. /.WORLD TRADE
ORGANIZATIONG/SPS/GEN/220
22 November 2000
(00-4976)
Committee on Sanitary and Phytosanitary Measures Original:  English
RESTRICTION TO THE EXPORT OF MILK POWDER FOR
HUMAN CONSUMPTION TO PANAMA
Statement by the European Communities at the Meeting of 8-9 November 2000
1. Denmark has exported milk powder for human consumption (infant milk formula) to Panama
since 1994.  Since then, several thousand tons of milk powder have been exported to Panama and sold
on the local market without any sanitary problem being recorded.
2. It is essential to emphasize that since 1994 the relevant product’s formula, known under the
trademark name of Milex Kinder 1-5, has not been changed and it has been exported to several
countries.  During this period complaints as regards the sanitary guarantees offered have never been
reported to the producers or to the Danish national authorities.
3. Since April 2000, the relevant authorities in Panama have delayed issuing of the import
permits and certificates necessary for importing milk powder for human consumption.  This results de
facto  in a ban on the import of milk powder to Panama.
4. Notwithstanding the continuous requests of the Danish national authorities and of the local
business operators, the Ministry of Agricultural Development (MIDA) in Panama has not provided
any justification whatsoever of the restrictions imposed and have not provided the Danish authorities
with any new or modified regulation concerning the production and placing on the market of milk
powder for human consumption.  No draft legislation has been notified to the WTO/SPS Secretariateither.
5. In the light of the above, we believe the measures to be in breach of the SPS Agreement’s
requirements, notably Articles 2, 3 and 5.
6. In accordance with Article 5.8 of the SPS Agreement, the European Communities would
welcome additional information. In particular, it w ould be grateful for a response to the following
questions:
6.1 Could Panama indicate if a new or modified regulation concerning the production and placing
on the market of the relevant product exists?  If so, could Panama indicate why such a
measure has not been notified to the WTO/SPS Secretariat as provided for by Article 7 and
Annex B of the SPS Agreement?
The European Communities would appreciate receiving the relevant legislation.
6.2 In consideration of Articles 2.2, 3.1, 3.2 and 5 of the SPS Agreement, could Panama indicate
what is the scientific justification behind the relevant restriction?G/SPS/GEN/220
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6.3 Could Panama indicate if similar restrictions apply to other WTO Members?
6.4 Could Panama provide the list of countries eligible for export of milk and other dairy
products, with a specific reference to milk powder for human consumption?
6.5 Could Panama confirm that it applies the same production and processing requirements to
both imported and domestic products and that no discrimination is applied whatsoever?
Conclusions
7. The European Communities expresses its concerns on the Panamanian import requirements
for infant milk formula which pose serious restrictions on trade and, to the best of our knowledge, isnot based on scientific findings.
8. The European Communities requests written replies to the above listed questions and would
welcome a further exchange of views to work toward a mutually favourable solution.
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