WT/REG278/1/Corr.1  
WT/REG331/1/Corr.1  
WT/REG336/1/Corr.1  
18 February 2014  
(14-0991) Page: 1/3  
Committee on Regional Trade Agreements   
 
  FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETW EEN CENTRAL AMERICA  
(HONDURAS, NICARAGUA AND GUATEMALA) AND PANAMA 
 
(GOODS AND SERVICES) 
Report by the Secretariat 
Corrigendum 
 Following the receipt of new data from Nicaragua, the Secretariat has made changes to the 
factual presentation as follows:  
 Paragraph 3.15, page 19: The paragraph should read as follows: 
 
3.1.2.3  Nicaragua 
 
3.15. Table 3.1C shows Nicaragua's tariff elimin ation under the Agreement. In 2010, when the 
Agreement entered into force, duty-free entry und er the MFN regime already applied to 45.7% of 
Nicaragua's tariff schedule (3,361 tariff lines), corresponding to 59.8% of its average imports from 
Panama over the period 2007-2009.1 Upon entry into force of the Agreement, a further 43.7% of 
tariff headings were liberalized, correspondin g to 30.5% of Nicaragua's imports from Panama. 
Further liberalization is planned for the period 2014 to 2024. Nicaragua has undertaken to 
liberalize 92.7% of its tariff, corresponding to 91.1% of its imports from Panama, by 2019, ten 
years after the entry into force of the Agreement.  At the end of the implementation period, in 
2024, 528 tariff headings will still be subject to duty (7.2% of the tariff schedule), corresponding 
to 8.9% of Nicaragua's imports from Panama. 
  Table 3.1C., page 19: The table should be replaced by: 
Table 3.1 Tariff elimination commitments under the Agreement and corresponding 
average trade C. Nicaragua 
Duty phase-out 
period Number of lines % of total lines in 
Nicaragua's tariff 
schedule 
 Value of Nicaragua's 
imports from Panama 
(2007-2009) in 
million US$ % of Nicaragua's 
total imports from 
Panama 2007-2009 
MFN duty free  
(2010) 3,361 45.7  8.5 59.8 
2010 3,216 43.7 4.3 30.5 
2014 50 0.7  0.0 0.0 
2019 188 2.6 0.1 0.8 
2024 11 0.1  0.0 0.0 
Remain dutiable 528 7.2 1.3 8.9 
Total 7,354 100.0  14.2 100.0  
 
Note: Based on the HS 2012 nomenclature.  Source: WTO estimates based on data provid ed by Nicaragua and WTO-IDB Database.  
                                               
1 In 2010, Nicaragua's tariff schedule contained 7, 354 HS eight-digit tariff lines, all of which were 
subject to ad valorem  rates. WT/REG278/1/Corr.1 • WT/REG331/1/Corr.1 • WT/REG336/1/Corr.1 
- 2 - 
 
   Table 3.6, page 25: The table should be replaced by: 
 
Table 3.6 Nicaragua: Tariff elimination under  the Bilateral Protocol with Panama, by 
HS section 
 
HS Section MFN 
average 
% Total 
No. of 
lines MFN 
duty-
free 
(2010) Number of duty-free lines under the agreement No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2010  2014  2019  2024  
I 15.2 485  45 329  2 33   76 30.5  
II 10.0 441 117 267 33 2 5 17 26.8 
III 9.8 83  9 16    3   55 12.2  
IV 12.8 343 35 260   22 6 20 35.5 
V 2.9 197  122 67  3 5       
VI 2.1 1,171  922 232 2 15       
VII 4.7 360  148 212            
VIII 8.1 111 22 89           
IX 7.9 141  28 113            
X 5.0 312 163 140 2 7       
XI 9.6 926  113 553    24   236 14.7  
XII 12.5 65 2 63           
XIII 6.3 176  79 96  1         
XIV 6.9 54 15 39           
XV 2.9 713  483 224  6         
XVI 2.6 996 780 215 1         
XVII 6.0 314  77 49    72   116 8.4  
XVIII 3.7 243 158 85           
XIX 12.6 21    21            
XX 10.1 193 43 137   5   8 15.0 
XXI 7.8 9    9            
Total 6.3 7,354 3,361 3,216  50 188 11 528 16.5 
 
Note: Based on the HS 2012 nomenclature. 
 Source: WTO Secretariat estimates based on data provided by Nicaragua and WTO-IDB Database.  
 
 
 WT/REG278/1/Corr.1 • WT/REG331/1/Corr.1 • WT/REG336/1/Corr.1 
- 3 - 
 
  ANNEX 11 
 Paragraph 5, Annex 1, page 74:  Th e paragraph should read as follows: 
 
5. In 2010, following the entry into force of th e Agreement, the average preferential tariff 
applied by Nicaragua to imports from Panama wa s 1.6%, as compared with an applied MFN rate 
of 6.3%. The average tariff applied to agricultural products from Panama fell from 12.0% to 4.8% and that applied to non-agricultural products fr om 5.2% to 0.9%, which gave Panama's exporters 
an average margin of preference of 60.0% an d 82.7%, respectively, as compared with the 
MFN tariff in force. When the Agreement entered in to force, Nicaragua's share of duty-free tariff 
lines increased from 45.7% to 89.4%: the duty-fr ee lines corresponding to agricultural products 
increased from 21.0% to 77.1% while those corresponding to non-agricultural products increased 
to a lesser extent, from 50.3% to 91.7%. In 2019, af ter ten years of application of the Agreement, 
Nicaragua's global share of duty-free lines for im ports from Panama will be 92.7%: 84.5% in the 
case of agricultural products and 94.2% in that of non-agricultural products. At the end of the 
implementation period, in 2024, 92.8% of its tari ffs will be zero for imports from Panama, 85.5% 
in the case of agricultural products and 94.2%  in the case of non-agricultural products. 
 
Table A1.3, page 75: The table should be replaced by: 
 
Table A1.3 Nicaragua: Indicators of MFN ta riff rates and preferential rates for imports 
from Panama 
 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share of 
duty-free 
tariff lines 
(%) Average applied 
tariff Share of 
duty-free 
tariff lines 
(%) Average applied 
tariff Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2010 6.3 11.6 45.7  12.0 15.2 21.0 5.2 10.5 50.3  
Panama 2010 1.6 14.8 89.4 4.8 21.2 77.1 0.9 11.5 91.7 
  2011 1.5 14.3 89.4  4.7 20.4 77.1 0.9 11.1 91.7  
  2012 1.5 13.8 89.4 4.5 19.6 77.1 0.9 10.8 91.7 
  2013 1.4 13.3 89.4  4.3 18.8 77.1 0.9 10.5 91.7  
  2014 1.4 13.7 90.1 4.1 20.8 80.2 0.8 10.5 92.0 
  2015 1.3 13.4 90.1  4.0 20.3 80.2 0.8 10.2 92.0  
  2016 1.3 13.1 90.1 3.9 19.8 80.2 0.8 10.0 92.0 
  2017 1.3 12.7 90.1  3.8 19.3 80.2 0.8 9.7 92.0  
  2018 1.2 12.4 90.1 3.7 18.8 80.2 0.8 9.4 92.0 
  2019 1.2 16.3 92.7  3.6 23.5 84.5 0.7 12.7 94.2  
  2020 1.2 16.3 92.7 3.6 23.4 84.5 0.7 12.7 94.2 
  2021 1.2 16.2 92.7  3.6 23.4 84.5 0.7 12.7 94.2  
  2022 1.2 16.2 92.7 3.6 23.3 84.5 0.7 12.7 94.2 
  2023 1.2 16.2 92.7  3.6 23.3 84.5 0.7 12.7 94.2  
  2024 1.2 16.5 92.8 3.6 24.7 85.5 0.7 12.7 94.2 
 
a WTO Definition. 
Note: Based on the HS 2012 nomenclature.  Source: WTO Secretariat estimates based on data provided by Nicaragua and WTO-IDB Database.  
 
_________ 
                                               
1 For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related calculations 
in all Tables in this Annex.