WORLD TRADE
ORGANIZATIONWT/MIN(99)/ST/100
2 December 1999
(99-5361)
MINISTERIAL CONFERENCE
Third Session
Seattle, 30 November - 3 December 1999Original:  Spanish
PANAMA
Statement by H.E. Mr. Joaquín Jacome
Minister for Commerce and Industry
In September 1997, Panama became a Member of  the World Trade Organization with a firm
belief in the many benefits that membership of the multilateral trading system would bring.
At the beginning of the negotiations on accession Panama had one of the most protected
economies in the region with higher than average tariffs.
As a precondition for membership we were required to dispense with the benefit of certain
periods of transition, to which we were entitled as a developing country.
Following this accession process, Panama rapidly introduced a series of radical reforms
through various laws that brought about fundamental changes in the economic structure of the country
and which had social repercussions in sectors such as agriculture and industry.
However, such effects had been foreseen and Panama had taken the difficult decision to face
up to those consequences, since it was expected that the benefits it would receive would outweigh itssacrifices.
One of the many benefits that we could mention was access to previously unimagined
markets, protected according to the principle of non-discrimination and in the absence of trade
barriers that were unnecessary or unjustified.
As a developing country we feel bound to expr ess the great disappointment that Panama, like
other Members, has experienced in finding that the actual situation was very different.
We believe that one very relevant example of this is the banana dispute.As is widely recognized, some Member countries of the WTO have chosen to ignore their
obligations, not only towards Paraguay but towards the other countries that retain a firm belief in the
multilateral system.
Nine arbitration rulings have been delivered in a period of four years condemning the
discrimination and the barriers imposed on bananas from Latin America;  or 11, if we count the years
under the GATT since 1993.
Despite these rulings and innumerable consultations, there has been no response from those
countries to resolve the issue.WT/MIN(99)/ST/100
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We are deeply concerned by this situation, since it reflects a failure of the dispute settlement
mechanism.  However, none of the reforms proposed would resolve problems such as those
perpetuated in the banana dispute.
This failure to respect basic commitments has sent a signal to the international community
that legal certainty, considered to be one of the pillars of the system, must be strengthened.
If the Members of the WTO, particularly the developing countries, cannot rely on clear rules
governing trade, then we have lost sight of th e ideal held by the acceding countries, namely the
integral development of their economies and, consequently, an improvement in the living conditions
of their people.
However, despite these drawbacks we should like to state that Panama reaffirms its
commitment to the multilateral trading system as  a means of achieving growth and development.
Our country considers that, when the forthcoming negotiations are launched, there must be a
frank dialogue on the following aspects of world trade:
• With regard to trade in services , we are in favour of a wide-ranging debate that does
not exclude any sector or mode of supply, together with an in-depth examination of
important sectors such as financial services and maritime transport.
• In the case of investment , we support the establishment of a multilateral framework
of rules on foreign direct investment, with a view to helping to establish a stable and
predictable environment for investment worldwide.
• With regard to agriculture , we are in favour of reducing the disparities arising from
domestic subsidies, as well as those caused by export subsidies.  In this context, wethink it necessary to consider special and differential treatment for developing
countries and to put that into effect through concrete measures.
• As far as textiles  are concerned, we think it advisable to review the commitments
assumed in that Agreement, providing greater access for the developing countries.
• We support the expansion of the WTO's basic technical assistance  budget, so that we
can participate more effectively in the new negotiations.
• Panama would view favourably the establishment of a working group  to examine
issues relating to the implementation of the Uruguay Round Agreements.
Other measures that have been proposed at this Third Ministerial Conference carry the risk of
reducing the comparative advantages of the developing countries.  They include environment and
labour issues.
We feel bound to state that Panama is committed to environmental protection since almost a
third of our territory is covered by nature reserves protected under our environmental legislation.
We also respect the internationally recognized core labour standards and regard the
International Labour Organization as the compet ent organization to deal with this matter.
Finally, we should like to reaffirm the position taken in the Singapore Declaration on these
matters.WT/MIN(99)/ST/100
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We should like to conclude by saying that the negotiations to be initiated at this
Ministerial Conference should seek to advance the ideals of development, so that all the Members
have the opportunity to enjoy the advantages that can be derived from belonging to the multilateral
trading system.
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