. /.WORLD TRADE
ORGANIZATIONG/SCM/85
12 December 2002
(02-6881)
Committee on Subsidies
and Countervailing Measures
EXTENSION UNDER SCM ARTICLE 27.4 OF THE TRANSITION
PERIOD FOR THE ELIMINATION OF EXPORT SUBSIDIES
PURSUANT TO THE PROCEDURES IN G/SCM/39
PANAMA
Export Processing Zones
Decision of 22 November 2002
The Committee on Subsidies and Countervailing Measures (the “Committee”),
As directed by the Fourth Ministerial Conference, in its Decision on Implementation-Related
Issues and Concerns, (WT/MI N(01)/17, 20 November 2001);
In following the “Procedures for Extensions Under Article 27.4 for Certain Developing
Country Members” (G/SCM/39, 20 November 2001) ("the Procedures");
Taking into account the request and other notified information provided by Panama to the
Committee1, pursuant to the Procedures, for Export Processing Zones (“the programme”);
Recognizing with appreciation the efforts, by Panama, in light of its capacity constraints,
during the review by the Committee, to describe and clarify the provisions of the programme;
Considering for purposes of this request, Panama to be a developing country Member, whose
share of world merchandise export trade was not greater than 0.10 per cent and whose total Gross
National Income for the year 2000 as published by the World Bank was at or below US$20 billion,
and who is otherwise eligible to request an extension pursuant to Article 27.4 of the Agreement on
Subsidies and Countervailing Measures ("SCM Agreement");
Noting that  Panama recognizes that it must satisfy obligations under the transparency and
standstill provisions contained in paragraphs 3 and 4 of the Procedures;
Hereby grants to Panama an extension, until 31 December 2003, of the transition period,
under Article 27.2(b) of the SCM Agreement, for the elimination of export subsidies which take the
form of full or partial exemptions from import duties and internal taxes and which were in existence
under the programme on 1 September 2001.
As provided  in paragraphs 1(d) and 1(e) of the Procedures, the period during which the
extension hereby granted can be continued on the basis of the Procedures is through the end of
                                                     
1The notified information on the basis of which this decision is taken is found in documents
G/SCM/N/74/PAN/1, G/SCM/N/71/PAN and G/SCM/N/71/PAN/Corr.1, G/SCM/Q3/PAN/1 to
G/SCM/Q3/PAN/15.G/SCM/85
Page 2
calendar year 2007, and such continuation shall be subject to annual review by the Committee for the
purposes and subject to the conditions set forth in paragraphs 1(d) and 1(e) of the Procedures.  As
provided in paragraph 1(f) of the Procedures, the Committee shall consider on the basis of the
provisions of Article 27.4, i.e., outside the framework of these procedures, any request for further
continuation, past the end of 2007, of the extension in respect of Export Processing Zones; and as
provided in paragraph 1(g) of the Procedures, Panama shall have the final period referred to in that
paragraph if such a further continuation is either not requested or not granted.
As provided  in paragraph 7(c) of the Procedures, the criteria set forth in the Procedures are
solely and strictly for the purpose of determinin g whether Members are eligible to invoke the
Procedures, and these criteria have no precedential value or relevance, direct or indirect, for any other
purpose.
This decision does not affect the legal rights of Members with respect to any other obligations
of Panama under the SCM Agreement, that may apply to the programme.  Among such other
obligations, it is recognized that this programme remains subject to Article 3.1(b) of the SCM
Agreement, which prohibits subsidies contingent, whether solely or as one of several other conditions,upon the use of domestic over imported goods.
This decision  does not affect any rights, obligations or commitments of Members under any
other WTO Agreement with respect to the programme; and is without prejudice to the existing and
future relationship between the SCM Agreement and any other WTO Agreement, and has noprecedential value for any other purpose.
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