WT/TPR/M/421  
1 April 2022 
(22-2625) Page: 1/42 
Trade Policy Review Body  Original: English  
24 and 26 January 2022  
  
TRADE POLICY REVIEW  
PANAMA  
MINUTES OF THE MEETING  
Chairperson: H.E. Mr Dacio Castillo (Honduras)  
CONTENTS  
 
1  INTRODUCTORY REMARKS BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT BY THE REPRESENTATIVE OF PANAMA  ................................ ...... 4 
3  STATEMENT BY THE DISCUSSANT  ................................ ................................ ................  8 
4  STATEMENTS BY MEMBERS  ................................ ................................ ........................  12 
5  REPLI ES BY THE REPRESENTATIVE OF PANAMA AND ADDITIONAL COMMENTS  .........  35 
6  CONCLUDING REMARKS BY THE CHAIRPERSON  ................................ .........................  41 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies provided 
by Panama  are reproduced in document WT/TPR/M/ 421/Add.1  and will be available online at 
http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/421 • Panama  
 
- 2 - 
 
  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON  
1.1.  The third Trade Policy Review of Panama was held on 24 and 26 January  2022. The 
Chairperson, H.E.  Mr Dacio Castillo (Honduras), acting on behalf of the current Chairperson of the 
Trade Policy Review Body (TPRB), Ambassador  Molokomme, welcomed the delegation of Panama, 
headed by H.E.  Ms Linda  Castillo, Vice -Ministe r of International Trade Negotiations; 
H.E. Ambassador Alfredo Suescum, Permanent Representative of Panama to the WTO; the rest of 
the delegation; and the discussant, H.E. Ambassador Laurie  Lo (Hong  Kong,  China).  
1.2.  The Chairperson was pleased that, in additi on to physical presence, the meeting also benefited 
from the Interprefy online connection, allowing for a wider participation of the Membership, in 
particular of officials who could not make the journey from Panama  City given the current 
circumstances.  
1.3.  The Chairperson recalled the purpose of TPRs and the main elements of procedures for the 
meeting. The report by Panama is contained in document WT/TPR/G/421, and that of the WTO 
Secretariat in document WT/TPR/S/421.  
1.4.  Questions by the following delegations were  submitted in writing before the deadline: 
Guatemala; Argentina; Chile; Canada; the Dominican  Republic; Iceland; Singapore; Japan; 
Colombia; the United  States; the European  Union; China; Hong  Kong,  China; and Costa  Rica. The 
following delegations submitted  written questions after the deadline: the United  Kingdom; Mexico; 
Thailand; the Republic  of Korea; Turkey; and Peru.  
1.5.  The previous Review held in 2014 was very positive. Panama had achieved outstanding 
economic growth and a greater integration in world tra de, and had become a major exporter of 
services, mostly associated with the Panama Canal and the Colón Free Zone's operations, such as 
transport and logistics. At that time, Panama was urged to enhance synergies of these sectors with 
the rest of the econom y. 
1.6.  In this context, the Chairperson emphasized that, despite the negative effects of the COVID -19 
pandemic, the financial system showed resilience and maintained a generally solid position 
throughout 2021. Accordingly, in their written questions, Members a sked Panama to outline the 
measures taken to mitigate the effects of the pandemic.  
1.7.  Members were also interested in the measures adopted by the Panamanian authorities to 
diversify exports and attract more investment. The Chairperson said that it would be of  great interest 
to hear about the recent development of mining activity, since exports of mineral products 
(specifically copper ores and concentrates) accounted for 47.8% of total exports in 2019 and 56.3% 
in 2020, but only 0.2% in 2018  
1.8.  As at the time of t he previous Review, Members commended Panama's strong commitment to 
the multilateral trading system, especially in the negotiations under way. As regards trade policy, 
Members noted the importance Panama attached to issues related to gender, indigenous peo ples 
and small and medium -size enterprises (SMEs). Members enquired how these issues were 
incorporated into trade policy and whether the free trade agreements recently signed by Panama, 
which the country continued to use to deepen its integration into the global economy, included 
specific provisions on gender, indigenous peoples, micro, small and medium -size enterprises 
(MSMEs), and other traditionally vulnerable groups.  
1.9.  In the previous Review, Members had also noted Panama's measures to facilitate trade, 
including the use of a single window for exports and the implementation of an authorized economic 
operator scheme. However, as in 2014, it was pointed out that Panama had not established a single 
window for imports and that a customs broker had to be used t o process the release of goods under 
the various customs regimes. With regard to customs procedures, mention was also made of the 
designation of "special goods" imported with a "justified risk" in the customs valuation process and 
the use of reference valu es. 
1.10.  In the context of this Review, several Members asked questions related to non -tariff measures 
used by Panama in the agricultural sector to, inter alia, protect public health and plant and animal 
health, and their compatibility with Article  5 of the Agr eement on the Application of Sanitary and WT/TPR/M/421 • Panama  
 
- 3 - 
 
  Phytosanitary Measures. Members noted the institutions responsible for this policy and animal health 
requirements in general, the inspection procedures for agricultural imports entering Panamanian 
territory by air,  and the need to have an animal health licence before importing certain products of 
animal or plant origin.  
1.11.  Questions were asked in relation to most -favoured -nation (MFN) tariffs applied to rates in 
excess of the WTO bound rate; requirements for import and  export licences; government 
procurement; domestic support measures for the agricultural sector, including the increase in the 
average tariff for agricultural products and the use of agri -food chains and the special agricultural 
safeguard mechanism; the pr ice regulation of products in the basic food basket; and procedures for 
developing and revising national technical regulations.  
1.12.  The advance written questions submitted for this Review reflected Members' broad interest in 
Panama's trade and investment regim es. 
1.13.  Panama received 237  advance written questions from 20  Members for this Review, of which 
211 were sent within the established deadline. Prior to this meeting, Panama had provided written 
replies to most of these questions and the Chairperson looked forw ard to hearing Panama's 
responses during the two -day meeting.  
1.14.  The meeting was a good opportunity for Members to discuss in detail issues of interest to 
them and of importance to the multilateral trading system.  
1.15.  It was also an opportune moment for Panama to  update the Membership on the impact of the 
COVID -19 pandemic on its economy and the measures it has taken in response. The Chairperson 
looked forward to a fruitful exchange.  
1.16.  The Chairperson closed his introductory remarks by wishing Panama a very successful 
third Trade Policy Review.   WT/TPR/M/421 • Panama  
 
- 4 - 
 
  2  OPENING STATEMENT BY THE REPRESENTATIVE OF PANAMA  (H.E. MS LINDA  
CASTILLO)  
2.1.  Good morning/afternoon to everyone. I would like to start by expressing our special 
appreciation on behalf of the Republic of Panama and the M inister of Trade and Industry, 
H.E. Ramón  Martínez de la Guardia. Our thanks go to Ambassador Dacio  Castillo of Honduras, who 
has agreed to chair this Review, and to Ambassador Laurie  Lo of Hong  Kong,  China, the discussant 
for this third Trade Policy Revie w of the Republic of Panama. This Review has taken place under 
special circumstances owing to the COVID -19 pandemic, which has had a significant impact on all 
areas of human activity, including, of course, global trade.  
2.2.  Allow me, Mr Chairman, to also thank  the WTO Secretariat for preparing the Report and for its 
support in this work, which has enabled us to present Panama's economic and trade policies in a 
clear and comprehensive manner.  
2.3.  I would also like to express my gratitude to the Members for all the q uestions submitted within 
the deadline before this meeting and inform them that we have sent most of the replies in writing, 
based on the opinion of the competent Panamanian authorities, whom I thank for their enormous 
efforts at a time when we are facing a major increase in cases which has reduced the availability of 
the appropriate officials.  
2.4.  I would like to mention that this Trade Policy Review is, in Panama's view, a highly important 
exercise to assess the state of implementation of the multilateral com mitments that WTO Members 
assume upon accession, with the aim of enhancing the liberalization processes pursued in this 
context.  
2.5.  The previous Trade Policy Review carried out by the Republic of Panama in 2014 highlighted 
the efforts deployed by several Admi nistrations to further integrate our country into the global 
economy.  
2.6.  A key consideration for the 2014 -2021 review period was Panama's handling of a pandemic 
without precedent, which called for a differentiated examination of the initiatives and priorities  
undertaken from an economic, social and political perspective, together with their effects before and 
during the pandemic.  
2.7.  From 2015 until the COVID -19 crisis, the Panamanian economy sustained average annual 
growth of 4.6%, one of the highest rates in Lat in America and the Caribbean. It was driven largely 
by foreign direct investment, mostly in mining activities and the hotel, banking, real estate, 
electricity and manufacturing sectors. Despite the crisis, in 2021 the Panamanian economy grew by 
9.9% compar ed to 2020 as a result of efforts to help revive the economic activities affected.  
2.8.  This shows us that the public health and socioeconomic policies implemented during the 
pandemic have been effective, and we are encouraged to learn that, according to the mo st recent 
report by the Economic Commission for Latin America (ECLA), Panama tops the list of economic 
growth projections for 2022 in the Latin  American region.  
2.9.  With regard to commercial activity in the services sector, which accounts for approximately 
70% of GDP, we wish to highlight that the balance of services was positive from 2014 to 2020, with 
maritime transport accounting for an average of 30.4% of total exports. The largest increase, 
recorded in 2017, was the result of a rise in rev enue from the Panama  Canal, which in turn was due 
to the completion of the waterway's expansion with a new set of locks to allow transit of 
Post-Panamax ships, and the associated growth in activity at port terminals along the waterway.  
2.10.  Despite declining in  2014 due to pests and climatic events, the primary sector saw positive 
growth of 9.9% in 2019.  
2.11.  During the crisis caused by the COVID -19 pandemic, primary activity was not suspended and 
it played a fundamental role in supplying food to the population in ge neral and the most vulnerable 
in particular, while ensuring social peace. Although the agricultural sector accounts for only 2.4% of 
GDP, it employs around 20% of the country's workforce, mostly in rural areas.  WT/TPR/M/421 • Panama  
 
- 5 - 
 
  2.12.  Under the current Administration, which took office on 1  July 2019, the national Government 
focused its strategic vision on sustainable and inclusive economic growth, with a view to improving 
the quality of life of its people, generating employment, revitalizing the Panamanian agricultural 
sector, dr iving tourism development and strengthening domestic industry, and thereby progress 
towards attainment of the 2030 Sustainable Development Goals.  
2.13.  Like the rest of the world, at the start of 2020, less than six  months after the current 
Administration took o ffice, Panama was struck by the unexpected COVID -19 health crisis, which 
caused tragic losses of human life and impacted every aspect of our lives. The crisis hit certain 
sectors of economic activity particularly hard, such as the construction industry, to urism, hotels and 
restaurants, passenger air travel and the manufacturing industry in general. The immediate 
economic effect on our country was a 17.9% reduction in GDP in 2020 compared to 2019.  
2.14.  To counter the effects of the pandemic, the Panamanian Govern ment was forced to restructure 
the priorities under its strategic plan, without abandoning its broad vision for national social and 
economic growth. It implemented a series of strategies aimed mainly at preserving human life, 
through measures to expand the  capacity of the health -care system and protect the fundamental 
livelihoods of the affected population, on the one hand, while making great efforts to stabilize and 
revive the economy, on the other.  
2.15.  The financial strategy envisaged a dynamic restructuring of the national budget. The 
containment of spending and the injection of external funds allowed additional resources to be 
transferred to health -care institutions and allocated to care for the affected population and the most 
vulnerable through the Panama Solidarity Programme.  
2.16.  The health strategy involved the development of a management model for a comprehensive 
response, in order to protect peoples' lives by reducing risk exposure and maintaining constant 
access to health care.  
2.17.  Despite the new wave of infe ctions with the new Omicron variant, 72% of the country's target 
population have been immunized with two  doses, and booster and paediatric vaccines have been 
administered, as part of the Panavac vaccination programme. This has resulted in a fatality rate 
below the world average and stable hospital capacity.  
2.18.  Measures under the economic recovery plan include the Opportunities Bank project, aimed at 
microenterprises affected by the pandemic, and the Special Credit Fund for the hardest hit sectors 
of the econom y in need of recovery, such as innovation, science and technology, agro -industry, 
warehousing and distribution.  
2.19.  These initiatives have exceeded initial expectations, benefiting the undertakings and 
microenterprises of more than 4,000  Panamanian families du ring the first phase. This is of particular 
importance since 70% of the country's active labour force are small and medium -sized 
entrepreneurs.  
2.20.  Another initiative is the Agro -Solidarity Programme, which offers loans with facilities such as 
favourable inter est rates and technical assistance. One component, Agro Vida  (Agro Life), provides 
tools, seeds of staple grains and supplies to subsistence farmers to ensure their families' food 
security.  
2.21.  Panama is nevertheless aware that other sectors are going to need much more time to 
recover, such as the tourism sector, which has historically accounted for up to 14% of GDP, both 
directly and indirectly.  
2.22.  To address this, the 2020 -2025 Sustainable Tourism Master Plan aims to boost tourism as a 
strategic economic sector by developing a sustainable model that creates jobs nationwide, brings 
communities together, unites territories and increases the industry's competitiveness.  
2.23.  As part of the economic revival plan, the Government is also launching major investment 
projects i n public infrastructure, including the construction of the third metro line and the extension 
of lines one and two, the connection of the Bridge of the Americas with the Coastal Belt, and the WT/TPR/M/421 • Panama  
 
- 6 - 
 
  national grid expansion project, which will increase power trans mission capacity as part of the 
National Energy Plan.  
2.24.  In an effort to attract new, sound investment, Panama has created the regime for the 
establishment and operation of multinational business headquarters. More than 175  multinational 
businesses have been established under the regime, 10 of which were set up in 2021. Such 
businesses are entitled to an expedited process under the regime for the establishment and 
operation of multinational companies providing manufacturing -related services, created in 
August 2020.  
2.25.  For the national Government, Panama's position as a nearshoring destination is also key to 
attracting regional headquarters for productive, as well as administrative, operations of multinational 
businesses, which can also enjoy the benefits from  the network of bilateral and regional trade deals 
that Panama has signed as part of its ongoing trade integration and liberalization process.  
2.26.  Once again, since it became a WTO Member and during the review period, Panama has, 
through its actions, reaffirme d its commitment to the principles and values espoused by this 
Organization regarding an open, predictable, fair and rules -based trading system. These actions are 
aligned principally with the most important goals: that the benefits of the growth of world t rade 
should raise citizens' living standards, be socially and environmentally sustainable and, most of all, 
be compatible with Members' interests and needs, according to their varying levels of economic 
development.  
2.27.  During the review period, Panama impleme nted five free trade agreements with the European 
Free Trade Association, Mexico, Israel, the United  Kingdom and the Republic of Korea, and a partial 
scope agreement with Trinidad and Tobago. The network of bilateral and regional trade agreements 
signed by  Panama has deepened the country's trade integration with approximately 65  countries, 
including the leading exporters to the Panamanian market, which they access with preferential tariffs 
under progressive reduction programmes and tariff rate quotas for se nsitive products in the domestic 
economy, which are usually agricultural goods such as pork, chicken, rice, maize and dairy products. 
Such programmes and quotas are in addition to those made available by Panama as part of the 
country's accession commitment  to this Organization and which are all used by our preferential 
partners.  
2.28.  Panama has undertaken institutional reforms that will enable us to better address Members' 
concerns regarding sanitary and phytosanitary measures and technical regulations.  
2.29.  Panama r ecently adopted the seventh amendment to its national tariff and is preparing to 
review certain tariff lines that might exceed bound levels this financial year.  
2.30.  Panama has also shown a commitment to the multilateral trading system, both now and in 
the futu re, through its participation in the regular work and negotiations in the various WTO 
committees and groups. We continue to play a constructive role in negotiations for the elimination 
of fisheries subsidies, which are harmful to the marine ecosystem.  
2.31.  This commitment is also reflected by our involvement in the joint initiative on e -commerce, 
considering the importance of renewing the moratorium on customs duties on e -commerce, and the 
need to reinvigorate discussions under the work programme and the joint i nitiative on investment 
facilitation for development.  
2.32.  Panama has been part of the Informal Working Group on Trade and Gender since 
September  2020 and is a co -sponsor of the Joint Ministerial Statement presented last December. At 
the national level, Panama hopes to develop a plan of action to close economic gender gaps and 
create a level playing field for women in the economy through the Gender Parity Initiative, a 
public -private partnership led by the Ministry of Social Development. Programmes for women 
involved in exports and small enterprises, and the equality seal for enterprises, are promoted in line 
with our public policy for addressing gender issues. We wish to share all this as part of this group's 
work.  
2.33.  During the United Nations Climate Change Confer ence (COP26) last  December, Panama 
signed, together with Suriname and Bhutan, the statement of carbon negative countries. These three WT/TPR/M/421 • Panama  
 
- 7 - 
 
  are the only countries in the world to hold this status. Bordered by two oceans, Panama is one of 
the bluest nations in th e world – in 2021, 30% of its marine area was inside environmentally 
protected areas. Thanks to its national energy strategy, renewables account for 75% of Panama's 
energy mix. Furthermore, the country is a signatory to the Ocean Plastics Charter and, at t he national 
level, it is replacing single -use plastic with environmentally sustainable alternatives.  
2.34.  The Panama  Canal is moving forward on its agenda to become a carbon -neutral entity by the 
end of the decade. It has implemented a green ship classification  system and an environmental 
recognition programme that grants priority quotas to users who can show that they consume 
low-carbon fuels and take environmentally -conscious routes.  
2.35.  In keeping with all these measures, Panama is convinced of the need for actio n to foster 
sustainable development, which is why is it taking part in the structured discussions on 
environmental sustainability and has signed the three Joint Ministerial Statements presented 
recently.  
2.36.  Panama remains committed to achieving results in all  sectors and pillars of multilateral 
negotiations at the WTO to ensure a balance between the benefits and the responsibilities of 
Members.  
2.37.  Accordingly, it participates in negotiations on areas including agriculture, trade in services and 
intellectual property, and will continue to play an active role, both in its national capacity and as a 
group coordinator, in the work and talks on topics of current importance and in discussions on the 
institutional response to the effects of the pandemic , the proposed reforms of the dispute settlement 
mechanisms and the holding of the 12th Ministerial Conference (MC12).  
2.38.  Lastly, as Members of the World Trade Organization since 1997, we reaffirm the need for the 
Organization to pursue discussions on the new  challenges that Members are facing and for consensus 
to be reached that will offer solutions to tackle problems in the wake of the COVID -19 pandemic and 
allow us to achieve, together, the full development of our countries.  
  WT/TPR/M/421 • Panama  
 
- 8 - 
 
  3  STATEMENT BY THE DISCUSSANT  
3.1.  I would like to join the Chair in extending a warm personal welcome to H.E. Linda C astillo , 
Vice-Minister for International Trade Negotiations and her team in Panama, who are joining us 
virtually due to restrictions relating to the pandemic. I would also like to recognise our distinguished 
colleague Ambassador  Alfredo  Suescum  and his team here in Geneva, not only for their excellent 
work in promoting and defending the trade interests of Panama, but also for their tireless efforts in 
and contributions to de fending and further developing the multilateral trading system in the WTO.  
3.2.  I should also thank the Panamanian Government and the WTO Secretariat for their 
comprehensive reports prepared for this review.  
3.3.  Today, I am going to start by highlighting some impo rtant context of Panama's economic 
development and trade and investment policies during the review period, I will then share with 
colleagues my observations on Panama's achievements so far and the challenges ahead. I hope they 
would help stimulate Members'  discussions during this review.  
CONTEXT  
General  economic environment  
3.4.  Panama had enjoyed more than a decade of high economic growth before it suffered drawbacks 
during the COVID -19 pandemic. Real GDP growth was between 3% to 6.9% during 2013 -2019 until 
the pandemic hit, while a negative growth of 17.9% was recorded in 2020.  
3.5.  Panama relies substantially on imports to meet the needs of its people and businesses, and 
current account deficits were recorded through the period, which were funded by surpluses in i ts 
financial account, mainly in the form of Foreign Direct Investments. In this connection, Panama's 
policy is to improve the performance in exports of goods and services so as to continue to attract 
foreign investment.  
3.6.  Panama is a small and relatively op en economy, with the services sector accounting for about 
70% of its GDP. The services sectors relating to foreign trade are especially important, they include: 
wholesale and retail trade; transport, storage and communications; financial services and busin ess; 
and rental activities in real estate.  
3.7.  Deficits in the current accounts between 2014 and 2019 amounted to about 8.1% of the 
nominal GDP. The only exception was in 2020, owing to implementation of health measures to 
contain the pandemic, there was a si gnificant decrease in the imports of goods and services and 
resulted in a surplus.  
Monetary vs fiscal policies  
3.8.  It is relevant to note that Panama's national currency (Balboa) is pegged to the US  dollar, which 
is also accepted as legal tender in the country . Panama is maintaining market interest rates and free 
flow of capital, so it is subject to the impacts of the US Federal Reserve's policies and does not have 
many monetary policy tool left for its manoeuvring.  
3.9.  As such, Panama has to rely on fiscal policy tools for its macroeconomic management. This has 
a bearing on its fiscal discipline at times of emergencies – Panama has set a fiscal rule that its net 
debt to GDP ratio should not exceed 40%, but in practice, with persistent deficits during the review 
period, this target was often exceeded and it has to be officially relaxed so that the Government 
may increase capital expenditure to counter the negative economic impacts brought by the 
pandemic  – this ratio rose to 69% in 2020.  
3.10.  The fiscal challenge of the Panamanian Government is thus to increase its fiscal revenues to 
arrest the fiscal deficits. In the meantime, this gap has to be bridged by issuance of public debts on 
the international market.  
Trade and industry policies  
3.11.  According to the Government repor t, Panama promotes a sustainable trade policy designed 
to drive development and build capacity for economic growth and reduce poverty and social equality. WT/TPR/M/421 • Panama  
 
- 9 - 
 
  And its trade policy goes hand -in-hand with its industrial policy to promote openness, economic 
diversification, innovation and international competitiveness.  
3.12.  The sectors attracting the largest investment flows include: mining and quarrying; financial 
and insurance services; transport and storage; and manufacturing.  
3.13.  Although Panama's agricultural sector makes only a modest contribution (2.4% in 2020) to 
its GDP, the sector is important to the country's socioeconomic development, because it employs 
over 14% of the workforce, especially in rural areas. The Government uses trade measures in 
additional to tar iffs and tariff quotas to protect and promote agriculture. They include plant and 
animal health controls, safeguard measures, marketing support, export promotion, incentive 
programmes for selected products, and preferential rates for bank credits by a stat e development 
bank. But no export subsidies were granted for agricultural products during 2014 -20.  
Completion of major capital projects  
3.14.  Several major new or expansion capital projects were completed during the review period, 
which would boost export reven ues and enable further development of other sectors. These projects 
include extension of the Panama Canal, airports and ports by the public sector, and construction of 
copper mining infrastructure by the private sector.  
3.15.  These infrastructural developments h ave helped Panama emerge as an air and port 
transhipment hub and a regional and global hub for logistics and trade. Its state -run Tocumen 
International Airport is a transfer hub for flights in the region and the regional centre for a global 
delivery servic es company.  
3.16.  The Panama  Canal now oversees about 2.3% of world maritime trade and contributes to the 
development of transhipment business in its port sector. Furthermore, transport, storage and 
communications services (14.5% of GDP) also benefitted from the expanded capacity of t he Canal, 
which allowed passage of larger ships, and the expanded port -related activities have brought 
increased business opportunities for its maritime services.  
3.17.  The toll revenue of the Panama Canal rose by 17.6% in 2017 due to its expanded capacity, 
and contributed a significant proportion (75.1% in 2020) of the Government's non -tax revenues. 
The Canal's direct contribution to GDP is assessed at 3.5%, which rises to 5.2% if its indirect 
contributions are also taken into account.  
3.18.  On the other hand, the c ontribution to GDP of mining and quarrying jumped from 2.2% 
between 2014 and 2020 to 4% in 2020 after the new copper extraction operations began in 
mid-2019. Exports of copper ores and concentrates contributed to substantial growth in goods 
exports in 2019 -2020, while the increased revenues from the Panama  Canal, ports and air transports 
have boosted services exports.  
Impact of COVID -19 pandemic on its economy  
3.19.  The COVID -19 pandemic has taken its tolls on the global economic performance, and Panama 
was no ex ception. Its financial intermediation sector (accounting for about 7.5% of GDP) was still 
growing after onset of COVID -19, but at a much slower rate due to the impacts of the pandemic. Air 
transport also suffered a huge drop of 69.7% in 2020 as internation al commercial air travel halted 
for seven  months during the year.  
3.20.  Fortunately, the negative impacts would likely be short -lived: after suffering from an 
unprecedented economic contraction of 17.9% in 2020, Panama reported a 10% growth in the 
first half of 2021. The World  Bank forecast a 9.9% real GDP growth for the whole year in 2021, 
before it returns to its trend growth of about 5% a year.  
3.21.  On the balance of payments, the sharp fall in the imports of goods and services in 2020 
exceeded the fall in exports,  thus reversing the usual deficit position in the current account. 
However, the usually positive capital and financial account balance in that year turned negative, 
because FDI dropped by 86.4% due to collapse of global FDI flows under the pandemic, and fi nancial 
support from the IMF was required for payment and precautionary needs against external shocks. 
But there are grounds for optimism – according to UNTACD's Global Investment Trends Monitor WT/TPR/M/421 • Panama  
 
- 10 - 
 
  released in January  2022, the FDI flows in Latin  America and the Caribbean has recovered to near 
pre-pandemic levels, with a 75% year -on-year growth in 2021.  
OBSERVATIONS  
Trade agreements  
3.22.  Panama relies heavily on international trade and advocates a rules -based, inclusive 
multilateral trading system. Its export promo tion strategy also involves taking advantage of trade 
agreements to access new markets.  
3.23.  During the review period, it participated actively in the negotiations on fisheries subsidies and 
several plurilateral joint initiatives in the WTO. Although Panama su bsequently withdrew from the 
initiative on MSMEs, it rejoined the initiative on Investment Facilitation for Development recently. 
Panama also remained a participant in trade and gender and in e -commerce.  
3.24.  Outside the WTO, Panama entered into six trade agre ements during the review period with 
the European Free Trade Association (EFTA); Mexico; Trinidad and Tobago; Israel; Korea; and 
the United  Kingdom.  
Import and export  
3.25.  While there has not been substantial changes in import and export procedures during the 
review period, some concerns raised during the previous review remain and are repeated in the 
advanced questions submitted by Members. They included the requirement for the appointment of 
customs broker for imports, when the same is optional for exports and  re-exports. Further, the 
Single Window for Foreign Trade is at present only available for export and re -export procedures.  
Tariffs  
3.26.  Panama should be commended for the positive changes in its tariff regime during the review 
period. According to the Secretar iat's report, Panama has bound all its tariff lines and used ad 
valorem tariffs for 99.7% of its tariff universe. The proportion of duty -free tariff lines has also 
increased from 34.5% to 45.5%, with the simple average applied MFN tariff rate fell from 7.6 % to 
6.9%.  
3.27.  However, the Secretariat's report also suggests that the applied MFN tariff for seven  tariff 
lines and three sub -lines have exceeded the bound tariff. Some Members also noted in their advance 
questions that the average tariff for agricultural p roducts (rose to 15.2% in 2021) continued to be 
much higher than that for non -agricultural products (at 5.3%).  
Foreign investment  
3.28.  Panama places a lot of emphasis on attracting foreign investments, which enjoy national 
treatment and do not require registrat ion or authorisation. There is no restriction on repatriation of 
investment capital or remittances of profits and interests out of the country.  
3.29.  There are, however, still some restrictions in its investment regime:  
• no domestic or foreign investment are allowed in electricity transmission and mail services 
as they are state monopolies;  
• foreign investment in communications media, retail activities, tourism continued to be 
prohibited;  
• private investment in mineral depo sits and salt pan without the state's consent are also 
prohibited;  
• there are also restrictions on FDIs in air transport, road transport, free -to-air radio, and 
television services.  WT/TPR/M/421 • Panama  
 
- 11 - 
 
  3.30.  Furthermore, while Panama has removed its restrictions on foreigners' part icipation in port 
lighterage and provisioning services since 2015, the Government may still restrict the number of 
licences issued for provision of these port services.  
Competition  
3.31.  Promoting the competitiveness of its industries is Panama's stated policy a nd many measures 
have been put in place to this end. However, a quick review of the advance questions suggests that 
some Members would appreciate further elaboration in the economic activities that are currently 
excluded from Panama competitive regime, whi ch include economic activities subject to state 
monopoly, such as power transmission and mail services; activities of the Panama  Canal Authority 
and gambling. There are also questions on the regulation of certain prices (usually relating to prices 
of produ cts in the basic basket) and the exemption of the procurement regimes of the Panama Canal 
Authority and Social Security Fund.  
3.32.  Perhaps I would just stop here. I look forward to hearing exchanges between the Panama 
delegation and other Members and sincerely wish Panama a very successful Trade Policy Review.  
  WT/TPR/M/421 • Panama  
 
- 12 - 
 
  4  STATEMENTS BY MEMBERS  
GUATEMALA  
4.1.  On behalf of Guatemala, I would like to e xtend a warm welcome to the delegation of Panama, 
led by Ms  Linda Castillo, Vice -Minister for International Trade Negotiations, and her team, and to 
our friend Ambassador  Alfredo  Suescum, Permanent Representative of Panama to the World Trade 
Organization ( WTO) and his team at the Mission in Geneva, with whom I have had the pleasure of 
working very closely over the years within this Organization and in other international trade forums.  
4.2.  I would also like to take the opportunity to thank the Chair for his intr oductory remarks, as 
well as the WTO Secretariat for its report and Mr  Laurie  Lo, Permanent Representative of 
Hong Kong,  China to the WTO, for the comprehensive analytical vision that he kindly shared with us 
this morning in his capacity as discussant.  
4.3.  Guatemala has historically maintained a very close friendship with Panama, a fellow country 
with which we share a vision of development, integration and regional strengthening. A testimony 
to this is the work we have been carrying out with the aim of achievin g full integration for Central 
America.  
4.4.  Within the WTO, we have had the opportunity to work very closely with Panama on many 
initiatives. As well as being geographically close, we have maintained a very close working 
relationship as part of the Group of Sm all and Vulnerable Economies.  
4.5.  Bilaterally, the main products traded between our two countries include plastic products, 
textiles and textile products, edible fats and oils, preparations of cereals, beverages, alcoholic liquids 
and vinegars, iron and steel,  pharmaceutical products, confectionary products and raw materials.  
4.6.  For the review we are addressing today, it is important to stress the efforts undertaken by the 
Panamanian authorities aimed at actively promoting a sustainable trade policy that is design ed to 
drive development and to foster economic growth in order to reduce poverty and inequality.  
4.7.  With the aim of attracting foreign investment, the Panamanian Government has adopted a 
number of trade strategies that contribute to improving the country's business climate.  
4.8.  During the review period, Panama has also driven significant reforms in the area of trade 
facilitation and has provided major support in the implementation of the Central American Trade 
Facilitation Strategy. Together, these act ions help to speed up flows of goods between our countries 
and are a major success factor for enhancing Central American integration and increasing our 
countries' participation in global value chains.  
4.9.  As short - and medium -term challenges, we note the impor tance of continuing to diversify the 
range of exports. In this regard, during the review period, there was a significant change in the type 
of merchandise exported by Panama. Until 2018, agricultural and food products dominated, whereas 
since 2019, exports  of mining products, specifically copper, which were previously non -existent, 
have become more prominent, accounting for 56% of all goods exported in 2020. This shift has 
owed much to the opening of a copper mine in Panama in 2019. The country has also fou ght to 
sustain its efforts to reduce the public deficit and the balance -of-payments current account deficit.  
4.10.  These are general challenges we face in all the countries of the region, and we are fully 
confident that strengthening our integration and building  our policies constitute key success factors 
for gradually resolving these issues.  
4.11.  We congratulate the Panamanian authorities for the efforts and achievements made over the 
period covered by its Trade Policy Review. We consider that the initiatives underta ken are helping 
to strengthen the country domestically as well as fostering consolidation of our region's position in 
the world.  WT/TPR/M/421 • Panama  
 
- 13 - 
 
  4.12.  We also express thanks for the replies kindly provided in response to the questions we raised 
during the review. We wish Panama  and the delegation today a successful conclusion to this Trade 
Policy Review.  
ARGENTINA  
4.13.  We would like to join other Members in welcoming the delegation of Panama, led by 
H.E. Linda  Castillo, Vice -Minister for International Trade Negotiations.  
4.14.  We thank Pan ama and the Secretariat for their reports, which provide a comprehensive 
overview of this Member's trade policies. We also thank H.E.  Ambassador  Laurie  Lo for his 
observations and comments, which have enabled us to deepen our understanding of Panama's trad e 
practices and of its economic environment.  
4.15.  Panama is an important trading partner for Argentina. In 2020, bilateral trade amounted to 
USD 278 million. We export mainly fuels, animal or vegetable fats and oils, and pharmaceutical 
products to Panama. In re turn, Panama supplies us with textiles, machinery, vehicles, tobacco, and 
rubber and articles thereof.  
4.16.  In recent years, trade between our countries has increased significantly. However, it is still 
far from reaching its full potential. We believe that grea t opportunities remain for trade in food, 
medicaments, agricultural machinery and within the automotive industry.  
4.17.  The economic crisis caused by the pandemic had a major impact around the world, above all 
in developing countries. We recognize that it presen ted Panama with various challenges, particularly 
with respect to the transit of goods, and we welcome the measures taken to support MSMEs. We 
also highlight the efforts made to diversify its exports, as well as the gradual incorporation of 
renewable source s into its energy mix.  
4.18.  We also wish to underline the importance of measures relating to customs procedures and 
trade facilitation, which are of particular importance given that 2.3% of world trade transits through 
the Panama  Canal, as indicated in the Secr etariat's report.  
4.19.  Argentina also welcomes Panama's active participation in the WTO's activities and bodies. We 
would like to highlight the excellent work we have been undertaking with the delegation of Panama 
in the group of countries known as "Los 6LATS",  as part of negotiations to reach an agreement on 
fisheries subsidies. Elsewhere, both our countries participate in the Informal Working Group on Trade 
and Gender.  
4.20.  We wish to take this opportunity to reiterate our intention to work together with Panama and 
all other Members at the postponed MC12 to achieve tangible outcomes aimed at creating a fairer 
multilateral trading system and responding to the needs of developing countries.  
4.21.  We also take this opportunity to stress Argentina's desire to contin ue to expand its trade 
relations with Panama. We reiterate that Argentina stands ready to consolidate our bilateral ties in 
the fields of agricultural cooperation, the prevention of African swine fever and cooperation in 
biotechnology.  
4.22.  Lastly, in the conte xt of this Trade Policy Review, we have submitted a question to Panama 
on exports of meat and dairy products and import requirements stipulated by Panama. We give our 
thanks in advance for the reply provided, which will be duly considered by our authoritie s in 
Buenos  Aires.  
4.23.  In addition to reiterating our appreciation of this renewed opportunity to exchange reflections 
on Panama's trade practices, we would like to draw attention once again to the importance of all 
aspects of this exercise in transparency. We  wish the Panamanian authorities a successful conclusion 
to this review.  
  WT/TPR/M/421 • Panama  
 
- 14 - 
 
  CHILE  
4.24.  We welcome the delegation of Panama, led by H.E.  Linda  Castillo, Vice -Minister for 
International Trade Negotiations.  
4.25.  We also welcome our friend Ambassador Alfredo  Suescum and  his team from the Mission to 
the WTO. In addition to his duties as representative of Panama, we wish to thank him for his work 
as coordinator of the Latin American and Caribbean Group (GRULAC), and in particular for his 
comprehensive reports.  
4.26.  We appreciat e the important work carried out by both the Secretariat and Panama in preparing 
the respective reports and we congratulate the discussant, Mr  Laurie  Lo of Hong  Kong,  China.  
4.27.  Chile and Panama agree on the importance of a rules -based and inclusive multilater al trading 
system, considering how important international trade is for both  countries.  
4.28.  In the report that it prepared for this review, Panama highlights how important its 
geographical location and the Canal have been for its economy. It has created favour able conditions 
for the logistics sector and encouraged market openness, and it promotes economic diversification. 
As a result, it has attained high levels of competitiveness in sectors with a large exposure to 
international markets, which requires a trade  policy framework that ensures predictability and 
stability.  
4.29.  As the world's third -largest user of the Panama  Canal, Chile appreciates this evaluation but is 
also monitoring policies and measures that may have an impact on transit through this important 
transport route.  
4.30.  Economic and trade relations between Chile and Panama are governed by a free trade 
agreement, which entered into force on 7  March  2008.  
4.31.  Panama is the main Central American destination for outward foreign direct investment from 
Chile and there  are more than 20  Chilean companies present in various sectors, including energy 
and industry. This is why some of our questions concern the investment regime. I take this 
opportunity to recognize Panama's renewed participation in the Joint Initiative on I nvestment 
Facilitation.  
4.32.  As far as environmental matters are concerned, since 2016 our countries have been 
developing a work plan for environmental cooperation, which includes some of Chile's priority areas 
such as environmental governance, strategic enviro nmental assessment, environmental impact 
assessment, and information and environmental economics.  
4.33.  We also note the adoption of an ISO standard on gender equality in private organizations and 
companies, the launch of the Mujer EmprendExport programme in 202 1 and Panama's participation 
in the Informal Working Group on Trade and Gender.  
4.34.  We recognize the growth in recent years of the mining sector, including copper mining, as 
detailed in the reports prepared by both Panama and the Secretariat. This topic is a f eature of our 
relationship and serves as an area of cooperation between our countries.  
4.35.  At the multilateral level, and particularly within this Organization, Panama is a constructive 
partner whose views we share on a number of matters. For example, we are c o-sponsors of the 
statements on trade and environmental sustainability, environmentally sustainable plastics trade 
and fossil fuel subsidy reform.  
4.36.  In addition to its questions on investments, Chile raised questions in connection with this 
review on competi tion policies, trade defence, and financial and insurance services. We are grateful 
for the replies to these questions.  
4.37.  Lastly, we wish Panama a successful third Trade Policy Review.  WT/TPR/M/421 • Panama  
 
- 15 - 
 
  CANADA  
4.38.  Canada is pleased to participate in the third  Trade Policy Review of Panama. We join other 
WTO Members in welcoming H .E. Vice-Minister  Castillo and the other members of the delegation 
from Panama. We would like to thank the Government of Panama and the Secretariat for their 
reports.  
4.39.  Canada would like  to begin by congratulating Panama on the strong recovery its economy has 
experienced since the start of 2021. We recognize the difficulties experienced by Panama and 
Panamanians during this time, and the exceptional measures taken to manage the pandemic, 
stabilize the economy and enable this recovery.  
4.40.  Canada would also like to congratulate Panama for the continued improvement of its trade 
and investment regime since 2013, and for being an active participant in the multilateral trading 
system. Our trade an d investment relationship will continue to be strengthened through the 
Canada -Panama Free Trade Agreement, along with parallel agreements on environment and labour. 
We look forward to continuing to expand our bilateral trade relationship.  
4.41.  Canada would like  to recognize and thank Panama for its support of the Statement on Trade 
and Environmental sustainability. We also recognize Panama 's participation as an observer to the 
WTO Agreement on Government Procurement and welcome Panama 's participation at meetings  of 
the WTO Informal Working group on Trade and Gender. We encourage Panama to continue and 
expand its engagement regarding inclusive trade and would welcome Panama 's consideration in 
joining the Inclusive Trade Action Group and the Global Trade and Gender  Arrangement (GTAGA), 
sponsored by Chile, New  Zealand, Mexico and Canada. In the context of the impasse at the 
Appellate  Body, Canada would also encourage Panama to consider joining the Multi -Party Interim 
Appeal Arbitration Arrangement as soon as possible  to ensure binding dispute settlement with access 
to appellate review in its disputes with other participants. Canada would also encourage Panama to 
participate in the Joint Statement Initiative on Services Domestic Regulation as a way of further 
supportin g services trade.  
4.42.  Canada appreciates the good record of Panama in submitting agriculture notifications and 
would encourage it to make similar efforts in regards to subsidies and quantitative restrictions. 
Canada does take note that Panama is exceeding its annual agriculture domestic support limits by 
a significant margin in the provision of product specific support to rice. Canada encourages Panama 
to undertake the necessary domestic reforms to its rice program to be consistent with their WTO 
domestic suppo rt commitments  
4.43.  Panama further expanded its access to the global trading network by securing five  new trade 
agreements, such as that with the Central American Common market. Recent infrastructure 
investments, such as the extension of the Panama  Canal, the Panama  City metro network among 
others will strengthen its position as a global logistics hub and an attractive place to invest. Canada 
particularly notes the ratification of the Trade Facilitation Agreement in 2015.  
4.44.  Canada -headquartered mining firms a re making a significant economic contribution to 
Panama through large investments. We applaud Panama 's initial steps including joining the 
Intergovernmental Forum on Mining and Metal and undertaking a national dialogue on the mining 
industry in partnership  with the InterAmerican Development Bank. Canada hopes that Panama 
continues with reforms in this area, which will improve state management of the resource sector 
and foster a stable and transparent environment for resource industry investors.  
4.45.  Canada is en couraged by the legislative reforms Panama has made to improve public 
contracting, including the new public private partnership law and accompanying Secretariat. Canada 
believes that increasing foreign participation in capital projects will help Panama rea lise its 
infrastructure goals and contribute to post pandemic economic recovery and looks forward to 
exploring possible collaborations with Panama in planning and execution of P3 projects.  
4.46.  In conclusion, we encourage the Government of Panama to continue i mplementing measures 
aimed at ensuring respect for and the use of international institutions and international standards of 
business ethics, good governance and transparency. We look forward to a constructive exchange of WT/TPR/M/421 • Panama  
 
- 16 - 
 
  views. Finally, we thank Panama for  answering all of the questions from Canada submitted before 
the deadline.  
DOMINICAN  REPUBLIC  
4.47.  Firstly, we wish to extend a virtual welcome to Her Excellency Ms  Linda  Castillo, Vice -Minister 
for International Trade Negotiations, and her delegation, in parti cular Ambassador Alfredo Suescum, 
Permanent Representative of Panama to the WTO.  
4.48.  We also congratulate the discussant, Mr  Laurie  Lo, Permanent Representative of 
Hong Kong,  China to the WTO, and the Secretariat for preparing the report.  
4.49.  The Dominican  Republi c and Panama enjoy very good bilateral relations and trade between 
the two  countries has remained smooth, with an annual growth rate of 4%.  
4.50.  During the period 2020 –2021, the Dominican Republic's imports from Panama amounted to 
a total of USD  148,741,574.45.  The main items being imported are agricultural products, 
agro-industrial products, marine products and industrial products.  
4.51.  Furthermore, exports from our country to Panama amounted to USD  119,091,862.94. The 
main products that the Dominican  Republic expor ts to Panama are fresh or dried avocados, spirits 
for the preparation of alcoholic beverages, medical and pharmaceutical products, carboys of 
polycarbonate or of PET, wire of iron or non -alloy steel, and electrical equipment.  
4.52.  Panama ranks thirtieth among t he Dominican  Republic's trading partners for exports and 
forty-fifth for imports. A partial scope trade agreement between the Dominican  Republic and Panama 
has been in force since 2003. The two  countries also have an agreement for the reciprocal protection  
of investments, which has been in force since 2006.  
4.53.  In September  2021, the Dominican  Republic, Panama and Costa  Rica formed the Alliance for 
Development in Democracy. The text of the Puerto Plata Statement, issued on 11  December  2021 
at a summit held between the heads of State of the Alliance, expresses support for the WTO and the 
multilateral trading system as a tool for promoting sustainable and inclusive economic growth. The 
Statement also expresses the willingness of the respective Governments to d eepen trade 
liberalization.  
4.54.  We welcome Panama's implementation of nearly 85% of the Agreement on Trade Facilitation, 
and we congratulate it on granting preferential treatment to services and service providers from 
least developed countries (LDCs).  
4.55.  Lastly, we would like to thank Panama for its timely responses to the Dominican  Republic's 
questions relating to various points contained in the report.  
ICELAND  
4.56.  It is with pleasure that Iceland welcomes the distinguished delegation of Panama to their 
Trade Policy Review today. We also express appreciation to the WTO Secretariat and Panama for the 
reports prepared, as well as to the discussant, for the excellent framing of the issues for our 
discussion today.  
4.57.  First, I would like to mention the broad -based free trade  agreement between the Central 
American States and the four EFTA states, Iceland, Liechtenstein, Norway, and Switzerland that 
entered into force in 2014. The FTA, which covers trade in goods, trade in services, investment, 
competition, the protection of in tellectual property rights, government procurement, trade and 
sustainable development as well as cooperation, has proven to serve our countries well.  
4.58.  It is well known fact that improving gender equality and women 's economic empowerment 
benefits economies i n many concrete ways, for example by having a positive effect on trade and 
contributing to increase in economic growth.  WT/TPR/M/421 • Panama  
 
- 17 - 
 
  4.59.  The COVID -19 pandemic is heavily affecting all countries and Panama is no exception having 
seen a sharp contraction in their economy. Th is health crisis has also unveiled some new challenges 
relating to trade and trade related activities as it is widely recognised that women are affected much 
harder that men, including when it comes to participating in trade.  
4.60.  Therefore, Iceland welcomes Pa nama 's actions taken to introduce policies and programmes 
specifically targeted to encourage women 's participation in national and international trade. As 
presented in the Trade Policy Report, Panama 's aim is to increasing women 's participation in trade 
by promoting more gender equality.  
4.61.  Improved data collection and gender -based analysis are important tool when it comes to 
developing gender -based trade policies. So is the sharing of best practices of respective experiences 
relating to those policies and pro grams. This is a work that the Informal Working Group on Trade 
and Gender has been focusing on and we look forward to taking this work further with the proposed 
Joint Ministerial Declaration on the advancement of gender equality and women 's economic 
empowe rment within trade.  
4.62.  As one of the co -chairs of the Informal Working Group on Trade and Gender, Iceland welcomes 
Panama 's constructive participation in the work of the Informal Working Group and Panama 's support 
to the proposed Joint Ministerial Declaration  on the advancement of gender equality and women 's 
economic empowerment within trade.  
4.63.  Iceland has submitted in advance written questions on the participation of women in the 
economy of Panama. We welcome the replies as the answers will be useful in gatheri ng best practices 
in the promotion of gender -equality within trade.  
4.64.  Iceland appreciates Panama 's active engagement in WTO and their continued support for the 
multilateral trading system. We wish the delegation of Panama every success for their third Trade 
Policy Review.  
SINGAPORE  
4.65.  Singapore extends a very warm welcome to the Vice -Minister of International Trade 
Negotiations, Ms  Linda  Castillo and her delegation, who are participating virtually from Panama  City. 
Let me begin by expressing our appreciation to Panama for its comprehensive Government Report 
and Statement. Our appreciation also goes to you, Chair, the Discussant Permanent Representative 
of Hong  Kong,  China, Laurie  Lo, as well as the Secretariat for their valuable insights. Allow me  to 
make three  points.  
4.66.  First, Singapore and Panama are small trade -dependent countries that share longstanding 
and strong economic ties. In 2020, Panama was Singapore 's second  largest trading partner in 
Latin America and the Caribbean, with total bilateral trade in goods amounting to USD  3.7 billion. 
Both Panama and Singapore adopt an open and progressive trade outlook, which is reflected in the 
numerous free trade agreements that both our countries have concluded. In fact, the 
Panama -Singapore Fre e Trade Agreement (PSFTA) signed in March 2006 was Singapore 's 
first bilateral FTA with a Latin American country. The Panama -Singapore FTA is a broad -based, 
forward -looking, and comprehensive agreement, covering many areas, including trade in goods and 
services, customs procedures, financial services, e -commerce, and government procurement. 
Nonetheless, there is room for us to further deepen our bilateral cooperation through closer 
collaboration in new areas such as innovation, and research and development,  as well as 
strengthening our air and sea connectivity. We look forward to working closely with Panama to 
leverage these opportunities to strengthen our economic relations.  
4.67.  Second, Singapore commends Panama for its efforts to alleviate the economic impact s of the 
COVID -19 pandemic. The fiscal, income, and monetary measures adopted by the Government, 
including restructuring the budget to channel more resources to the health sector and the Panama 
Solidarity Plan were a step in the right direction. Despite Pa nama 's economy suffering a contraction 
of 17.9% in 2020 due to the onset of the pandemic, these efforts have allowed the economy to 
rebound in 2021 with an estimated GDP growth of 9.9% forecasted by the World  Bank. However, 
further steps can be taken to lo wer public debt to GDP ratio which reached over 69% in 2020. In WT/TPR/M/421 • Panama  
 
- 18 - 
 
  this regard, the Panamanian government 's strategy to pursue an open economy by promoting 
exports and attracting foreign investment to generate revenue is crucial.  
4.68.  Third, Panama has played a co nstructive and active role at the WTO. As noted in the 
Secretariat 's report, "The multilateral system is of great importance to Panama as an economy that 
is heavily reliant on international trade -related activities, and thus advocates a rules -based, inclus ive 
multilateral trading system ". For example, Panama ratified the Trade Facilitation Agreement in 2015, 
and has supported negotiations and initiatives to eliminate distortions in the agriculture and fisheries 
sector. Panama is also a co -sponsor of the Joi nt Statement Initiative on E -Commerce, and the Trade 
and Environmental Sustainability Structured Dialogue, which underlines its efforts to support 
initiatives that will ensure that the WTO remains relevant for the 21st century. However, it is 
regrettable t he Panama has withdrawn from negotiations on (a)  Investment Facilitation for 
Development, (b)  Micro Small and Medium -sized Enterprises, and (b)  Domestic Services Regulation 
which represent important areas that will strengthen the multilateral trading syste m. We encourage 
Panama to consider re -joining these negotiations and we look forward to welcoming Panama back 
when it is ready.  
4.69.  In conclusion, Singapore is confident that Panama will continue to play a constructive role at 
the WTO and the Panamanian Missi on under the able leadership of Ambassador  Alfredo  Suescum 
will continue to play an important role in strengthening the WTO. We wish Panama every success 
for its third  TPR. 
JAPAN  
4.70.  Japan would like to welcome the delegation of Panama, headed by H .E. Linda  Castillo, 
Vice-Minister of International Trade Negotiations, Ministry of Commerce and Industry, as well as 
H.E. Ambassador  Alfredo  Suescum, Permanent Representative  of Panama to the WTO. Japan would 
also like to thank the WTO Secretariat and the Gove rnment of Panama for their reports submitted 
for this review process, and the Discussant, Mr  Laurie  Lo, Permanent Representative of 
Hong Kong,  China  for his insightful remarks.  
4.71.  While we acknowledge that the COVID -19 pandemic has had adverse impacts on Pana ma's 
economy, Japan believes that with the efforts of the Government of Panama as well as of its business 
community, Panama 's economy will continue to "grow more and better " under the multilateral 
trading system in line with the goal it has set out in its national strategic plan. Today, Japan would 
like to comment on three  points.  
4.72.  First, we are pleased to say that Japan and Panama have a strong economic relationship. 
Noting that Panama is a major hub for international maritime transportation, Japan is commi tted to 
supporting Panama 's economic development. In this connection, last  July, the then Japanese 
Minister for Foreign Affairs, Mr  Motegi Toshimitsu, visited Panama and had a meeting with Panama 's 
Foreign Minister, H .E. Ms. Erika Mouynes. The Ministers ag reed that green and digital technologies 
are the key to the post -COVID -19 economy and that they would promote specific cooperative 
measures, including high -quality infrastructure development.  
4.73.  Second, we welcome Panama 's active engagement in the negotiation s at the WTO. 
In particular, we value its participation and contribution to the Joint Statement Initiatives (JSIs) as 
Japan believes that such negotiations by willing and committed Members are critical for improving 
the function of the WTO 's rules negotiat ions. 
4.74.  Third, we appreciate that Panama fosters economic development by maintaining legal stability 
and promoting foreign investment. We believe that improvement of the investment environment is 
key to achieving a better business environment. In fact, with the reform efforts by the Government 
of Panama, Japanese companies have been keen to invest in Panama. For example, Japanese 
companies are participating in the special regime for the establishment and operation of 
multinational business headquarters ( the SEM special regime), which was launched in 2007. 
Japanese companies are also interested in the special regime for the establishment and operation 
of multinational companies providing manufacturing -related services (the EMMA special regime), 
which was i ntroduced in 2020.  WT/TPR/M/421 • Panama  
 
- 19 - 
 
  4.75.  In conclusion, Japan appreciates Panama 's active participation in this TPR review today as 
well as in the WTO agenda. We also commend the efforts made by Panama to improve its trade 
environment since the last review.  We wish the delegati on of Panama a very successful and fruitful 
Trade Policy Review.  
COLOMBIA  
4.76.  We extend a warm welcome to the delegation from Panama, led by H.E.  Linda  Castillo, 
Vice-Minister for International Trade Negotiations, and we also welcome our colleague and friend 
Ambassador Alfredo Suescum, Permanent Representative of Panama to the WTO.  
4.77.  We greatly appreciate the detailed analysis and feedback provided by the discussant, 
Mr Laurie  Lo, Permanent Representative of Hong  Kong,  China, and the work carried out by the 
Secre tariat and the Panamanian authorities in preparing their reports for this third Trade Policy 
Review of Panama.  
4.78.  Allow me also to take the opportunity to thank Panama for the seriousness and diligence with 
which it responded to Colombia's questions concernin g this review, which touched upon a wide range 
of topics, including customs brokers and rules of origin, as well as the clarification of some important 
concerns in relation to the phytosanitary requirements governing agricultural products imported by 
Panam a from its trading partners, including Colombia.  
4.79.  Panama shares a border with Colombia and maintains very close trade, cultural, literary, 
culinary and diplomatic relations with my country. Our two  countries are united by very close 
historical bonds, and ou r ties of fraternity are there for all to see. Furthermore, Panama has one of 
the most dynamic economies in Latin  America, despite two  difficult years resulting from the 
pandemic, and its structural economic and fiscal conditions have a direct impact on th e Colombian 
economy. The dynamism and openness of Panama's market are beneficial for the entire region, and 
particularly its neighbours, including our country.  
4.80.  In the area of trade, Colombia has traditionally recorded a trade surplus with Panama. In 
2020, Panama accounted for 5% of Colombia's total world exports (in terms of countries, its 
fourth  largest export destination).  
4.81.  Regarding imports, in 2020, the main products imported from Panama to Colombia were 
liqueurs and spirituous beverages (21%.), articles  of jewellery (12%), medicaments for human use 
(10%) and protective face coverings and masks (5%). In addition to the aforementioned items, in 
the past year Colombia has started importing ferrous waste and scrap in significant and growing 
volumes (18%).  
4.82.  With respect to tariff policy, we note that Panama has a relatively low average tariff level with 
a simple average applied MFN tariff of 6.9%, which has been reduced over time, beyond the 
information provided in the Secretariat's report. In the area of custo ms procedures and foreign trade, 
we welcome the progress made and concrete actions carried out during the period under review, 
which built on the commitments arising from the WTO's Trade Facilitation Agreement.  
4.83.  Agricultural trade between our two countries is very important and we believe that we can, 
and should, promote it further. Panama maintains strict controls at its borders so that it can protect 
animal and plant health and therefore continue to develop its agricultural sector. During the review 
period , Members questioned five  plant and animal health measures notified by Panama, which are 
of interest to Colombia.  
4.84.  With respect to services, we also highlight the progress Panama has made in recent years on 
financial and telecommunications inclusion, includ ing improvements in the technologies and 
standards used, which will unquestionably contribute to a more dynamic Panamanian economy.  
4.85.  It is also important to emphasize that, considering the importance of the Panama Canal and 
the country's commitment to forei gn ocean -borne trade, Panama has the largest shipping register 
in the world, a product of the flexible registration procedures and credits it provides. It also offers 
various types of incentives to shipyards, as well as marine insurance and finance.  WT/TPR/M/421 • Panama  
 
- 20 - 
 
  4.86.  Concer ning investments, according to figures provided by the Central Bank of Colombia, 
Colombia's foreign direct investment in Panama in 2020 was USD  276.7  million. For the same period, 
Panama's foreign direct investment in Colombia amounted to USD  612.9  million . These levels reflect 
the traditional state of affairs and demonstrate the continuous flow of reciprocal investment between 
our two  countries.  
4.87.  When it comes to participating in the international trading architecture, Panama attaches 
great importance to re gional integration as one of the main underpinnings of its foreign policy. The 
documents from the Secretariat and the Government also reflect the importance to Panama of 
preferential trade agreements, principally in Central America, although more recently momentum 
has been growing in markets further afield. In this regard, Panama participates in a number of trade 
agreements, including the Central American Common Market (CACM) and the Latin  American 
Integration Association (LAIA). In the past few years, six  trade agreements with Mexico, Israel, 
Trinidad  and Tobago, the Republic of Korea, the United  Kingdom and the European Free Trade 
Association (EFTA) have all entered into force.  
4.88.  Partial Scope Agreement No.  29 (updated by new protocols in 2005 and 2013) has been in 
force between Colombia and Panama since July  1993. Under this Agreement, Colombia grants 
preferences on over 300  products and receives preferences on over 80  products.  
4.89.  Panama is a serious and proactive participant in the multilateral system. Panama  supports 
the negotiations on services and initiatives to eliminate distortions in agriculture and fisheries, a 
matter on which, as you know, it is closely associated with Colombia as part of the group known as 
"Los 6LATS". Panama also participates constru ctively in discussions on new trade -related topics. 
Furthermore, since the previous review in 2014, Panama has regularly notified its trade and related 
measures.  
4.90.  We therefore recognize the commitment of this Member to the multilateral trading system 
and its fundamental principles. We also recognize and appreciate the country's active participation 
in the ongoing negotiations and the functioning of the regular bodies.  
4.91.  Trade relations between Colombia and Panama are very close. We are neighbours and our 
economies are mutually nutritive so, on the one hand, the positive developments reported for this 
trade policy review are good for Colombia as well as Panama. On the other hand, we are facing 
common challenges in relation to the COVID -19 pandemic, and we are going to continue working 
together in the interests of both countries.  
4.92.  I will conclude by wishing Panama and its delegation a successful Trade Policy Review. We 
extend our warm appreciation to the team in Geneva for the cooperative relationship between our  
two Missions and reiterate our ongoing support for the work of our colleague and friend, 
Ambassador  Suescum, Deputy Permanent Representative Krizia  Matthews and the rest of the team 
representing Panama in Geneva.  
UNITED  STATES  
4.93.  Panama occupies a unique pla ce in international trade. The Panama  Canal connects two  great 
oceans and plays a pivotal role in the flow of goods around the world. A large part of Panama's 
economy is predicated on the importance of moving goods more efficiently and providing related 
services to support that activity. With the expansion of the Panama  Canal completed in 2016, 
Panama's role in international trade has become even more important.  
4.94.  As Panama's number  one trading partner, the United  States has a strong, positive, and 
growing commercial relationship with Panama. According to US trade statistics, our total two -way 
goods trade during the first  eleven months of 2021 was US D 8.1 billion. US goods exports to Panama 
were US D 7.4 billion and US goods imports totalled  USD 711 million.  
4.95.  Panama remains one of the leading countries in its region in attracting foreign direct 
investment. Net FDI flows into Panama continued at an accelerated pace since the previous TPR until 
falling in 2020 as COVID -19 interrupted international econom ic activity. We applaud Panama for 
implementing policies that have resulted in sustained inflows of FDI and encourage Panama to take 
steps to further diversify areas for FDI. This inflow is a sign of the confidence that foreign investors WT/TPR/M/421 • Panama  
 
- 21 - 
 
  have in the econom ic potential and stability of the Panamanian market. The United  States has long 
been one of Panama's largest sources of foreign direct investment.  
4.96.  The Secretariat's report noted that Panama has regularly made notifications to the WTO. We 
encourage Panama t o increase its efforts towards regulatory transparency and to make more 
extensive and effective use of WTO notification procedures, for example in the areas of sanitary and 
phytosanitary measures and technical barriers to trade. Panama should take credit f or all the positive 
steps it has made in many of these areas.  
4.97.  We encourage Panama to support the initiative by 20  cosponsors for a General Council 
Decision to Enhance Transparency and Improve Compliance with Notification Requirements under 
WTO Agreements.  This proposal is designed to improve support for Members facing difficulties in 
fulfilling their notification obligations and we would welcome the constructive input from Panama.  
4.98.  We would also like to highlight Panama 's contribution in the area of trade f acilitation and in 
particular in its active participation in the Trade Facilitation Committee.  
4.99.  We do have some areas of specific concern that I will briefly highlight. Panama has made 
efforts to improve its intellectual property regime, including by updati ng its legislative framework 
and improving enforcement against piracy and counterfeiting. However, concerns remain including 
in the area counterfeited goods and pirated creative works. The United  States continues to engage 
closely with Panama to ensure its  effective implementation of all IP obligations.  
4.100.   The United States submitted detailed questions regarding the possible effects on trade of 
Panama 's dissolution of the Panamanian Food Safety Agency and on Panama 's technical 
requirements for onions and potat oes; the United  States has raised the latter issue several times at 
the Committee on Technical Barriers to Trade and raised also it at the November  2021 Council for 
Trade in Goods.  
4.101.   We have submitted a short list of questions about specific issues in Panam a's trade regime. 
We look forward to reviewing and discussing Panama's responses.  
4.102.   The United  States is committed to building on our current strong trade and economic 
partnership with Panama and supports Panama's progress along the path of global economic 
integration that it has so strongly pursued. We commend Panama on its active participation in the 
WTO, for its commitment to the multilateral trading system. We particularly appreciate the active 
and constructive leadership of Ambassador  Suescum here in Gen eva.  
4.103.   We remain committed to continued close cooperation with Panama, to deepen our 
relationship bilaterally as well as in the WTO.  
CHINA  
4.104.   Let me first welcome the Panama delegation headed by Linda  Castillo,  Vice-Minister of 
Ministry of Commerce and Industry to the third  Trade Policy Review of Panama. I also wish to extend 
my appreciation to the Secretariat for the excellent work and thank our distinguished discussant, 
Mr Laurie  Lo for your insightful remarks.  
4.105.   Panama has a very open economy and is a m ajor centre for the distribution and 
re-exportation of merchandise. We note with pleasure that since the previous review in 2014, 
Panama has actively promoted the sustainable trade policy and encouraged openness in its market. 
As a result, Panama experienc ed sound economic development with an annual average of 4.7% real 
GDP growth over the period from 2014 to 2019. Despite the impact of the C OVID -19 pandemic, the 
World  Bank forecasts a real GDP growth of 9.9% for Panama in 2021.  
4.106.   International trade and fore ign investment are very important to Panama's economy. We 
welcome Panama 's various trade and foreign investment promotion incentives, in particular, the cut 
on applied MFN tariff from 7.6% in 2013 to 6.8% in 2021, and implementation of the special regime 
for the establishment and operation of multinational business headquarters. These incentives have 
delivered tangible results. We note with pleasure that Panama 's international trade structure has WT/TPR/M/421 • Panama  
 
- 22 - 
 
  been diversified, the trade volume has maintained relevant st able before C OVID -19 pandemic, and 
a large number of multinational corporations have been established in recent years.  
4.107.   We also appreciate Panama 's advocacy to the multilateral trading system. Panama has 
ratified the Trade Facilitation Agreement. It has al so been actively engaging in the ongoing 
negotiations on services, agriculture and fisheries. We highly commend Panama participating in the 
Joint Statement Initiative on Investment Facilitation for Development, working together with the 
other over 110  Members of the WTO to further improve transparency in investment policy and 
simplify and accelerate investment procedures. We also applaud Panama 's efforts, as a coordinator 
of the Group of Article  XII, to pursue a more level playing field for the new accessio n Members and 
make the multilateral trading system fairer.  
4.108.   Bilaterally, China -Panama trade and economic relations developed rapidly since the 
establishment of diplomatic relations in 2017. China has become the largest trading partner of 
Panama, and the se cond largest user of the Panama  Canal. According to China 's statistics, the 
bilateral trade volume, in the first  ten months in 2021, increased by 27 %, reaching over 
USD 10 billion, and Panama's export to China went up by 187 %. In addition, more than 20  Chinese 
enterprises have set up regional headquarters in Panama in recent years. Panama is also among the 
first group of Latin  American countries taking part in the Belt and Road Initiative.  
4.109.   Looking ahead, China is willing to deepen economic ties with Panama  both bilaterally and 
multilaterally through various ways, including accelerating the Free Trade Agreement negotiation 
and strengthening investment cooperation in digital and green economy.  
4.110.   Chair, to better understand Panama 's trade and investment regimes and policies, China 
submitted written questions to Panama. We thank Panama for the timely responses to our questions.  
4.111.   Finally, I wish the third  TPR of Panama a full success.  
HONG  KONG,  CHINA  
4.112.   I would like to start by extending a warm welcome to the Panamanian delegation led by 
H.E. Linda  Castillo, Vice -Minister for International Trade Negotiations. I would also like to express 
our gratitude to the Secretariat for preparing the comprehensive reports for this review.  
4.113.   Panama is Hong  Kong,  China 's ninth  largest trading partner in Latin  America and our 
second  largest services partner in that region.  Our bilateral merchandise trade amounted to 
USD 176 million in 2020.   
4.114.   Panama and Hong  Kong,  China share much commonalties. To name a few: we are both 
highly international trade oriented and services -based economies; we pride ourselves as renowned 
logistics hubs; and we advocate a robust rules -based multilateral trading system. In this connection, 
we welcome Panama 's pledge in its Government Report that Panama is committed to the multilateral 
trading system. Such a commitment is certainly most pertinent amidst the threatening rise of 
protectionism and unilateralism in the international trade scene.  
4.115.   We have the following observations on Panama 's trade poli cies. 
4.116.   First, trade facilitation. Since the last trade policy review in 2014, Panama ratified the 
Agreement on Trade Facilitation (TFA) in 2015.  Panama scheduled the vast majority of its 
commitments under Category  A for immediate implementation with seven C ategory  B commitments 
and seven Category  C commitments.  
4.117.   During the review period, Panama has implemented several trade facilitating measures. For 
example, Panama launched the first  phase of its Authorized Economic Operation Programme in 2016 
and the Mariti me Single Window in 2017, and is digitalising its customs administrative process. We 
commend Panama for its continuous efforts in facilitating trade and we encourage it to intensify its 
efforts with a view to fully implementing the TFA.  WT/TPR/M/421 • Panama  
 
- 23 - 
 
  4.118.   We note that Panama  continues to impose an administrative charge to importers for customs 
services (TASA) for each customs import declaration. Besides, imports are still subject to various 
indirect taxes including the tax on the Transfer of Movable Property and the Provision  of Services 
(ITBMS), the Selective Consumption Tax (ISC) and the Consumption Tax on Petroleum -Derived Fuels 
(ICCDP). With a view to further streamlining the customs procedures, we encourage Panama to 
review the need of import charges and taxes, and to con sider eliminating or reducing the internal 
charges and taxes on imported goods.  
4.119.   Second, tariffs. We are pleased to note that Panama has bound all of its tariff lines, with 
99.7% being ad valorem tariffs. The simple average applied MFN rate has also dropped  from 7.6% 
in 2013 to 6.8% in 2021 and that nearly half of its tariff lines are duty -free.  
4.120.   However, we note that the average tariff for agricultural products has increased from 13.7% 
to 15.3%. There are also increases in the percentage of tariff lines whi ch are at domestic and 
international tariff peaks. Moreover, Panama 's applied MFN  tariff in 2021 has exceeded the bound 
tariff in a few tariff lines and sublines. We urge Panama to bring these applied tariffs in conformity 
with their bound rates. We call o n Panama to keep up its efforts of lowering its applied tariff rates 
with a view to fostering more trade to the benefit of the economy and customers.  
4.121.   Finally, services. Panama remains a services -based economy, with services accounting for 
70% of GDP and 67.5% of total employment in 2020. The most important services sectors in 2020 
were wholesale and retail trade; transport, storage and communications; financial intermediation; 
and real estate, business and rental activities.   
4.122.   We appreciate Panama 's effort s in launching various measures, including amending the legal 
framework in order to align with international supervisory standards and removing restrictions on 
participation of foreigners in certain services sectors. We encourage Panama to continue pursuin g 
progressive liberalisation in trade in services.  
4.123.   Chair, Panama is not only a valued trading partner of Hong  Kong,  China, but also a close 
working partner here in WTO. We appreciate Panama 's active participation in the on -going fisheries 
subsidies negotia tions. We are glad that Panama has recently re -joined the Joint Statement Initiative 
on Investment Facilitation for Development. We also look forward to working with Panama and other 
like-minded Members to revitalize the WTO dispute settlement mechanism. L astly, we wish Panama 
a very successful Trade Policy Review.  
EUROPEAN  UNION  
4.124.   On behalf of the European  Union, I would like to welcome the Panamanian delegation led by 
Linda  Castillo. I would like to extend our appreciation to Permanent Representative Lauri e Lo of 
Hong Kong,  China for giving us his views on the main economic and trade trends in Panama, and on 
the opportunities and challenges ahead.  
4.125.   The EU welcomes this opportunity to discuss developments in Panama 's trade and economic 
policies and business environment since the previous review in 2014.  
4.126.   During the period under review, Panama has generally implemented a favourable trade 
policy and respected its WTO commitments, as well as those vis-à-vis its Central  American 
neighbours and FTA partners like the EU. The Secretariat report shows that favourable policies have 
been rolled out in a clear and transparent manner with a structured set of legislation and institutions 
promoting and regulating trade and investme nt.  
4.127.   The export free zones have been successful in terms of attracting companies and creating 
jobs. We commend the efforts of Panama to consolidate itself as a logistics hub for international 
trade, increasing transhipment operations and extending the hint erland of its ports in the region. 
Panama 's investment on canal infrastructure is contributing to foster international trade. This policy 
has led to a certain level of economic diversification with a strong performance of transport and 
services sectors.  WT/TPR/M/421 • Panama  
 
- 24 - 
 
  4.128.   Panama 's trade has increased with its main partners during the period under review. The EU 
is and will remain an important partner of Panama, even during this very challenging time linked to 
the pandemic. The EU remains the leading market for Panamanian exp orts, accounting for over a 
quarter (25.5%) of the total in 2020, and is the second  trading partner and the second investor. 
There are a substantial number of EU companies doing business in Panama across different sectors 
who help to diversify the economy further.  
4.129.   Trade and Investment relations between the EU and Panama are governed by the 
EU-Central  America Association Agreement that has been provisionally applied since 2013. Its 
coverage goes beyond trade in goods and services and include investment, inte llectual property 
rights, sanitary and phytosanitary measures, public procurement, technical barriers to trade and 
regional cooperation. I would like to encourage Panama to step up its efforts in favour of regional 
integration to reap the economic benefits  that a more integrated regional market would bring.  
4.130.   On maritime services, we would like to express our concerns regarding the Article 63 of the 
Bill 598 on cabotage adopted on 23  December  2021, which imposes a 75 % ownership requirement 
on companies engage d in maritime services in Panama. This provision seems to be in breach of the 
international commitments of the Republic of Panama. Moreover, the Bill appears to exclude the 
participation of international licensed companies already offering maritime service s in the country. 
Therefore, we believe that this measure is sending contradictory signals to locally -based 
international companies and foreign companies with plans to invest in Panama.  
4.131.   In the field of Sanitary and Phytosanitary measures, the EU regrets th e lack of clarity on the 
processes to follow for international companies to be compliant with SPS requirements to export 
animal products to Panama. The setting up of the new Panamanian Food Agency (APA), has failed 
to date, to provide the transparency and stability required for the system to function adequately.  
4.132.   Furthermore, since the last Trade Policy Review, certain measures have been taken by 
Panama, such as increase of tariffs on certain agricultural goods as well as withdrawal of multilateral 
concessio ns. Given the importance of agricultural trade in our trading relations, we would like to 
invite Panama to be mindful of the importance to keep agricultural flows open.  
4.133.   At the multilateral level, the EU commends Panama on the implementation of all of its 
commitments under the Trade Facilitation Agreement. Both the EU and Panama share a strong 
commitment to the WTO, and we look forward to further working together to strengthen the 
rule-based multilateral trading system. Despite its postponement, achieving a meaningful outcome 
at the WTO 's 12th Ministerial  Conference remains a priority. The EU stresses the need for the WTO 
to show that it has not lost its momentum, and that it is ready to contribute to tackling some of 
today 's most important challenges.  
4.134.   With regard to the Joint Statement Initiatives, we welcome Panama 's participation in the 
e-commerce and investment facilitation negotiations, and express our appreciation for having joined 
all three  WTO environmental initiatives. We also encourage Panama to joi n the Joint Initiative on 
services domestic regulation, which was successfully concluded last  month.  
4.135.   In conclusion, I wish to acknowledge Panama 's efforts and progress since the last review. 
The EU warmly encourages Panama to continue the on -going efforts  to facilitate trade, increase 
investments, and grow its economy in a sustainable way.  
4.136.   On behalf of the EU, I would like to wish Panama every success in this review.  
COSTA  RICA 
4.137.   I would like to welcome the delegation of Panama, led by Vice -Minister, Ms  Linda Castillo, as 
well as Ambassador Alfredo Suescum and his team here in Geneva, and to thank them for their 
report and today's presentation. I would also like to thank the discussant, Mr  Laurie Lo, Permanent 
Representative of Hong Kong, Chi na for his insightful comments and the WTO Secretariat for the 
report.  WT/TPR/M/421 • Panama  
 
- 25 - 
 
  4.138.   Historically, Panama has been an important trading partner for Costa  Rica. Within the 
framework of the WTO, Panama participates as part of the 6LATS group, together with Costa  Rica, 
in the negotiations on fisheries subsidies. In addition, we note its participation in the joint initiatives 
on electronic commerce, the environmentally sustainable plastics trade, facilitation of investment 
for development, and the structured discussions on trade and environmental sustainability.  
4.139.   With regard to the review, we note how, after a period of accelerated expansion, the 
Panamanian economy suffered a major contraction in 2020 due to the impact of the COVID -19 
pandemic, which forced it to take a series of fiscal, monetary and financial measures to deal with 
this crisis.  
4.140.   In this connection, insertion into the international economy and attracting foreign direct 
investment could become an important ally in helping to mitigate the impact of the pandem ic. 
4.141.   A key aspect has to do with the policies promoted by Panama to diversify its energy mix 
through incentives for the use of renewable sources, in order to reduce the effects of climate change 
and its dependence on imported fossil fuels.  
4.142.   In addition, we n ote that services continue to play a key role in the Panamanian economy, 
in particular tourism, which is a sector that accounted for 51% of service exports in 2019. This has 
been one of the sectors most affected by the COVID -19 pandemic, and the need to up date tourism 
regulations to regulate new tourism products has been mentioned as part of the measures taken. In 
this context, could Panama clarify to which tourism products it is referring and what regulatory 
changes are being proposed? Furthermore, given t he importance of the services sector in its 
economy, we would like to encourage Panama to join the initiative on domestic regulation disciplines, 
successfully concluded last month; we believe that its participation will help to improve the business 
climate  and facilitate trade in services.  
4.143.   Despite the positive aspects mentioned above, Costa  Rica reiterates its deep concern about 
the way in which Panama has implemented various sanitary and phytosanitary measures and, more 
seriously, how these measures have h ad a negative impact on agricultural imports from several of 
its trading partners, including Costa  Rica. The application of sanitary and phytosanitary measures 
must be taken in strict compliance with multilateral and regional trade regulations. In this reg ard, 
we respectfully and sincerely call on Panama to adjust its measures to comply with multilateral and 
regional trade regulations.  
4.144.   As part of this Trade Policy Review, Costa  Rica submitted several questions to Panama on 
various elements of its trade poli cy, in particular on aspects related to its provisions on competition 
policy and foreign direct investment, as well as its rules on technical regulations and the 
implementation of sanitary and phytosanitary measures. In this regard, we appreciate the atten tion 
Panama has paid to these questions.  
MEXICO  
4.145.   Mexico warmly welcomes the Panamanian delegation led by the distinguished Vice -Minister 
of International Trade Negotiations, Linda  Castillo.  
4.146.   My delegation also thanks the discussant, Mr.  Laurie  Lo (Hong  Kong,  China), for his excellent 
analysis, as well as the Secretariat for the very comprehensive report.  
4.147.   Bilateral trade with Panama in 2020 was USD  1,197.5  million, making it Mexico's 
third largest trading partner in Central America, but the second largest dest ination for our exports 
in the region.  
4.148.   In addition, in order to strengthen the potential for economic relations between the two 
countries, and in a quest to increase economic integration between Mexico and Panama, in 2014 we 
signed a free trade agreement, which entered into force in July  2015.  
4.149.   Panama is a leading logistics hub for international trade, the Panama  Canal accounting for a 
quarter of the country's GDP, connecting directly to 160  countries, 144  shipping lanes and WT/TPR/M/421 • Panama  
 
- 26 - 
 
  1,700  ports. Since 2007, the Worl d Bank has been conducting an analysis including measuring 
performance along the logistics supply chain within a country that is covered in the Logistics 
Performance Index. According to the latest version of the Logistics Performance Index produced by 
the World Bank, Panama ranks second in Latin America in this ranking, and is in the Top  40 
worldwide out of a total of more than 160  countries. This has led to the development of its services 
sector, especially financial and trade -related services.  
4.150.   Despite the  contraction of Panama's economy in 2020 due to the impact of the COVID -19 
pandemic, the period of economic expansion during part of the period under review (between 2013 
and 2017) is noteworthy, thanks, among other measures, to the works to widen the Pana ma Canal.  
4.151.   It is this and other major infrastructure projects, together with its strategic geographical 
location and service orientation, that will undoubtedly help to boost global maritime trade and 
improve port transhipment operations, enabling it to main tain its position as a major logistics hub 
for regional and global trade.  
4.152.   According to the report, various Panamanian authorities have identified a number of risks 
inherent in the activities that are being carried out in the free zones. For example, allowi ng offshore 
trade in the free zones and the Colon Free Zone (CFZ) could facilitate fictitious foreign trade 
transactions (triangulation, under -invoicing and over -invoicing of goods).  
4.153.   In addition, during the period under review, the Ministry of the Economy and Finance (MEF) 
recorded 12  suspicious transactions in the CFZ and deemed it necessary to monitor how the free 
zones operated, especially in terms of goods invoiced improperly. We would like to know what steps 
Panama has taken to mitigate risks in order to strengthen risk management in the free -zone sector.  
4.154.   There were significant changes in the distribution of tariff rates in Panama during the review 
period. Tariff lines subject to a 0% rate decreased from almost half to one third of the tariff universe, 
while some lines subject to a rate higher than 25% increased. We note, however, that there was no 
increase in the average tariff.  
4.155.   During the review period, Panama opened scarcity quotas for certain agricultural products. 
A prerequisite for participating in  these calls for tenders was for importers to comply with certain 
commitments to purchase raw materials. Other requirements include providing proof of installed 
capacity for the type and volume of the product.  
4.156.   These measures, if not implemented expeditious ly, could further increase such product 
shortages.  
4.157.   Panama has several horizontal and sectoral regimes to promote foreign investment, 
including free -zone regimes. The Secretariat's report notes the creation of a special new regime to 
attract more foreign in vestment (EMMA special regime). More information on the requirements and 
specific eligible sectors of this new programme would be needed.  
4.158.   Mexico and Panama are participating Members in the joint initiative on investment 
facilitation, and we welcome your ac tive and constructive participation in this initiative, as well as in 
the initiative on electronic commerce.  
4.159.   We are confident that Panama's vast experience in promoting small and medium -sized 
enterprises would be of great value to the joint initiative, and  we therefore invite it to reconsider its 
decision to participate in it.  
4.160.   Lastly, I conclude by thanking Panama in advance for the replies to the questions that were 
raised by my delegation. We wish the delegation of Panama every success in this Trade Polic y 
Review.  
  WT/TPR/M/421 • Panama  
 
- 27 - 
 
  THAILAND  
4.161.   Thailand is delighted to participate in the third Trade Policy Review of Panama and join others 
in welcoming to the delegation of Panama led by H.E.  Linda  Castillo , Vice -Minister of Trade 
Negotiations, Minister of Commerce and Industry of Panama.  
4.162.   We would like to thank Ambassador  Laurie  Lo of Hong  Kong,  China, for his insightful 
comments as discussant. We also thank the Government of Panama and the WTO Secretariat for 
the comprehensive reports.  
4.163.   With respect to the bilateral rela tionship, Thailand and Panama have established diplomatic 
relations since 1982. Since then, the two  countries have developed bilateral tie both between the 
Governments and the private sectors through various visits and MOUs signing in order to strengthen 
cooperation in trade and economic development of Panama and Thailand.  
4.164.   In terms of merchandise trade, the average total trade value between the two countries from 
2018 to 2020 amounted to approximately USD 167.87  million per  year and, for the 
first-eleven  months of 2021, the trade value has expanded by 183.84%. Major traded products are 
car and car parts ; canned seafood ; and computer and computer parts. Thailand hopes that the 
two countries could strive for a higher bilateral trade exchange in the future par ticularly on 
agricultural sector which is one of significant economic sectors for both countries.  
4.165.   Thailand commends Panama 's role in WTO as a strong supporter of the open and rule -based 
multilateral trading system and its active role in services trade nego tiations. With spectacular 
geographical location recognized as logistic and financial hubs for both regional and international 
trade and well -tailored economic policy that is open to international trade, services trade plays a 
crucial role in Panama 's econ omy and has accounted for 70% of the country 's GDP during the review 
period. The value of service exports of Panama rose to more than USD  14.6 billion in 2019. Even 
services sector of Panama has been hard hit by the COVID pandemic, its financial sector has proved 
to be resilient thanks to its strict prudential requirements. Thailand praises Panama for its swift 
economic recovery with 10% GDP growth rate in the first  half of 2021 and strongly hopes that the 
country will be able to sustain the stron g and sustainable economic growth in the future.  
4.166.   With regards to FDI, Panama has a very open investment policy that promotes growth and 
employment and helps diversify the economy as well as integrate into international trade. The 
country developed several successful investment regimes like agri -food clusters to boost agricultural 
activities and promote transfer of technology, special regime for manufacturing -related services, 
and City of Knowledge Initiatives that encourage R&D.  
4.167.   In this review, Thailand ha s submitted questions on Panama's trade and economic policy, 
particularly on Panama 's investment and industrial regimes and maritime services. We thank 
Panama in advance for responding to our questions.  
4.168.   In closing, Thailand appreciates Panama's active enga gement in the WTO and the able 
leadership of Ambassador  Alfredo  Suescum  in Geneva. We look forward to enhancing the 
cooperation between our two  missions. Finally, Thailand wishes Panama a successful third Trade 
Policy Review.  
TURKEY  
4.169.   We extend a warm welcom e to the delegation of Panama headed by H .E. Linda  Castillo, 
Vice-Minister of the Ministry of Commerce and Industries.  
4.170.   We would like to thank the Secretariat and the Government of Panama for their detailed 
reports as well as our discussant Laurie  Lo of Hon g Kong, China for his insightful remarks.  
4.171.   As stated in the reports, Panama's real GDP rose at an annual average of 4.7% over the 
period from 2014 to 2019. However , in 2020, as a result of COVID -19 pandemic, Panama 's economy 
contracted by 17.9% which is the  sharpest decline in its history.  WT/TPR/M/421 • Panama  
 
- 28 - 
 
  4.172.   Panamanian economy started to recover in 2021. Despite the impact of the crisis, the 
World  Bank forecasts a real growth of 9.9% in 2021.  
4.173.   Strengths of the Panamanian economy are related to its privileged geographical positi on 
which, with the Panama  Canal, creates favourable conditions for logistics sector, encourages 
openness in the national market and fosters economic diversification.  
4.174.   The Panama  Canal and development of free zones make the country one of the most 
important  distribution and re -export centres in the world.  
4.175.   Turkey values Panama 's firm commitment to the multilateral trading system and the WTO. 
We welcome the ratification of the Trade Facilitation Agreement in 2015. We also note the approval 
of the Protocol Ame nding the TRIPS Agreement in 2011.  
4.176.   Given its strategic location, stable and growing economy, Panama continues to be an 
important partner for us in the Caribbean region.  
4.177.   We opened Embassies reciprocally in 2015 and 2016 respectively. Opening of embassies 
have greatly contributed to our growing multi -dimensional relations and cooperation.  
4.178.   Despite the pandemic, we managed to keep our bilateral trade volume above 
USD 200 million. We hope that in the post -COVID  era, our commercial and economic relations will 
be further enhanced.  
4.179.   We believe that Turkish Airlines ' direct flights to Panama provided a significant momentum 
to our relations in every field.  
4.180.   In conclusion, we would like to take this opportunity to thank  the delegation of Panama, 
Ambassador  Alfredo  Suescum and his team for the excellent preparation for this review and for their 
replies to our questions on specific aspects of its trade policy, as well as their constructive 
contributions to our work under t his roof. We wish Panama a very successful Trade Policy Review.  
PHILIPPINES  
4.181.   The Philippine delegation warmly welcomes and congratulates the delegation of the Republic 
of Panama led by Vice -Minister Linda  Castillo and Ambassador  Alfredo  Suescum on their third Trade 
Policy Review. We also thank Mr  Laurie  Lo, Permanent Representative of Hong  Kong,  China to the 
WTO for his insightful comments as discussant, and the WTO Secretariat for a comprehensive report.  
4.182.   The Philippines and Panama celebrated 75  years of our  diplomatic relations in 2021. Formal 
bilateral relations between our two  countries were established on 4 July 1946, recognizing the 
potential of Panama to be a significant partner of the Philippines in the Latin  American region. 
Through the years, both si des have expressed optimism in deepening bilateral relations through 
increased dialogue, particularly in the areas of trade and investment, and maritime affairs.  
4.183.   The Philippines has a modest bilateral trade with Panama valued at USD  14 million in 2019. 
Due to the impact of the COVID -19 pandemic, it declined to USD  7.23 million in 2020. Among the 
top exports of the Philippines to Panama include input or output units of automatic data processing 
machines ; watches manufactured from materials on consignment basis ; and men 's or boys ' 
trousers ; bib; and brace overalls. Philippine major imports from Panama are fishing vessels and 
factory ships ; equipment for scaffolding or iron or steel ; and materials for the m anufacture of watch 
parts. Moreover, Panama is among the countries with the largest fleet of ships registered under its 
flag and Filipino seafarers constitute a significant portion of the workforce on these 
Panamanian -registered vessels.  
4.184.   Panama has a small  and relatively open economy dominated by services, which accounts for 
70% of its GDP during the review period. It is one of the world 's most important distribution and 
re-export centres  because of the Panama  Canal and the development of free zones. As not ed in the 
Government report, the strengths of the Panamanian economy are related to its privileged 
geographical position which, with the Panama  Canal, creates favourable conditions for the logistics WT/TPR/M/421 • Panama  
 
- 29 - 
 
  sector, encourages openness in the Panamanian market and fosters economic diversification. The 
country made a mark in the world with the Panama  Canal as it links the Pacific and Atlantic oceans, 
creating a shortcut for the shipping routes.  
4.185.   The Philippines notes Panama 's high economic growth – among the highest r ates in 
Latin America and the Caribbean for more than a decade before the COVID -19 crisis. The 
Panamanian economy grew rapidly between 2013 and 2017, but in 2018 entered a period of lesser 
growth as a result of the drop in the momentum generated by the wor ks to widen the Panama  Canal. 
This economic expansion was followed in 2020 by a sharp contraction of 17.9% caused by the effects 
of the COVID -19 pandemic.  
4.186.   Panama has been an active Member of the WTO since 1997. The Philippines acknowledges 
Panama 's commitment to the rules -based, multilateral trading system and its significant 
engagement in the WTO, including its participation in the negotiations on trade in services and 
initiatives to eliminate distortions in agriculture and fisheries. Panama has als o shown leadership in 
WTO activities, noting its coordination of the Art . XII Members and chairmanship of the TRIPS -SS. 
It also takes part in the discussions of new trade issues such as the joint initiative on electronic 
commerce and supports discussions r elated to international trade, health, and environment.  
4.187.   In closing, the Philippines looks forward to further enhancing the mutually beneficial 
economic relations with Panama in the bilateral, regional, and multilateral fora, and we wish Panama 
a successfu l third Trade Policy Review.  
REPUBLIC  OF KOREA  
4.188.   Let me join the others in warmly welcoming the Panamanian delegation led by 
H.E. Ms Linda  Castillo, Vice -Minister of International Trade Negotiations and H.E.  Mr. Alfredo  
Suescum , Ambassador of the Permanent Mission of Panama. I would like to express my appreciation 
to the Panamanian Government and the WTO Secretariat for their high-quality  reports.  
4.189.   I would like to begin by acknowledging Panama 's efforts to minimize the negative impacts 
of the COVID -19 pandemic on its economy. Despite the impact of the crisis, Panama 's economy has 
rapidly recovered from economic depression. The World  Bank published "Global Economic Prospects " 
two weeks ago, forecasting Panamanian economic growth a s 9.9% in 2021 and 7.8% in 2022. 
According to the statistics reported by the Panamanian Government, export increased by 14.7% in 
2020 and 94.2% in 2021. As the WTO Secretariat mentioned in the "World Trade Report 2021 ", 
international trade contributed to t he increase in Panama 's economic resilience.  
4.190.   Korea also supports the point that Panama has been actively promoting a sustainable trade 
policy to foster economic growth and to reduce poverty and inequality. Panama, as a Member of the 
WTO since 1997, has ac tively participated in discussions on new trade issues and the expansion of 
the multilateral trading system such as e -commerce, health, the environment, ITA, TFA, TRIP S, etc. 
Korea hopes to have an opportunity to discuss with Panama regarding ITA expansion , GPA, and 
other topics.  
4.191.   Korea and Panama have enjoyed an excellent economic relationship over the years. Despite 
some fluctuations, trade activities between Korea and Panama have increased steadily. While Korea 
mainly exports commercial vessels, rail, and  the respective components to Panama . Panama 's top 
exporting goods to Korea have been copper ore, tanker, and coffee. The Free Trade Agreement 
between the two  countries entered into force in March  2021. Bilateral trade has increased by 23.7%, 
amounting to USD 2 billion in 2021. Moreover, Korea ranked fourth  among countries that use the 
Panama  Canal in 2020 and nineth  for Foreign Direct Investment in Panama.  
4.192.   Korea has also contributed to Panama in its recovery from the COVID -19 pandemic crisis by 
providing medical equipment and facial masks. The Korean Government has been actively seeking 
the "Global Vaccine Production Hub " model which combines Korea 's vaccine production capacities 
and vaccine technologies of other partner countries, aiming to scale up the p rompt production of 
vaccines to be provided to people around the world. Korea hopes that the excellent medical 
equipment and companies in Korea will have the opportunity to contribute to the health of the people 
in Panama. In this respect, the Panamanian Government is expected to register Korea as a country 
with high manufacturing standards of medications and medical supplies.  WT/TPR/M/421 • Panama  
 
- 30 - 
 
  4.193.   In conclusion, I would like to emphasize that Panama is one of the most important partners 
of Korea, and that our cooperation in th e WTO is a key element of our partnership. We wish Panama 
a successful Trade Policy Review and thank the Panamanian delegation and the Secretariat for the 
impressive work.  
URUGUAY  
4.194.   Uruguay would like to extend a warm welcome to the delegation of Panama, led by Linda 
Castillo, Vice -Minister for International Trade Negotiations, on the occasion of the third review of its 
trade policies; we thank Ms  Castillo her presentation. We also thank the Secretariat for its 
comprehensive report.  
4.195.   Our countries h ave maintained diplomatic relations since 1904 and we consider each other 
as "fellow countries", in trade in goods and services, and in the area of migration.  
4.196.   We are aware that the Panamanian economy has been hit hard during the COVID -19 
pandemic, and that  it has experienced an exceptional fall in its GDP. We therefore join the call for a 
strong, rules -based multilateral trading system, as well as the importance of trade opening, to 
encourage the early recovery of medium -sized economies such as ours.  
4.197.   In ter ms of trade in goods, Panama is an increasingly important customer in the market for 
dairy products, rice, pharmaceutical products and beverage concentrates. In turn, we import from 
Panama tanned hides and skins, automatic machines, orthopaedic appliances,  articles of jewellery, 
and clothing. In trade in services, we are working to strengthen the port logistics and tourism 
sectors, which are known to be extensively developed in this fellow country.  
4.198.   We also receive a significant flow of foreign direct invest ment from Panama, which we 
encourage and support, under the Agreement on the Promotion and Reciprocal Protection of 
Investments, in force since 2002.  
4.199.   Within the friendship that unites us, I would like to draw attention to some technical barriers 
to trade a nd unnecessary sanitary and phytosanitary measures that have been implemented since 
2019. We are sure that we will be able to overcome this situation at the bilateral level in the short 
term. The dairy sector has been subject to this trend in recent years.  To this end, transparency and 
rules-based open -trade policies are a solid pillar of our trade ties.  
4.200.   Panama and Uruguay agree on the high value attached to the WTO and its central role in 
the rules -based multilateral trading system and we share the need to  ensure that the WTO remains 
relevant in the future and can rise to any occasion.  
4.201.   In closing, we would like to reiterate our appreciation for this new opportunity to discuss 
Panama's trade practices and look forward to continued cooperation on all fronts: bilateral, regional 
and here in the WTO. Thank you and best wishes for a successful review.  
BRAZIL  
4.202.   Brazil would like to thank the Government of Panama for engaging in its third  Trade Policy 
Review and providing Members with an overview of the country 's eco nomic performance and 
commitment to the multilateral trading system.  
4.203.   We would also like to express our appreciation to the WTO Secretariat for its thorough and 
comprehensive report, as well as to you, Chair, and the discussant, Mr  Laurie  Lo 
(Hong  Kong,  China), for your contribution to a successful trade monitoring exercise.  
4.204.   Panama has had an impressive performance in the last few years, being one of 
Latin America 's most dynamic economies, despite the impact of COVID -19. 
4.205.   As Brazil, Panama is a democratic and  multicultural developing country faced with the 
imperative of fighting poverty. In this regard, we commend the efforts of the Panamanian 
Government to reinforce macroeconomic conditions for continuous growth.  WT/TPR/M/421 • Panama  
 
- 31 - 
 
  4.206.   Brazil notes with satisfaction the ratificatio n of the Trade Facilitation Agreement by Panama 
in 2015, as well as the granting of preferential treatment to services and service providers from least 
developed countries since 2017. We also commend Panama 's support to negotiations on services 
and initiat ives to eliminate distortions in agriculture and fisheries, as well as to discussions on new 
trade-related topics.  
4.207.   In the past years, the average tariff for agricultural products applied by Panama rose from 
13.7% in 2013 to 15.2% in 2021, being much higher  than the average applied tariff for 
non-agricultural products (5.3%).  
4.208.   Brazil attaches great importance to agriculture in the multilateral trading system and regrets 
that Panama has repeatedly been granting trade and production -distorting domestic support above 
the limits established by the Agreement on Agriculture. We call on Panama to deepen internal 
reforms in favour  of agricultural liberalization and to support efforts for levelling  the playing field as 
part of the reform process of domestic support mul tilateral rules.  
4.209.   We hope that the beginning of the operations of the APA (Agencia Panameña de Alimentos 
or Panama 's Food Agency) will lead to concrete steps in overcoming current difficulties in the 
habilitation of exporting companies especially in the sector of thermo processed meats, fostering 
agility and transparency.  
4.210.   Regarding our bilateral relations, trade flows between Brazil and Panama stood at 
USD 704.5  million from January  to November  2021, up from US D 552.6  million in 2020. Last year, 
Brazil ranked eighth as main destination of Panama 's exports and nineth as country of origin of 
Panama 's imports. Brazil 's imp orts from Panama are mainly copper and copper products, followed 
by aluminium and frozen fish. On the other hand, Brazil 's exports to Panama include printing 
equipment, tiles and parts of mining machinery.  
4.211.   Brazil sees great potential in the growth of our commercial relations, boosted by our 
geographical and cultural proximity, and we hope that our bilateral trade will soon resume its 
pre-pandemic levels, when it reached US D 1.9 billion in 2018.  
4.212.   Moreover, a dialogue has been taking place between the Panaman ian Government and 
Brazilian private and sub -national entities regarding the use of the Panama  Canal, which was 
intensified in the past few years. We believe that advances on this issue could contribute to leverage 
the canal as a maritime route to foster t rade growth worldwide.  
4.213.   There is also potential for growth in investments. Brazilian investments in Panama amounted 
to US D 428 million in 2019, while Panama 's investments in Brazil were equivalent to US D 1.2 billion 
in 2017.  
4.214.   We wish Panama a successful Trade Policy Review.  
JAMAICA  
4.215.   Jamaica is delighted to participate in the third Trade Policy Review of Panama and joins 
others in extending a warm welcome to the delegation headed by H .E. Linda  Castillo, Deputy Minister 
of International Trade Negotiations. We wo uld like to thank you Chair for the excellent arrangements 
for the meeting, and commend our discussant, Mr  Laurie  Lo of Hong  Kong,  China for setting the 
stage for today 's review exercise. We also appreciate the comprehensive reports prepared by the 
Government of Panama and the Secretariat.  
4.216.   Jamaica and Panama continue to enjoy a mutually fruitful neighbourly relationship, which is 
rooted in, inter alia, strong historical and cultural ties. We have pursued cooperation in several areas 
including trade a nd investment, and in 2018, committed to continuing discussions on education, 
culture, sports, health, port infrastructure, customs, aviation and tourism.  
4.217.   Jamaica also has a strong intra -regional institutional relationship with Panama within the 
context o f CARICOM, Organisation of American States (OAS) and the Association of Caribbean 
States  (ACS). Like Jamaica, Panama is a founding member of the ACS and continues to play a key WT/TPR/M/421 • Panama  
 
- 32 - 
 
  role in the organization, including through its participation in the work of th e committees, such as 
the Special Committees on Trade, Development and External Economic Relations, and Sustainable 
Tourism.  
4.218.   We believe there is tremendous scope for future collaboration between our countries in these 
areas and fora; and look forward to ou r continued dialogue to further strengthen the relations 
between our two  countries.  
4.219.   Panama 's location along major land and sea transit routes, steady investment in the 
expansion of the Panama  Canal, and the development of its free zones make it a formidabl e player 
in global trade. It is an important regional and international hub for air and port transshipment and 
has cemented its place in the global trading system. The World  Bank highlighted that during the 
period 2014 to 2019, the country had one of the s trongest growth performance in Latin  America and 
the Caribbean. Before the onset of the COVID -19 pandemic, Panama registered growth at an average 
rate of 4.7%. However, like so many countries, Panama did not escape the damaging effects of the 
COVID -19 pand emic, which resulted in the significant contraction of GDP in 2020. We, nonetheless, 
commend the Panamanian Government for successfully manoeuvring these uncharted waters to 
ensure the stability of its economy, as well as mitigate the effects of the crisis .  
4.220.   Policy measures pursued by the Government of Panama over the years, has allowed it to 
attract investment, as well as allow it the necessary fiscal space to counter extreme external shocks. 
We view positively the Government 's continued efforts to improve  its performance in the export of 
goods and services, and expand trade via the implementation of its export promotion strategy. 
Indeed, there may be opportunities for an exchange of best practices between our export promotion 
agencies. The Government has s ought to make improvements in its procurement system to eliminate 
bureaucracy, and diversify its energy basket. The latter of which is critical for developing countries 
that are heavily reliant upon fossil fuels.  
4.221.   The country 's services sector, particularl y financial and trade -related services continues to 
dominate. However, attention has been given to safeguarding the livelihoods of its agricultural 
workers (which constitutes 14% of its labour force) in rural areas. Note is taken of the series of 
incentive  programmes such as the Agricultural Exports Promotion Certificate and Agro  Industrial 
Promotion and Modernisation Programme, which have been implemented to help promote 
agricultural exports. Panama 's efforts to enhance investment opportunities in agricult ure and 
support services should be supported as these would augur well for its further integration into 
international value chains. We note from the Secretariat 's report that there is scope for 
improvements in the country 's customs procedures, and would en courage Panama to examine ways 
to further enhance this process.  
4.222.   Jamaica and Panama have a shared commitment to strengthening the international 
rules-based multilateral trading system. A Member of the WTO since 1997, Panama has actively 
participated in the work of the Organisation in several areas, notably those related to the COVID -19 
response, services, fisheries , and agriculture. We welcome the report that Panama has regularly 
notified its trade and related measures, as well as ratified the Trade Facilita tion Agreement. Jamaica 
extends special commendations to Ambassador  Alfredo  Suescum and his team for their continued 
constructive engagement on issues of mutual concern. Panama is a central pillar of the Group of 
Latin American and the Caribbean States, an d as GRULAC Coordinator, we remain assured of the 
delegation 's commitment to effectively advancing the region 's interests in the WTO. We further 
commend the delegation 's efforts in other trade related agencies such as WIPO and UNCTAD.  
4.223.   In closing, Jamaica once more extends its best wishes to Panama for a successful Trade 
Policy Review.  
MAURITIUS  
4.224.   Mauritius extends a warm welcome to the high-level delegation of Panama led by 
H.E. Linda  Castillo Vice -Minister of International Trade Negotiations of Pana ma. We congratulate you 
for your third Review. We also thank you Chair and the discussant H.E.  Laurie  Lo from 
Hong Kong,  China for your insights which have enriched  our deliberations today. We also express 
our thanks to the Secretariat for the comprehensiv e report provided.  WT/TPR/M/421 • Panama  
 
- 33 - 
 
  4.225.   At the outset, we congratulate Panama , which prior to the pandemic had one of the most 
robust growth rate s in the region with an average of 4.7% from 2014 -2019. Unfortunately, with the 
COVID pandemic Panama's GPD plummeted by 17.9% in 20 20. Thus , Notwithstanding,  the country 
pursu ed bold economic management measures to fight the pandemic. We now see encouraging 
signs for the economy, with the World Bank forecasting a potential growth rate at approximately 5% 
for the long term and indeed 9 .9% real gross domestic product growth for last year  
4.226.   Chair, since its accession in September  1997, Panama has continued to be a strong supporter 
of the multilateral trading system, with a very active participation within the WTO discussions and 
negotiatio ns. Ambassador  Suescum's deep experience of the system and his network outreach 
command much respect.  
4.227.   Like Panama, Mauritius also believes that it is important to have a rules -based, inclusive 
multilateral trading system and we share a common vision for a  progressive agenda for the WTO 
negotiations. Our similarities call for the strengthening of our services -oriented economy as a 
priority.  
4.228.   We note positively that since its second review in 2014, Panama has ratified the WTO Trade 
Facilitation Agreement (TFA) and that by September 2021, it had already implemented 84.5% of 
the provisions of the Agreement with clear timelines for the remaining provisions.  
4.229.   We also note that Panama has since signed five trade agreements with the UK, Korea, Israel, 
Trinidad and Tobago and Mexico. It demonstrates Panama 's continued constructive engagement in 
international trade.   
4.230.   Outside the strict reference of the Secretariat 's report, Chair, Mauritius would also like to 
note the dynamism of Panama in pursuing Sustain able Development Goals, whether re -afforestation 
measures or expanding ocean reserves to allow the ecosystem to replenish along with other 
Latin American countries.  These all point to Panama 's commitment to sustainable trade. 
4.231.   We welcome Panama 's participat ion in other issues being discussed at the WTO, especially 
on e-commerce and investment facilitation for development which we hope will provide opportunities 
for Panama to pursue its development goals. We wish Panama every success in this review.  
EL SALVA DOR 
4.232.   I would like to begin my statement by welcoming, on behalf of El  Salvador, the delegation 
of Panama led by Vice -Minister Castillo, and to thank Mr  Lo for his comments.  
4.233.   During the review of Panama's trade policies, we have explored its economic environment 
and learned in detail about the measures adopted to mitigate the impact of COVID -19 on the 
economy and incomes; something that has become routine in all trade policy reviews. We have also 
examined the evolution of Panamanian trade, and it has b een of particular interest to El Salvador 
how exports were dominated by agricultural and food products until 2018, while in 2019 they were 
dominated by copper -mining products, accounting for 56% of total export value.  
4.234.   Panama and El Salvador have many simil arities that go beyond their geographical location 
and the sharing of the same language. Panama does not have monetary policy instruments because, 
like El Salvador, it uses the US dollar as its legal tender. Both Members are part of the group of 
small econ omies and are both part of the Central American economic integration process, which 
Panama joined in 2013.  
4.235.   On joining the Central American Economic Integration Subsystem, Panama adopted the 
Central American Import Tariff with certain exceptions: the origin  regime, technical regulations, and 
provisions on trade in services and investment. We welcome that, during the review period, Panama 
adopted the Central American Regulations on Sanitary and Phytosanitary Measures and Procedures. 
These provisions comprise the bulk of the community legal instruments; the remaining instruments 
and provisions still awaiting adoption are being regularly negotiated in Central America with the 
other States Parties of the Economic Integration Subsystem.  WT/TPR/M/421 • Panama  
 
- 34 - 
 
  4.236.   El Salvador notes with inte rest that Panama provides sectoral incentives aimed at promoting 
banana production, reforestation, mining, renewable energies, the film and audiovisual industry, call 
centres, tourism, construction and the shipbuilding industry. These are in addition to th e incentives 
implemented in the City of Knowledge to promote research and development.  
4.237.   Panama's investment regime accords national treatment to foreign direct investment, 
eliminating licensing and registration requirements. Panama places no restrictions on  the 
repatriation of investment capital or on remittances of dividends, interest or other profits to other 
countries, which in part helps explain the large inflows of foreign investment it receives.  
4.238.   In 2019, foreign direct investment flows to Panama from E l Salvador reached their highest 
point in the last six years, and Panamanian imports of Salvadoran products have remained stable. 
As Panama becomes fully integrated into the Central American economic integration process, we 
expect regional value chains to be strengthened and these flows to increase significantly.  
4.239.   El Salvador has noted with interest that, according to the Secretariat's report, when 
comparing the MFN applied tariff with the bound tariff and taking into account only the lines that are 
strictly  comparable in view of the change of nomenclature, for seven tariff items and three 
subheadings the MFN applied tariff exceeds the bound tariff for products such as groundnuts, 
biodiesel, and paper and paperboard products.  
4.240.   Lastly, on behalf of El  Salvador,  I wish the Panamanian delegation every success in this 
exercise, which forms part of the transparency exercises that are essential to the smooth running of 
the multilateral trading system.  
BOLIVARIAN REPUBLIC OF VENEZUELA  
4.241.   The Delegation of the Bolivarian Republic of Venezuela would like to welcome the delegation 
of the Republic of Panama led by Ms. Linda Castillo, Vice -Minister of International Trade Negotiations, 
and to thank the discussant, Ambassador Laurie  Lo (Hong  Kong, China), for the analysis setting the 
context for us. We would also like to thank the Secretariat for organizing this meeting and providing 
documentation. We also welcome Ambassador Alfredo  Suescum, to whom we reaffirm our support 
and best wishes for every success as coord inator of GRULAC.  
4.242.   We would like to begin our statement by recalling the historic ties of brotherhood and trade 
cooperation that have united us with the Republic of Panama. Despite differences that have arisen 
over the years, dialogue and tolerance have res tored normality to diplomatic, trade and financial 
activities. In trade matters, Venezuela participates with Panama in the Latin American Integration 
Association (ALADI).  
4.243.   With regard to the report submitted by the WTO Secretariat for the third Trade Policy  Review 
of Panama, we note that the Panamanian economy grew rapidly between 2013 and 2017, but in 
2018 entered a period of slower growth as a result of the loss of the momentum generated by the 
works to widen the Panama Canal. We also note that Panama's ec onomy contracted sharply in 2020, 
by 17.9%, due to the impact of the COVID -19 pandemic. It is regrettable that economic activity 
continued to be affected by the pandemic in the first months of 2021, when real GDP fell by 8.5%.  
4.244.   As we wish the Republic of Pa nama a successful Trade Policy Review, we would like to end 
our statement by reaffirming our willingness to strengthen trade relations, as well as our shared 
commitment to shaping a robust, mutually supportive, fair and predictable multilateral trading 
system, based on common and transparent rules.  
 
  WT/TPR/M/421 • Panama  
 
- 35 - 
 
  5  REPLIES BY THE REPRESENTATIVE OF PANAMA AND ADDITIONAL COMMENTS  
5.1.  Good afternoon to everyone joining us from Geneva and through the online platform for this 
second session of our trade policy review, and a very  special welcome to the Secretariat and our 
Permanent Mission, who, together with the team in the capital, have been working hard for several 
months to prepare for this important meeting, which is coming to an end today.  
5.2.  I would once again like to thank Am bassador  Castillo for agreeing to chair this review, and 
Ambassador  Laurie  Lo (Hong  Kong,  China) for his contribution as discussant and for giving an 
important analysis of Panama's trade policy as a starting point for the discussions over these 
two days.  
5.3.  I would also like to acknowledge the great interest shown by WTO Members in this third review 
of Panama's trade policies, as reflected in the various statements made by delegations, which 
reaffirm that our country is an active participant in world trade and  that our trade policies are 
evolving towards ever deeper integration with partners whose interests and levels of development 
are both similar and different to ours.  
5.4.  I would also like to reiterate what I said during my statement on the first day, that this  trade 
policy review is an enriching and highly relevant exercise to assess the state of implementation by 
Members of the multilateral commitments undertaken as Members of the World Trade Organization 
(WTO), and mainly that, through it, we achieve the key objective that drives us, which is to raise 
the standard of living of all citizens of the world.  
5.5.  During Monday's meeting, some delegations raised questions in their statements. We have 
already answered some of them and are working together with the other n ational authorities to 
answer those that are pending within the deadline.  
5.6.  We would also like to tell you that we have replied to your advance questions with the 
transparency that trade policy issues require and that we have taken note of the specific conce rns 
of some partners, which reflect precisely that the exchange between our countries is real and that 
these are aspects that we can surely resolve, including through the bilateral channels provided for 
in the corresponding agreements and forums.  
5.7.  Regional trade agreements have been and will continue to be for Panama fundamental steps 
in the path towards deeper integration, and in keeping with this, we have assumed the pro tempore 
presidency of the Central American Economic Integration Subsystem for the firs t half of 2022 and 
will continue to work to enhance the mutual benefit derived from the entire network of agreements 
that we have put in place with our partners around the world.  
5.8.  I would also like to highlight the comments received on my country's sectoral  policies relating 
to, inter alia, agriculture, fisheries, mining, manufacturing industries, services, telecommunications, 
transport, and attracting investment.  
5.9.  Panama has been pleased to hear the positions expressed in support of the national 
Government's efforts to address the crisis caused by the COVID -19 pandemic and the efforts to 
preserve human life and stabilize and revive the national economy, while keeping open the global 
transit of goods through the Panama Canal and making use of our g eographic position to serve as a 
humanitarian hub for the region.  
5.10.  We are also encouraged by what has been said about the fulfilment of our notification 
obligations and the commitment to transparency within this Organization, and in the implementation 
of the Trade Facilitation Agreement.  
5.11.  With regard to the various ongoing negotiations and initiatives, we note particular interest in 
several statements on progress in the discussions on trade and gender, and reiterate our 
commitment to contributing constructive ly to these discussions and sharing efforts and best 
practices, promoting initiatives to close the gaps and overcome the obstacles to women's full 
participation in international trade and all areas of human activity.  WT/TPR/M/421 • Panama  
 
- 36 - 
 
  5.12.  We will also continue to advance our na tional and international agenda to promote the fight 
against climate change, which is closely linked to the environmentally sustainable trade actions that 
are the focus of the structured debates taking place in this Organization.  
5.13.  In conclusion, I would lik e to reiterate my thanks to all those who were involved in this 
third trade policy review of Panama.  
DISCUSSANT  
5.14.  Members have shown keen interests in the third  Trade Policy Review of Panama. On Monday 
and today, a total of 28  Members took the floor to highlight their respective bilateral trade and 
economic relations with Panama, comment on Panama's trade and investment regimes, and, in some 
instances, voice certain trade -related concerns. The process has been frank, candid and constructive, 
and I believ e that Panama and all participating Members have benefited from it.  
5.15.  One recurrent comment that I heard in most interventions was that Members have been 
enjoying close trade and economic relations with Panama. And this is not mere diplomatic courtesy, 
becau se all of these Members have provided concrete examples, including promising bilateral trade 
figures; number of trade agreement and memorandum of understanding reached; commencement 
dates of diplomatic ties; and examples of recent senior official's visit. Such Members include not only 
Panama's close neighbours  in the Americas, but also others which are thousands of kilometers away 
and on the other side of the globe. I congratulate Panama for its success in making friends around 
the world, such an achievemen t is perhaps only second to its remarkable success in continuously 
enhancing its trade and investment environment despite various challenges.  
5.16.  We have also heard praises on Panama's strategic geographical location, or to be more precise 
the successful manag ement, of the Panama  Canal in contributing to Panama's own economic growth 
and in making Panama one of the leading logistic hubs in the region. The compliments actually go 
much beyond Panama's geographical location to its effective operation and expansion of the 
Panama  Canal, which not only brings economic prosperity to Panama but also contributes to the 
smooth operation of the global logistic chain.  
5.17.  At a personal level, I am most impressed by the remarks made by H.E. Linda  Castillo  that the 
pursuit of tra de growth is to allow the people of Panama a better life and this is to be done while 
being friendly to the environment. Many Members also expressed their appreciation of how Panama's 
trade policies support social integration and social development.  
5.18.  Turnin g to the work in the WTO, Members commended unanimously Panama's active 
participation in various aspects of WTO's initiatives, including the fisheries subsidies negotiations; 
the Joint Statement Initiatives on e -Commerce and on Investment Facilitation for Development; the 
Informal Working Group on Trade and Gender; as well as the new initiatives on trade and 
environment. We all have experienced first -hand Panama's positive contributions in our day -to-day 
activities in the WTO, which truly deserve our applau se.  
5.19.  Praises aside, we also heard concerns, which is not surprising given Members' different 
perspectives on various trade matters. For example, some Members raised questions about the fact 
that the applied MFN tariff of certain tariff lines have exceeded Panama's bound rates; some noted 
the relatively high average tariff for agricultural products; others have concerns about Panama's 
certain trade policies relating to animal and plant health and Technical Barrier to Trade; and there 
were also queries on Pan ama's Intellectual Property Right protection regime. I am sure Panama has 
taken good note of the comments and will continue to work with the concerned Members with a view 
to working out mutually acceptable solutions.  
5.20.  At the conclusion of Panama's previous  trade policy review in 2014, Panama was highly 
commended for providing a good example on how an open trade and investment regime can support 
the integration of a small, services -oriented economy into the global economy. I believe the current 
trade policy review has clearly demonstrated that Panama has been moving steadfastly forward 
along this path and has brought its success to a new level, despite the external shocks brought by 
the pandemic.  
  WT/TPR/M/421 • Panama  
 
- 37 - 
 
  HONDURAS  
5.21.  Honduras warmly welcomes the entire delegation of Pa nama, led by its Head of Delegation, 
H.E. Linda  Castillo, Vice -Minister for International Trade Negotiations, and thanks them for their 
statement and report.  
5.22.  We extend our thanks to you, Chair, for your leadership and guidance, to the WTO Secretariat 
for the quality of its reports, and to the discussant for his valuable contributions to this review.  
5.23.  Panama and Honduras established diplomatic relations on 18  September  1907.  
5.24.  The bilateral relations between Panama and Honduras are based on historical ties that  have 
been consolidated over time. We share the same language, values, traditions, solidarity, 
geographical subregion, and integration mechanisms.  
5.25.  On this last point, Panama's incorporation into the Central American Common Market, its 
accession to the Cent ral American Economic Subsystem, and the joint signing of the Association 
Agreement between Central  America and the European  Union are some particularly relevant 
milestones in the development of regional economic integration that have strengthened the proc ess 
of integration and cooperation between our countries.  
5.26.  In terms of our bilateral trade relationship, in 2021, we exported around USD  33 million worth 
of coffee, clothing, and clothing accessories, among other products, and imported around 
USD 50 million  worth of pharmaceuticals, machinery, electrical equipment, and footwear.  
5.27.  Regarding the flow of foreign direct investment into Honduras, as of the third quarter of 2021, 
in terms of the regions of origin of foreign investors, we have not lost sight of the predominance of 
Panamanian companies among the largest contributors.  
5.28.  With respect to the reports reviewed, we are pleased to note that, for more than a decade 
prior to the COVID -19 crisis, Panama experienced high economic growth, among the highest levels 
in Latin  America and the Caribbean, and that despite the impact of this crisis, there is information 
pointing to a real GDP increase of 9.9% in 2021, and potential growth of approximately 5% is 
forecast for 2022.  
5.29.  Panama's economy relies mainly on a well -developed services sector, which accounts for more 
than three quarters of GDP and includes services such as logistics, banking, operating the 
Panama  Canal, the Colón  Free Zone, insurance, container ports, flagship registry, and tourism.  
5.30.  Panama is one of the world's most important centres for the distribution and re -exportation 
of merchandise, and the completion of the Panama  Canal expansion has made the Canal a national, 
regional and international asset that contributes to improving the competitiveness of  the logistics 
sector.  
5.31.  The reports highlight that, during the period under review, the banking sector continued to 
show a good degree of soundness and high levels of capitalization and liquidity despite the adverse 
effects of the COVID -19 pandemic, making Panama a hub for offshore banking.  
5.32.  We welcome the regulatory update that underpins a public policy aimed at ensuring free 
competition through the publication of various guides to clarify the legal provisions on competition, 
including the Guide to the Progr amme to Waive or Reduce Penalties and the Guide to Corporate 
Conformity Programmes.  
5.33.  Panama is one of the first countries in the world to regard access to the Internet and telephony 
as a new human right and identifies that the State has an obligation to off er equal access to 
information and telecommunications services.  
5.34.  We note with interest Panama's decision to diversify its energy matrix, increasing the use of 
clean or renewable sources by providing incentives to promote the use of technologies that 
contrib ute to reducing the impact of climate change and dependence on imported fuel.  WT/TPR/M/421 • Panama  
 
- 38 - 
 
  5.35.  We agree with Panama that there should be greater participation of women in the formulation 
and implementation of national strategies, and note with interest the implementation o f the 2021 
Mujer  EmprendExport programme, which will improve the competitiveness of women -led export 
companies and those that have the potential to export.  
5.36.  Lastly, Honduras acknowledges the contributions, achievements and active participation of 
our Panama nian brothers in the WTO, highlights the excellent work of the staff of the Permanent 
Mission, headed by Ambassador  Suescum, and wishes them every success in the presentation of 
their third  Trade Policy Review.  
ECUADOR  
5.37.  I would like to begin by extending my  warmest greetings to the Panamanian delegation, to 
the Vice -Minister, Ms  Linda  Castillo, to Ambassador  Alfredo  Suescum, colleague and friend here in 
Geneva, and to the esteemed staff of your Permanent Mission.  
5.38.  I would also like to thank the Chair and the discussant for their able work in facilitating this 
third trade policy review of Panama, and express our appreciation for the preparations made by the 
Secretariat in this regard.  
5.39.  In Panama, Ecuador has a strategic partner in several areas of its internatio nal and regional 
relations, and of course in trade and investment matters. Both countries have achieved mutually 
advantageous results and enhanced their cooperation and exchanges in various fields at the 
multilateral, regional, and bilateral levels.  
5.40.  For Ec uador, Panama and its Canal are also special conduits for the development of its 
international trade; most of my country's international trade uses and passes through the 
Panama  Canal.  
5.41.  Ecuador and Panama signed the terms of reference for the negotiation of  a partial scope 
economic complementarity agreement last year, and today we are moving forward in talks with a 
view to negotiating a comprehensive agreement that includes several other disciplines. This is very 
positive for both countries at a time of glob al crisis caused by well -known public health issues that 
have seriously affected expectations for economic growth and dampened international trade.  
5.42.  We congratulate Panama and recognize its important and active participation in the 
multilateral trading system and in the ongoing negotiations on various issues such as fisheries 
subsidies, and its progress in several areas as recorded in the Secretariat's report. I highlight, for 
example, notifications, trade facilitation, and the response to the CO VID-19 pandemic. We also 
recognize, with respect to gender, that the gender equality standard has been formalized in 
companies and private organizations.  
5.43.  Panama participates in the WTO joint statement initiatives on e -commerce and investment 
facilitation, and in the area of trade and sustainability, it is a sponsor of the Informal Dialogue on 
Plastics Pollution and Environmentally Sustainable Plastics Trade, which is coordinated by Ecuador, 
along with Australia, Barbados, China, Fiji, and Morocco, among oth er countries.  
5.44.  In conclusion, I would like to highlight that Colombia, Costa Rica, Ecuador, and Panama 
recently took the first step towards creating the largest transboundary marine biosphere reserve in 
the Eastern Tropical Pacific Marine Corridor, uniting the reserves of the four nations. This 
undoubtedly demonstrates our countries' common interest in, and great contribution to, the 
preservation of regional marine resources. This broad environmental commitment is a reflection of 
Panama's clear interest in t rade and environment issues, which I have previously emphasized in this 
statement.  
5.45.  Thank you very much and congratulations again to the Panamanian delegation.  
  WT/TPR/M/421 • Panama  
 
- 39 - 
 
  PARAGUAY  
5.46.  The Republic of Paraguay would like to extend warm greetings to the delegation of the 
Republic of Panama, which, while unable to attend in person owing to the health situation, is 
participating in this third  Trade Policy Review. We would also like to thank you, Mr  Chair, for 
conducting this review, and the discussant and the Secretariat for  the comprehensive report.  
5.47.  In the period covered by this review, Panama has managed to sustain significant growth and, 
despite entering a phase of slower growth from 2018 onwards, it remained above the average for 
Latin America and the Caribbean.  
5.48.  The COVID -19 pandemic, which affected all our economies, had a strong impact on this 
country, whose economy experienced its sharpest decline in history in 2020. Nevertheless, Panama 
achieved a rapid recovery in 2021 and is projected to continue its strong pace of r ecovery in 2022.  
5.49.  With this, my delegation wants to highlight how, through concrete measures, but at the same 
time a continued openness to trade, Panama is providing good signs of an early post -pandemic 
recovery. Even in the midst of the pandemic, when some  countries were reverting to protectionism, 
Panama incorporated and put into force a free trade agreement negotiated with the Republic of 
Korea. This is a great example for this Organization; one with which my country fully agrees.  
5.50.  Within the WTO, we appre ciate Panama's support for the multilateral trading system and 
highlight the joint work that we are carrying out both in the regular committees and in the 
negotiations and joint initiatives such as those on e -commerce, investment facilitation for 
developme nt, women's economic empowerment, and MSMEs. We are participating in these 
initiatives because of their importance as a response to the challenges of the 21st century.  
5.51.  On behalf of my country, I reiterate my congratulations to those responsible for conduct ing 
this review and to the delegates of the Permanent Mission of Panama in Geneva for their active 
participation in, and contribution to, this Organization's work.  
5.52.  I would not want to miss this opportunity to report that the delegation of Paraguay has sent  
some questions to Panama today, and we hope to continue working with this delegation to receive 
the answers. Thank you.  
INDIA  
5.53.  My delegation is pleased to participate in the Trade Policy Review of Panama and would like 
to extend a very warm welcome to the delegation of Panama led by H.E.  Ms Linda  Castillo, 
Vice-Minister of International Trade Negotiations of Panama. My delegation would like to commend 
H.E. Mr Alfredo  Suescum, Permanent Representative of Panama to the WTO for his endeavours , and 
the Government of Panama along with the WTO Secretariat for their comprehensive reports and 
would also thank the discussant H.E.  Mr Laurie  Lo for his insightful comments.  
5.54.  India enjoys warm and cordial relations with Panama, our bilateral ties are among the oldest  
in the Central American region, dating back to the middle of the 19th century. The diplomatic relations 
between India and Panama were established in 1962. These ties got a fillip due to the visit of 
Honourable Vice -President of India to Panama in 2018. Both sides explored the possibilities of 
increasing cultural exchanges, strengthening cooperation in the field of development partnership, 
promotion of tourism among other areas of cooperation.  
5.55.  India-Panama trade in 2 020-21 stood at US D 184.83  million, which does not reflect the 
dynamism of our two countries and avenues to explore growth in mutual trade must be explored.  
The main items of India 's exports to Panama consist of: Apparel and cloths ; apparel and textiles ; 
miscellaneous manufactured articles ; manmade fibers and filaments ; electrical and electronic 
equipment ; soap and washing preparations ; medical/surgical instruments and accessories ; etc. The 
main items imported from Panama include iron and steel; teak and ot her wood pulp ; aluminium  and 
articles thereof ; mineral fuels, oils and waxes; mineral products ; hides and skins leather ; etc. India 
remains a willing partner for contributing to Panama 's economic development processes based on WT/TPR/M/421 • Panama  
 
- 40 - 
 
  knowledge -based industries su ch as consultancy, finance, IT, health services, insurance, education, 
software development, science and technology , etc. 
5.56.  As per the Secretariat report Panama witnessed rapid economic growth between 2013 -2017, 
followed by contraction to around 17.9% owing to the COVID pandemic and the resulting global 
economic downturn. We take note that the objective of trade policy in Panama is to improve 
performance in exports of goods and services and to attract foreign investment. The aim of the 
export promotion strate gy is to improve the quality of exports, take advantage of trade agreements 
and access new markets and in this regard, we note that two  new special regimes were created in 
2020 and 2021 to attract more foreign investment in both agricultural activities and  support services 
for manufacturing.  
5.57.  Lastly, India is willing to work together with Panama to harness the vast untapped potential 
of further expanding and fostering our trade and investment ties. We wish the delegation of Panama 
a productive and successfu l Trade Policy Review.  
  WT/TPR/M/421 • Panama  
 
- 41 - 
 
  6  CONCLUDING REMARKS BY THE CHAIRPERSON  
6.1.  This third  Trade Policy Review of Panama has been an excellent opportunity to review Panama's 
trade and investment policies and the changes made during the review period, which was particularly 
difficult for everyone owing to the challenges posed by the health crisis that has disrupted trade and 
the world economy. It has given us the chance to improve our understanding of these policies and 
to raise questions and exchange views openl y. I wish to thank the Vice -Minister for International 
Trade Negotiations, Ms  Linda  Castillo, who participated from Panama, and Ambassador 
Alfredo  Suescum and the rest of the Panamanian delegation here in Geneva and in the capital, for 
their active partici pation in this review. I would also like to thank our discussant, Mr  Laurie  Lo, 
Permanent Representative of Hong  Kong,  China, for his valuable contribution to our discussions. 
Panama received more than 230  questions and more than 29  delegations took the fl oor, reflecting 
the importance that Members attach to Panama's trade policies. Members much appreciated 
Panama's written responses to the questions asked, and we look forward to receiving the pending 
replies no later than one month after this meeting.  
6.2.  Memb ers highlighted Panama's strong commitment to the multilateral trading system. Panama 
was praised for its active role in the negotiations on agriculture, fishing and services, and for its 
involvement in joint initiatives on new trade issues, especially e -commerce, investment facilitation, 
environmental sustainability and gender. It was also invited to take part in other discussions. 
Furthermore, Panama was congratulated for having ratified the Trade Facilitation Agreement and for 
having implemented its comm itments thereunder.  
6.3.  Members noted Panama's positive record at the WTO in terms of complying with notification 
requirements but urged the country to improve its performance in that regard through greater 
transparency in areas such as subsidies, quantitative  restrictions, sanitary and phytosanitary 
measures and technical barriers to trade. Alongside its commitment to multilateralism, Members 
highlighted the importance of regional agreements for Panama, which continue to be one of the 
mainstays of its foreign policy.  
6.4.  Members congratulated Panama for its economic performance throughout almost the entire 
review period. It dwindled only in 2020 as a consequence of the pandemic, which resulted in a 17.9% 
decline in GDP. They noted that, given the economy's resilien ce and the role played by the external 
sector, the economy seemed to be on track to full recovery, with estimated GDP growth of 9.9% in 
2021. Members highlighted the importance of services for Panama, especially those related to 
foreign trade. They stated that Panama has consolidated itself as a regional trade and logistics hub 
owing to the expansion of the Panama Canal and related activities, among other factors. Accordingly, 
Members underscored the Canal's significance, not only for the Panamanian economy  but also for 
global trade, since around 2.3% of world maritime trade passes through the Canal. However, 
concerns were expressed regarding the ownership requirements relating to cabotage, which were 
recently introduced by Panama.  
6.5.  Members pointed out that o ne of the most significant changes to the structure of the economy 
during the review period was the development of mining activity. This led to a shift in the exportable 
goods supply, with copper accounting for 56% of all goods exported in 2020. Panama was  
congratulated for its efforts in developing this sector, which resulted in the diversification of exports. 
Some Members also highlighted the gradual change in the energy matrix during the review period.  
6.6.  Members stressed the importance of investment policy  as an essential component of growth, 
diversification and creation of jobs in Panama. They appreciated the good investment and business 
climate in Panama, thanks to the predictable regulations and legal stability provided by the country. 
While recognizing the contribution of all special regimes to the investment climate, some Members 
noted the risks inherent in free -zone activities.  
6.7.  As regards trade policy in the agricultural sector, Members, acknowledging the importance of 
the sector from a socioeconomic p erspective, urged Panama to abide by multilateral trade rules. 
They made particular reference to plant and animal health controls, which some Members considered 
to lack transparency. The justification of import requirements for certain products was also ca lled 
into question. Further to these measures, Members noted other mechanisms for supporting the 
agricultural sector, including tariffs and tariff quotas, safeguard measures, marketing assistance, 
export promotion, support programmes for selected products such as rice, and the offer of credit at WT/TPR/M/421 • Panama  
 
- 42 - 
 
  preferential interest rates. They reminded Panama of the importance of maintaining an uninterrupted 
flow of agricultural products.  
6.8.  Panama's adoption of a series of measures to facilitate trade was welcomed. This res ulted in a 
simplification of customs procedures and a reduction of costs. In order to simplify customs 
procedures even further, Panama was urged to consider the possibility of eliminating or reducing 
internal taxes and charges on imported goods. Several Me mbers noted that, although the average 
tariff level was low, the average tariff for agricultural products had increased during the review 
period and the bound rate was exceeded for some lines. They called on Panama to rectify the level 
of these tariffs.  
6.9.  Members welcomed the measures adopted to improve the government procurement system, 
but pointed out that the Panama Canal Authority was exempt from the procurement regime. Panama 
was encouraged to consider becoming a party to the Government Procurement Agree ment, given 
the importance of establishing open, fair and transparent conditions of competition in government 
procurement processes. Panama's efforts to safeguard intellectual property rights were evaluated 
and the country was urged to improve protection, especially for copyright and trademarks. With 
regard to competition, some Members requested additional information about the economic activities 
that are not currently subject to the country's competition regime. These include sectors dominated 
by state mo nopolies, such as power transmission and postal services, the activities of the Panama 
Canal Authority, and gambling.  
6.10.  To conclude, I would like to highlight that, as in the last review, Members praised Panama for 
its success in achieving outstanding econom ic growth despite the health situation, improving 
integration into world trade and reaching a high level of foreign direct investment. Members thanked 
Panama for its replies and encouraged it to continue its efforts to actively promote a sustainable 
trade policy aimed at driving development and fostering economic growth to reduce poverty and 
inequality. Given the importance of international trade for its economy, Panama has proved to be a 
perfect example of the importance of trade in creating economic oppor tunities and driving 
development. Lastly, I would like to thank the Panamanian delegation here and in the capital, the 
discussant, all delegations that have taken part and the Secretariat for this fruitful review of the 
trade policies of Panama.  
 
_________ _