WT/REG384/M/1  
 
30 April 2019 
(19-2943) Page: 1/2 
Committee on Regional Trade Agreements  
Ninety -second  Session    
 
ACCESSION OF PANAMA TO THE CENTRAL AMERICAN COMMON MARKET (CACM)  
(GOODS ) 
NOTE ON THE MEETING OF 1 APRIL  2019 
Chairm an: Ambassador Carlos Mario Foradori  (Argentina)  
1.1.  The 92nd Session of the Committee on Regional Trade Agreements (hereinafter  'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/RTA/17/Rev.1 dated 22 March 2019.  
1.2.  Under Agenda Item F.VI of the Session, the CRTA considered the  Accession of Panama to the 
Central American Common Market (CACM)  (Goods ), (hereinafter  "the Agreement").  
1.3.  The Chairman  noted that t he Agreement had entered into force on 6 May 2013. It had been 
notified to the WTO by the Parties on 24 April 2017  under Article  XXIV:7(a) of the GATT  1994 and 
the Understanding on the Interpretation of Article  XXIV of GATT 1994 as an Agreement establishing 
a free trade area (document  WT/REG384/N/1). The text of the Agreement was available, together 
with its Annexes, on the Parties' official websites.  The Factual Presentation on the goods aspects 
(document  WT/REG3 84/1 dated 16 January 2019, questions and replies (document WT/REG384/3 
dated 26 March 2019) and the general incidence calculation (document WT/REG384/2) on the 
Agreement ha d been distributed.  
1.4.  The representative of Guatemala , on behalf of Guatemala, Costa Rica, El  Salvador, Honduras, 
Nicaragua and Panama , thanked the  Secretariat for its hard work in preparing the factual 
presentation and the general incidence calculation. He also thank ed the delegations of Ecuador, 
Mexico, the European Union and the Dominic an Republic for the questions submitted.  
1.5.  The Protocol incorporating Panama into the Central American Economic Integration Subsystem 
had been  signed on 29  June 2012 and had entered into force on 6  May 2013. It had been  notified 
to the WTO on 24  April 2017. Prior to the entry into force of the Protocol, the Central American 
countries had signed a free trade agreement between Central America and Panama and their bilateral 
protocols to the Agreement, which had formed the basis for Panama's accession to the Agreement . 
The Parties  had undertaken  a commitment to pursue trade  liberalization through negotiations, which 
had led to the establishment of a timetable for the gradual liberalization of excluded products.  
1.6.  The objective of the Agreement was  to achieve fair an d sustainable economic and social 
development that improve d each country's welfare and growth through a process that enable d the 
transformation and modernization of productive, social and technological structures, increase d the 
competitiveness of the region and ensure d the efficient and dynamic integration of the Parties  into 
the international economy.  
1.7.  With the entry into force of the Agreement , the main legal instruments of Central  American 
economic integration had also ent ered into force for Panama, including: the General Treaty on 
Central American Economic Integration; the Protocol to the General Treaty  (also known as the 
Guatemala Protocol) ; the Convention on the Central American Tariff and Customs Regime; the 
Framework A greement Establishing the Central American Customs Union; the Central American 
Uniform Customs Code (CAUCA) and its Regulations (RECAUCA); and the regulations on rules of 
origin, trade defence, dispute settlement, sanitary and phytosanitary measures, techn ical barriers 
to trade, and the dispute settlement mechanism  among other things . Common legislation between 
the six countries was crucial for the Central  American region, as it ensure d the harmonization of WT/REG384/M/1  
 
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  standards and procedures for both intra -regional t rade and trade with third countries, which 
contribute d to trade facilitation.  
1.8.  The incorporation of Panama into the Central American Economic Integration Subsystem was 
of great importance for the Central American region, as it ha d further strengthened trade  relations 
in the region, improved conditions of access for Central American products entering this market  and 
encouraged investment. Furthermore, adding Panama as an ally  in the Central  American economic 
integration process ha d contributed to the Parties'  efforts to achieve a more dynamic and stronger 
region in both social and economic terms.  He hoped that th e review would  provide an opportunity 
for the Parties  to answer any outstanding questions . 
1.9.  The representative of the United States  said that the revie w was interesting as it was an 
accession to an existing RTA. As  the United States had stated on numerous occasions accession 
agreements that included new tariff preferences between WTO Members clearly fell within the 
notification and transparency obligations that Members had agreed to. He drew Panama's attention 
to the concerns previously raised by the United States regarding the lack of a not ification and 
opportunity for Members to review Panama's accession to the LAIA Agreement. He urged Panama 
to expeditiously notify its LAIA accession consistent with how it had approached its obligation relative 
to its accession to the CACM. According to Ta ble 4.1 of the factual presentation other CACM Parties 
including Costa Rica, Guatemala, Honduras, Nicaragua and Panama  had not notified their LAIA 
agreements  and h e urged the m to bring their notifications up to date.  
1.10.   The representative of the European Unio n thanked Guatemala for the presentation and 
commended Panama and the other Parties for notifying the accession agreement. She echoed the 
comments made by the United States  on notifications . The EU had stated previously that accessions 
to existing agreemen ts required a notification and subsequent review process as was being done 
that day. The EU as a party to the EU -Central America association agreement had followed 
developments in the region  with interest . Advance questions on subsidies and state aid and 
competition had been submitted and she thanked the Parties for the detailed replies provided. She 
asked Panama when it intend ed to adopt the Central American technical regulations foreseen by the 
Agreement . 
1.11.   The representative of Panama  said the question  would be passed on to capital and a written 
response provided . 
1.12.   The representative of the Dominican Republic  thanked the Parties for their responses which 
had been passed on to capital.  
1.13.   The Chairman  said that the consideration of the goods aspects of the Acces sion of Panama to 
the Central American Common Market (CACM)ha d allowed the Committee  to clarify a number of 
questions and it could  now conclude oral discussion of th e RTA in accordance with paragraph 11 of 
the Transparency Mechanism. If any delegations wis hed to ask follow -up questions they were invited 
to forward submissions in writing to the Secretariat by 8  April 2019 and Parties were asked to submit 
replies in writing by no later than 22 April 2019. In accordance with paragraph  13 of the 
Transparency Me chanism all written submissions, as well as minutes of this meeting would  be 
circulated promptly, in all WTO  official languages, and would be made available on the WTO website.  
1.14.   The Committee took note  of the comments made.  
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