waistcoats and 
similar articles, of textile materials, knitted 
or crocheted  1.1 15.0  1   1 
220830  Whiskies  1.1 10.0  2 2   
852871  Reception apparatus for television, not 
designed to incorporate a video display or 
screen  1.0 10.0 1 2 2   
852872  Reception apparatus for television, colour  1.0 7.5 1 1 1   
611020  Jerseys, pullovers, cardigans, waistcoats and 
similar articles, of cotton, knitted or 
crocheted  1.0 15.0  1   1 
640319  Other sports footwear, with outer soles of 
rubber, plastics, leather or composition 
leather and uppers of leather  1.0 15.0  1 1   
293510  N-methylperfluorooctane sulphonamide  0.9 0.0 1     
293520  N-ethylperfluorooctane sulphonamide  0.9 0.0 1     
293530  N-ethyl-n-(2-hydroxyethyl) perfluorooctane 
sulphonamide  0.9 0.0 1     
293540  N-(2-hydroxyethyl) -n-methylperfluorooctane 
sulphonamide  0.9 0.0 1     
293550  Perfluorooctane sulphonamides (excl. 
n-methylperfluorooctane sulphonamide, 
n-ethylperfluorooctane sulphonamide, 
n-ethyl-n-(2-hydroxyethyl) perfluorooctane 
sulphonamide and 
n-(2-hydroxyethyl) -n-methylperfluorooctane 
sulphonamide)  0.9 0.0 1     
293590  Sulphonamides (excl. perfluorooctane 
sulphonamides)  0.9 0.0 1     
620462  Women's or girls' trousers, bib and brace 
overalls, breeches and shorts of cotton  0.9 15.0  1   1 WT/REG384/1 /Rev.1  
- 63 - 
  Panama's top export products  
in 2010 -2012  Access Conditions to Honduras' import 
markets  
HS number and description of the product  Share 
in 
global 
exports 
(%) MFN 2014  No. of duty 
free lines 
under the 
agreement  
Remain dutiable  
Average 
MFN 
applied 
rate (%)  
No. of duty 
free lines  
No. of 
dutiable 
lines  
2014  
2018  
620469  Women's or girls' trousers, bib and brace 
overalls, breeches and shorts of textile 
materials  0.9 15.0  1   1 
620342  Men's or boys' trousers, bib and brace 
overalls, breeches and  shorts, of cotton  0.9 15.0  1   1 
640291  Footwear covering the ankle, with outer 
soles and uppers of rubber or plastics  0.8 15.0  2  2  
 Total  47.5  20 17 9 3 5 
Note:  Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on data provided by Honduras authorities and UNSD, Comtrade database.  
17. Panama's top 25 global exports were covered by 38 tariff lines in Nicaragua's tariff, 20 of 
which were subject to duties on an MFN basis ( Table A1.16 ). In 2013 when the Agreement entered 
into force 13 lines were duty free for imports from Panama while seven  lines relating to textiles and 
clothing remain dutiable ; the applied average MFN duties in 2013 for these products was 15 %. 
Table A1. 16 Nicaragua : Market access opportunities u nder the agreement for Panama's 
top 25 exports to the world  
Panama's top export products  
in 2010 -2012  Access Conditions to Nicaragua's import markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2013  No. of duty 
free lines 
under the 
agreement 
2013  
Remain 
dutiable  
Average 
MFN 
applied 
rate (%)  No. of 
duty 
free 
lines  No. of 
dutiable 
lines  
294190  Antibiotics  12.9 0.0 1    
293500  Sulphonamides  5.6 0.0 1    
300490  Medicaments consisting of 
mixed or unmixed products for 
therapeutic or prophylactic 
purposes, put up in measured 
doses "incl. those in the form of 
transdermal administration" or 
in forms or packings for retail 
sale  5.1 0.0 6    
300439  Medicaments containing 
hormones or steroids used as 
hormones but not antibiotics, 
put up in measured doses "incl. 
those in the form of 
transdermal administration" or 
in forms or packings for retail 
sale 3.6 0.0 2    
330300  Perfumes and toilet waters  3.5 15.0  1 1  
640299  Footwear with outer soles and 
uppers of rubber or plastics  2.6 15.0  2 2  
292249  Amino -acids and their esters ; 
salts thereof  1.9 0.0 1    WT/REG384/1 /Rev.1  
- 64 - 
  Panama's top export products  
in 2010 -2012  Access Conditions to Nicaragua's import markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2013  No. of duty 
free lines 
under the 
agreement 
2013  
Remain 
dutiable  
Average 
MFN 
applied 
rate (%)  No. of 
duty 
free 
lines  No. of 
dutiable 
lines  
640411  Sports footwear, incl. tennis 
shoes, basketball shoes, gym 
shoes, training shoes and the 
like, with outer soles of rubber 
or plastics and uppers of textile 
materials  1.3 15.0  1 1  
540710  Woven fabrics of high -tenacity 
yarn, nylon, other polyamides 
or polyeste rs, incl. 
monofilament of >= 67  decitex 
and with a cross sectional 
dimension of <= 1  mm 1.2 0.0 1    
611090  Jerseys, pullovers, cardigans, 
waistcoats and similar articles, 
of textile materials, knitted or 
crocheted  1.1 15.0  1  1 
220830  Whiskies  1.1 7.5  2 2  
852871  Reception apparatus for 
television, whether or not 
incorporating radio -broadcast  
receivers or sound or video 
recording or reproducing 
apparatus, not designed to 
incorporate a video display or 
screen  1.0 7.5 1 1 1  
852872  Reception apparatus for 
television, colour, whether or 
not incorporating 
radio-broadcast receivers or 
sound or video recording or 
reproducing apparatus, 
designed to incorporate a video 
display or screen  1.0 7.5 1 1 1  
611020  Jerseys, pullovers, cardigans, 
waistcoats and similar articles, 
of cotton, knitted or crocheted  1.0 15.0  1  1 
640319  Sports footwear, with outer 
soles of rubber, plastics, 
leather or composition leather 
and uppers of leather  1.0 15.0  1 1  
620462  Women's or girls' trousers, bib 
and brace overalls, breeches 
and shorts of cotton  0.9 15.0  1  1 
620469  Women's or girls' trousers, bib 
and brace overalls, breeches 
and shorts of textile materials  0.9 15.0  1  1 
620342  Men's or boys' trousers, bib and 
brace overalls, breeches and 
shorts, of cotton  0.9 15.0  1  1 
640291  Footwear covering the ankle, 
with outer soles and uppers of 
rubber or plastics  0.8 15.0  2 2  
620349  Men's or boys' trousers, bib and 
brace overalls, breeches and 
shorts of textile materials  0.8 15.0  1  1 
852580  Television cameras, digital 
cameras and video camera 
recorders  0.8 0.0 2    
620690  Women's or girls' blouses, 
shirts and shirt -blouses of 
textile materials  0.8 15.0  1  1 
294110  Penicillins and their derivatives 
with a penicillanic acid 
structure ; salts thereof  0.8 0.0 1    WT/REG384/1 /Rev.1  
- 65 - 
  Panama's top export products  
in 2010 -2012  Access Conditions to Nicaragua's import markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2013  No. of duty 
free lines 
under the 
agreement 
2013  
Remain 
dutiable  
Average 
MFN 
applied 
rate (%)  No. of 
duty 
free 
lines  No. of 
dutiable 
lines  
910219  Wrist-watches, whether or not 
incorporating a stop -watch 
facility, electrically operated, 
with combined mechanical and 
opto-electronic display  0.7 15.0  1 1  
852190  Video recording or reproducing 
apparatus, whether or not 
incorporating a video tuner  0.7 15.0  1 1  
 
Total  52.1  17 20 13 7 
Note:  Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data provided by Nicaragua authorities and UNSD, Comtrade database.  
__________  