WT/REG278/1/Rev.1  
WT/REG331/1/Rev.1  
WT/REG336/1/Rev.1  
1 May 2014  
(14-2653) Page: 1/86  
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 
Revision 
This report, prepared for the consideration of the Free Trade Agreement 
between Central America and Panama and the Bilateral Protocols between Honduras and Panama, Nicaragua and Panama and Guatemala and Panama, has 
been drawn up by the WTO Secretariat on its own responsibility and in full 
consultation with the Parties, and in accordance with the rules and procedures contained in the Decision on a Transparency Mechanism for Regional Trade 
Agreements (WT/L/671). 
 
Any technical questions arising from this report may be addressed to 
Ms Silvia Avila Seifert (Tel.: +41 22 739 5064). Any statistical questions arising 
from this report may be addressed to Ms. Alejandra Barajas Barbosa (+41 22 739 6425) and Ms. Rowena Cabos (tel: +41 22 739 5185).  WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
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  TABLE OF CONTENTS 
  Page 
1   TRADE ENVIRONMENT ................................................................................................. 5
 
1.1   Overview .................................................................................................................. 5  
1.2   Trade in goods ..........................................................................................................  6 
1.2.1   Hondur as-Panama .................................................................................................. 6  
1.2.2   Nicaragua-Panama .................................................................................................. 7  
1.2.3   Guatemala-Panama ................................................................................................. 9  
1.3   Trade in servic es and inve stment ................................................................................ 11 
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT .................................................... 13  
2.1   Basic information ...................................................................................................... 13 
3   PROVISIONS ON TRADE IN GOODS ........................................................................... 15  
3.1   Import duties and charges and quantitative restrictions ................................................. 15 
3.1.1   Genera l provisions ................................................................................................. 15 
3.1.2   Liberalization of  trade and ta riff lines ........................................................................ 17 
3.1.2.1   Panama ............................................................................................................. 17 
3.1.2.2   Honduras ........................................................................................................... 18 
3.1.2.3   Nicaragua .......................................................................................................... 19 
3.1.2.4   Guatem ala ......................................................................................................... 19 
3.1.3   Liberalization Schedule ........................................................................................... 20 
3.1.3.1   Panama ............................................................................................................. 20 
3.1.3.2   Honduras ........................................................................................................... 23 
3.1.3.3   Nicaragua .......................................................................................................... 24 
3.1.3.4   Guatem ala ......................................................................................................... 25 
3.1.4   Tariff rate quotas ................................................................................................... 27 
3.1.4.1   Honduras - Panama ............................................................................................. 27 
3.1.4.2   Nicaragua – Panama ............................................................................................ 27 
3.1.4.3   Guatem ala – Panama .......................................................................................... 27 
3.2   Rules of origin .......................................................................................................... 28 
3.2.1   Specific bilate ral rules of origin ................................................................................ 29 
3.2.1.1   Honduras – Panama ............................................................................................ 29 
3.2.1.2   Nicaragua – Panama ............................................................................................ 30 
3.2.1.3   Guatem ala – Panama .......................................................................................... 30 
3.3   Export duties and charges and quantitative restrict ions .................................................. 30 
3.4   Regulatory provisions on trade in goods ....................................................................... 31 
3.4.1   Standards ............................................................................................................. 31 
3.4.1.1   Sanitary and phytosanitary measures .................................................................... 31 
3.4.1.2   Technical barriers to trade .................................................................................... 32 
3.4.2   Safeguard measures .............................................................................................. 33 WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
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  3.4.2.1   Global safeguards ............................................................................................... 33 
3.4.2.2   Bilateral safeguards ............................................................................................. 33 
3.4.2.3   Agricult ural safe guards ........................................................................................ 34 
3.4.3   Anti-dumping and countervailing measures ............................................................... 34 
3.4.4   Subsidie s and State aid .......................................................................................... 35 
3.4.4.1   Dome stic support ................................................................................................ 35 
3.4.4.2   Export subsidies.................................................................................................. 35 
3.4.5   Customs procedures ............................................................................................... 35 
3.5   Sector Specific provisions .......................................................................................... 36 
4   PROVISIONS ON TRADE IN SERVICES ....................................................................... 36  
4.1   Scope and definitions ................................................................................................ 36 
4.2   Denial of benefits ..................................................................................................... 37 
4.3   General provisions on trade in services ........................................................................ 37 
4.3.1   Mark et acce ss ....................................................................................................... 37 
4.3.2   National and MFN tr eatment .................................................................................... 37 
4.3.3   Commercial presence ............................................................................................. 38 
4.3.4   Performanc e requirements ...................................................................................... 38 
4.3.5   Movement of  natural persons .................................................................................. 39 
4.3.6   Senior management and boards of  direct ors .............................................................. 40 
4.3.7   Other investment -related pr ovisions ......................................................................... 40 
4.4   Liberalization commitments ........................................................................................ 40 
4.4.1   Panama ................................................................................................................ 40 
4.4.1.1   Horizont al commit ments ...................................................................................... 41 
4.4.1.2   Sector-spe cific commitments ................................................................................ 41 
4.4.2   Honduras .............................................................................................................. 45 
4.4.2.1   Horizont al commit ments ...................................................................................... 45 
4.4.2.2   Sector-spe cific commitments ................................................................................ 46 
4.4.3   Nicaragua .............................................................................................................  49 
4.4.3.1   Horizont al commit ments ...................................................................................... 49 
4.4.3.2   Sector-spe cific commitments ................................................................................ 49 
4.4.4   Guatemala ............................................................................................................ 53 
4.4.4.1   Horizont al commit ments ...................................................................................... 53 
4.4.4.2   Sector-spe cific commitments ................................................................................ 54 
4.5   Regulatory provisions ................................................................................................ 57 
4.5.1   Domestic regulation ............................................................................................... 57 
4.5.2   Recognition ........................................................................................................... 57 
4.5.3   Subsidies .............................................................................................................. 57 
4.5.4   Safeguards ........................................................................................................... 58 
4.5.5   Other provisions .................................................................................................... 58 
4.6   Sector-Specific Pr ovisions in Services .......................................................................... 58 WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
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  4.6.1   Financial services ................................................................................................... 58 
4.6.2   Telecommunications ............................................................................................... 59 
4.6.3   International land freight transport ........................................................................... 60 
4.6.4   Maritime Transport Agreem ent between Guatem ala and Pa nama .................................. 61 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 62  
5.1   Tran sparency ........................................................................................................... 62 
5.2   Current payments and capital movements .................................................................... 62 
5.3   Exceptions ............................................................................................................... 63 
5.4   Accession and Withdrawal .......................................................................................... 63 
5.5   Institutio nal framework ............................................................................................. 63 
5.6   Disput e settlement ................................................................................................... 64 
5.7   Relationship with other agr eements concluded by the Parties .......................................... 67 
5.8   Government  procurement .......................................................................................... 69 
5.9   Intellectual property rights ......................................................................................... 70 
5.10   Other .................................................................................................................. .. 71 
5.10.1   Competition policy ............................................................................................... 71 
5.10.2   En vironm ent ....................................................................................................... 71 
ANNEX 1 ....................................................................................................................... . 72 
ANNEX 2 ....................................................................................................................... . 84 WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
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Key Facts 
 
Parties to the Agreement: Central America1 and Panama 
Date of signature of the Free trade 
Agreement (Regulatory part): 6 March 2002 
Date of signature of the Bilateral 
Protocols: 15 June 2007 with Honduras 
15 January 2009 with Nicaragua 
26 February 2008 with Guatemala 
Date of entry into force: 
Honduras – Panama 
Nicaragua – Panama 
 
 
Guatemala - Panama   
9 January 2009 
21 November 2009. The Tariff 
Reduction Programme entered into 
force on 1 January 2010 
 
20 June 2009 
Date of notification: 
Honduras – Panama 
Nicaragua – Panama 
Guatemala - Panama   
16 December 2009 
25 February 2013 
22 April 2013 
Full implementation of commitments: 2026 for Honduras – Panama 
2014 for Nicaragua - Panama 
2029 for Guatemala - Panama 
 
1  TRADE ENVIRONMENT2 
1.1  Overview 
1.1.  The Free Trade Agreement (FTA) and th e Protocols between Panama and Honduras, 
Nicaragua and Guatemala, (hereinafter "the Agreement") is the fourth regional trade agreement 
(RTA) notified by Honduras and the sixth by Panama; the seventh notified by Nicaragua and the 
ninth by Panama; and the ninth and 12th notified by Guatemala and Panama. 
1.2.  In 2011, the GDP of Panama  (3.57 million inhabitants) was US$30,680 million. Panama was 
ranked 76th for exports and 73rd for imports globally. The majority of Panama's exports and 
imports consist of manufactures (92.5% and 90.6%, respectively). As regards trade in services, 
Panama was 60th among exporters (US$7,100 million) and 83rd among importers 
(US$3,300 million). The average trade/GDP ratio in 2009-2011 was 150.3. 
1.3.  In 2011, the GDP of Honduras (7.76 million inhabitants) was estimated at US$17,260 million. 
It was ranked 101 in global exports and 92nd in imports (total exports of goods amounting to 
US$7,204 million and imports to US$10,340 million). Honduras exports mainly manufactures 
(62.4%) followed by agricultural products (32.4%),  while manufactures are also the leading import 
(64.7%), followed by fuels and mineral products (20.9%) and agricultural products (14.4%). As regards trade in services, Honduras ranked 116
th for both exports (US$1,050 million) and imports 
(US$1,530 million). The average trade/GDP ratio in 2009-2011 was 108.9. 
1.4.  In 2011, the GDP of Nicaragua (5.87 million inhabitants) was estimated at US$7.3 billion. It 
was ranked 130th in global exports and 124th in imports (total exports of goods amounting to 
US$2,264 million and imports to US $5,210 million). The majority of Nicaragua's exports consist of 
agricultural products (77.2%) while manufactures are the leading import (57.6%), followed by 
fuels and mining products (21.8%) and agricultural products (17.4%). As regards trade in services, Nicaragua ranked 136
th for exports (US$573 million) and 138th for imports 
(US$800 million). The average trade/GDP ratio in 2009-2011 was 139.8. 
                                               
1 Costa Rica, El Salvador, Guatem ala, Honduras and Nicaragua. 
2 Unless otherwise indicated, data  in this section are based on the WTO's Trade Profiles and UNSD 
Comtrade. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
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  1.5.  In 2011, the GDP of Guatemala (14.76 million inhabitants) was estimated at 
US$46,900 million. It was ranked 91st in global exports and 81st in imports (total exports of goods 
amounting to US$10,401 million and imports to US$16,613 million). The majority of Guatemala's exports consists of agricultural products (44.7%) and manufactures (41.6%), while manufactures 
are the leading import (64%), followed by fuels and mineral products (21.2%) and agricultural 
products (14.6%). As regards trade in services, Guatemala ranked 93
rd in both exports 
(US$2,243 million) and imports (US$2,485 million ). The average trade/GDP ratio in 2009-2011 
was 62.3. 
1.2  Trade in goods 1.2.1  Honduras-Panama 1.6.  Trade between Panama and Honduras is relatively modest. In 2011, Honduras' exports to 
and imports from Panama represented 0.6% and 0.5%, respectively, of its total exports and 
imports, making Panama the 13
th largest destination for and source of Honduras' exports and 
imports.3 Panama's exports to and imports from Honduras represented 2.5% and 0.1%, 
respectively, of its total exports and imports, placing Honduras in eighth and 31st position as a 
destination for and source of its exports and imports.4 
1.7.  Charts 1.1A and B show the recent trend in the Parties' trade at the global and bilateral 
levels. During the period examined (2000-2011), growth in imports exceeded that of exports, 
increasing both Parties' global trade deficits, es pecially that of Panama. Trade between the Parties 
shows a continuing trade deficit for Honduras during this period. Figures reported by Panama also show a deficit for Panama. The discrepancy is likely due to the fact that Panama's data on trade 
excludes trade flows between the Colon export zone and the rest of the world. 
Chart 1.1 Honduras and Panama: bilateral and total merchandise trade, 2000-2011 
0.00.20.40.60.81.0
0246810
2000 2002 2004 2006 2008 2010A. Honduras 2000-2010a
(US$ Billions)
Imports from Panama (Right Axis)
Exports to Panama (Right Axis)
Total Imports
Total Exports
0.000.020.040.060.080.10
03691215
2000 2002 2004 2006 2008 2010B. Panama 2000-2011b
(US$ Billions)
Imports from Honduras (Right Axis)
Exports to Honduras (Right Axis)
Total Imports
Total Exports
 
 
a No data on exports to Panama in 2008 and 2010. b No data on imports from Honduras in 2000. Note: Data from Panama on trade with world and wi th Honduras excludes tr ade flows between Colon's 
exporting zone and the rest of the world. 
 Source: UNSD Comtrade, WTO-IDB and Instituto Nacional de Nacional de Estadística y Censos (INEC). 
 
1.8.  Chart 1.2 below provides a breakdown of b ilateral trade between the Parties by product and 
of their trade at the global level over the period  2006-2008 by HS Section. Four of Panama's major 
                                               
3 In 2011, Honduras' main export markets were: the United States (47.7%), the European Union 
(19.1%), El Salvador (7.0%), Guatem ala (6.4%) and Nicaragua (3.9%). The main sources of its imports were: 
the United States (36.0%), Guatemala (10.6%), Mexico  (6.6%), El Salvador (6.1%) and the European Union 
(5.8%). 
4 In 2011, Panama's main export markets were: the United States (26.3%), the Bolivarian Republic 
of Venezuela (17.7%), Colombia (12.8%), Costa Rica (4.4%) and Ecuador (4.0%). The main sources of its 
imports were: China (26.3%), the United States (18% ), Singapore (15.7%), the European Union 9.0% and 
Mexico (3.9%). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 7 - 
 
  exports at the global level (animal products, vegetables and prepared foods and base metals) 
accounted for 92% of its total exports. Chemicals, textiles, minerals, machinery as well as footwear accounted for 77% of total imports from Panama by Honduras. Five export categories (vegetables, machinery, animal products, prepar ed foods, and minerals) accounted for 70% of 
Honduras' total exports; two of these, namely machinery and prepared foods made up 32% and 
23%, respectively, of Panama's imports from Honduras, and chemicals accounted for another 14%. 
Chart 1.2 Honduras and Panama: Product co mposition of merchandise trade, annual 
average (2006-2008) 
Total: US$ 196 million Total: US$ 6.6 billion
Total: US$ 6.9 billion Total: US$ 2.3 billionTotal:  US$ 1.1 billion
Total:  US$ 21.7 million
Animal 
products
Vegetables
Fats and 
OilsMinerals
ChemicalsPlastics, 
rubber
Articles of wood
Wood pulpPrecious 
stonesBase metals
VehiclesOtherMiscellaneousPrepared 
foods
Machinery FootwearTextiles41
3665327Panama's Global Exports (%)
32
2314117634Panama's imports from 
Honduras(%)
21
20
11 986433338Panama's Global Imports(%)22
21
12121063328Honduras' imports from Panama 
(%) 
22
16
13 108754438Honduras' Global Imports (%)
33
11
99874443224Honduras' Global Exports(%)
 
 
Note:  Used the 2009 Honduras global export figures to replace the absence of Honduras export data in 
2008.  Data from Panama excludes trade flows between Colo n's export zone and the rest of the world.  
 Source: UNSD Comtrade, WTO-IDB and Instituto Nacional de Nacional de Estadística y Censos (INEC). 
 
1.2.2  Nicaragua-Panama 
1.9.  In 2011, Nicaragua's exports to and im ports from Panama represented 0.6% and 0.4%, 
respectively, of its total exports and imports, making Panama the 15th largest destination for 
Nicaragua's exports and 22nd source of imports.5 Panama's exports to and imports from Nicaragua 
                                               
5 In 2011, Nicaragua's main export markets were: the United States (30.4%), the Bolivarian Republic 
of Venezuela (13.3%), Canada (12%), the European Un ion (10.7%), El Salvador (8.7%).Guatemala (6.4%) 
and Nicaragua (3.9%). The main sources of its import s were: the United States (18.8%), the Bolivarian 
Republic of Venezuela (15.7% ), China (9.2%), Costa Rica (8.6) and Mexico (8.1%). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 8 - 
 
  represented 1.6% and 0.1%, respectively, of its total exports and imports, placing Nicaragua in 
14th position as a destination for Panama's exports and 35th for its imports.6 
1.10.  Charts 1.3A and B show the recent trend in the Parties' trade at the global and bilateral 
levels. During the period examined (2000-2011), gr owth in imports exceeded that of exports for 
both Parties, increasing their global trade defi cits but especially for Panama. Trade between the 
Parties shows a continuing trade deficit for Nicaragua during this period. It should be borne in mind that Panama's data on trade excludes trade from the Colon export zone. 
Chart 1.3 Nicaragua and Panama: bilateral and total merchandise trade, 2000-2011 
0.000.030.060.090.120.150.18
0123456
2000 2002 2004 2006 2008 2010A. Nicaragua 2000-2010
(US$ Billions)
Imports from Panama (Right Axis)
Exports to Panama (Right Axis)
Total Imports
Total Exports
0.000.020.040.060.080.100.12
024681012
2000 2002 2004 2006 2008 2010B. Panama 2000-2011a
(US$ Billions)
Imports from Nicaragua (Right Axis)
Exports to Nicaragua (Right Axis)
Total Imports
Total Exports
 
 
a  No data on imports from Nicaragua in 2000.  
Note: Data from Panama on trade with world and wi th Nicaragua excludes trade flows between Colon's 
exporting zone and the rest of the world. 
 Source: UNDS Comtrade, WTO-IDB and Instituto Nacion al de Estadística y Censos de Panamá (INEC).  
 
1.11.  Chart 1.4 below provides a breakdown of b ilateral trade between the Parties by product and 
of their trade at the global level over the period 2007-2009 by HS Section. Five of Panama's major 
exports at the global level (animal products, vegetables, fats and oils, based metals and prepared 
foods) accounted for 89% of its total exports of which animal products accounted for 29% of total imports from Panama by Nicaragua. Chemicals, textiles and minerals accounted for another 36%. 
Five export categories (animal products, vegetables, prepared foods, textiles and precious stones) 
accounted for 82% Nicaragua's total exports; two of these, namely prepared foods and vegetables made up 31% and 20%, respectively, of Panama's  imports from Nicaragua and animal products 
accounted for another 15%. 
 
                                               
6 In 2011, Panama's main export markets were: the United States (26.3%), the Bolivarian Republic 
of Venezuela (17.7%), Colombia (12.8%), Costa Rica (4.4%) and Ecuador (4.0%). The main sources of its 
imports were: China (26.3%), the United States (18% ), Singapore (15.7%), the European Union 9.0% and 
Mexico (3.9%). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 9 - 
 
  Chart 1.4 Nicaragua and Panama: Product co mposition of merchandise trade, annual 
average (2007-2009) 
Total: US$14 million Total: US$3.9 billion
Total: US$ 19 billion Total: US$ 14 billionTotal:  US$ 9.5 million
Total:  US$ 2.3 billion
Animal 
products
Vegetables
Fats and 
OilsMinerals
ChemicalsPlastics, 
rubber
Wood pulp
Base metalsVehiclesOther
MiscellaneousPrepared 
foodsMachinery Footwear
TextilesPrecious stones44
3254429Panama's Global Exports (%)
31
20 1511958Panama's imports from Nicaragua 
(%)29
17
109774333323Nicaragua's imports from Panama 
(%) 
22
15
13866543215Nicaragua's Global Imports (%)
20
20
11 986443338Panama's Global Imports(%)
27
25131153213Nicaragua's Global Exports(%)
 
 
Note:  Data from Panama excludes trade flows between Colon's export zone and the rest of the world.  
 
Source: UNSD Comtrade, WTO-IDB and Instituto Nacional de Nacional de Estadística y Censos (INEC). 
 
1.2.3  Guatemala-Panama 
1.12.  In 2011, Guatemala's exports to and impo rts from Panama represented 2.4% and 2.9%, 
respectively, of its total exports and imports, making Panama the 8th largest destination for 
Guatemala's exports and 7th main source of imports.7 Panama's exports to and imports from 
Guatemala represented 3.2% and 1.0%, respectively, of its total exports and imports, placing Guatemala in 7
th position as a destination for Panama's exports and 15th for its imports.8  
1.13.  Charts 1.5A and B show the recent trend in the Parties' trade at the global and bilateral 
levels. During the period examined (2000-2011), gr owth in imports exceeded that of exports for 
both Parties, increasing their global trade deficits but mainly for Panama. Trade between the Parties shows a continuing trade deficit for Guatemala during this period. Figures reported by 
                                               
7 In 2011, Guatemala's main export markets were: th e United States (41.6%), El Salvador (11.1%), 
Honduras (8.0%), the European Union (6.6%) and Mexico (5.0%). The main sources of its imports were: the 
United States (39.2%), Mexico (11.2%), China (6.9%) , the European Union (6.6%)  and El Salvador (4.9%). 
8 In 2011, Panama's main export markets were: the United States (26.3%), the Bolivarian Republic 
of Venezuela (17.7%), Colombia (12.8%), Costa Rica (4.4%) and Ecuador (4.0%). The main sources of its 
imports were: China (26.3%), the United States (18% ), Singapore (15.7%), the European Union 9.0% and 
Mexico (3.9%). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 10 - 
 
  Panama also show a deficit for Panama. The discrepancy is due to the fact that Panama's data on 
trade excludes trade flows between the Colon export  zone and the rest of the world. Guatemala's 
data includes trade flows from special customs regimes. 
Chart 1.5 - Guatemala and Panama: bilatera l and total merchandise trade, 2000-2011 
0.000.170.330.500.670.831.00
0369121518
2000 2002 2004 2006 2008 2010 2012A. Guatemala 2000-2012
(US$ Billions)
Imports from Panama (Right Axis)
Exports to Panama (Right Axis)
Total Imports
Total Exports
0.000.050.100.150.200.250.30
024681012
2000 2002 2004 2006 2008 2010B. Panama 2000-2011a
(US$ Billions)
Imports from Guatemala (Right Axis)
Exports to Guatemala (Right Axis)
Total Imports
Total Exports
 
 
a No data on imports from Guatemala in 2000. 
Note: Data from Panama on trade with world and with  Guatemala excludes trade from special extraction 
zones and Colon's exporting zone. 
 Source: UNDS Comtrade, WTO-IDB and Instituto Nacional de Estadística y Censos (INEC). 
 
1.14.  Chart 1.6 below provides a breakdown of b ilateral trade between the Parties by product and 
of their trade at the global level over the period 2007-2009. Panama's four major exports at the 
global level (animal products, vegetables, prepar ed foods and base metals) accounted for 88% of 
its total exports. None of these are major imports by Guatemala, whose main imports from Panama are chemicals, machinery, minerals, textiles and footwear which accounted for 81% of total imports from Panama. Five export categories (vegetables, textiles, chemicals, minerals and 
plastics and rubber) accounted for 81% of Guatemala's total exports; two of these, namely, 
chemicals and prepared foods made up 49% and 22%, respectively of Panama's imports from 
Guatemala, and machinery accounted for another 7%. 
 WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 11 - 
 
  Chart 1.6 Guatemala and Panama: Product co mposition of merchandise trade, annual 
average (2007-2009) 
Total: US$ 392 million Total: US$ 12.5 billion
Total: US$ 6.9 billion Total: US$ 5.9 billionTotal:  US$ 1.1 billion
Total:  US$112.5million
Animal 
products
Vegetables
Fats and 
OilsMinerals
ChemicalsPlastics, 
rubber
Articles of wood
Wood pulpPrecious 
stonesBase metals
VehiclesOtherMiscellaneousPrepared 
foods
Machinery FootwearTextiles21
20
11 986433338Panama's Global Imports(%)27
22
1312732211Guatemala's imports from Panama 
(%) 
19
17
1288775449Guatemala's Global Imports (%)
41
3665327Panama's Global Exports (%)
49
22743338Panama's imports from 
Guatemala(%)
23
18
15109653327Guatemala's Global Exports(%)
 
Note: Data from Panama excludes trade flows between Colon's export zone and the rest of the world. 
 Source: UNSD Comtrade and Instituto Nacional de Nacional de Estadí stica y Censos (INEC). 
 
1.3  Trade in services and investment 
1.15.  Tables 1.1A, 1.1B  and 1.1C  show global trade in services and foreign direct investment 
(FDI) for Panama, Honduras  and Nicaragua,  respectively, over the period 2006-2010. During this 
period, Panama had a large surplus in its global trade in services during the period examined, a 
surplus that tended to fall as imports and exports increased. Its principal exports and imports were 
transport, travel-related, communications, financial and other business services. 
1.16.  Honduras posted a declining deficit in its global trade in services. Its major exports were 
travel-related, communications and transport services; the principal imports were transport, 
travel-related, communications and insurance services.  
1.17.  Nicaragua posted an increasing deficit in its global trade in services. Its major exports were 
travel-related, communications and transport services; the principal imports were transport, 
travel- related, insurance and other business services. 
1.18.  There are no data for bilateral trade between Panama and Honduras, nor between Panama 
and Nicaragua.  WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 12 - 
 
  1.19.  Tables 1.1.A, 1.1.B and 1.1.C also contain data on FDI. Panama is a net exporter, while 
Honduras and Guatemala are net recipients of FDI.  There is no data on Nicaragua's FDI outward 
flows.  
Table 1.1 Trade in commercial services  and investment with world, 2006-2010 
A. Panama 
Unit: US$ millions 
Services Exports  Imports 
2006  2007 2008  2009  2010  2006  2007  2008 2009 2010  
Total commercial 
services 3,957  4,887 5,718  5,487  6,007  1,673  2,065  2,561 2,127 2,569  
Transportation 
services 2,217  2,620 3,112  3,130  3,341  953 1,211  1,543 1,208 1,541  
Travel 960  1,185 1,408  1,484  1,676  271 307 366 338 398  
Communications 
services 162 216 223 239 249 34 54 76 45 46 
Construction 0  1 3  2 2 0 0 0 0 0  
Insurance services 44 55 91 95 90 94 72 86 146 161 
Financial services 273  338 434  312 438 142 220 317 170 237  
Computer and 
information services 14 18 30 26 25 0 0 0 2 3 
Royalties and licence 
fees 0 0 0  0 0 43 56 59 63 46  
Other business 
services 288 456 417 200 187 136 145 114 156 136 
Personal, cultural and 
recreational services 0 0 0  0 0 0 0 0 0 0  
Investment Outward  Inward 
2006  2007 2008  2009  2010  2006  2007  2008 2009 2010  
Total FDI stocks  22,048  24,751 26,846  29,182  31,559  12,724  14,501  16,902 18,675 20,945  
Total FDI flows 2,209  2,704 2,095  2,336  2,377  2,498  1,777  2,196 1,259 2,350  
 
Source: WTO Statistics databa se and UNCTAD (for FDI). 
Table 1.1 Trade in commercial services  and investment with world, 2006-2010 
B. Honduras 
Unit: US$ millions 
Services Exports  Imports 
2006 2007 2008  2009  2010  2006  2007  2008 2009 2010  
Total commercial services 727 770 866  891 1,003  1,027  1,058  1,177 1,086 1,312  
Transportation services 39 50 41 40 49 532 625 694 464 588 
Travel 515 546 619  579 650 355 212 291 285 321  
Communications services 137 138 174 239 253 36 57 75 245 220 
Construction 0 0 0  0 0 0 0 0 0 3  
Insurance services 21 24 25 21 25 10 80 65 50 90 
Financial services 0 0 0  0 0 14 7 10 9 17  
Computer and 
information services 1 0 0 0 5 12 15 0 1 3 
Royalties and licence fees 0 0 0  0 0 27 28 18 18 30  
Other business services 14 13 7 5 0 35 25 14 8 33 
Personal, cultural and 
recreational services 0 0 0  7 12 6 8 10 6 6  
Investment Outward  Inward 
2006 2007 2008  2009  2010  2006  2007  2008 2009 2010  
Total FDI stocks  30 33 40  44 42 3,539  4,466  5,473 5,996 6,793  
Total FDI flows 1 1 1 1 1 669 928 1,006 523 797 
 
Source: Honduras authorities (2006-2009), WTO St atistics database and UNCTAD (for FDI). 
Table 1.1 Trade in commercial services and investment with world, 2006-2010 
C. Nicaragua 
Services Exports  Imports 
2006  2007  2008  2009  2010  2006  2007 2008 2009  2010  
Total commercial services 306  333 452 484 491 475 625 716 628  687 
Transportation services 43 44 45 49 52 267 323 346 289 334 
Travel 231  255 301 334 309 97 178 220 192  205 
Communications services 29 31 81 76 73 5 6 27 24 29 
Construction 0  0 0 .. .. .. .. 0 ..  .. 
Insurance services 4 4 4 5 4 44 56 58 56 66 
Financial services 0  0 0 0 0 7 6 6 6  6 
Computer and information services 0 0 0 0 0 .. .. 0 0 0 WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 13 - 
 
  Services Exports  Imports 
2006  2007  2008  2009  2010  2006  2007 2008 2009  2010  
Royalties and licence fees 0  0 0 0 0 .. .. 1 1  1 
Other business services 0 0 20 20 53 55 57 58 60 46 
Personal, cultural and recreational services 0  0 0 0 0 .. .. 0 0  1 
Investment Outward  Inward 
2006  2007  2008  2009  2010  2006  2007 2008 2009  2010  
Total FDI stocks  0 0 0 0 0 2,748  3,129 3,756 4,190  4,698  
Total FDI flows ..  .. .. .. .. 287 382 626 434  508 
.. Not available. 
 Source: WTO Statistical database and UNCTAD.  
Table 1.1 Trade in commercial services and investment with world, 2006-2010  
D. Guatemala 
Services Exports  Imports 
2006 2007 2008  2009  2010  2006  2007  2008 2009 2010  
Total commercial se rvices 1410.1 1619.4 1731.5  1818 2192 1756.3  2017 2115.6 2058.3 2361.7  
Transportation services 166.9 187.9 254.6  255.5  286.2  911.8  1073.1  1146.4 955.6 1137.7  
Travel 918.6 1054.6 1068.4  1178.9  1378.5  528.3  597 606.5 715.3 784.2  
Communications services 209 265 273 259.8  315.9  29.9 32.1 32.4 38.8 48.9 
Construction 5.3 0 0  2.1 10.4 1.1 0 .. 0.4 0.8  
Insurance services 18.3 20.6 21.9 19 41.9 181.8  201.8  203.9 198 192.1  
Financial services 8.8 14.8 5.8  10 11.7 9.9 8.2 11 3.1 13.7  
Computer and information 
services 13.3 10.9 11 11.4 12.8 11.3 9.4 8.4 9.4 10.2 
Royalties and licence fees 8 10.8 11.9  13.1 13.4 60.2 72.2 62.2 86.2 93.9  
Other business services 61.9 54.8 84.9 68.2 107 16.8 18.9 40.3 48.8 72 
Personal, cultural and 
recreational services 0 0 0  0 14.2 5.2 4.3 4.5 2.7 8.2  
Investment Outward  Inward 
2006 2007 2008  2009  2010  2006  2007  2008 2009 2010  
Total FDI stocks  293.4 315.6 331.9  358.3  381.7  3,898  4,618  5,439 5,636 6,518  
Total FDI flows 40 25.4 16.4  26.3 23.5 591.6  745.1  753.8 600 805.8  
.. Not available. 
 Source: Guatemalan Authorities (Services Statistics for 2006-2008), WTO Statistical database (Services 
Statistics for 2008-2010), and UNCTADStat (FDI data). 
 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Basic information 2.1.  The Parties signed the Regulatory part of  the Agreement on 6 March 2002 and the Bilateral 
Protocols between Panama and Honduras, Guatemala and Nicaragua were signed on 
15 June 2007, 26 February 2008 and 15 January 2009, respectively. The Agreement, which came 
into force as follows: Honduras-Panama, 9 January 2009; Guatemala-Panama, 22 June 2009; 
Nicaragua-Panama, 21 November 2009, once the bilateral protocols were concluded, comprises 
two parts: the Treaty between Panama and Central America (Regulatory part) and the bilateral 
protocols between Panama and Honduras, Nicaragua and Guatemala. Honduras and Panama notified the Agreement to the WTO on 16 December 2009, Nicaragua and Panama on 
25 February 2013, and Guatemala and Panama on 22 April 2013, pursuant to Article XXIV.7(a) of 
the GATT 1994 and Article V.7(a) of the GATS.  
2.2.  The text of the Agreement, together with it s annexes, may be viewed on the following official 
web sites: 
Panama : http://www.mici.gob.p a/TLC_nueva.php 
Honduras : http://www.sic.gob.hn  WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 14 - 
 
  Nicaragua:  Regulatory Part 
http://www.mific.gob.ni/LinkClick.aspx?filetick et=5rXS1cbslfw%3d&tabid=428&language=en-US 
Protocol: 
http://www.mific.gob.ni/LinkClick.aspx?filetick et=5rXS1cbslfw%3d&tabid=428&language=en-US 
 
Guatemala:  http://portaldace.mineco.gob.gt/tratados-y-acuerdos-comerciales  
 
2.3.  As can be seen from Box 2.1, the Agr eement has eight parts comprising 22 Chapters; the 
annexes of which appear at the end of the corresponding Chapters.9 The Bilateral Protocols 
between Honduras and Panama, Nicaragua and Panama and Guatemala and Panama are an integral part of the Agreement. Box 2.2 provides  a list of specific annexes applicable between 
Panama and Honduras, Panama and Nicaragua and Panama and Guatemala. 
Box 2.1 General Provisions of the Agreement 
Preamble 
PART ONE  General aspects  
Chapter 1 Initial provisions 
Chapter 2 Genera l definitions 
PART TWO  Trade in goods  
Chapter 3 National treatment and market access for goods 
Chapter 4 Rules of origin 
Chapter 5 Customs procedures 
Chapter 6 Safeguard measures 
Chapter 7 Unfair trading practices 
PART THREE  Technical barriers to trade  
Chapter 8 Sanitary and ph ytosanitary measures  
Chapter 9 Standards-related measures, metrology and approval procedures 
PART FOUR  Investment, services and related matters  
Chapter 10 Investment 
Chapter 11 Cross-border trade in services 
Chapter 12 Financial services 
Chapter 13 Telecommunications 
Chapter 14 Temporary entr y of business persons 
PART FIVE Competition policy 
Chapter 15 Competition policy, mo nopolies and State enterprises 
PART SIX Government procurement 
Chapter 16 Governme nt procurement 
PART SEVEN Intellectual property 
Chapter 17 Intellectual property 
PART EIGHT Administrative and institutional provisions 
Chapter 18 Transparency 
Chapter 19 Administration of the Agreement 
Chapter 20 Dispute settlement 
Chapter 21 Exceptions 
Chapter 22 Final provisions 
Source: Free trade Agreement between Panama and Central America. 
                                               
9 These annexes are not listed in Box 2.1. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 15 - 
 
  Box 2.2 Bilateral Annexes between Panama and Honduras, Nicaragua and Guatemala  
Annex 3.04 : Tariff Reduction Programme  
Annex 3.09 : Restrictions on domestic support and export promotion programmes  
Annex 3.10.6 : Import and Export Restrictions 
Annex 4.03 : Specific rules of origin. Bilateral rules of origin - Section B (only between Honduras and 
Panama ) and Section C 
Annexes I ,II ,II , IV, V, IV  to Chapter X (Investment) and Chapte r XI (Cross-border Trade in Services 
Annex 10.11(1) : Expropriation and Compensation 
Appendix 11.16(6)  to Annex 11.16 on International freight transportation by road 
Annex VI  to Chapter 12 (Financial Services) 
Annex 14.4(1)  Honduras and Panama : Special provisions by country for temporary entry of business 
persons 
Appendix to Annex 14.04(A)(3) Honduras and Panama : Existing measures concerning migration  
Annex 16.01 : Entities in Chapter 16 (Government Procurement) 
Annex 22.03 (g) Guatemala and Panama:  Maritime Transport Agreement  
Source: Free trade Agreement between Central America and the Republic of Panama and Bilateral Protocols 
between Honduras and Panamá, Nicaragua and Panama and Guatemala and Panama.  
 
2.4.  Unless otherwise provided, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua, 
considered individually, shall apply the rules and procedures under this Agreement bilaterally with 
Panama (Article 1.1). 
2.5.  The objectives of the Agreement are to further develop the free trade zone between the 
Parties, encourage the expansion and diversification of trade in goods and services, promote 
conditions of fair competition, eliminate barriers to trade and facilitate the movement of goods and services, and promote, protect and substantially increase investments in each Party. Although the 
Agreement does not set a precise date for it s full implementation, the Tariff Reduction 
Programmes (TRP) extend up to the eighteenth year for Panama-Honduras (2026), the fifteenth year for Panama-Nicaragua (2024) and the twentieth year for Panama-Guatemala (2029), after 
the entry into force of the Agreement.  
3  PROVISIONS ON TRADE IN GOODS 3.1  Import duties and charges and quantitative restrictions 3.1.1  General provisions 
3.1.  Parts Two and Three of the Agreement deal with trade in goods and related aspects. 
3.2.  In Article 3.03, it is provided that each Party shall accord to the goods of the other Party 
treatment (national treatment) no less favourable than the most favourable treatment accorded to 
similar, directly competitive or substitutable goods of national origin, pursuant to Article III of 
the GATT 1994 and the interpretative notes thereto, which are incorporated as an integral part of 
the Agreement. In the case of Panama, Nicaragu a and Guatemala, however, national treatment 
does not apply to certain measures that appear in Annex 3.10(6) (Import and export restrictions). 
3.3.  As regards tariffs (Article 3.04), as of the entry into force of the Agreement, the Parties agree 
to eliminate customs duties and any other fees or charges on trade in originating goods, other than those listed in Annex 3.04 - Tariff Reduction Programme (TRP). Except as otherwise 
determined in the Agreement, the purpose is not to prevent a Party from increasing or maintaining 
a customs tariff in accordance with the WTO Agre ement or any other agreement that forms part of 
the WTO. The Article does not prevent a Party from raising a tariff to a level that does not exceed 
that determined in the TRP if this tariff has been unilaterally decreased to a level lower than that in 
the TRP. During the elimination process, the Parties shall apply the lower of the tariff in the TRP or that in force pursuant to Article I of the GATT 1994 (MFN tariff). Consultations shall be held, at the WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 16 - 
 
  request of any Party, to examine the possibility of accelerating the elimination of the tariffs set out 
in the TRP. Furthermore, the Parties may maintain, adopt or modify tariffs on goods not listed in the TRP.  
3.4.  Subject to certain conditions, each Party shall grant duty-free temporary admission for some 
goods, namely: (i) professional equipment necessa ry for carrying out a business activity, trade or 
profession; (ii) equipment for the press or for sound or television broadcasting and cinematographic equipment; (iii) goods for sports purposes or for display or demonstration; and 
(iv) commercial samples and advertising films, imported from the territory of the other Party, 
regardless of their origin and whether like, directly competitive or substitutable goods are available (Article 3.05). Likewise, each Party shall authorize duty-free import of commercial samples of negligible or no commercial value and of printed advertising materials (Article 3.06). No Party may 
apply a customs duty to a good that has been re-imported into its territory after repair or 
alteration or has been imported temporarily into its territory for repair or alteration. Re-import and admission shall take place within the time-limits established in the relevant laws of the Parties 
(Article 3.07). 
3.5.  The WTO Customs Valuation Agreement (CVA) shall apply to trade between the Parties. 
For countries which negotiated reservations at the WTO under Annex III, the CVA shall apply fully 
to the Parties two years after the entry into force of the Agreement, and it will not be possible to 
value goods on the basis of minimum values (Article 3.08). All Parties have confirmed that now the CVA applies fully.  
3.6.  With regard to non-tariff measures, the Parties shall establish disciplines concerning domestic 
support to agricultural products and export promotion programmes in Annex 3.09 (Article 3.09). 
3.7.  The Parties undertake (Article 3.10) completely and immediately to eliminate non-tariff 
barriers, with the exception of the rights under  Articles XX and XXI of the GATT 1994 and those 
regulated in Chapters 8 (Sanitary and phytos anitary measures) and 9 (Standards-related 
measures, metrology and approval procedures). Ex cept as otherwise provided in the Agreement, 
no Party may adopt or maintain any prohibition or restriction on the import of any goods from the 
other Party or on the export or sale for export of any good destined for the other Party, except in 
accordance with Article XI of the GATT 1994. To th is end, this Article and its interpretative notes 
are incorporated into the Agreement and form an integral part thereof. The Parties set out restrictions
10 in Annex 3.10(6). 
3.8.  As of the entry into force of the Agreemen t, the Parties shall not apply customs processing 
fees to originating goods and shall not collect consular fees or charges or require consular (Article 3.11). They shall not maintain either any duty, tax or other charge on the export of any 
goods to the territory of the other Party (Article 3.14). 
3.9.  A Committee on Trade in Goods is established, with the composition specified in 
Annex 3.16
11, to examine matters relating to national treatment, market access for goods, rules of 
origin, customs procedures and uniform regulations. Its task shall be: (i) to refer to the 
Commission12 matters that impede access to markets in the territory of the Parties, particularly 
                                               
10 For Panama: lottery tickets; video games and other games that award prizes in heading 9504; wood 
from national forests; used vehicles ; used tyres; used clothing; used footwear; used retreaded tyres; 
measures authorized by the DSB. For Honduras: broadl eaf tropical wood; arms and ammunition; vehicles and 
buses; ozone-depleting subs tances; petroleum and its by -products; products containing asbestos; measures 
authorized by the WTO Dispute Settlement Body (DSB). For Nicaragua: controls on exports of any staple 
foodstuffs; prohibition of exports of shrimp and lobste r during the reproductive or larval stage and wooden 
logs; prohibition to import vehicles more than seven years old; prohibition to export live bovine cattle under 350 kilograms; used tyres and used retreaded tyres; us ed clothing; used footwear; measures authorized by 
the DSB. For Guatemala: controls on exports of timb er in round logs or worked logs and sawn timber 
measuring more than 11 centimetres of thickness; cont rols on exports of coffee;  controls on imports of 
weapons; measures authorized by the DSB. 
11 For Honduras, a representative of the Secretaria t of State for Industry and Trade, or his/her 
successor, for Guatemala a re presentative of the Ministry of Economy, for Nicaragua a representative of the 
Ministry of Development, Industry an d Trade, and for Panama, the Ministry  of Trade and Industry through the 
Vice-Ministry of Foreign Trad e, or his/her successor. 
12 See Section 5.6 (Insti tutional framework). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 17 - 
 
  non-tariff measures; and (ii) to promote trade in goods among the Parties, through consultations 
and studies to accelerate the elimination of tariffs. 
3.1.2  Liberalization of trade and tariff lines13 
3.1.2.1  Panama 
3.10.  Table 3.1A shows Panama's liberalization of imports from Honduras over the 
period 2009-2026, from Nicaragua over the peri od 2010-2024 and from Guatemala over the 
period 2009-2029.  
3.11.  In 2009, 31.3% of Panama's tariff schedule was already duty-free under the MFN regime, 
corresponding to 18.7% of its average imports from Honduras and 34.3% of average imports from Guatemala over the period 2006-2008.
14 Upon entry into force of the Agreement, a further 38.6% 
of tariff lines were liberalized for Honduras and 51.3% for Guatemala, corresponding to 68.7% and 
42.1% respectively of Panama's imports from Honduras and Guatemala. Further liberalization is 
planned for the period 2013 to 2026 for Honduras and 2013 to 2028 for Guatemala. By 2018, ten years following implementation, 85.4% of tariff lines, corresponding to 97.1% of Panama's imports 
from Honduras, and 95.9% of the tariff, corresponding to 93.5% of its imports from Guatemala 
will be duty-free. At the end of the impl ementation period, in 2026 (2028 for trade with 
Guatemala), 1,142 tariff lines will still be subject to duty (12.8% of the tariff), corresponding to 
0.2% of Panama's imports from Honduras in 2006-2008 and 220 lines (2.5% of the tariff), 
corresponding to 4.3% of imports from Guatemala will remain subject to duty. 
3.12.  In 2010, 30.5% of Panama's tariff schedule was already duty-free under the MFN regime, 
corresponding to 35.9% of its average import s from Nicaragua over the period 2007-2009.
15 Upon 
entry into force of the Agreement, a further 56% of  tariff lines were liberalized, corresponding to 
41.4% of Panama's imports from Ni caragua. Further liberalization is planned for the period 2014 to 
2024. By 2019, ten years following implementation, 90.8% of tariff lines, corresponding to 89.1% 
of Panama's imports from Nicaragua, will be duty-f ree. At the end of the implementation period, in 
2024, 842 tariff lines will still be subject to duty (9.4% of the tariff), corresponding to 0.6% of Panama's imports from Nicaragua in 2007-2009. 
3.13.  Panama's tariff liberalization commitments with Honduras, Nicaragua and Guatemala include 
five prohibited lines
16 under Category A (duty-free upon entry into force of the Agreement), which 
are subject to the legal provisions in force at the time of importation. 
Table 3.1 Tariff elimination commitments under the Agreement and average values of 
corresponding trade 
A. Panama 
Period Number of lines a % of total lines in 
Panama's tariff 
schedule Value of Panama's 
imports b % of Panama's 
imports b Honduras 
Nicaragua 
Guatemala 
Honduras 
Nicaragua 
Guatemala 
Honduras 
Nicaragua 
Guatemala 
Honduras 
Nicaragua 
Guatemala 
MFN (duty-free)            
2009 2,800 2781 31.3  4  18.7  2010 2,732  30.5  3.4  35.9  Phase-Out 
2009c 3,452   4571 38.6    51.3 14.9   47.3 68.7   42.1  
                                               
13 For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related calculations 
in all Tables in this Section. 
14 In 2009, Panama's tariff schedule contained 8,938 HS eight-digit tariff lines, all of which were subject 
to ad valorem  rates. 
15 In 2010, Panama's tariff schedule contained 8,957 HS eight-digit tariff lines based on the HS 2007 
nomenclature, all of which were subject to ad valorem  rates. 
16 1301.90.20 (Cannabis resin and other narcotic drugs); 1302.11.10 (Opium gum); 1302.11.90 (Other 
opium); 1302.19.20 (Cannabis extract and tinctures) an d; 1302.19.30 (Concentrate of Paja Adormidera, and 
other narcotic drugs). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 18 - 
 
  Period Number of lines a % of total lines in 
Panama's tariff 
schedule Value of Panama's 
imports b % of Panama's 
imports b Honduras 
Nicaragua 
Guatemala  
Honduras 
Nicaragua 
Guatemala  
Honduras 
Nicaragua 
Guatemala  
Honduras 
Nicaragua 
Guatemala  
2010c   5,015 4   56 0.0   4 2.0   41.4 1.8 
2011     1     0.0     0.0     0.0  
2013 998   214 11.2   2.4 0.3   3.4 1.2   3.0 
2014   76     0.8     0.1     0.6   
2015 2   1 0   0.0 0   1.2 0   1.1 
2016     11     0.1     4.7     4.2  
2017     1     0.0     3.3     2.9 
2018 385   984 4.3    11.0 1.8   4.6 8.5   4.1  
2019   270 9   3 0.1   1.1 0.0   11.2 0.0 
2023 152   77 1.7    0.9 0.6   2.6 2.7   2.3  
2024   22     0.2     1     10.3   
2026 7   1 0.1    0.0 0   0.0 0   0.0  
2028     40     0.4     0.0     0.0 
Remain dutiable 1,142 842 220 12.8  9.4 2.5 0 0.1 4.9 0.2 0.6 4.3  
Total 8,938 8,957 8,917 100.0  100.0  100.0  21.6 9.6 112.5 100.0 100.0 100.0  
 
a Tariff data for Honduras and Guatemala is based on the HS 2002 nomenclature whereas for 
Nicaragua, tariff data is based on the HS 2007 nomenclature. Due to this difference, the total number of lines in reflected in the tabl e is not the same for all parties.  
b Honduras and Guatemala: 2006-2008. Nicaragua: 2007-2009. c Includes prohibited lines.  
Source: WTO estimates based on data provid ed by Panama and the WTO-IDB database.  
 
3.1.2.2  Honduras 
3.14.  Table 3.1B shows Honduras' tariff elimination under the Agreement. In 2009, when the 
Agreement entered into force, duty-free entry und er the MFN regime already applied to 47.2% of 
Honduras' tariff schedule (3,096 tariff lines), corresponding to 43.4% of Honduras' average 
imports from Panama over the period 2006-2008.17 Upon entry into force of the Agreement, a 
further 22.4% of tariff headings were liberalize d, corresponding to 19.6% of Honduras' imports 
from Panama. Further liberalization is planned for the period 2013 to 2026. Honduras has 
undertaken to liberalize 84.3% of its tariff, corresponding to 78.4% of its imports from Panama, by 2018, ten years after the entry into force of the Agreement. At the end of the implementation 
period, in 2026, 958 tariff headings will still be subject to duty (14.6% of the tariff schedule), 
corresponding to 21.2% of Honduras' imports from Panama. 
Table 3.1 Tariff elimination commitments under the Agreement and average values of 
corresponding trade 
B. Honduras 
Duty phase-out period Number 
of lines % of total 
lines in 
Honduras' 
tariff schedule Value of Honduras' 
imports from Panama 
(2006-2008) 
US$ millions % of Honduras' 
imports from 
Panama  
(2006-2008) 
MFN duty-free (2009) 3,096 47.2 88.7 43.4 
2009 1,469 22.4 40.1 19.6 
2013 734 11.2 24.1 11.8 
2015 2 0.0 0.1 0.0 
2018 228 3.5 7.4 3.6 
2023 76 1.2 0.9 0.4 
2026 1 0.0 0.0 0.0 
Remain dutiable  958 14.6 43.3 21.2 
Total 6,564 100.0 204.6 100.0 
Note: Based on the HS 2007 nomenclature. 
Source: WTO estimates based on Honduras' categories in the Agreement and the WTO-IDB. 
                                               
17 In 2009, Honduras' tariff schedule contained 6,564 HS eight-digit tariff lines. Ad valorem  rates applied 
to all of these, except for 7 lines  (0.11%) that were subject to non- ad valorem  rates. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 19 - 
 
  3.1.2.3  Nicaragua 
3.15.  Table 3.1C shows Nicaragua's tariff elim ination 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 2007-2009.18 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 3.1 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.  
 
3.1.2.4  Guatemala  
3.16.  Table 3.1D shows Guatemala's tariff elim ination under the Agreement. In 2009, when the 
Agreement entered into force, duty-free entry und er the MFN regime already applied to 47.2% of 
Guatemala's tariff schedule (2,972 tariff lines), corresponding to 34.5% of Guatemala's average 
imports from Panama over the period 2006-2008.19 Upon entry into force of the Agreement, a 
further 39.9% of tariff headings were liberalized,  corresponding to 44.1% of Guatemala's imports 
from Panama. Further liberalization is planned for the period 2011 to 2028. Guatemala has 
undertaken to liberalize 96.6% of its tariff, corresponding to 97.6% of its imports from Panama, by 
2018, ten years after the entry into force of the Agreement. At the end of the implementation 
period, in 2028, 121 tariff headings will still be subject to duty (1.9% of the tariff schedule), 
corresponding to 1.6% of Guatemala's imports from Panama. 
Table 3.1 Tariff elimination commitments under the Agreement and corresponding 
average trade 
D. Guatemala 
Duty phase-
out period Number of 
lines % of total lines in 
Guatemala's tariff 
schedule Value of Guatemala's 
imports from Panama 
(2006-2008) in million 
US$ % of Guatemala's total 
imports from Panama 
2006-2008 
 
MFN duty free 
(2009) 2,972 47.2 139.4 34.5 
2009 2,510 39.9 178.5  44.1 
2010 4  0.1 0.1 0.0 
2011 1 0.0 0.0 0.0 
2013 87  1.4 0.8 0.2 
2016 3 0.0 0.1 0.0 
2017 1  0.0 0.1 0.0 
                                               
18 In 2010, Nicaragua's tariff schedule contained 7,354 HS eight-digit tariff lines, all of which were 
subject to ad valorem  rates. 
19 In 2009, Guatemala's tariff schedule contained 6,297 HS eight-digit tariff lines, all of which were 
subject to a d valorem  rates.  WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 20 - 
 
  Duty phase-
out period Number of 
lines % of total lines in 
Guatemala's tariff 
schedule Value of Guatemala's 
imports from Panama 
(2006-2008) in million 
US$ % of Guatemala's total 
imports from Panama 
2006-2008 
 
2018 502 8.0 72.4 17.9 
2019 7  0.1 0.1 0.0 
2023 58 0.9 4.6 1.1 
2025 1  0.0 0.0 0.0 
2026 1 0.0 0.0 0.0 
2027 4  0.1 0.0 0.0 
2028 25 0.4 1.7 0.4 
Remain dutiable 121  1.9 6.6 1.6 
TOTAL 6,297 100.0  404.3  100.0 
Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. 
Based on the HS 2002 nomenclature. 
 Source: WTO estimates based on data provid ed by Guatemala and WTO-IDB Database.  
 
3.1.3  Liberalization Schedule 
3.1.3.1  Panama 3.17.  Table 3.2 and Chart 3.1 provide details on Panama's tariff liberalization by HS Section and 
Chapter, respectively. For impo rts from Honduras, by 2026, 1,142 tariff headings will still be 
subject to duty in HS sections I (Live animals), II (Vegetable products), III (Animal or vegetable fats and oils), IV (Prepared foodstuffs, beverages and tobacco), XI (Textiles and textile articles), XV (Base metals and articles of base metal), and XVII (Transport equipment); the majority of 
these are in Section XI. At the end of the implementation period, tariffs will continue to apply to 
25 Chapters. Chart 3.2 shows that MFN and preferenti al rates in these Chapters will be the same, 
which indicates no preferential liberalization of these products. The highest preferential and MFN 
rates for products that remain subject to duty correspond to Chapters 10 (cereals, 69.2%), 
2 (meat and edible offal, 51.2%), 21 (prepared foodstuffs, 47.0%) and 9 (coffee, tea, mate and spices, 38.0%). 
Table 3.2 Panama: Tariff elimination under the Bilateral Protocol with Honduras, by HS 
section 
HS 
section MFN 
average
% Total no. 
of lines MFN 
duty-
free 
(2009) Number of duty-free lines  
under the Agreement No. of lines 
remaining 
dutiable Average 
final tariff 
(dutiable)  
% 2009a 2013  2015  2018  2023  2026  
I 22.3 400 22 238   6 37 7 90 42.2 
II 10.1 429 148 212 35  12 2  20 39.9 
III 10.8 71 21 15 7  5   23 19.1 
IV 14.0 572 87 263 70 2 49 65  36 28.5 
V 7.0 199 84 105   4 6    
VI 2.5 1,269 844 321 62  28 14    
VII 4.3 460 258 144 52  6     
VIII 12.3 121 3 44 74       
IX 7.3 176 69 38 54  15     
X 7.4 485 205 117 102  53 8    
XI 7.8 1,285 478 37      770 12.5 
XII 11.8 164 6 42 56  60     
XIII 9.7 294 40 124 58  61 11    
XIV 7.2 66 24 9 33       
XV 7.4 930 344 426 78  30 9  43 10.8 
XVI 6.0 1,030 121 768 139  2     
XVII 11.5 358 20 105 52  21   160 12.0 
XVIII 9.7 306 19 243 44       
XIX 14.6 27     27     
XX 11.7 287 3 196 82  6     
XXI 7.8 9 4 5        
Total 8.3 8,938 2,800 3,452  998 2 385 152 7 1,142 15.8 
a Includes prohibited lines. 
Note: Based on the HS 2002 nomenclature.  Source: WTO estimates based on data pr ovided by Panama and the WTO-IDB. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 21 - 
 
  Chart 3.1 Panama: Average of du tiable rates, by HS Chapter 
01020304050607080
2 4 7 9 10 11 15 17 19 21a. Panama - Honduras
(HS 1-24)
MFN
Preferential
0246810121416
50 51 53 54 55 56 57 58 59 61 62 63 72 73 87b. Panama - Honduras
(HS 25-97)MFN
Preferential
 
Source: WTO Secretariat estimates ba sed on data provided by Panama. 
 
3.18.  Table 3.3 and Chart 3.2 provide details on Panama's tariff liberalization by HS Section and 
Chapter, respectively. For imports from Nicaragua, by 2024, 842 tariff headings will still be subject 
to duty in HS sections I (Live animals), II (Vegetable products), III (Animal or vegetable fats and 
oils), IV (Prepared foodstuffs, beverages and tobacco), XI (Textiles and textile articles) and XVII (Transport equipment); the majority of these are in Section XI. At the end of the implementation 
period, tariffs will continue to apply to 15 Chapters. Chart 3.4 shows that MFN and preferential 
rates in these Chapters will be the same which indicates no preferential liberalization of these products, except for Chapter 12 where the preferential rate is half the MFN rate. The highest 
preferential and MFN rates for products that re main subject to duty correspond to Chapters 7 
(edible vegetables and certain roots and tubers, 81%), 10 (cereals, 65%), 2 (meat and edible offal, 49.9%), 9 (coffee, tea, mate and spices, 38.0%), 21 (prepared foodstuffs, 34%), 17 (sugar and sugars confectionery, 29.6%) and 4 (dairy produce, 24.4%). 
Table 3.3 Panama: Tariff elimination under the Bilateral Protocol with Nicaragua, 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) % 
2010a 2014  2019  2024  
I 23.6 424 27 287  2 20   88 44.4  
II 11.7 431 138 220 41 3 13 16 45.4 
III 9.9 70 21 14    5   30 14.8  
IV 13.2 574 83 391   62 9 29 27.9 
V 7.0 195 81 105  5 4       
VI 2.6 1,255 807 417 6 25       
VII 4.0 459 258 201            
VIII 12.0 116 3 113           
IX 6.9 193 76 117            
X 7.2 495 211 258 10 16       
XI 7.2 1,220 452 246    59   463 11.3  
XII 10.2 157 6 151           
XIII 9.4 294 41 250  3         
XIV 7.2 66 24 42           
XV 7.3 917 339 570  8         
XVI 5.9 1,033 120 912 1         
XVII 12.7 456 19 162    59   216 15.1  
XVIII 9.6 285 19 266           
XIX 14.6 26 0 26            
XX 11.3 282 3 262   17       WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 22 - 
 
  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) % 
2010a 2014  2019  2024  
XXI 7.2 9  4 5            
Total 8.3 8,957 2,732 5,015  76 270 22 842 17.1 
a Includes prohibited lines. 
Note: Based on the HS 2007 nomenclature.   Source: WTO estimates based on data prov ided by Panama and WTO-IDB database.  
 
Chart 3.2 Panama: Average of du tiable rates, by HS Chapter 
0102030405060708090
2 4 7 9 10 11 12 15 17 21 22Panama - Nicaragua
(HS 1-24 )
MFN
Preferential
024681012141618
61 62 63 87Panama - Nicaragua
(HS 25-97 )
MFN
Preferential
 
 
Source: WTO Secretariat estimates ba sed on data provided by Panama. 
 
3.19.  Table 3.4 and Chart 3.3 provide details on Panama's tariff liberalization by HS Section and Chapter, respectively. For imports from Guatem ala, by 2028, 220 tariff headings will still be 
subject to duty in HS sections I (Live animals), II (Vegetable products), III (Animal or vegetable 
fats and oils), IV (Prepared foodstuffs, beverages and tobacco) and XVII (Transport equipment); the majority of these are in Section XVII. At th e end of the implementation period, tariffs will 
continue to apply to 10 Chapters. Chart 3.2 shows that MFN and preferential rates in these 
Chapters will be the same which indicates no pref erential liberalization of these products, except 
for Chapter 22 where Panama's preferential rate is 11.3% compared to its MFN rate of 15.0%. The 
highest preferential and MFN rates for products that remain subject to duty correspond to 
Chapters 2 (meat and edible offal, 260%), 10 (cereals, 90%), 7 (edible vegetables and certain roots and tubers, 76.5%), 17 (sugar and sugars confectionery, 63%), 21 (prepared foodstuffs, 46.7%) and 9 (coffee, tea, mate and spices, 38%). 
Table 3.4 Panama: Tariff elimination under the Bilateral Protocol with Guatemala, by HS 
section 
HS 
Section 
MFN 
average 
% Total 
No. 
of 
lines MFN 
duty-
free 
(2009) Number of duty-free lines under the agreement  No. of 
lines 
remaining 
dutiable Avg. Final 
Tariff 
Dutiable 
% 2009a 
2010 
2011 
2013 
2015 
2016 
2017 
2018 
2019 
2023 
2025 
2026 
2028 
I 22.4 401 22 224     8       89   14   1 37 6 96.7  
II 10.1 429 148 220     26   1   19   1 2     12 61.8 
III 10.8 71 21 21             12           17 20.0  
IV 14.0 572 87 322     62 1 5   25 3 49     3 15 48.5 
V 7.0 199 84 90     16       9               
VI 2.5 1268 844 380 3 1 10   4 1 25               
VII 4.3 449 248 192     5           4           
VIII 12.3 121 3 118                             
IX 7.3 176 69 105     1       1               
X 7.4 485 205 237 1   29   1   6 6             
XI 7.8 1285 478 204             603               
XII 11.8 164 6 51     6       101               
XIII 9.7 294 40 203     38       13               WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 23 - 
 
  
HS 
Section 
MFN 
average 
% Total 
No. 
of 
lines MFN 
duty-
free 
(2009) Number of duty-free lines under the agreement  No. of 
lines 
remaining 
dutiable Avg. Final 
Tariff 
Dutiable 
% 2009a 
2010 
2011 
2013 
2015 
2016 
2017 
2018 
2019 
2023 
2025 
2026 
2028 
XIV 7.2 66 24 42                             
XV 7.5 925 339 540     13       24   9           
XVI 6.0 1028 120 908                             
XVII 11.5 358 20 120             48           170 12.0  
XVIII 9.7 305 18 287                             
XIX 14.6 27 0  27                             
XX 11.8 285 1 275             9               
XXI 7.8 9 4  5                             
Total 8.3 8,917 2,781 4,571 4 1 214 1 11 1 984 9 77 2 1 40 220 20.1 
a Includes prohibited lines. 
Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. 
 Based on the HS 2002 nomenclature.  Source: WTO estimates based on data pr ovided by Panama and the WTO-IDB. 
 
Chart 3.3 Panama: Average of du tiable rates, by HS Chapter 
050100150200250
01 02 07 09 10 15 17 21 22 87Panama - Guatemala
(HS 01-87 )
MFN
Preferential
 
 
Note: For tariff lines subject to TRQs, only the out- of-quota duty is included in the tariff-related 
calculations. 
 Based on the HS 2002 nomenclature.  Source: WTO Secretariat estimates based on data provided by Panama and WTO-IDB.  
3.1.3.2  Honduras  
3.20.  Table 3.5 shows the timetable for tariff elimination by Honduras, by HS Section. 
The 958 tariff lines that will remain subject to duty once the Agreement is fully implemented can 
be found in seven HS sections, I, II, III, IV, XI , XV and XVIII, with the largest number in Section 
XI (textiles and textile articles). Chart 3.4 compar es the average rates for the preferential tariffs 
that remain subject to duty once the Agreemen t is implemented and the corresponding average 
MFN rates, by HS Chapter. At the end of the im plementation period, tariffs will still apply to 
29 Chapters. For each of these, the MFN and prefer ential rates will be the same, which indicates 
no preferential liberalization of these tariffs. Th e highest preferential and MFN rates for products 
that remain subject to duty are in the following  HS Chapters: 16 (preparations of meat, at an 
average rate of 164%); 2 (meat and edible poultry offal, at 35.9%); 10 (cereals, at 31.7%); and 
19 (preparations of cereals, at 25%). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 24 - 
 
  Table 3.5 Honduras: Tariff elimination under th e Bilateral Protocol with Panama, by HS 
section 
HS 
section MFN 
average 
% Total  
no. of lines MFN duty-
free  
(2009) Number of duty-free lines  under 
the Agreement No. of lines 
remaining 
dutiable Average final 
tariff 
(dutiable) 
% 2009 
2013 
2015 
2018 
2023 
2026 
I 14.0 299 42 168    6 18 1 64 29.5  
II 9.9 376 105 210 18  17 4  22 21.1 
III 8.1 54 9 16  7  1   21 12.9  
IV 12.2 274 33 149 17 2 24 32  17 25.5 
V 2.9 178 113 58    4 3    
VI 1.9 961 776 117 45  19 4    
VII 4.5 335 148 137  42  8     
VIII 8.3 108 19 19 70       
IX 8.6 138 26 20  80  12     
X 5.1 294 149 56 58  26 5    
XI 9.6 920 117 101       702 11.2  
XII 12.7 64 2 24 21  16   1 15.0 
XIII 6.4 176 79 45  26  25 1    
XIV 6.9 54 15 19 20       
XV 3.1 696 466 96  61  24 9  40 11.3  
XVI 2.4 974 770 80 123  1     
XVII 6.1 234 51 23  47  22   91 8.5  
XVIII 3.9 237 150 45 42       
XIX 12.6 21     21     
XX 10.6 162 26 77 57  2     
XXI 7.8 9   9         
Total 6.0 6,564 3,096 1,469  734 2 228 76 1 958 12.7 
Note: For the calculation of averages, specific duties are excluded and the ad valorem  parts of alternate 
rates are included. 
 Based on the HS 2007 nomenclature.  Source: WTO estimates based on Honduras' categories in the Agreement and the WTO-IDB. 
Chart 3.4 Honduras: Average of du tiable rates, by HS Chapter 
020406080100120140160180
2 4 7 9 1 01 11 51 61 71 92 1a. Honduras
(HS 1-24 )
MFN
Preferential
024681012141618
50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 72 73 87b. Honduras
(HS 25-97 )
MFN
Preferential
 
Source: WTO Secretariat estimates base d on data provided by Honduras. 
 
3.1.3.3  Nicaragua 
3.21.  Table 3.6 shows the timetable for tariff elimination by Nicaragua by HS Section. The 
528 lines that will remain subject to duty once th e Agreement is fully implemented can be found in 
seven sections I (Live animals), II (Vegetable produc ts), III (Animal or vegetable fats and oils), IV 
(Prepared foodstuffs, beverages and tobacco), XI (Textiles and textile articles, XVII (Transport 
equipment) and XX (Miscellaneous manufactured articles), with the largest number in Section XI. 
Chart 3.5 compares the average rates for the prefer ential tariffs applied to headings that remain 
subject to duty and the corresponding average M FN rates, by HS Chapter. At the end of the 
implementation period, tariffs will still apply to 15 Chapters. For these Chapters, except for 
Chapter 87 where Nicaragua's preferential rate is  8.4% compared to its MFN rate of 8.5%, the 
MFN and preferential rates will be the same, which indicates no preferential liberalization of these products. The highest preferential and MFN rates for products that remain subject to duty are in 
the following HS Chapters: 10 (preparations of meat, of fish or of crustaceans at an average rate WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 25 - 
 
  of 50%); 16 (sugars and sugar confectionary, at 45.9%); 4 (dairy produce; bird's eggs; natural 
honey, at 31%); and 2 (meat and edible offal, at 30.3%). 
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.  
Chart 3.5 Nicaragua: Average of dutiable rates, by HS Chapter 
0102030405060
02 04 07 09 10 11 15 17 21 22a. Nicaragua
(HS 1-24)
MFN
Preferential
024681012141618
61 62 63 87 96b. Nicaragua
(HS 25-97)
MFN
Preferential
 
Source: WTO Secretariat estimates based on data provided by Nicaragua. 
 
3.1.3.4  Guatemala  
3.22.  Table 3.7 shows the timetable for tariff elimination by Guatemala, by HS Section. 
The 121 tariff lines that will remain subject to duty once the Agreement is fully implemented can 
be found in five HS sections, I, II, III, IV and XVII, with the largest number in Section XVII 
(transport equipment). Chart 3.6 compares the average rates for the preferential tariffs that 
remain subject to duty once the Agreement is  implemented and the corresponding average MFN 
rates, by HS Chapter. At the end of the implementa tion period, tariffs will still apply to 9 Chapters. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 26 - 
 
  For most of these, the MFN and preferential rates will be the same, which indicates some 
preferential liberalization of these tariffs in Chap ters 2, 15 and 21). The highest preferential and 
MFN rates for products that remain subject to duty are in the following HS Chapters: 10 (cereals, 23.7%); 17 (sugars and sugar confectionary, 20%), 7 (edible vegetables and certain roots and 
tubers, 15%), 9 (coffee, tea, mate and spices, 14,4%) 87 (parts and accessories thereof, 
preferential 13,9% and MFN 14,2%), 2 (meat and ed ible poultry offal, preferential 13.1% and MFN 
15%), and 21 (miscellaneous edible preparations, preferential 12.5% and MFN 15%). 
Table 3.7 Guatemala: Tariff elimination under the Agreement, by HS section 
HS 
Section MFN 
average 
% Total 
No. 
of 
lines  MFN 
duty-
free 
(2009) Number of duty-free lines under the agreement  No. of 
lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2009  
2010  
2011  
2013  
2016  
2017  
2018  
2019  
2023  
2025  
2026  
2027  
2028  
I 10.3 289  40 154     2     50   10   1   23 9 12.8  
II 9.9 371 92 221     16 1   18   3 1       19 17.0 
III 7.5 53 18 9           9             17 11.8  
IV 12.6 270 30 148     27 1   12 4 35     4 2 7 16.8 
V 2.7 177  115 30     17     15                 
VI 2.0 920 726 174 3 1 3   1 12                 
VII 4.7 329  138 179           12                 
VIII 8.3 108 19 89                             
IX 7.8 90 25 64           1                 
X 5.1 285 143 125 1   9 1   3 3               
XI 9.8 914  109 510           295                 
XII 12.9 63 2 34           27                 
XIII 6.4 160  72 74     9     5                 
XIV 6.9 54 15 39                             
XV 3.1 693  469 202     4     8   10             
XVI 2.5 901 707 194                             
XVII 7.6 188  69 17           33             69 13.3  
XVIII 3.8 245 158 87                             
XIX 16.4 21 0 21                             
XX 10.6 157 25 130           2                 
XXI 7.8 9 0 9                             
Total 5.9 6,297  2,972 2,510 4 1 87 3 1 502 7 58 1 1 4 25 121 13.9 
Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. 
 Based on the HS 2002 nomenclature.  Source: WTO Secretariat estimates based on data provided by Guatemala and WTO-IDB Database.  
Chart 3.6 Guatemala: Average of dutiable rates, by HS Chapter 
0510152025
01 02 07 09 10 15 17 21 87HS 01-97
MFN
Preferential
 
Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. 
 Based on the HS 2002 nomenclature.  Source: WTO Secretariat estimates based on data provided by Guatemala and WTO-IDB. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 27 - 
 
  3.1.4  Tariff rate quotas 
3.23.  Appendix 1 to Annex 3.04 to the Bilateral Protocols establishes the rules applicable to the 
tariff rate quotas set out in the Parties' TRPs. 
3.1.4.1  Honduras - Panama 
3.24.  Both Parties have annual tariff rate quotas  (TRQs) for bovine meat (400 metric tonnes), 
swine meat (100 mt) and liquid UHT milk (240,000 litres), to which zero duties apply, with annual compound increases (5% for bovine and swine meat and 2% for milk), as long as the Agreement 
is in force. They also have fixed annual TRQs for processed cheese, not grated or powdered 
(200 mt) and unrefined palm oil (450 mt), to whic h zero duty applies. Furthermore, they have a 
TRQ for socks and stockings (15,000 dozen pairs), imports of which must comply with the rules of origin in Section A of Annex 4.03 (Specific rules of origin) in order to benefit from the preference. 
The MFN tariff applies to out of quota imports of bovine meat, swine meat, milk, processed cheese, 
not grated or powdered and unrefined palm oil, and less strict rules of origin for socks and stockings imported above the quota (table A2.1 below gives details). Panama's applied rate for out 
of quota quantities of socks is zero and Honduras applies the MFN rate which is currently 15%. 
3.1.4.2  Nicaragua – Panama 3.25.  Nicaragua and Panama have annual TRQs for bovine meat (1,500 mt), onions and shallots 
(200 mt), and instant coffee (30 mt), to which ze ro duty applies, with simple annual increases 
(7% for bovine meat, 4% for onions and shallots, and 5 mt (up to a maximum of 70 mt) for instant coffee), as long as the Agreement is in force. Fixed annual TRQs are applied for boneless swine meat (15 mt), tomato sauce (450 mt) and ke tchup (50 mt) to which zero duty applies. The 
MFN rate applies for imports above the quota for swine meat and instant coffee. For tomato sauce 
and ketchup, tariffs are liberalized immediately (cat egory "A" of the TRP), but more liberal rules of 
origin apply for imports within the quota. For bovine meat which is included in category "C", and 
onions and shallots included in category "D", th e out-of-quota tariffs are those indicated in the 
TRP. These tariffs will be eliminated based on the MFN upon entry into force in ten equal stages for bovine meat, and 15 for onions and shallots. (See table A2.2 for further details). 
3.1.4.3  Guatemala – Panama 
3.26.  Guatemala and Panama maintain annual TRQs for bovine meat (Guatemala 450 mt and 
Panama 380 mt) and swine meat (Guatemala 105 mt and Panama 65 mt), to which zero duty applies, with compound annual increases of 7% for bovine meat and simple annual increases of 
5% for swine meat, as long as the Agreement is in force. The out of quota tariffs are indicated in 
the TRP for category "C" (bovine meat) and "G" (s wine meat). Tariffs in category "G" will be 
eliminated in five equal annual stages as of year six after entry into force. Annual quotas with no 
increase are determined for liquid UHT milk (Guatemala 200,000 litres and Panama 
180,000 litres), processed cheese, not grated or powdered (Guatemala 50 mt and Panama 40 mt) and fresh unripened cheese (Guatemala 84 mt and Panama 60 mt), to which zero duties apply. 
The out of quota tariffs are indicated in the TRP for category "C" for the three products. 
3.27.  Annual TRQs are in place for potatoes (160 mt), white onions (260 mt), chicken wings 
(10 mt), frozen pastry products (200 mt), and other tomato sauces (125 mt), to which zero duties apply, with simple annual increases of 5% for potatoes and white onions and 3% for chicken wings 
and frozen pastry products; for other tomato sauces, a 5% compound annual increase will apply 
from year 5 to 15 from entry into force of the Ag reement following which it will be revised. Fixed 
TRQs are determined for refined soya bean and sunflower-seed oil (400 tm) and crude palm oil 
(250 tm), to which zero duties apply. For pota toes, white onions, refined soya bean and sun 
flower-seed oil, crude palm oil and other tomato sauces, which are considered sensitive products, the out of quota tariff is the current applied MFN rate. For fowl or chicken wings and frozen pastry 
products, the out of quota tariffs are indicated in  the TRP for category "H" and "B7", respectively.  
Tariffs in category "H" will be eliminated in ten equal annual stages beginning on year 11 and those in category "B7", in seven equal annual stages, as of entry into force of the Agreement (see Annex Table 2.3 below). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 28 - 
 
  3.2  Rules of origin 
3.28.  Chapter 4 of the Agreement covers rule s of origin and Chapter 5 customs procedures. 
Annex 4.03 to the Agreement provides details on specific rules of origin by HS Chapter, which are supplemented by the specific rules of origin in Annex 4.03 to the Bilateral Protocol. 
3.29.  Chapter 4 contains rules on determining origin in order to establish which products can 
benefit from preferential treatment under the Agreem ent. The tariff classification is based on the 
Harmonized System (HS). In order to determine the value of a product or material, the rules in the 
WTO Customs Valuation Agreement are used. Nevertheless, if there are contradictions, the 
provisions in Chapter 4 take precedence over  those in the Customs Valuation Agreement.  
3.30.  Pursuant to Article 4.03, products shall be considered as originating when the good is: 
a. wholly obtained or produced entirely in the territory of one or more of the Parties; 
b. produced entirely in the territory of one or more of the Parties exclusively from materials 
that meet the necessary requirements to be considered as originating; 
c. produced in the territory of one or more of the Parties from non-originating materials 
that meet the change in tariff classification (CTC), regional value content (RVC) or other 
requirements, as set out in Annex 4.03, and sati sfy all other provisions of this Chapter;  
d. produced in the territory of one or more of the Parties even though one or more of the 
non-originating materials that are used to produce it do not undergo a CTC because: 
(i) they were imported in an unassembled or a disassembled form but were classified as assembled goods; (ii) the products and their parts have been classified in the same heading and this heading is not divided into subheadings; or (iii) the subheading 
corresponding to the product is the same as that corresponding to its parts. For this 
category of product, the RVC should not be less than 30%, unless a different RVC is specified in Annex 4.03.
20 
3.31.  A product containing non-originating materials that meet the CTC and other requirements 
specified in Annex 4.03 shall be manufactured entirely in one or more Parties, and the RVC shall have been produced entirely in the territory of one or more Parties. 
3.32.  Origin may be accumulated (Article 4.06) with goods originating in countries in which the 
Agreement is in force. Materials or goods originating in a Party incorporated in the territory of another Party shall be considered as originating in the latter. Accumulation shall apply when all the Parties have a specific common rule of origin for a good or where no less than three Parties share 
a common specific rule of origin for a good and the same tariff elimination period. Two years after 
the Agreement comes into force
21 the Parties shall establish a programme of work to examine the 
possibility that materials of Panamanian origin can be accumulated for the purpose of complying 
with the rules of origin in effect among the Central American countries. This work programme has 
been finalized in the case of Guatemala so, as of 15 October 2013, materials of Panamanian origin can be accumulated for the purpose of complying with the rules of origin in force between Central 
American countries based on the Central American Regulations on the Origin of Goods. The 
programme has not been established between Ho nduras and Panama nor between Nicaragua and 
Panama. 
3.33.  Article 4.04 lists minimum operations or processes that do not confer origin on a product. 
Articles 4.05, 4.07 and 4.09 to 4.14, indicate how certain materials should be treated or valued 
(indirect materials, incorporated materials, fungib le goods and materials, sets or assortments of 
goods, accessories, spare parts and tools, packaging materials and containers in which a good is 
packaged for retail sale and for shipment, and goods in transit) when determining the origin of the 
product. 
                                               
20 This subparagraph does not apply to Chapte rs 61 to 63 (Clothing and wearing apparel). 
21 The Agreement came into force as follows: El Salvador, 11 April 2003; Costa Rica, 
23 November 2008; Honduras, 9 January 2009; Guatemala, 22 June 2009; Nicaragua, 21 November 2009; and Panama, 11 April 2003. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 29 - 
 
  3.34.  Article 4.08 has a de minimis  rule by which a good shall be considered as originating if the 
value of all non-originating materials used to produce it that do not comply with the CTC requirement do not exceed 10%. For HS Chapters 50 to 63
22, this percentage refers to the weight 
of the fibres or yarns. For HS Chapters 1 to 27 of the HS23, this clause shall apply if the non-
originating material is included in a subheading other than that of the good in question. 
3.35.  Section B of Annex 4.03 of the Regulatory part contains specific rules for determining origin, 
which apply when a product has been manufacture d in Honduras, Nicaragua, Guatemala and/or 
Central America and/or Panama using non-originating materials. These rules are arranged by 
HS Chapters and apply at the six-digit (subheadings) and four-digit (headings) levels. For most products, the CTC must be at the heading or subheading level in order to confer origin. In some cases, however, changes in specific headings or subheadings do not confer origin.
24 With respect 
to certain groups of product, there are "notes" that clarify which manufacturing operations or 
processes confer origin and/or allow the customs authorities to treat the good as originating.25 For 
a series of headings and subheadings, there is a specific alternative/additional rule requiring a 
minimum RVC of 30%.26 For most products, the CTC must be at  the heading or subheading level in 
order to confer origin. There are also supplementary specific rules for certain products.27 
3.2.1  Specific bilateral rules of origin 
3.36.  Sections B and C, of Annex 4.03 to the Protocol between Honduras and Panama, and 
Section C, of Annex 4.03 to the Protocols be tween Nicaragua and Panama and Guatemala and 
Panama, contain specific bilateral rules of origin. These bilateral rules are a complement to rules in Annex 4.03 to the Regulatory text. 
3.2.1.1  Honduras – Panama 
3.37.  For most products, the CTC must also be at the heading or subheading level to confer 
origin. In some cases, however, changes in specific headings or subheadings do not confer 
origin.
28 For a series of headings and subheadings, there is a specific alternative/additional rule 
related to RVC that ranges from a minimum of 30% to 35%, 40% or 45%.29 In other cases, the 
30% RVC is in addition to the CTC requirement.30 There are also supplemen tary specific rules for 
certain products.31 For subheadings 6115.92 to 6115.99 (socks and stockings of cotton, synthetic 
                                               
22 Textiles and textile articles. 
23 Live animals and animal products; animal or vege table fats and oils and their cleavage products, 
prepared edible fats, animal or vegetable waxes; food industry products, beverages, spirits,  vinegar, tobacco 
and manufactured tobacco substitutes. 
24 For example, some paper and paper boar d and articles of paper pulp (HS 48). 
25 For example, agricultural products (vegetables, fruit , forest products, etc.) gr own in the territory of a 
Party shall be considered as originating in the territory of that Party if they have been grown from seeds, bulbs, rhizomes, cuttings, shoots or other living parts of  plants imported from a Part y or a non-Party. In the 
chemicals and related industries, the preparation of standard solutions and the separation and isolation of isomers is deemed to confer origin. 
26 For example, some nuclear reac tors, boilers and mech anical appliances (HS 84.80 and HS 84.84-
84.85); optical, photographic, measuring, checking, precision, medical or surgical instruments, parts and accessories thereof (HS 90.16 and HS 90.19-90.21) and arms and ammunition, parts and accessories thereof (HS 9608.10-9608.40). 
27 For example, hides and skins (except fur skin s) and leather (HS 41.04 - 41.07); for paper and 
paperboard, the process of rolling or  laminating, including with other  materials of the same heading confers 
origin (HS 4810-4811). 
28 For example, coffee, tea, mate and spices (HS 0904.20); products of the milling industry, malt, 
starches, inulin wheat gluten (HS 1108.12-1108. 14); cocoa and cocoa preparations (HS 1806). 
29 For example, some tanning or dyeing extracts; tannins and their derivati ves; pigments and other 
colouring matter; paints and varnishes; mastics; inks (HS 32); some cast iron or steel articles (HS 73); some motor vehicles, tractors, bicycl es and other road transport vehicles, their parts and accessories (HS 87). 
30 For example, some electrical machinery and eq uipment and parts thereo f; sound recorders and 
reproducers, television image and sound recorders and re producers, and parts and accessories of such articles 
(HS 85); vehicles other than railway or tramway rolling stock (HS 87.9.11-8709.19); optical, photographic, measuring, checking, precision, medical or surgical instruments, parts and accessories thereof (HS 90); lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings (HS 94). 
31 Clothing and articles of appare l (accessories), knitted (HS 61.15 - 61.16); clothing and articles of 
apparel (accessories), not knitted (HS 6212.20 - 6212.90); ot her made-up textile articles; games; cloths and 
rags (HS 6301; 6302.91; 6303.92 - 6305.33). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 30 - 
 
  fibres or other textile fibres), different rules of origin apply for in- and out of quota imports. Lastly, 
the rules of origin for some headings and subheadings in Section XI (Textiles and textile articles) are awaiting negotiation but no steps have been taken yet towards these negotiations.
32 
3.2.1.2  Nicaragua – Panama 
3.38.  For most products, the CTC must also be at the heading or subheading level to confer 
origin. In some cases, however, changes in specific headings or subheadings do not confer origin.
33 For a series of headings and subheadings, there is a specific alternative/additional rule 
related to RVC that ranges from a minimum of 30% to 40%,  50%, 60% or 85%.34 There are also 
supplementary specific rules for certain products.35 For subheading 2103.20 (tomato ketchup and 
other tomato sauces), different rules of origin apply to the in-quota and out-of-quota quantities. 
3.2.1.3  Guatemala – Panama 
3.39.  For most products, the CTC must also be at the heading or subheading level in order to 
confer origin. In some cases, however, changes in  specific headings or subheadings do not confer 
origin.36 For a series of headings and subheadings, there is a specific alternative/additional rule 
related to RVC that ranges from a minimum of 30% to 35%, 40%, 45% or 70%.37 There are also 
supplementary specific rules for certain products: for subheadings 0406.30 (processed cheese not grated or powdered) and 0406.40.10 (mozzarella type cheese) specific rules of origin apply during 
the first ten years after entry into force of the Agreement, which change after year ten. 
Furthermore, for soya-bean oil (HS 1507), sunflower-seed oil (HS 1512.11-1512.19), tomato ketchup and other tomato sauces (HS 2123.20), specific rules of origin apply to the in-quota quantities. 
3.40.  Chapter 5 of the Agreement concerns the rules applicable to customs procedures related to 
origin and establishes specific rules with regard to import (Article 5.03) and export (Article 5.04), obligations and exceptions (Article 5.05). According to Article 5.06, the competent authority must 
verify whether imports comply with the origin requirements. The procedure for verifying origin 
shall be conducted within a maximum period of one year, with one opportunity to extend it in duly substantiated cases, after which the competent authority shall issue a ruling determining whether 
the goods comply with the origin requirements. Un der Article 5.09, advance rulings may be issued 
prior to the import of goods, if so requested by  the importer, producer or exporter in the other 
Party. The Parties shall draw up guidelines for the issuance of advance rulings, covering the 
information to be provided by the importer, the pr oducer or exporter, the powers of the competent 
authority to request additional information when examining the request, and the obligation to 
issue the ruling once the necessary information has been furnished. Concerning these guidelines, Guatemala has indicated that the Central American Regulations on the Origin of Goods apply. The 
Chapter also contains provisions on confidentiality (Article 5.07), penalties (5.11) and cooperation 
(5.13). 
3.3  Export duties and charges and quantitative restrictions 
3.41.  No Party may adopt or maintain any prohibition or restriction on the export or sale for 
export of any good destined for the territory of the other Party, unless (i) the Agreement provides otherwise (Annex 3.10(6)); or (ii) the Parties adopt measures in accordance with Article XI of the GATT 1994 (including its interpretative notes), which is incorporated into the Agreement 
(Article 3.10). The Parties reaffirm their rights within the GATT 1994 framework, which prohibits, 
in any circumstances, any form of restriction or ex port price requirement. In addition, Article 3.14 
provides that no duty, tax or charge on the expo rt of goods may be maintained unless it has been 
                                               
32 Section C of Annex 4.03. 
33 For example, dairy produce (HS 0401); edible fruit (HS 0813.50); articles of leather; saddlery and 
harness; travel goods, handbags (HS 42.01-42.06). 
34 For example, meat and edible meat offal (HS 0210. 11), chapters 84, 85 in Section XVI, Chapter 87 in 
Section XVII, Chapter 90 in Section XVIII and Chapter 95 in Section XX. 
35 For example, dairy produce (HS 0402.91); preparations of vegetables, fruits, nuts (HS 20.01-20.05 
and 20.06-20.07 and 20.08). 
36 For example, meat and edible meat offal (HS 02.01-02.10); dairy produce (HS 04.01; 04.02; 
04.03-04.05); some headings and subheadings of chapters 16, 17, 18, 19, 21, 22. 
37 For example, tanning and dyeing  extracts (HS 32); wood and articles of wood (HS 44.18); some 
headings and subheadings in chapters, 72, 73, 76, 83, 84, 85, 87, 90 and 94. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 31 - 
 
  adopted or maintained on such goods when destined for domestic consumption. Honduras has 
specified broadleaf tropical wood as a product on which export measures may be adopted or maintained pursuant to its domestic legislation (Decree No.323-98 of 29 December 1998); Nicaragua has specified staple foodstuffs
38, shrimp and lobster during the reproductive or larval 
stage and wooden logs,  and live bovine cattle under 350 kilos of weight; Guatemala has specified 
timber in round logs and sawn timber measuring more than 11 centimetres of thickness, pursuant to the Ley Forestal  (Decree Nº 101-969) and coffee pursuant to the Coffee Law (Decree Nº 
19-69), and Panama has specified wood from national forests (Executive Decree No. 57 of 
5 June 2002). 
3.4  Regulatory provisions on trade in goods 3.4.1  Standards 
3.4.1.1  Sanitary and phytosanitary measures 
3.42.  Chapter 8 of the Agreement concerns sanitary and phytosanitary (SPS) measures and is 
based on the WTO Agreement on the Applicatio n of Sanitary and Phytosanitary Measures 
(SPS Agreement) (Article 8.02). The Parties' rights include adopting, maintaining or applying any 
sanitary or phytosanitary measure in their territories only to the extent necessary to protect human (food safety) or animal life and health, or to preserve plant health, even measures that are 
stricter than any international measure, standard, guideline or recommendation, providing there is 
scientific justification for doing so (Article 8.03(a)). 
3.43.  Article 8.04 provides that SPS measures shall be based on scientific principles and 
international standards, guidelines
39 and recommendations; they shall be based on risk 
assessment and shall not constitute a disguised restriction on trade or have as their purpose, or 
create, unnecessary obstacles to trade among the Parties. 
3.44.  Article 8.05(e) states that the Parties shall establish harmonized sanitary and phytosanitary 
systems for control, inspection and certification of animals, plants, their products and by-products 
and food safety.40 Each Party shall accept the SPS measures of the other Party as equivalent, 
providing that it is objectively demonstrated, through scientific information and risk assessment, 
that the measures achieve an adequate level of sanitary and phytosanitary protection 
(Article 8.06). 
3.45.  Risk assessment and the determination of an  adequate level of sanitary and phytosanitary 
protection shall be based on the guidelines dr awn up by competent international organizations.41 
The factors to be used to assess risk include the scientific and technical information available, the 
existence of pests and diseases and epidemiolo gy, and pertinent ecological and environmental 
conditions (Article 8.07(c)). If the relevant information is insufficient for the risk assessment, the 
Parties may adopt provisional SPS measures based on the information available. In such cases, 
efforts must be made to obtain the additional information needed for a more objective risk analysis, following a specified procedure and within the time limits laid down (Article 8.07(e)). 
If the risk assessment results in a refusal to import, the scientific grounds for the decision shall be 
notified in writing. Where a Party has reason to believe that the SPS measure is restricting its exports and is not based on pertinent international standards, guidelines or recommendations, or no such international standards, guidelines or recommendations exist, it may request an 
explanation, which must be given within 60 days (Article 8.07(g)). 
                                               
38 Vegetable oil, rice, suga r, coffee, chicken meat, beans, corn flower, powder milk, corn, salt, corn 
tortillas. 
39 The Parties shall follow the guidelines of the WTO SPS Agreement, the International Plant Protection 
Convention (IPPC) for plant health, the World Animal Health Organisation (OIE) for animal health, and the Codex with respect to food safety and tolerance limits (Article 8.05(c)), and shall take into account the standards, guidelines and recommendations of other international organizations of which the Parties are members (Article 8.05(d)). 
40 Guatemala and Honduras indicated that this issue is being treated at present in the framework of 
Panama's Protocol of Accession to the Economic Integration Subsystem of the Central American Integration 
System. This Protocol of Accession has not been notified to WTO. 
41 The OIE, the IPPC, the Codex and other internationa l organizations of which the Parties are members. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 32 - 
 
  3.46.  The Parties shall recognize pest- or disease-free areas and areas of low pest or disease 
prevalence. A Party receiving an application for recognition may conduct inspections, testing and other verification procedures. In the event the application is refused, the Parties may hold consultations to reach agreement on the specific requirements for recognition (Article 8.08). 
3.47.  With regard to control, inspection and approval procedures (Article 8.09), the Agreement 
provides that the Parties shall apply the relevant provisions of Annex C to the WTO's SPS Agreement. Maximum time limits are determined for inspection (90 days), and for 
issuing the reasoned decision (30 days), calculated  from the day on which the inspection ended. In 
cases of non-compliance the Parties have recourse to Chapter 20 (Dispute settlement).  
3.48.  As regards transparency, the adoption or amendment of generally applicable SPS measures 
shall be notified in accordance with Annex B to the SPS Agreement, within the specified time 
limits, together with any changes in the sanitary or phytosanitary situation or the outbreak of 
disease (Article 8.10). Likewise, the Parties may provide each other with advice, information or technical cooperation on SPS matters (Article 8.12). 
3.49.  The Agreement establishes a Committee on Sanitary and Phytosanitary Measures, whose 
composition is set out in Annex 8.11. The Committ ee examines matters relating to the application 
of the Chapter and is responsible for promoting training and specialization of technical staff and 
active participation by the Parties in international organizations, as well as for establishing and 
updating a roster of qualified specialists in the fields of food safety, plant health and animal health (Article 8.11).
42  
3.4.1.2  Technical barriers to trade 
3.50.  Chapter 9 deals with standardization, metr ology and approval procedures. The provisions in 
this Chapter complement those in the WTO's Agreement on Technical Barriers to Trade (TBT Agreement) (Article 9.02). The Chapter applies to standards-related measures, approval 
procedures and metrology-related measures, as well as related measures that may, directly or 
indirectly, affect trade in goods among the Parties (Article 9.03), and technical regulations and conformity assessment procedures that enable ea ch Party to achieve its legitimate objectives 
(Article 9.04.1(b)). Chapter 9 does not apply to SPS measures (Article 9.03.2). 
3.51.  In conducting risk assessments, the Parties shall take into account the factors indicated in 
Article 9.05, including risk assessment by international standardization or metrological organizations
43, available scientific or technical information, and related processing technology or 
the end uses of the goods. A Party shall treat the regulations adopted by another Party as 
equivalent when these adequately fulfil the importing Party's legitimate objectives (Article 9.06). 
3.52.  Each Party shall prepare, adopt and appl y conformity assessment/approval procedures in 
such a way as to grant non-discriminatory access to the goods and services of the other Party 
(Article 9.07 and 9.08). Articles 9.07 and 9.08 lay do wn the rules to be followed by the Parties for 
conformity assessment/approval procedures, rules which cover matters such as the rapid 
conclusion of procedures, their publication, the prompt examination of applications, avoiding 
unnecessary requests for information, confidentiality and the application of equitable rights.44  
3.53.  With regard to metrology, each Party shall ensure the documented traceability of its 
metrological standards and the calibration of its measuring instruments, in accordance with the 
recommendations of the International Bureau of Weights and Measures (BIPM) and 
the OIML (Article 9.09). 
                                               
42 See also Section 5.6 (I nstitutional framework). 
43 The International Standardization Organization (ISO), the International Electrotechnical Commission 
(IEC), the Codex Alimentarius Commission, the International Organization of Legal Metrology (OIML) and the International Commission on Radiation Units and Measur ements (ICRU) or any othe r organization designated 
by the Parties. 
44 Panama has indicated it applies ISO norms for co nformity assessment; Honduras indicated that the 
Economic Integration Subsystem's Technical Regulations apply; Guatemala stated that Articles 9.07 and 9.08 apply and Nicaragua indicated it applies ISO/IEC 1700 norms. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 33 - 
 
  3.54.  Where there is no pertinent internationa l standard or the technical content of a draft 
technical regulation or conformity assessment procedure is not consistent with the relevant international standards, and if the said technical regulations could have a significant effect on trade, the Party concerned shall notify the other Party in writing of the proposed measure at 
least 60 days in advance of its adoption (Article 9.10). Each Party shall designate an enquiry point 
(Article 9.11(2)) to respond to all reasonable questions and requests from the other Party and interested persons (Article 9.11). Likewise, each Party shall promote technical cooperation by its 
standardization bodies to ensure compliance with this Chapter. The Parties may make joint efforts 
to arrange for technical cooperation from non-Party countries (Article 9.13). 
3.55.  The Agreement creates a Committee on Standardization, Metrology and Approval 
Procedures, whose composition is described in Annex 9.12. The Committee shall examine matters 
related to the application of this Chapter and shall have the following tasks, inter alia : to study and 
propose solutions for standards-related measures , approval procedures or metrology-related 
measures that a Party considers to be a technical barrier to trade; and to facilitate the process by 
which the Parties shall establish mutual recognition agreements.
45 
3.4.2  Safeguard measures 3.56.  Chapter 6 of the Agreement covers safeguard measures (Article 6.01 to 6.05). 
3.4.2.1  Global safeguards 
3.57.  The Parties retain their rights and obli gations under Article XIX of the GATT 1994 and the 
Agreement on Safeguards, except those regarding compensation or retaliation and exclusion from 
a safeguard measure to the extent that these are inconsistent with the provisions in this 
Article (Article 6.03.1).  
3.58.  When adopting global safeguard measures, each Party shall exclude imports from the other 
Party, unless they account for a substantial share
46 of total imports and contribute significantly to 
serious injury or threat thereof caused by these imports.47 No restrictions may be imposed on a 
good without prior notice in writing and without providing an adequate opportunity for consultations. The safeguard shall consist exclusively of tariff measures and the Party taking the 
measure shall provide to the other Party mutually agreed trade liberalizing compensation 
(compared to "may agree" in Article 8.1 of the WTO Agreement on Safeguards). If the Parties are 
unable to agree, measures having trade effects su bstantially equivalent to the safeguard measure 
adopted may be imposed.  
3.4.2.2  Bilateral safeguards 
3.59.  The application of bilateral safeguards is governed by the provisions in Chapter 6 of the 
Agreement and, supplemented by Article XIX of the GATT 1994, the Agreement on Safeguards and 
their respective domestic laws (Article 6.02.1). The provisions on bilateral safeguards apply only 
during the transition period.
48  
3.60.  The Parties may take a measure if, as a result of the reduction or elimination of a duty, a 
good originating in a Party is being imported into the other Party in such quantities in relation to 
domestic production, and under such conditions that it constitutes a substantial cause of serious injury, or threat thereof, to the domestic industry producing a like or directly competitive product. In such cases, the importing Party may suspend the future reduction of any tariff or increase the 
                                               
45 See also Section 5.6 (I nstitutional framework). 
46 Such imports shall not normally be considered substantial if this Party is not among the top five 
suppliers of the good in question, measured in terms of import share during the most recent three-year period (Article 6.03.3(a)). 
47 Imports from a Party shall not normally be deemed to contribute significantly to serious injury, or the 
threat of serious injury, if the growth  rate during the period in which the injurious surge in imports occurred is 
appreciably lower than the growth rate of total imports from all sources over the same period (Article 6.03.3(b)). 
48 Transition period: the TRP plus two years, except  for products that are already duty-free among the 
Parties in accordance with the provisions in bilateral tr eaties they have signed, in which case the transition 
period is one year. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 34 - 
 
  tariff on the good to a level not exceeding the MFN rate in effect at the time the measure is taken 
or on the day immediately preceding the date of entry into force of the Agreement, whichever is lesser (Article 6.02.2).  
3.61.  The Parties shall notify in writing the initiation of any procedure that may result in the 
application of a safeguard measure. The measure shall be applied no later than one year from the 
date of initiation of the procedure and may remain in effect for a period not exceeding two years (including the period of the provisional safeguard), which may be extended for one additional 
consecutive year in accordance with the procedures laid down in Article 6.04.21. No safeguard 
measures may be maintained after the expiry of th e transition period, except with the consent of 
the Party against whose good the measure has been taken. The Parties may apply and extend the application of a safeguard measure to the same good no more than twice. A safeguard measure 
may be applied a second time, provided that a period equivalent to at least one half of the period 
during which the measure was applied for the first time has elapsed.  
3.62.  In critical circumstances where delay would cause damage which would be difficult to repair, 
provisional bilateral safeguard measures may be applied but their duration must not 
exceed 120 days (Article 6.02.4). 
3.63.  A Party applying a safeguard measure in accordance with Article 6.02 shall provide mutually 
agreed trade liberalizing compensation in the form of concessions having equivalent trade effect or 
equivalent to the value of the additional duties  e x p e c t e d  t o  r e s u l t  f r o m  t h e  m e a s u r e .  I f  n o  
agreement on compensation can be reached, the Party against whose good the measure is taken may impose measures having equivalent trad e effects to the safeguard measure taken.  
3.64.  Article 6.04 describes the investigation procedure for safeguard measures, covering 
inter alia : the content of the petition, consultations, notification requirements, confidential 
information, deliberation and decision, and extens ion of measures and compensation. Annex 6.01 
establishes the investigating authority. 
3.4.2.3  Agricultural safeguards 3.65.  Guatemala and Panama establish a special agricultural safeguard for bovine meat
49 by 
which the MFN tariff can be automatically reintroduced at any time during the tariff reduction 
period provided imported quantities for each year exceed the trigger volumes specified for the same year in Appendix 2 to Annex 3.04 of the Protocol. The Parties cannot apply this safeguard at the same time as a measure under Article 6 of the Agreement or under Article XIX of GATT 1994 
or the WTO Agreement on Safeguards. 
3.66.  Each Party shall apply such safeguard measure in a transparent manner. This measure shall 
be notified within 60 days after its implementati on and the Party which applies the measure shall 
provide the other Party with all relevant information. Consultations on the measure may be 
initiated upon request of any Party. 
3.4.3  Anti-dumping and countervailing measures 
3.67.  The Parties reaffirm their rights and obligations under Articles VI and XVI of the GATT 1994, 
the Agreement on Implementation of Article VI  of the GATT 1994 and the SCM Agreement, and 
shall ensure that their legislation is in accordan ce with their commitments under these Agreements 
(Article 7.01). Each Party may apply anti-dumping or countervailing duties in accordance with 
Chapter 7, the Agreements and its own laws. The duration of investigations may not exceed 
18 months from the date of declaration of initiation of the investigation. If the investigation exceeds this period, the authority shall terminate the investigation without the imposition of 
definitive anti--dumping duties (Article 7.02). For the 12-month period following the date of a final 
ruling on the inadmissibility of the imposition of an anti-dumping duty, no new investigation into the same product imported from the same Party may be initiated, unless the domestic industry 
requesting it accounts for at least 50% of total production of the like product produced by the 
domestic industry (Article 7.03). The maximum dura tion of a definitive anti-dumping duty is 60 
                                               
49 The agricultural safeguard will apply to the following tariff subheadings: 0201.00.00; 0201.20.00; 
0201.30.00; 0202.10.00; 0202.20.00; 0202.30.00 for Guatemala and 0201.10.00; 0202.20.00; 0201.30.00; 0202.10.00; 0202.20.00; 0202.30.00 for Panama. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 35 - 
 
  months (five years) from the date of its imposition and may not be extended (Article 7.04). A 
provisional or definitive anti-dumping duty shall be less than the dumping margin if such lesser duty is adequate to remove the injury to the domestic industry. 
3.68.  The Parties share the objective of promotin g significant reforms in this area to prevent 
measures of this kind from becoming disguised ba rriers to trade and shall cooperate in the effort 
to achieve such reforms within the framework of the WTO and the Free Trade Area of the Americas 
(FTAA). Within at least two years after the entry into force of the Agreement for all the Parties, 
they shall establish a work programme on, inter alia , determination of the reasonable profit margin 
and existence or threat of serious injury (Article 7.06).  
3.4.4  Subsidies and State aid 3.4.4.1  Domestic support 
3.69.  Honduras and Panama recognize that domestic support is important for their agricultural 
sectors, but may have distortionary effects on pr oduction and trade, and they agree to cooperate 
in the WTO negotiations on agriculture (Annex 3.09) in order to achieve the maximum reduction or 
elimination of trade-distorting support. They undertake not to implement domestic support 
measures above their de minimis  levels, pursuant to Article 6.4(b) of the Agreement on 
Agriculture, and to conduct on-going analyses of domestic support policies, using as a main 
reference the information contained in their annual notifications to the WTO Committee on 
Agriculture. They may hold consultations in relati on to these notifications in the Agreement's Trade 
Committee (paragraph (b)5 of Annex 3.09 to the bilateral Protocol). Honduras, Nicaragua, Guatemala and Panama reaffirm their rights and obligations under the WTO Agreements 
concerning domestic support and will cooperate to achieve significant multilateral progress in this 
area (Annex 3.09 of the Protocols). 
3.4.4.2  Export subsidies 
3.70.  Honduras and Panama  undertake not to maintain export subsidies in accordance with their 
rights and obligations under the WTO's SCM Agreement and the Agreement on Agriculture, also taking into account the outcome of the multilateral negotiations on export subsidies 
(paragraph (a)2 of Annex 3.09). The Parties share the objective of eliminating export subsidies for 
agricultural products and will cooperate in the WTO to this end and, according to Nicaragua, 
Guatemala and Panama "to avoid their reintroduction in whatever manner". Furthermore, the Parties ratify their rights and obligations under the WTO concerning domestic support and export 
subsidies (Annex 3.09 to the Protocols). In Chapter 7 of the Agreement, the Parties reaffirm their 
rights and obligations as established in Articles VI and XVI of the GATT 1994 and the SCM Agreement.
50 
3.4.5  Customs procedures 
3.71.  Chapter 5 includes provisions on certification, declaration and verification of origin 
(Article 5.02 and 5.08, respectively), obligations regarding importation and exportation 
(Article 5.03 and 5.04, respectively), review and appeal regarding determinations of origin 
(Article 5.10), uniform regulations (Article 5.12) and cooperation (Article 5.13). 
                                               
50 Honduras reserves its right to use the procedures laid down in document G/SCM/39 to request an 
extension in accordance with Article 27.4 of the SCM Ag reement in respect of the Law on the Free Trade Zone 
of Puerto Cortés (ZOLI), the Law on Export Processing  Zones (ZIP), and the Temporary Import Regime (RIT) 
(G/SCM/74/HND). See also document WT/L/691. 
Guatemala uses the procedure for continuing the extension of the transition period provided in  
Article 27.2(b) of the SCM Agreement (WT/L/691), with regard to Exemption from Company Tax, Customs Duties and other Import Taxes for Companies under Special Customs Regimes (G /SCM/72/Add.4); Exemption 
from Company Tax, Customs Duties and other Import Taxes for the Production Process Re lating to Activities of 
Managers and Users of Free Zones (G/SCM/73/Add.4); and Exemption from Company Tax, Customs Duties and 
other Import Taxes for the Production Process of Comm ercial and Industrial enterprises Operating in the 
Industrial and Free Trade Zone (G/SCM/74/Add.4). 
Panama uses the procedure for continuing the ex tension of the transition period provided in 
Article 27.2(b) of the SCM Agreement (WT/L/691), with regard to the Official Industry Register (G/SCM/84/Add.4) and industrial free zones (G/SCM/85/Add.4). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 36 - 
 
  3.5  Sector Specific provisions 
3.72.  There are no sector specific provisions concerning goods in the Agreement. 4  PROVISIONS ON TRADE IN SERVICES 4.1  Scope and definitions 
4.1.  Part Four of the Agreement covers investment, services and related matters. Chapter 10 
contains rules on investment; Chapter 11 refers to cross-border trade in services (CBTS); Chapter 12 deals with specific rules concer ning financial services; Chapter 13 covers 
telecommunications; and Chapter 14 deals with temporary entry of business persons. 
4.2.  Chapter 11 on cross-border trade in services covers three of the four GATS modes of supply, 
1 (cross-border supply), 2 (consumption abroad), and 4 (presence of natural persons). The Chapter does not include the supply of a service in a Party through investment, as defined in 
Article 10.40 (Investment). 
4.3.  The measures on cross-border trade in services by service suppliers from the other Party 
include: (i) the production, distribution, sale or  supply of a service; (ii) the purchase, use or 
payment of a service; (iii) access to and use of  distribution and transportation systems in 
connection with the supply of a cross-border service;  (iv) the presence in its territory of a service 
supplier from the other Party; and (v) the provision of  a bond or other form of financial security as 
a condition for supplying a service (Article 11.02.1). 
4.4.  Chapter 11 does not apply to: (i) subsidies or donations accorded by a Party to a 
State enterprise, including loans, guarantees and insurance supported by the Government; (ii) air services, including domestic and international air transportation services, whether 
scheduled or non-scheduled, and auxiliary services related to air transport services, except for 
aircraft repair and maintenance services, the sale  and marketing of air transport and computerized 
reservation systems services; (iii) government serv ices or functions, such as law enforcement, 
social rehabilitation, pensions, unemployment insura nce, social security, social welfare, public 
education, public training, health and child care; (iv) cross-border financial services; and v) procurement by a Party or a State-owned enterprise (Article 11.02.3); and measures affecting 
nationals of a Party seeking access to the employme nt market of the other Party, or employed on 
a permanent basis in its territory, or conferring any right on such persons with respect to such access or employment. 
4.5.  Chapter 10 on investment covers measures adopted or maintained by a Party in relation to: 
(i) the investors of the other Party
51 for all matters relating to their investment; (ii) investments52 
by investors of the other Party; (iii) investments by investors of a Party in another Party with respect to performance requirements (Article 10.01.1). 
4.6.  It does not apply to: (i) measures adopted or maintained by a Party relating to financial 
services; (ii) measures adopted by a Party to restrict the participation of investments of investors of the other Party in its territory for reasons of public policy or national security; (iii) economic 
activities reserved for each Party, pursuant to its current legislation on the date of signature of the 
Agreement and listed in Annex III
53 on the economic activities  reserved for each Party; 
(iv) government services or functions, such as law enforcement, social rehabilitation services, 
                                               
51 Article 10.40 (Definitions) of the Agreement defines "investor of a Party" as a Party or 
State enterprise thereof, or a national or an enterprise of such Party, that seeks to make, is making or has made, as applicable, an investment in  the territory of the other Party. 
52 According to Article 10.40 of the Agreement, "investment" means any kind of goods or rights of any 
n a t u r e  a c q u i r e d  o r  u s e d  w i t h  t h e  p u r p o s e  o f  o b t a i n i n g an economic profit or for other business purposes, 
acquired with resources transferre d or reinvested by an investor. 
53 Honduras has listed: electric power; the arms industry; communications services; recreational, 
cultural and sports services; and the exploitation of ai rport services. Panama has li sted: postal and telegraphic 
services; games of hazard; and electr ic power. Nicaragua has listed: po stal services; te lecommunications; 
energy; airports; natural re sources; water supply and sewage; map drawing and lotteries. Guatemala has 
listed: postal and tele graphic services; games of hazard; transmission of electric power. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 37 - 
 
  public education, public training, health and child care54; or (v) disputes or claims arising prior to 
the entry into force of the Agreement or relating to facts that occurred before that date, even if 
their effects persist thereafter (Article 10.01.2). 
4.2  Denial of benefits 
4.7.  Pursuant to Article 10.14, a Party may deny the benefits in Chapter 10 to an investor of the 
other Party that is an enterprise of such Party and to investments of such investors if investors of a non-Party own or control the enterprise (directly or indirectly) and the enterprise has no 
substantial business in the Party under whose law it is constituted or organized. 
4.8.  A Party may deny the benefits in Chapter 11 to a service provider of the other Party and may 
wholly or in part deny the benefits of Chapter 12 to a provider of financial services where it is established that the service is being provided by an enterprise that has no substantial business 
activities in the territory of the other Party and, in accordance with the laws of that other Party, is 
owned or controlled by persons of a non-Party (Articles 11.10 and 12.16, respectively). Benefits under Chapters 10, 11 and 12 may only be denied after notification and holding consultations. 
4.3  General provisions on trade in services 
4.9.  Pursuant to Article 11.15, the Parties establish a Committee on Investment and Cross-Border 
Trade in Services, whose task it is to supervise the implementation and administration of both 
Chapters, discuss matters within its sphere of competence, to examine issues discussed in other 
international fora and exchange information.
55  
4.3.1  Market access 4.10.  Part Four of the Agreement, which covers investment, services and related matters, does 
not contain any provisions on market access as such, in the terms of Article XIV of the GATS. 
Article 11.09, however, provides that each Party shall indicate any quantitative restriction it maintains in its Annex V Schedule. In this connection, Honduras has indicated road transport 
services for freight and passengers and higher education services; Nicaragua, communications; 
and Panama agricultural, telecommunications, hotel and restaurant, and electric power services. The Parties list their restrictions on market a ccess through existing or future non-conforming 
measures in their Schedules annexed to the Agreement. 
4.11.  By means of future negotiations to be organized by the Committee, the Parties shall deepen 
the liberalization achieved in various services sectors with a view to eliminating the remaining restrictions listed in Articles 11.08.1 and 2. 
4.3.2  National and MFN treatment 
4.12.  Each Party shall accord to cross-border services and service providers of the other Party 
treatment no less favourable than it accords, in like circumstances, to its own services and service 
providers (national treatment) and to services and service providers of any other non-Party (MFN 
treatment) (Article 11.03 and 11.04, respectively). Moreover, each Party shall accord to cross-border services and service providers of the other Party the better of the two 
treatments (Article 11.05). 
4.13.  These provisions shall not apply to any non-conforming measure maintained by a Party and 
set out in its Schedule in Annex I, or to its continuation, renewal or amendment to the extent that it does not decrease the conformity of the meas ure. They shall not apply either to measures 
adopted or maintained by a Party with respect to sectors, subsectors or activities set out in its 
Schedule in Annex II. 
4.14.  With regard to financial services, each Party shall grant investors and financial institutions 
and their investments in financial institutions of the other Party treatment no less favourable than 
                                               
54 Nevertheless, if an authorized investor provides such services or carries out such functions, the 
investments of that investor will be protected by the provisions of the Ch apter on Investment (Article 10.01.4). 
55 See also Section 5.6 (I nstitutional framework). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 38 - 
 
  that granted to its own investors and financial institutions (national treatment) (Article 12.06) in 
respect of the establishment, purchase, expa nsion, administration, management, conduct, 
operation, sale or other forms of disposal of like financial institutions and investments in like financial institutions in its territory. The treatment granted by a Party to like financial institutions 
and providers of financial services of the other Party, whether the same or different from that 
granted to its own institutions, shall be national treatment if it affords equality of opportunity to compete (Article 12.06.4 and 5). Likewise, each Party shall grant investors, financial institutions 
and providers of cross-border financial services of the other Party treatment no less favourable 
than that granted to those of the other Party or of a non-Party (MFN) (Article 12.07). 
4.15.  As regards investment, each Party shall a ccord to investors of the other Party treatment 
no less favourable than that it accords, in like circumstances, to its own investors and their 
investments (national treatment) or to investors of a non-Party and their investments 
(MFN treatment) in respect of the establishmen t, purchase, expansion, management, conduct, 
operation, sale or other disposal of investments (Article 10.02 and 10.03, respectively). Each Party 
shall grant to investors of the other Party and their investments the better of the two forms of 
treatment. These provisions shall not apply to the non-conforming measures set out in Annex I or to activities reserved for each Party in Annex III or to future measures in Annex II. They shall not 
apply either to the treatment accorded with respect to the sectors set out in Annex IV. 
4.16.  Concerning procurement, each Party shall a ccord to goods and services and suppliers of the 
other Party treatment not less favourable than that it accords to its own similar goods and services and to suppliers of similar goods and services, except for direct procurement. Each Party shall 
ensure that its entities do not require special compensatory conditions for suppliers of the other 
Party participating in procurement procedures (Article 16.04). 
4.17.  Under the Maritime Transport Agreement between Guatemala and Panama, the Parties shall 
grant in their ports, to each other's vessels, the same treatment as that rendered to their own 
vessels. This provision does not apply to shipping activities legally reserved for their own vessels, such as towing and pilotage. National treatment will also be granted for the establishment and 
operations of shipping companies, shipping agents and freight forwarders. Furthermore, the 
Parties will grant to companies of the other Party the same treatment as that given to their national companies for the development of auxiliary maritime industries
56 between their ports 
(Article 7). 
4.3.3  Commercial presence 
4.18.  Pursuant to Article 11.06 of the Agreement, no Party may require a service provider of the 
other Party to establish or maintain a representative office or any form of enterprise, or to be 
resident in its territory, as a condition for the cross-border supply of a service. Nevertheless, the 
non-conforming measures set out in the Parties' Schedules in Annex I (reservations and exceptions) for existing measures and in Annex II (reservations in respect of future measures) to 
the Agreement may require commercial presence. 
4.19.  With regard to financial services, the principle that investors of the Parties must be allowed 
to establish a financial institution in the territory of the other Party, according to any of the forms of establishment and operation authorized by that Party, is recognized. Each Party may impose 
terms and conditions that are consistent with Article 12.06 (national treatment). 
4.3.4  Performance requirements 4.20.  Paragraph 1 of Article 10.07 lists the requirements which no Party may impose in 
connection with the establishment, acquisition, expansion, management, conduct or operation of 
an investment of an investor of the other Party. They are: (i) to export a percentage of goods or 
services; (ii) to achieve a given level or percentage of domestic content; (iii) to purchase, use or 
grant a preference to goods produced or services pr ovided in its territory, or to purchase goods or 
services from persons in its territory; and (iv) to relate the volume or value of imports to that of exports or the inflow of foreign exchange associated with the investment. 
                                               
56 Auxiliary maritime industries: services complementary to maritime activity relating to cargo, ships 
and crew, inside and outside the port area. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 39 - 
 
  4.21.  No Party may condition the receipt or continued receipt of an advantage in connection with 
an investment on compliance with the performance requirements stipulated in paragraph 2 of Article 10.7. This shall not be construed to prevent a Party from conditioning an advantage on compliance with a requirement to locate production , provide a service, train or employ workers, 
construct or expand particular facilities, or carry  out research and development. Article 10.7 does 
not in general apply to the measures set out in Annexes I, II or III to the Agreement. 
4.22.  The prohibition of most performance requ irements shall not apply to: (i) qualification 
requirements for goods or services with respect to export promotion and foreign aid programmes; 
(ii) government procurement; or (iii) the requirements imposed by an importing Party with regard to the content of a good required to qualify it for preferential tariffs or quotas (Article 10.07.3). 
4.23.  Furthermore, exceptions are provided to enable the Parties to adopt measures, including 
environmental measures, necessary to secure compliance with laws and regulations that are 
consistent with the Agreement, or to protect human, animal or plant life or health, or measures necessary for the conservation of living or non-living non-renewable natural 
resources (Article 10.07.5). 
4.3.5  Movement of natural persons 4.24.  The temporary entry of business persons is  governed by Chapter 14 of the Agreement which 
seems to apply to trade in goods as well as services and investment.  
4.25.  This Chapter reflects the appropriateness of facilitating temporary entry, on the basis of 
reciprocity, and of establishing transparent criteria and procedures to this end, as well as the need to ensure the security of borders and protect the national workforce and permanent employment 
(Article 14.02). The Parties agree to grant temporary entry rapidly to business persons covered by 
Annexes 14.04 (Temporary entry of business persons) and 14.04(1) (Special provisions regarding temporary entry of business persons by country) and to develop and adopt common criteria, 
definitions and interpretations for the implementation of the Chapter (Article 14.03). A Party may 
deny temporary entry where it would adversely affe ct the settlement of any labour dispute that is 
in progress or the employment of any person who is involved in such a dispute. If it does so, the 
Party shall inform the person concerned in writing of the reasons for the refusal and shall notify 
the other Party. 
4.26.  Annex 14.04 contains the commitments made by the Parties to facilitate the temporary 
entry of business persons who are categorized as: (i) business visitors
57; (ii) traders and 
investors; and (iii) intra-company transferees. Annex 14.04(1) also contains special provisions on 
the temporary entry of such persons. In the case of Honduras, business persons in any of these categories who enter Honduras will engage in activities that are useful or beneficial to the country 
and comply with the law. They shall be in possession of a 90-day business visa, which may be 
renewed for an equal or consecutive period at the discretion of the Directorate-General of Population and Immigration Policy, provided that  the conditions under which it was granted are 
maintained. Business persons who enter Nicaragua will engage in activities that are useful or 
beneficial for the country, they shall be in possession of temporary residence visa which could be renewed for consecutive periods of up to three years provided the conditions under which it was granted are maintained. Business persons entering Guatemala should be in possession of a 
business visa which will be delivered by the Directorate General of Immigration or Guatemalan 
Consulates abroad. Business persons who enter Panama in any of these categories will engage in activities that are useful or beneficial for the country. They shall be in possession of temporary 
residence visa which may be renewed for consecutive periods, provided that the conditions under 
which it was granted are maintained. 
4.27.  The Parties may not require labour certification tests or other procedures of similar effect as 
a condition for granting temporary entry or impose or maintain any numerical restriction with 
regard to the three categories of business person covered.
58 Nevertheless, they may require a 
                                               
57 The temporary entry and rapid verification of do cuments are designed in particular for business 
visitors in the following fields: research; cultivation, manufacture and production; marketing; sales; after-sales 
services; and general servic es (Appendix 14.04(A)(1)). 
58 Except as provided in Chapter 14 and in Chap ters 1 (Initial provisions), 2 (Definitions), 
19 (Administration of the Agreement), and 22 (Final pr ovisions), and Articles 18.02 (Contact points) and WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 40 - 
 
  business person seeking temporary entry into the country to obtain a visa or its equivalent prior to 
entry. The Parties shall consider the possibility of eliminating the requirement for a visa or equivalent document. Panama indicated it is flexible about the entry of persons but may require documents to justify it; Guatemala has indicated Panamanian citizens do not require an entry visa. 
Honduras has not taken any measures towards eliminating the requirement for a visa. Nicaragua 
indicated that neither Panamanian citizens nor Nicaraguan citizens require visas to enter each others' territories. 
4.28.  Recourse to dispute settlement is not permi tted with regard to a refusal to grant temporary 
entry under Chapter 14, unless the matter involves  a recurrent practice and the business person 
concerned has exhausted the relevant administrative remedies. 
4.3.6  Senior management and boards of directors 
4.29.  No Party may require that an enterprise of that Party that is an investment of an investor of 
the other Party appoint to senior management positions individuals of any particular nationality. Nevertheless, a Party may require that a majority of the members of the governing body or board 
of directors be of a particular nationality or resident in the territory in question, provided that the 
requirement does not materially impair the ability of the investor to exercise control over its investment (Article 10.08). This provision shall be interpreted in conjunction with Annexes I, II 
and III on non-conforming measures (Article 10.09).  
4.30.  Article 12.14 on financial services provides that no Party may require that a financial 
institution of the other Party hire staff of a particular nationality to fill senior management positions or require that a governing body or boar d of directors of a financial institution of the 
other Party be composed of nationals of the Party, residents in its territory or a combination of the 
two. This provision shall be interpreted in conjunction with Sections A and B of Annex VI on non-conforming measures (Article 12.15). 
4.3.7  Other investment-related provisions 
4.31.  Under Article 10.11 no Party may directly or indirectly nationalize or expropriate an 
investment of an investor of the other Party or take a measure tantamount to nationalization or 
expropriation, except: (i) for a public purpose
59; (ii) on a non-discriminatory basis; (iv) in 
accordance with the principles of due legal proce ss and treatment in accordance with international 
law (Article 10.06); and (v) subject to payment of compensation in accordance with the Article. Section B of Chapter 10 (Disputes between a Part y and an investor of the other Party) is an 
integral part of Chapter 12 on financial services (Article 12.19.1). 
4.4  Liberalization commitments 4.4.1  Panama 
4.32.  In Annex I Panama lists 24 reservations with respect to existing measures, 2 of which are 
horizontal, and in Annex VI lists 6 existing reservations in Section A and one possible future reservation in Section B, with respect to financial services. Moreover, in Annex II it lists 
10 reservations for the future, four of which are horizontal. Annex III contains 3 sectoral activities 
reserved for the State and Annex IV contains one exception from MFN treatment in matters relating to aviation, fishing and maritime services, including salvage. Annex V contains 5 quantitative restrictions for Honduras, 4 for Nicaragua and 4 for Guatemala. 
4.33.  The following sections relate to horizontal commitments and sector-specific commitments 
and their liberalization. 
                                                                                                                                               
18.06 (Administrative proceedings for the adoption of me asures of general application), no provision in the 
Agreement shall impose any obligation on Parties with regard to their immigration measures. 
59 In the case of Honduras, for reasons of necessit y  o r  p u b l i c  i n t e r e s t .  I n  t h e  c a s e  o f  P a n a m a ,  f o r  
reasons of public purpose or social interest. In the case  of Nicaragua, for reasons of public purpose or social 
interest. In the case of Guatemal a, for reasons of collective purp ose, social or public interest. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 41 - 
 
  4.4.1.1  Horizontal commitments 
4.34.  Panama's horizontal commitments under the GATS relate to limitations with respect to the 
geographic areas included in the Panama Canal Treaties. They also relate to the presence of natural persons, to whom market access limitati ons apply, and to exemptions from MFN treatment 
for preferences granted under other agreements.
60 Under the Agreement, the horizontal limitations 
relate to national treatment and senior management and boards of directors (SMBD). No foreign government, foreign official or semi-official institution may acquire ownership of any part of the 
national territory, except where embassy buildi ngs are concerned. Foreign natural and legal 
persons may not acquire land situated within 10 kilometres of the border. There are also four 
future horizontal reservations with respect to  national and MFN treatment, local presence, 
performance requirements and senior executives an d management boards or boards of directors, 
for which Panama reserves the right to adopt or maintain any measure related with the indigenous 
peoples, minorities, the sale of the shareholdi ngs or goods of a State-owned enterprise and 
matters relating to the Panama Canal.
61 
4.4.1.2  Sector-specific commitments 
4.35.  In Table 4.1 sectoral liberalization under the Agreement is compared with that in Panama's 
GATS Schedule. The table indicates whether the sectoral commitments under the Agreement for a 
particular subsector (except as indicated in the horizontal reservations of the Agreement) are 
improved or the same as under the GATS. 
Table 4.1 Panama: Sectoral liberalization under the Agreement, mode 4 excluded 
Sector (CPC Classification) GATS FTA 
Sectoral 
commitments 
(except as 
indicated in the 
horizontal 
commitments 
under the GATS) Sectoral 
commitments under 
the FTA (except as 
indicated in the 
horizontal 
reservations in the 
FTA), as compared 
with those in the 
GATS Provisions 
specifying 
reservations by 
specific sector 
1. Business services    
 
A. Professional services partial similar I-PA-28-35 with Hond. 
II-PA-11-15 with Nic. 
I-27-32 with Guat.  
B. Computer and related services partial full  
C. Research and de velopment services -- full  
D. Real estate services 
-- improved I-PA-30 with Hond.,  
28 with Guat. 
II-PA-11 with Nic. 
E. Rental/leasing services without operators partial full  
 
F. Other business services 
partial improved I-PA-1/2,13,14/15, 16, 
18/19,20,21,22,27;**  
II-PA-8 with Guat.;  II-
PA-9 with Hond. and 
Nic.;  
V-PA-1 with Guat. and 
Nic., 5 with Hond.  
2. Communications services  improved  
A. Postal services -- --  III-PA-1 
B. Courier services -- improved II-PA-6 with Hond. and 
Nic. 
C. Telecommunications services 
partial improved I-PA-9 with Guat.,  10 
with Hond.; II-PA-6, 
with Hond. and Nic.; 
III-PA-1  
D. Audiovisual services -- improved I-PA-7/8 with Guat., 8/9 
with Hond. and Nic. 
E. Other -- full  
3. Construction and related engineering 
services  Improved II-PA-7  with Hond. and 
Nic. 
II-PA-6  with Guat.  
A. General construction work for buildings partial similar  
                                               
60 Legal instruments signed between countries of th e region. Preferential tr eatment for providers of 
services of different kinds. Signat ories: Guatemala, El Salvador, Ni caragua, Costa Rica and Honduras. 
61 Preferential treatment for servic e providers authorized under the Pa nama Canal Treaties. Signatory: 
United States. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 42 - 
 
  Sector (CPC Classification) GATS FTA 
Sectoral 
commitments 
(except as 
indicated in the 
horizontal 
commitments 
under the GATS) Sectoral 
commitments under 
the FTA (except as 
indicated in the 
horizontal 
reservations in the 
FTA), as compared 
with those in the 
GATS Provisions 
specifying 
reservations by 
specific sector 
B. General construction work for civil 
engineering partial similar  
C.  Installation and assembly work partial similar  
D. Building completion and finishing work partial similar  
E. Other -- improved  
4. Distribution se rvices  improved  
A. Commission agents' services Full full  
B. Wholesale trade services 
Full less II-PA-10 with Hond.  
I-PA-12 with Guat., 13 
with Nic. 
C. Retail trade services -- improved I-PA-1 with Hond. 
I-PA-2 with Nic.  
D. Franchising services partial full  
E. Other -- full  
5. Educational services  improved I-PA-11 
A. Primary education services partial similar  
B. Secondary education services partial similar  
C. Higher education services partial similar  
D. Adult education services -- improved  
E. Other education services -- improved  
6. Environmental services  improved  
A. Sewage services -- full  
B. Refuse disposal services -- full  
C. Sanitation and similar services -- full  
D. Other partial full  
7. Financial services partial improved Annex VI 
A. All insurance and insurance-related 
services partial improved A-PA-4/5 
B. Banking and other financial services  partial improved A-PA-1,2 and 3 
C. Other * similar  B-PA-1 
8. Health and social services  improved  
A. Hospital services partial full  
B. Other human he alth services -- full  
C. Social services -- full  
D. Other -- improved I-PA-30 
9. Tourism and travel related services  improved  
A. Hotels and restaurants (including 
catering) partial similar V-PA-4 with Hond., 3 
with Nic. and Guat. 
B. Travel agencies and tour operators 
services partial similar I-PA-6 with Guat.,  
7 with Hond. and Nic. 
C. Tourist guides services -- full  
D. Other -- full  
10. Recreational, cultural and sporting 
services partial improved  
A. Entertainm ent services partial improved I-PA-5 with Guat.,  
6 with Hond. and Nic. 
B. News agency services -- full  
C. Libraries, archives, museums and other 
cultural services -- improved I-PA-27 Guat., 30 
Hond.; 
II-PA-11 Nic. 
D. Sporting and other recreational services -- improved III-PA-1 
E. Other -- full  
11. Transport services  improved  
A. Maritime transport services 
-- improved I-PA-22 and 23 with 
Nic., 23 and 24 with 
Hond., 21 and 22 Guat. 
and Annex 22.03(g) 
with Guat. 
B. Inland waterway transport services -- similar II-PA-4 
C. Air transport services 
partial similar I-PA-25, 26 with Hond., 
24 and 25 with Nic., 
23 and 24 with Guat.  WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 43 - 
 
  Sector (CPC Classification) GATS FTA 
Sectoral 
commitments 
(except as 
indicated in the 
horizontal 
commitments 
under the GATS) Sectoral 
commitments under 
the FTA (except as 
indicated in the 
horizontal 
reservations in the 
FTA), as compared 
with those in the 
GATS Provisions 
specifying 
reservations by 
specific sector 
D. Space transport -- full  
E. Rail transport services -- full  
F. Road transport services -- -- II-PA-7 with Guat.,  
8 with Hond. and Nic. 
G. Pipeline transport -- improved I-PA-13 with Hond. and 
Nic., 12 with Guat.? 
H. Services auxiliary to all modes of 
transport -- full  
I. Other transport services -- full  
12. Other services not included 
elsewhere  -- improved I-PA-32 with Guat., 35 
with Hond.;  
II-PA-15 with Nic. 
Note: The table shows the commitments undertaken under the GATS and the FTA. Horizontal 
commitments/reservations are not taken into account. In view of the horizontal nature of the commitments in mode 4, only modes 1, 2 and 3 are considered. "Improved" means commitments 
that go beyond those in the GATS as regards market access or national treatment in any of these three modes. "Similar" means commitments that do not go beyond the GATS. "Partial" means 
commitments which, under the GATS, are subject to se ctor-specific limitations with regard to market 
access or national treatment in any of the th ree modes. --: there are no commitments.  
** Pages may vary due to different fo rmats in the Bilateral Protocols. 
Source: Schedule of Specific Commitments GATS/SC/124 and GATS/EL/124 and the relevant sections in 
 Annexes I, II and VI to the Agreement. 
4.36.  In Annex III Panama reserves its exclusive right over postal and telegraph services, games 
of chance and electrical power transmission. 
4.37.  Under the GATS, Panama has commitments for international legal advisory services, 
accounting services, tax advisory services, architectural services and engineering services. The 
nationality conditions imposed by the Agreement on  engineers, architects and accountants do not 
have an equivalent in the GATS. Professional se rvices not covered by the GATS commitments are 
all covered and partially liberalized by the Agreement. 
4.38.  In services incidental to mining, vis-à-vis  Nicaragua and Guatemala Panama has an 
additional limitation giving preferences to Panamani ans in posts in all stages of mining operations. 
For services incidental to fishing, a reservation (local presence) for investment and CBTS for 
Honduras and CBTS for Guatemala (local pres ence and performance requirement) and on 
investment and CBTS for Nicaragua, is introduced for industrial processing, storage and sales of shrimp and other maritime species. 
4.39.  In communications services, postal services are reserved for the State. With regard to 
telecommunications services, initially under the GATS there were no commitments, but one year after the entry into force of the WTO, foreign en terprises were permitted to provide value added 
services in association with INTEL, S.A. and directly, after five years. Under the Agreement there is 
a reservation (national treatment and local presence, only national treatment for Nicaragua) which 
does not permit foreign governments to operate telecommunications services, directly or indirectly, and requires telecommunications services provided directly to users in Panama only to 
be supplied by persons resident in Panama. In th e audiovisual services sector, as in the GATS, 
Panama's commitments under the Agreement are part ial, although the sectoral scope is broader, 
and liberalization is greater but with one broad reservation (national treatment, MFN, senior 
executives) and restrictions (national treatment), for example, for the participation of foreign 
capital. To exploit a radio or television concession the concession holder must be a Panamanian citizen and in the case of legal persons, not less than 65% of the shareholders who, de facto or 
de jure , control the share ownership and voting rights must be Panamanian citizens. The directors, 
managing partners, trustees and members of councils of foundations must meet the same 
nationality requirements. To obtain a presenter's licence it is necessary to be Panamanian. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 44 - 
 
  Advertising originating in Panama relating to broadcasts by presenters who do not hold a licence 
from the regulatory body may not be transmitted unless there is a right of reciprocity under an international treaty or agreement. 
4.40.  With regard to construction services, th ere is a reservation (national and MFN treatment, 
and local presence) on investment and cross-border trade in services under which Panama 
reserves the right to adopt or maintain any measure concerning the provision of construction services by foreign natural or legal persons or entities, with a view to imposing requirements 
regarding residence, registration and/or any form of local presence, or establishment, or financial 
guarantee for the work, as a condition for the provision of the services. The reservation regarding the form of establishment has no equivalent in the GATS. 
4.41.  In distribution services, in general the commitments are more extensive. However, in the 
Agreement a future reservation (national trea tment, MFN treatment and local presence) is 
introduced in wholesale distribution services fo r petroleum-based products, which does not appear 
in the GATS. Panama reserves the right to adopt or maintain any wholesale distribution measure 
that affects the import and distribution of any petroleum-based product. In retail distribution 
services, there is one reservation (national tr eatment and senior executives and management 
boards or boards of directors) under the Agreem ent which only permits Panamanians by birth and 
Panamanian or foreign legal persons and foreign natural persons who on the date of entry into 
force of the Constitution were already lawfully en gaged in retail trade to provide such services. 
4.42.  Although under the Agreement, education services commitments are generally more 
extensive, there is a reservation (national treatm ent) in the Agreement but not in the GATS in 
primary, secondary and higher education requiring the history of Panama and citizenship to be 
taught by Panamanians. 
4.43.  Environmental services and health and so cial services for which Panama has no GATS 
commitments are totally liberalized. 
4.44.  In financial services, Panama broadens its insurance sector commitments relative to the 
GATS by permitting insurance to be taken out ab road and removing the mode 1 limitation, since 
foreigners may be brokers. In banking, a limitation  on national treatment which is not in the GATS 
is added to in the Agreement. However, the se ctors excluded from the GATS schedule are not 
excluded from the Agreement, so that the sectoral coverage is improved. Pension fund services are excluded under the GATS and the Agreement also reserves the right to adopt or maintain any 
measure with respect to MFN treatment, which is not in the GATS schedules.  
4.45.  In tourism and travel related services, Panama's commitments are more extensive overall. 
Under the GATS, the commitments are partial in subsectors A and B because they are not bound in 
subsector A and because of the partial coverage of  subsectors in B. In the Agreement, Panama 
introduces a quantitative restriction on hotel and restaurant services and a restriction (national treatment) on modes 3 and 1 for travel agencies. Natural persons who engage in this activity must 
be Panamanians. 
4.46.  With regard to recreational, cultural an d sporting services, under the GATS Panama has 
partial sectoral coverage. Under the Agreement the commitments are more extensive but with restrictions (national treatment and performance requirements) for musicians and performers and 
(national treatment and senior executives, management boards or boards of directors) for 
journalists. News agency services are fully liberalized. 
4.47.  The commitments concerning transport services are more extensive. Maritime transport 
services, which do not feature in the GATS, are included in the Agreement with a reservation 
(national treatment) for towing and tug assistance services, requiring coastal pilots to be Panamanian nationals; and a reservation (national treatment, local presence and performance 
requirement) concerning investment and cross-border  trade in services, giving preference to crews 
of Panamanian nationality and to foreigners married to a Panamanian woman or with Panamanian children resident in Panama; for Nicaragua and Gu atemala, there is an additional obligation on 
ship-owners' associations flying the Panamanian flag to provide scholarships and training courses 
to Panamanian crew. Foreign employment agencies must appoint at least one agent who is a 
Panamanian national, resident in Panama with powers registered in the Commercial Register and WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 45 - 
 
  authorization to represent the company in all judicial, extra-judicial and administrative matters. 
With regard to inland waterway transport, for fu ture measures Panama reserves the right to adopt 
or maintain any measure relating to the use, management, functioning, maintenance, preservation, modernization, operation, admini stration and development and ownership of the 
Panama Canal and the reverted areas that restricts the rights of Honduran investors and service 
providers(national and MFN treatment, local presen ce, performance requirement, senior executives 
and management boards or boards of directors). In air transport services, there are two services 
covered by the Agreement and by the GATS. Panama has full GATS commitments in aircraft 
maintenance and repair, whereas in the Agreement it introduces a nationality requirement. In 
computer reservation services there are no commitments under the GATS, but they are full under the Agreement. Moreover, specialized services are included in the Agreement but not in the GATS, 
while the sale and marketing of air transport serv ices is included in the GATS but not in the 
Agreement. In road transport services there is a broad reservation with respect to possible future 
measures concerning investment and cross-border trade (national treatment, MFN treatment, local 
presence, performance requirements, senior execut ives and management boards) in the area of 
freight and passenger transport. 
4.48.  With regard to other services not elsewhere included, hairdressers and cosmeticians must 
be Panamanian nationals. 
4.4.2  Honduras 4.49.  In Annex I, Honduras lists 35 reservations concerning existing measures, of which five are 
horizontal, and in Annex VI lists six existing reservations in Section A and a possible future 
reservation in Section B for financial services. Furthermore, in Annex II, it lists nine possible future 
reservations. Annex III lists five sectoral activities  reserved for the State and Annex IV includes an 
exception to MFN treatment for matters relating to aviation, fishing and shipping services, 
including salvage services. Annex V lists two quantitative restrictions. 
4.50.  The following sections refer to Honduras' horizontal commitments by specific sector and to 
their liberalization. 
4.4.2.1  Horizontal commitments 
4.51.  Honduras' horizontal commitments under the GATS relate to commercial presence and the 
presence of natural persons, to which market access and national treatment limitations and conditions apply (economic needs test, training of national personnel, a ceiling of 10% for foreign 
workers in an enterprise and 15% of total wage -earners, 10% of total members of trade unions; 
limitations in a 40 km belt in border areas and on small-scale trade). There is also reference to exemptions from MFN treatment with regard to  preferences granted under other agreements.
62 
Under the Agreement, horizontal limitations conc ern national treatment, local presence and MFN 
treatment. Only Hondurans by birth or companies consisting wholly of Hondurans may buy land in the border area or within a 40 km belt along the coast, except for urban land for tourism purposes, 
economic or social development, qualified and a pproved by the State Secretariat in the Tourism 
Office. In order to engage in trade, companies established in accordance with foreign laws must keep a representative with broad powers permanently in Honduras to carry out all legal acts required and having effect in the national territory. Foreigners may not engage in small-scale 
industry or trade, except for naturalized Honduran s, provided that there is reciprocity with their 
country of origin. Lastly, foreign cooperative associations may be established in Honduras subject to authorization by the Honduran Institute of Co operative Associations, provided that there is 
reciprocity and the foreign cooperative association maintains at least one permanent legal 
representative with broad powers to carry out all legal acts required and having effect in the national territory. There are also four future horizontal reservations concerning national treatment, 
MFN treatment, local presence, performance requir ements and senior management and boards of 
directors or governing boards for which Honduras reserves the right to adopt or maintain any measure in respect of indigenous populations or minorities. In the annexes on non-conforming measures the exemptions from MFN treatment in the GATS are the same in the Agreement. 
                                               
62 The Central American Economic Integration Treaty and its respective instruments. Signatories: 
Guatemala, El Salvador, Nicara gua, Costa Rica and Panama. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 46 - 
 
  4.4.2.2  Sector-specific commitments 
4.52.  Honduras' sector-specific commitments are broader in comparison with those in the GATS. 4.53.  Table 4.2 compares the level of liberalizati on by sector under the Agreement with Honduras' 
GATS Schedule. It indicates whether the sectoral commitments undertaken under the Agreement 
concerning a specific subsector (except those indicated in the horizontal reservations in the 
Agreement) are improved or the same as those within the GATS framework.
63 
Table 4.2 Honduras: Liberalization by specif ic sector under the Agreement, excluding 
mode 4 
Sector (CPC classification) GATS  FTA 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments under 
the FTA (except for 
those indicated in 
the horizontal 
reservations in the 
FTA), in comparison 
with those in the 
GATS Provisions specifying 
reservations by 
specific sector  
1. Business services partial  improved   
A.  Professional services  -- improved  I-HO-24/25,30, 
32,33,34,35  
B. Informatics and related services  partial  full  
C. Research and development services  -- full   
D. Real estate services  -- full   
E. Leasing or rental services without operator  -- full   
F. Other business services  partial  improved  I-HO-6,7,26,27,28,29 
and 31  
2. Communications services  partial  improved   
A. Postal services  -- -- III-HO-2  
B. Courier services  -- --  
C. Telecommunications services  partial  simila r I-HO-8 and II-HO-1  
D. Audiovisual services  -- improved  I-HO-9  
E. Othe r -- full   
3. Construction services and related 
engineering services   improved  II-HO-8 
A. General construction services of buildings -- improved   
B. General construction services of civil engineering 
works -- improved   
C. Assembly and erection of prefabricated 
constructions  -- improved   
D. Building completion and finishing services -- improved   
E. Othe r -- improved   
4. Distribution services  improved  I-HO-10 
A. Commission agents' services  -- improved   
B. Wholesale trade services  -- improved  II-HO-9 
C. Retail trade services  -- improved   
D. Franchising services  -- improved   
E. Othe r -- improved   
5. Education services  improved  I-H-12 
A. Primary education services  -- improved   
B. Secondary education services  -- improved   
C. Higher education services  -- improved  V-HO-2 
D. Adult education services  -- improved   
E. Other education services -- improved   
6. Environment-related services   full  
A. Sewage services -- full  
B. Waste disposal services -- full   
C. Sanitation and similar services  -- full   
D. Othe r -- full   
7. Financial services  improved  Annex VI  
A. All insurance and insurance-related services partial  improved  A-HO-5 
B. Banking and other financial services partial  improved  A-HO-1,2 and 3  
C. Othe r -- full   
8. Social and health services     
A. Hospital services  -- full   
B. Other human health services  -- improved  I-HO-31 
                                               
63 This factual presentation follows the WTO's Sectoral Services Classification List, which is based on the 
Central Product Classification of the United Nations and contains 12 sectors (WTO document MTN/GS/W/120). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 47 - 
 
  Sector (CPC classification) GATS  FTA 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments under 
the FTA (except for 
those indicated in 
the horizontal 
reservations in the 
FTA), in comparison 
with those in the 
GATS Provisions specifying 
reservations by 
specific sector  
C. Social services -- improved  II-HO-2 and 5  
D. Othe r -- full   
9. Tourism and travel-related services partial  improved   
A. Hotels and restaurants (including contract food 
services) Full full   
B. Travel agency services and organization of 
group travel -- full   
C. Tourist guide services -- full   
D. Othe r -- full   
10. Recreational, cultural and sports services   improved   
A. Live event services -- improved  I-HO-14 
B. News agency services -- improved  I-HO-9 
C. Library, archive, museum and other cultural 
services -- full   
D. Sports and other recreational services  
--  
improved  I-HO-15 and 16  
III-HO-2 
E. Othe r -- full   
11. Transport services    
A. Maritime transport se rvices -- improved  I-HO-23  
B. Inland navigable waterway services  -- -- I-HO-23 
C. Air transport services  partial  improved   
D. Space transport  -- full   
E. Rail transport services  -- improved  I-HO-22  
F. Road transport services  partial  improved  I-HO-19 and V-HO-1  
G. Pipeline services  -- full   
H. Auxiliary services for all modes of transport  -- full   
I. Other transport services -- improved  I-HO-17 
12. Other services not included elsewhere -- full   
 
Note: The table shows the commitments undertaken under the GATS and the FTA frameworks. It does not 
take into account the horizontal commitments/reserv ations. In view of the horizontal nature of the 
commitments in mode 4, only modes 1, 2 and 3 are taken into account. "Improved" means 
commitments that go beyond those in the GATS as regards market access or national treatment in any of these three modes. "Similar" means commitme nts that do not go beyond the GATS. "Partial" 
means commitments under the GATS that are subject to  limitations in specific sectors with regard to 
market access or national treatment in any of  the three modes. --: there are no commitments. 
 Source: Schedule of Specific Commitments (GATS/SC/38), suppleme nted by documents 
GATS/SSC/38/Suppl.1; GATS/SSC/38/ Suppl.2; and GATS/EL/38; GATS/EL/38/Suppl.1; and the relevant 
sections in Annexes I, II and VI to the Agreement. 
 
4.54.  In Annex III, Honduras reserves the exclusive right for transmission of electric power, retail 
and wholesale distribution by the arms industry, postal services, lotteries, and control and supply 
of auxiliary air navigation services. 
4.55.  In professional services, Honduras moves from no commitments in the GATS to broad 
liberalization, with reservations for national treatment, and subject to authorization on the basis of 
reciprocity both for professional degrees and licences for supplying services. However, recognition and the right to exercise a profession are no t automatic and the nationality requirement for 
exercising certain professions, for example, that of notaries, is not eliminated. Higher charges than 
those for Honduran nationals and companies under Honduran law are also payable for registration, 
for example, for agricultural engineers and veteri nary surgeons, and there are some quantitative 
restrictions for physicians, dental surgeons, nurses and forestry engineers. For informatics 
services, there is a move from partial sectoral commitments to full liberalization. As regards other 
business services, there are reservations concerning national treatment. 
4.56.  In communications services, the operation of postal and courier services is reserved for the 
Honduran Postal Company. In telecommunications, there is a restriction concerning the ownership 
of HONDUTEL, which does not appear in the GATS. Overall, however, the sectoral coverage of WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 48 - 
 
  Honduras' commitments is broader under the Ag reement. Audiovisual services have been 
liberalized, except for the nationality restriction. 
4.57.  In the Agreement construction services have been liberalized, except for possible future 
partially restrictive measures on national and MFN treatment and local presence. Honduras 
reserves the right to take measures such as imposing residence, registration and/or any other 
form of local presence requirements or the obligation to provide financial security. 
4.58.  The commitments in distribution services are broader, with a partial sectoral restriction 
(national treatment) and a reservation on future measures concerning petroleum-based products. 
4.59.  Education services have been liberalized with partial restrictions concerning national and 
MFN treatment, local presence and senior managers. Only Hondurans by birth may have managerial and supervisory responsibilities in educational establishments. Teachers at all levels of 
middle-school or secondary education may be foreigne rs if no Honduran teachers in the subjects 
concerned are available, but reciprocity is required for certain subjects. The creation and operation of educational centres must be approved by the Council for Higher Education. For higher education 
centres, a security deposit is required and certain percentage of professors must have specified 
levels of education and experience. 
4.60.  There is no restriction in the Agreement on environmental services or on tourism or 
travel-related services compared to no commitments in the GATS. 
4.61.  Honduras has broadened its commitments in financial services. The economic needs test 
and the 40% limit on foreign ownership of corporat ions are no longer required in the insurance 
and reinsurance sectors. Likewise, legal residents with at least three consecutive years of 
residence may act as insurance brokers, adjusters or settlement officers. In the banking sector, 
there is no economic needs test but there is a reciprocity condition. There are, however, no 
exclusions from sectoral coverage, which is limite d under the GATS because it does not include, for 
example, mortgages, leasing services, trading on the stock exchange, participating in issuing 
securities, asset management, payments and compensation. 
4.62.  Social and health services have been li beralized, with a partial restriction concerning 
national treatment in relation to human health and another concerning social workers. The latter 
fully corresponds to the exclusion found in Article 1.3(b) and (c) of the GATS. 
4.63.  For recreational, cultural and sports services, liberalization is broader, with restrictions for 
musicians (national treatment and performance requ irements), footballers (national treatment and 
local presence), news agencies (senior management and board of directors) and gambling 
(national treatment).  
4.64.  With regard to transport, maritime tran sport services have been liberalized, except for 
cabotage (including inland waterways), to which restrictions apply (MFN treatment, national 
treatment, local presence). Cabotage for commercial purposes is restricted to Honduran merchant ships. If these are not available, foreign merchant ships - especially from Central America - are 
authorized to provide cabotage services. At least 51% of the capital of a national shipping 
company must be owned by Honduran nationals and the company must be domiciled in Honduras. Commitments on air transport services in the two sectors covered by both the GATS and the 
Agreement (maintenance and repair of aircraft and computerized reservation systems) have been 
improved. In addition, the Agreement covers specia lty services which are not covered in the GATS, 
but not sales and marketing which is partially covered in the GATS. Rail transport services have been liberalized with restrictions (national treatment and senior management, boards of directors). 
The Honduran National Railways may only sell its subsidiaries to individual Honduran companies or 
to companies established under Honduran legislat ion. The director and auditor of the Honduran 
National Railways must be Honduran by birth. The liberalization of road transport services is 
broader, but with important restrictions (nationa l treatment, MFN treatment and local presence). 
Only Hondurans by birth and companies whose Honduran capital ownership is at least 51% may provide national passenger and freight transport services. A reciprocity requirement applies to 
international transport and preference is given to Hondurans on certain routes. There is also a 
quantitative restriction. Pipeline services have been  liberalized. The services of customs agents and 
companies are restricted to Hondurans by birth. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 49 - 
 
  4.65.  Other services not included elsewhere, for which there are no GATS commitments, have 
been liberalized. 
4.4.3  Nicaragua 4.66.  In Annex I, Nicaragua lists 20 reservations for existing measures and in Annex VI (financial 
services) lists six existing reservations in Section A and a possible future reservation in Section 
B. Moreover, in Annex II, 13 possible future reservations are listed, seven of which are horizontal. Annex III includes nine sectoral activities reserved for the State and Annex IV contains one 
exception from MFN treatment for matters relating to aviation, fishing and maritime affairs, 
including salvage. Annex V contains a quantitative restriction. 
4.67.  The following sections relate to Nicaragua's horizontal and specific-sector commitments 
and their liberalization. 
4.4.3.1  Horizontal commitments 
4.68.  Nicaragua's horizontal commitments within the GATS framework relate to restrictions 
on foreign investment, for which approval is subject to an economic needs test to determine 
whether it corresponds to the objectives of stability and economic development, 
respects Nicaragua's moral and cultural values, and is consistent with the conservation and protection of the environment. The supply of se rvices by suppliers not resident in Nicaragua is 
limited to senior and specialized personnel in connection with a commercial presence and on the 
condition that it contributes to the training of Nicaraguan personnel, who must make up 75% of the company's personnel. Furthermore, the supply of  professional services involving the presence 
of natural persons must fulfil conditions and authorizations to exercise a profession. Under the 
Agreement, Nicaragua has established future horizo ntal reservations (national treatment, senior 
managers and boards of directors) giving it the right to adopt measures on investment in connection with the sale of a State-owned company's shareholdings or assets and the 
construction, management and administration of the canal, and in respect of investment and 
cross-border trade in retail sale services. There are also two reservations (national treatment), one 
relates to purchasing and acquiring control over Nicaraguan territory by foreign governments or 
official institutions, unless it is a question of sites for embassies, and the other regards possible 
measures concerning coastal lands, islands and river banks in Nicaragua's possession. Lastly, there are two horizontal reservations (national treatment, MFN treatment, local presence, performance requirements and senior managers and boards of directors) in connection with minorities and 
indigenous populations. 
4.4.3.2  Sector-specific commitments 4.69.  Table 4.3 compares the level of liberalization by sector under the Agreement with 
Nicaragua's Schedule annexed to the GATS. It indicates whether the sectoral commitments made 
under the Agreement in respect of a particular subsector (except those indicated in the Agreement's horizontal reservations) are better or the same as those under the GATS. 
Table 4.3 Nicaragua: Liberalization by specif ic sector under the Agreement, excluding 
mode 4 
Sector (CPC classification) GATS  FTA 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments 
under the FTA 
(except for those 
indicated in the 
horizontal 
reservations in 
the FTA), in 
comparison with 
those in the GATS  Provisions specifying 
reservations by specific 
sector  
1. Business services  improved Annex II 
A.  Professional services  -- partial  II-NI-10 
B. Informatics and related services  partial  Full  
C. Research and development services  partial  similar  I-NI-13 
D. Real estate services  -- full   WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 50 - 
 
  Sector (CPC classification) GATS  FTA 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments 
under the FTA 
(except for those 
indicated in the 
horizontal 
reservations in 
the FTA), in 
comparison with 
those in the GATS  Provisions specifying 
reservations by specific 
sector  
E. Leasing or rental se rvices without operator  -- full   
F. Other business services  partial  similar  I-NI-5, 12, 13, 14, 21 and 
III-NI-2, 7  
2. Communications services    Annex I, II, III 
A. Postal services  -- -- I-NI-10 and III-NI-1  
B. Courier services  -- º III-NI-1? 
C. Telecommunications services  partial  improved  I-NI-9, I-NI-11;  
D. Audiovisual services  partial  improved  I-NI-7, 8, 11; II-NI-8  
E. Other  --   
3. Construction services and related 
engineering services   improved II-NI-12 
A. General construction services of buildings -- improved   
B. General construction services of civil 
engineering works -- improved  V-NI-1 
C. Assembly and erection of prefabricated 
constructions  -- improved   
D. Building completion and finishing services -- improved   
E. Other -- improved   
4. Distribution services  improved  
A. Commission agents' services  -- improved  I-NI-4, 6 and 20 
B. Wholesale trade services  -- improved  I-NI-4 and 6 
C. Retail trade services  -- improved  I-NI-4, 6; II-NI-2 
D. Franchising services  -- improved I-NI-4, 6 
E. Other --  improved I-NI-4, 6 
5. Education services  improved  
A. Primary education services  -- improved  II-NI-9 
B. Secondary education services  -- improved  II-NI-9 
C. Higher education services  -- improved  II-NI-9 
D. Adult education services  -- improved  II-NI-9 
E. Other education services --  full   
6. Environment-related services   improved  
A. Sewage services -- -- III-NI-3 
B. Waste disposal services -- full   
C. Sanitation and similar services  -- full   
D. Other -- full   
7. Financial services    
A. All insurance and insurance-related services partial  improved VI-A-NI-3 
B. Banking and other financial services partial  improved  VI-A-NI-1, 2 and 6 and 
VI-B-NI-1 
C. Other -- improved   
8. Social and health services   improved II-NI-7 
A. Hospital services  -- full   
B. Other human health services -- full   
C. Social services -- full   
D. Other -- full   
9. Tourism and travel-related services  Less  
A. Hotels and restaurants (including contract 
food services) full less  I-NI-3 
B. Travel agency services and organization of 
group travel partial less  I-NI-3 
C. Tourist guide services partial less  I-NI-3 
D. Other -- full   
10. Recreational, cultural and sports 
services  improved  WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 51 - 
 
  Sector (CPC classification) GATS  FTA 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments 
under the FTA 
(except for those 
indicated in the 
horizontal 
reservations in 
the FTA), in 
comparison with 
those in the GATS  Provisions specifying 
reservations by specific 
sector  
A. Live event services -- improved  I-NI-1 
B. News agency services -- Full  
C. Library, archive, mu seum and other cultural 
services -- full   
D. Sports and other recreational services -- improved  III-NI-3 
E. Other -- full   
11. Transport services  improved Annex I, II, III 
A. Maritime transport services  -- improved  I-NI-15 and II-NI-3; 
III-NI-4 
B. Inland navigable waterway services  -- full   
C. Air transport services  partial  partial  I-NI-16/17 and I-NI-18 
D. Space transport  -- full   
E. Rail transport services  full full   
F. Road transport services  -- -- II-NI-13 
G. Pipeline services  -- full   
H. Auxiliary services for all modes of transport  -- improved  I-NI-15 and 19 
I. Other transport services -- full   
12. Other services not included elsewhere -- full   
 
Note: The table shows the commitments undertaken under the GATS and the FTA frameworks. It does not 
take into account the horizontal commitments/reserv ations. In view of the horizontal nature of the 
commitments in mode 4, only modes 1, 2 and 3 are taken into account. "Improved" means 
c o m m i t m e n t s  t h at  g o  b e y o n d  t h o s e  i n  t h e  G A T S  as regards market access or national treatment 
in any of these three modes. "Similar" means commitments that  do not go beyond the GATS, 
but possibly with limited improv ements and/or limited additional reservations. "Partial" means 
commitments under the GATS that are subject to lim itations in specific sectors with regard to 
market access or national treatment in any of the three modes. --: there are no commitments.  
 Source: Schedule of Specific Commitments (GATS/SC/63), suppleme nted by documents 
GATS/SSC/63/Suppl.1 and GATS/EL/63 and the rele vant sections in Annexes I, II, III and VI 
to the Agreement. 
 
4.70.  In Annex III, Nicaragua reserves the exclusiv e right to authorize or to refuse authorization 
for investment in postal services, telecommunica tions, power transmission, airport management, 
natural resources, water and sewage services, mapping, lotteries and port management and operations. 
4.71.  In the business services sector, Ni caragua has made broader commitments under 
the Agreement. Even though the commitments on professional services under the Agreement are 
subject to a broad reservation (national treatment,  MFN treatment and local presence), this only 
concerns cross-border trade. Informatics serv ices commitments and research and development 
services (under mode 2) are not bound under the GATS. Under the Agreement, these two 
subsectors and real estate services, leasing or rental services without operators have been  largely 
liberalized. In other business services, the GATS  commitments are partial both as regards scope 
and modes of supply (modes 2 and 4 are not boun d). Under the Agreement, the commitments are 
much broader, although there are limitations which do not appear in the GATS, namely, nationality restrictions for services relating to agriculture, hunting and forestry; licence and nationality requirements for fishing; concession requirements and a requirement to appoint a permanent legal 
representative for mining; and State monopoly of power distribution services. 
4.72.  In the area of communications services, Nicaragua has no commitments for postal and 
courrier services in the GATS or in the Agreem ent. As to telecommunications services, there are 
full commitments on basic telecommunications and value added in the GATS, but they are confined 
to cellular telephony for telephone services. Nicaragua has a local presence reservation in the WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
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  Agreement for cross-border trade and a requiremen t to obtain a licence from the governing body 
(TELCOR), although liberalization appears to be broader because it also covers fixed telephony.  
4.73.  The commitments in audio-visual services  in the GATS and in the Agreement are partial 
but the sectoral scope in the Agreement is broader. Nicaragua has, however, made a future 
reservation (MFN treatment) regarding television and "direct-to-home (DTH)" auto-digital 
and "direct broadcast satellite" (DBS) services. 
4.74.  With regard to construction services and related engineering services, on which there are no 
commitments under the GATS, these have been almost fully liberalized under the Agreement, 
except for one reservation (national treatment, local presence) in connection with cross-border 
trade, for which Nicaragua reserves the right to adopt or maintain measures concerning construction services provided by foreign legal persons or entities in the form of licensing 
requirements, registration and/or any other form  of local presence and financial guarantees. 
Furthermore, Nicaragua imposes conditions for laying submarine cables in territorial waters. 
4.75.  In distribution services, for which there are no GATS commitments, is liberalized under the 
Agreement, with the exception of a local presence  requirement on the distribution of fireworks, 
firearms and ammunition and another concerning explosive or inflammable toxic chemical substances, and a cross border reservation on trade intermediaries. 
4.76.  Regarding education services, for which there are no GATS commitments either, Nicaragua 
has made a broad future reservation (national treatment, MFN treatment and local presence) 
under the Agreement, but only for cross-border trade in services; persons providing education services in educational establishments, including teachers and low-level auxiliary staff, 
elementary, nursery school, special, secondary, higher, professional, technical and university 
personnel, including directors. This reservation does not apply to the supply of training services in another language, company training, industrial and business training and improving skills and 
educational consultancy services. 
4.77.  In environment-related services, although Nicaragua has a State monopoly on sewage 
services, there are no reservations in the other subsectors. In the case of social services, there is a 
future broad reservation (national treatment, MFN treatment, local presence, performance 
requirements, senior managers and boards of directors) in connection with investment and cross-border trade in services for unemployment insurance services, social insurance and security, social welfare, public education, public traini ng, health and child care, inasmuch as they are 
services maintained for reasons of public interest, but there are no reservations in the other 
subsectors. There is an important reservation in recreational, cultural and sports services (investment, cross-border trade) covering many, bu t not all, live event services activities. In the 
subsector of sports services and other recreational services, the State has a monopoly on lotteries 
and games of chance. On the other hand, there are no restrictions in sector 12 (other services). Nicaragua has no GATS commitments in these four sectors compared to the broad liberalization 
commitments under the Agreement. 
4.78.  Regarding financial services, Nicaragua does not authorize cross-border trade in modes 1 
and 2 for insurance and insurance-related services, neither under the GATS nor the Agreement, but has improved commitments in the Agreement by  authorizing the contracting of insurance for 
the transport of exports or imports from or to Nicaragua or insurance against damages caused by 
accidents that may occur outside the country, and in cases where it can be proved that it is not possible to take out the insurance in Nicaragua. There is a reservation in the Agreement on 
brokers and agencies (national treatment) for mode  3, the exclusion of reinsurance intermediation 
and a nationality requirement that do not appear in the GATS so the commitments are less broad in this subsector. Nicaragua's commitments in the banking and other financial services subsector 
are generally broader. Under the Agreement, security or bonds can be issued to international 
banks or insurers for government procurement subject to certain conditions. Nicaragua has, however, introduced a reservation (national treatment) that does not appear in the GATS concerning branches of banks and non-banking financial institutions, which may only work on the 
basis of capital situated in Nicaragua. 
4.79.  Nicaragua has made full commitments under the GATS in the tourism and travel-related 
services sector as regards hotels and restaurants (subsector A) and tourist guide services WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 53 - 
 
  (subsector C), but partial commitments in respect of travel agency services and the organization 
of group travel (subsector B) as these have not been bound. Under the Agreement, Nicaragua made a reservation in mode 3 (national treatment, local presence, performance requirements) that does not appear in the GATS. Under the Agreem ent, in order to provide tourism services, a 
company must be set up in accordance with Nicaraguan legislation and a foreign national must 
reside, or appoint a legal representative, in Nicaragua, conditions which are not in its GATS commitments on tourism services. Additionally, there is a nationality requirement for tourist guide 
services which does not appear in the GATS either.  
4.80.  Nicaragua has made full commitments in transport services for rail transport both in 
the GATS and in the Agreement, but partial, albeit similar, commitments in air transport. As for maritime transport, for which there are no co mmitments in the GATS, although Nicaragua has 
reservations (national treatment, local presence) with regard to cross-border trade in passenger 
and freight transport, the commitments are fuller under the Agreement. In order to act as a ship-owner or shipping company and to obtain a concession for a route to engage in maritime 
transport, a natural person must be a Nicaraguan national and a company must be set up in 
accordance with Nicaraguan legislation. Only Nicaraguan nationals can be appointed as official pilots in any Nicaraguan port. Nicaragua also reserves the right to adopt or maintain measures 
(national treatment, senior management and boards of directors) for investment in the 
construction, management and administration of the proposed canal. The management of the existing ports of national interest is reserved for the National Ports Company (ENAP). With regard 
to road transport, for which there are no commitments in the GATS either, Nicaragua has a broad 
reservation (national treatment, MFN treatment, local presence, performance requirements, senior 
managers and boards of directors) on investment and cross-border trade. For auxiliary services for 
all means of transport, there are two reservations , one (national treatment, MFN treatment, local 
presence) on customs agents and another (national treatment, local presence) on shipping agents, 
general shipping agents, and ship brokers. 
4.4.4  Guatemala 
4.81.  Under Annex I, Guatemala lists 16 reservations for existing measures of which 4 are 
horizontal; in Annex VI it lists 5 existing reservations in Section A, 3 possible future reservations in Section B and one specific commitment in Section C, for financial services. Additionally, in Annex II it lists 6 future reservations of which 2 are horizontal. Annex III contains one sectoral activity 
reserved for the State and Annex IV contains one exception from MFN treatment in matters 
relating to aviation, fishing and maritime services, including salvage.  
4.4.4.1  Horizontal commitments 
4.82.  Guatemala's horizontal commitments under  the GATS refer to the presence of natural 
persons to which limitations on market access and national treatment are applied. They also refer 
to MFN exemptions for preferences granted under other agreements.
64 Under the Agreement, 
horizontal limitations refer to national treatment. Only Guatemalans by birth or enterprises that 
are either 100% or majority owned by Guatemalans may i) be granted titles to rent or use state-
owned land in the Department of El Petén under ce rtain conditions; ii) take adverse possession of 
real estate, and 3; iii) own or possess property  located within 15 kilometres of the borders. 
Foreign nationals require authorisation to own certain specific State-owned land. Only the 
                                               
64 1. Agreements signed by Guatemala under the framework of Central American integration, including: 
Multilateral treaty of free trade an economic integrat ion; Central American Convention on equalization of 
import duties; Treaty of economic Association; and Gene ral Treaty of Economic Integration. Signatories: Costa 
Rica, El Salvador, Honduras, Nicaragua. 
2. The Central American Exemption clause does no t allow the extension to third countries of the 
bilateral or multilateral concessions made among the Central American countries themselves. Signatories Costa Rica, El Salvador, Honduras, Nicaragua. 
3. Convention on investment Guaranties with the United States of America (Decree No. 1545 of 
22 August 1962). Government Decision (Acuerdo) 693-86, on  rules for the implementation of the United States 
investments guarantee convention concluded between the Government of the United States and Guatemala. 
4. Agreement on Trade and Investment between Central American countries and Colombia and 
Venezuela, concluded on 12 February 1993. Signatories: Colombia, Costa Rica, El Salvador, Honduras, 
Nicaragua and Venezuela. 
5. Tuxtla Gutiérrez Agreements concluded on 11 January 1991. Signatories: Costa Rica, El Salvador, 
Honduras, Mexico, Nicaragua. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 54 - 
 
  Government may rent State-owned land to enterprises established under Guatemalan law. To be 
established in Guatemala, enterprises established under a foreign law must allocate a certain amount of capital for local operations and execute a guarantee. There are also two future horizontal reservations (national treatment, MFN, local presence, performance requirements, 
senior management and board of directors) for investment and CBTS in connection with minorities 
and indigenous populations.  
4.4.4.2  Sector-specific commitments 
4.83.  Table 4.4 compares the level of liberalization by sector under the Agreement with 
Guatemala's Schedule annexed to the GATS. It indicates whether the sectoral commitments made under the Agreement in respect of a particular subsector (except those indicated in the Agreement's horizontal reservations) are better or the same as those under the GATS. 
Table 4.4 Guatemala: Liberalization by specif ic sector under the Agreement, excluding 
mode 4 
Sector (CPC classification) GATS  FTA 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments under 
the FTA (except for 
those indicated in 
the horizontal 
reservations in the 
FTA), in comparison 
with those in the 
GATS Provisions specifying 
reservations by 
specific sector  
1. Business services partial Improved Annex I, II 
A.  Professional services  -- Improved I-GT-6,7,8,9 
B. Informatics and related services  Partial  Full  
C. Research and development services  -- Full  
D. Real estate services  -- Full  
E. Leasing or rental se rvices without operators  --  
Full  
F. Other business services  --  Improved I-GT-5; II-GT-5,6 
2. Communications services partial Improved Annex III 
A. Postal services  -- Improved III-GT-1 
B. Courier services  -- Full  
C. Telecommunications services  partial  Full  
D. Audiovisual services  -- Full  
E. Other  -- Full  
3. Construction services and related 
engineering services  --  
Improved  
Annex II 
A. General construction services of buildings -- Improved II-GT-3 
B. General construction services of civil 
engineering works --  
Improved  
II-GT-3 
C. Assembly and erection of prefabricated 
constructions  --  
Improved  
II-GT-3 
D. Building completion and finishing services -- Improved II-GT-3 
E. Other -- Improved II-GT-3 
4. Distribution services -- Improved  
A. Commission agents' services  -- Full  
B. Wholesale trade services  -- Full  
C. Retail trade services  -- Full  
D. Franchising services  -- Full  
E. Other --  Full  
5. Education services -- Improved  
A. Primary education services  -- Full  
B. Secondary education services  -- Full  
C. Higher education services  -- Full  
D. Adult education services  -- Full  
E. Other education services --  Full  
6. Environment-related services  -- Improved  
A. Sewage services -- Full  
B. Waste disposal services -- Full  
C. Sanitation and similar services  -- Full  
D. Other -- Full  WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
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  Sector (CPC classification) GATS  FTA 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments under 
the FTA (except for 
those indicated in 
the horizontal 
reservations in the 
FTA), in comparison 
with those in the 
GATS Provisions specifying 
reservations by 
specific sector  
7. Financial services pa rtial Improved Annex VI 
A. All insurance and insurance-related services  
Partial  
Improved  
VI-A-GT-4; VI-C-GT-8 
B. Banking and other financial servic es Partial Improved VI-A-GT-1,2,3 
VI-B-GT-5,6,7 
C. Other -- Improved VI-GT-5 
8. Social and health services  -- Improved Annex II 
A. Hospital services  -- Full  
B. Other human health services -- Full  
C. Social services -- Improved II-GT-2 
D. Other --   
9. Tourism and travel-related services partial Improved Annex I 
A. Hotels and restaurants (including contract 
food services) Partial Full  
B. Travel agency services and organization of 
group travel -- Full  
C. Tourist guide services -- Improved I-GT-12 
D. Other Partial Full  
10. Recreational, cultural and sports 
services  
--  
Improved  
Annex I 
A. Entertainment services -- Improved I-GT-11 
B. News agency services -- Full  
C. Library, archive, mu seum and other cultural 
services  
--  
Full  
D. Sports and other recreational services -- Full  
E. Other -- Full  
11. Transport services partial Improved Annex I 
A. Maritime transport services  -- Improved Annex 22.03 (g) 
B. Inland navigable waterway services  -- Full  
C. Air transport services  partial  Improved I-GT-13,14,15 
D. Space transport  -- Full  
E. Rail transport services  -- Full  
F. Road transport services  -- Improved I-GT-16 
G. Pipeline services  -- Full  
H. Auxiliary services for all modes of transport  --  
Improved  
I-GT-10 
I. Other transport services -- Full  
12. Other services not included elsewhere  
--  
Full  
 
Note: The table shows the commitments undertaken under the GATS and the FTA frameworks. It does not 
take into account the horizontal commitments/reserv ations. In view of the horizontal nature of the 
commitments in mode 4, only modes 1, 2 and 3 are taken into account. "Improved" means 
c o m m i t m e n t s  t h at  g o  b e y o n d  t h o s e  i n  t h e  G A T S  as regards market access or national treatment 
in any of these three modes. "Similar" means commitments that  do not go beyond the GATS, 
but possibly with limited improv ements and/or limited additional reservations. "Partial" means 
commitments under the GATS that are subject to lim itations in specific sectors with regard to 
market access or national treatment in any of the three modes. --: there are no commitments.  
 Source: Schedule of Specific Commitments (GATS/SC/36) supplemented by documents 
GATS/SC/36/Suppl.1/Rev.1 and GATS/EL/36 and relevant se ctions in Annexes I, II, III and V and VI to the 
Agreement. 
 
4.84.  In business services Guatemala makes commitm ents in professional services as well as in 
research and development, real estate and rental/rental leasing services without operators for which there are no GATS commitments. It also enlarges its commitments in computer and related services which are partially covered in the GATS. In professional services there are reservations 
concerning notaries, which must be Guatemalan by birth and domiciled in Guatemala. There are WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 56 - 
 
  also reservations for the supply of professional services requiring a recognized university degree, 
certificate or diploma or for the practice of a liberal profession in Guatemala, which is limited those certified in the universities of Guatemala, legally established or incorporated to the University of San Carlos, and those covered by international treati es accepted by Guatemala as long as there is 
reciprocity. There is also provision for regional preference, as long as the person conserves the 
nationality of one of the signatory Parties.
65 All other business services save three subsectors 
(services incidental to fishing, forestry, manufactu ring, which are subject to reservations), are fully 
liberalized where there are no GATS commitments. 
4.85.  In communication services, only postal  services (epistolary mail) are subject to a 
reservation in Annex III on economic activities reserved for the State. As for basic telecommunication services, there are commitments under the GATS, with one market access 
restriction concerning routing and an MFN exemption.
66 Under the Agreement all 
telecommunication services are liberalized. 
4.86.  Under the Agreement, construction and rela ted engineering services, in which there are no 
commitments under the GATS, are liberalized with a future reservation (national and MFN 
treatment and local presence) concerning investment and CBTS. 
4.87.  Distribution, educational, environmental an d health-related services, for which there are no 
commitments under the GATS, are fully liberalized, except for the horizontal reservations 
applicable to all sectors and a future reservation fo r social services for reasons of public purpose. 
4.88.  In the case of insurance, under the GATS Guatemala has commitments for reinsurance 
services only and mode three is not bound. Under the Agreement, Guatemala has made 
commitments in all insurance and insurance related services, although foreign insurance 
companies can only establish as juridical persons in conformity with Guatemalan legislation and not as branches or agencies. The latter forms of es tablishment will be authorized four years after 
entry into force of the Agreement. With regard to  banking and other financial services Guatemala's 
GATS commitments are limited to the supply, transf er and processing of financial information and 
financial advisory services. Under the Agreement, Guatemala has made commitments in banking 
services in general allowing foreign banks to establish only through branches and representative 
offices. There are also other reservations (national treatment and senior management and board of directors) requiring one or more board member s of foreign banks branches to be domiciled in 
the country; and (CBTS) requiring private financial institutions that are banking institutions and 
act as specialized financial intermediaries in investment banking operations to be public limited 
companies. Guatemala has however reserved its righ t to maintain or take any measure (right of 
establishment, CBTS, national and MFN treatment, new financial services and SMBD) concerning 
foreign financial institutions wishing to operate otherwise than as banks or insurers and to give 
certain guarantees and advantages to State financial institutions. Finally, Guatemala reserves its right to take measures (national and MFN treatment and SMBD) based on reciprocity concerning 
the legal representative of banking or reinsurance institutions' nationality.  
4.89.  In tourism and travel-related services for which there are partial commitments under the 
GATS, liberalization has been broadened but with one existing reservation for tour guides who must be Guatemalan by birth or foreign nationals that are residents in Guatemala. 
4.90.  Recreational cultural and sporting services, for which there are no commitments under the 
GATS, have been liberalized with a limitation for the performing arts which require: (i) prior authorization; (ii) consent from artists unions; (iii) preference to Guatemalans if circumstances 
allow. 
4.91.  In transport services where under th e GATS there are partial commitments for one 
subsector, liberalization has been broadened. Ma ritime transport services are governed by the 
Maritime Transport Agreement (Annex 22.03 (g)). In ternal waterways transport, space transport, 
rail transport services and pipeline transport are fully liberalized. For air transport services there are two full and one partial commitment under th e GATS concerning the three subsectors covered 
by the Agreement. There are two CBTS reservatio ns (one concerning national treatment and the 
                                               
65 Agreement on the Practice of Graduate Professions and Recognition of Graduate Studies, 1962. 
Signatories: Guatemala, El Salv ador, Honduras and Costa Rica. 
66 Cláusula centroamericana. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 57 - 
 
  other MFN) for specialty air services and a CBTS and investment reservation (national treatment, 
senior management and board of directors and lo cal presence) for air transportation services 
exploited exclusively in Guatemala. Passenger and cargo road transport services, for which there are no GATS commitments, are liberalized with exceptions concerning vehicles with foreign plates 
except for the parties of the "Tratado General de Integración Económica Centroamericana.
67 
4.5  Regulatory provisions  4.5.1  Domestic regulation 
4.92.  Article 11.06 (Granting of permits, authorizations, licences or certificates) closely follows 
paragraph 4 of Article VI of the GATS, but as a best endeavour clause. 
4.93.  Under this Article, for a measure adopted or maintained by a Party not to constitute an 
unnecessary barrier to cross-border trade, the Part ies must endeavour to guarantee that it: (i) is 
based on objective and transparent criteria, such as competence and the ability to supply the 
service concerned; (ii) is not more burdensome th an necessary to ensure the quality of the service 
in question; and (iii) does not constitute a concealed restriction on the cross-border supply of the 
service. 
4.94.  In Annex VI (A-PA-7), Panama states th at only insurance companies and banks that are 
registered and whose financial stability is recognized by the Superintendency of Insurance  and 
Reinsurance  and the Superintendency of Banks  may offer insured bonds or bank guarantees, 
respectively, for government procurement.  
4.5.2  Recognition 4.95.  Annex 11.13 establishes the arrangements for recognizing higher education diplomas. 
4.96.  If a Party recognizes, unilaterally or by agreement with another country, diplomas obtained 
in the territory of the other Party or a non-party, nothing in Article 11.04 will be interpreted as requiring the Party to recognize the diplomas obtained in that other Party or non-party. 
However, it will give the other Party the opportunity to demonstrate that its diplomas can also be 
recognized or to negotiate an arrangement or an agreement with equivalent effect. 
4.97.  The Parties agree that: (i) the mutual recognition processes will be based on rules and 
criteria that simultaneously protect consumers and the public interest; (ii) they will encourage the 
relevant bodies to draw up these criteria (education, examinations, academic curricula) and rules; and (iii) they will provide the detailed information necessary for recognition, including legislation, administrative guidelines, measures of general application and those drawn up by governmental 
and non-governmental institutions.  
4.98.  In the case of financial services, a Party may recognize the prudential measures of the other 
Party or of a non-party. This recognition may be: (i) granted unilaterally; (ii) through 
harmonization or other means; (iii) the result of an agreement or arrangement with the other 
Party or the non-party. The Party that grants the recognition will offer appropriate opportunity for it to be demonstrated that there are or will be equivalent regulations, supervision and 
implementation of the regulations and procedures for sharing information and, if so, will offer 
sufficient opportunity to negotiate an arrangement or agreement (Article 12.08). 
4.5.3  Subsidies 4.99.  Article 11.02 on the scope of Chapter 11 on cross-border trade in services does not apply to 
subsidies or donations granted by a Party or a State-owned enterprise, including government-
backed loans, guarantees and insurance. 
                                               
67 Costa Rica, El Salvador, Honduras, Guatemala an d Nicaragua. The mechanism for reciprocal and 
non-discriminatory treatment for international cargo by road (Protocolo de Tegucigalpa) includes Panama in 
relation to transit. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
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  4.5.4  Safeguards 
4.100.  Under Article 10.10.4, a Party may prevent a transfer by means of the fair and 
non-discriminatory application of its legislation on: (i) bankruptcy, insolvency, or protection of creditors' rights; (ii) final administrative or judicial decisions; (iii) non-compliance with the 
obligation to report transfers of currencies or other monetary instruments; (iv) guaranteeing the 
enforcement of judgments and arbitration awards resulting from judicial proceedings; or (v) the 
issuing, marketing and trading of securities. 
4.101.  Under Article 21.04, no provision is to be interpreted as preventing measures that restrict 
transfers when a Party faces serious difficulties or threats in relation to its balance of payments. As soon as possible after the adoption of restrictions under this Article, the Party will submit the restrictions to the International Monetary Fund under the established procedure.
68 
4.5.5  Other provisions 
4.102.  The Parties will establish procedures for notifying amendments and quantitative 
restrictions and their inclusion in the relevant schedules, as well as for holding consultations on 
reservations and quantitative restrictions for the purpose of greater liberalization (Article 11.12). 
No provision in this Chapter may be interpreted as imposing the obligation to provide confidential information whose disclosure might constitute an obstacle to enforcement of the laws, be contrary 
to the public interest or harm the legitimate commercial interests of public or private-sector 
enterprises (Article 11.14). 
4.6  Sector-Specific Provisions in Services 4.6.1  Financial services  
4.103.  Chapter 12 deals with financial services.
69 It applies to the measures adopted or 
maintained by a Party relating to: (i) financial institutions of the other Party; (ii) investors of a Party and their investments in financial institutions in the territory of the other Party; and (iii) 
cross-border trade in financial services.  
4.104.  No provision of the Chapter is to be read as preventing a Party or its public entities from 
carrying out or providing exclusively on its territor y: (i) the activities of the monetary authorities 
or another public authority with a view to impl ementing monetary or exchange rate policies; 
(ii) activities and services within the context of public pension plans or compulsory social security systems; and (iii) other services and activities on behalf of the Party, with its guarantee, or which 
use the financial resources of that Party or its public entities. The provisions in the Chapter take 
precedence over those in other chapters, except where express reference is made to those 
Chapters (Article 12.02). Moreover, the Parties will do everything possible to ensure that 
self-regulating bodies comply with the provisions of Chapter 12. 
4.105.  In Article 12.05 it is stipulated that no Pa rty shall increase the degree of non-conformity of 
its measures on cross-border trade in financial services after the entry into force of the Agreement, except as provided in Section B of the Schedule in Annex VI. Each Party shall permit 
persons established in its territory and its nationals, wherever they may be, to purchase financial 
services from service providers of the other Party established in the territory of that other Party. 
This does not oblige a Party to allow these service providers to do business or advertise in its territory. The Parties may define what is meant by "advertise" and "do business". 
Without prejudice to other means of prudential regulation, the Party may require registration of 
the other Party's cross-border service providers and financial instruments. 
                                               
68 This procedure involves the submission of the restrictive measure to the Fund for review, the 
initiation of consultations with the Fund and the adop tion of economic policies in accordance with these 
consultations. 
69 A financial service is a service of a financial nature, including banking, insurance, reinsurance and any 
service related or auxiliary to a se rvice of a financial nature. However,  a loan granted by a cross-border 
financial services provider or a debt security owned by such a provider, other than a loan granted to or debt 
security issued by a financial institution, shall be  considered to be an in vestment (Chapter 12.01). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 59 - 
 
  4.106.  No provision of the Chapter is to be inte rpreted as being an obstacle to the adoption or 
maintenance of prudential measures, such as: (i) protecting fund managers, investors, depositors, 
financial system participants, policy holders or beneficiaries, holders of fiduciary bonds; (ii) maintaining the safety, soundness, integrity or financial responsibility of financial institutions or 
providers of cross-border financial services; and (iii) ensuring the integrity and stability of the 
financial system (Article 12.09). 
4.107.  Each Party will ensure that the measures it adopts for financial services are officially 
published or made known in good time to those at whom they are aimed (Article 12.10). The 
regulatory authorities will make available to the interested parties all necessary information concerning the requirements for completing and submitting an application for the provision of financial services and will furnish information about the status of the application. Decisions 
concerning an application are to be issued by the regulatory authority within 120 days and, if that 
is not possible, may be extended up to 60 additional days. 
4.108.  Chapter 12 also contains rules on new financial services and data processing 
(Article 12.13). Article 10.11 (expropriation and compensation) of Chapter 10 (investment) forms 
an integral part of Chapter 12 (Article 12.02.4). 
4.109.  The Parties establish a Financial Services Committee whose composition is indicated in 
Annex 12.11.
70 Its functions are to: (i) supervise the application of the Chapter; (ii) consider 
services questions submitted by the Parties; (iii)  participate in dispute settlement proceedings; 
and (iv) facilitate the exchange of information between the supervisory authorities and cooperate 
in advising on prudential regulation.71 
4.110.  Disputes arising under the financial services chapter are governed by Chapter 20 
(dispute settlement). However on the composition of the arbitral group, the arbitrators shall possess specialized knowledge or experience in financial matters and shall comply with the 
conditions in Chapter 20. For controversies affecting only financial services, the complaining Party 
may suspend benefits only in that sector. In the case of disputes between an investor in financial services of a Party and a Party (Article 12.19), Se ction B of Chapter 10 (investment) will apply. A 
consultation procedure is also defined (Article 12.12). 
4.6.2  Telecommunications 4.111.  Subject to the provisions of Annex 13.02.1
72, Chapter 13 on telecommunications applies to 
measures adopted or maintained by a Party concerning: (i) the use of public telecommunications 
networks or services by persons of the other Pa rty, including pricing and access and use if these 
persons operate private networks for internal company communications purposes; (ii) the provision of enhanced services by persons of the other Party in the territory of the Party or 
across its borders; and (iii) standardization with respect to the connection of terminal or other 
equipment to the public telecommunications networks. It does not apply to provisions on broadcasting or distribution by cable of radio or  television programmes, unless the purpose is to 
guarantee access to public telecommunications services for persons operating broadcasting 
stations or cable systems (Article 13.03). 
4.112.  Each Party will guarantee that persons of the other Party can access and use any public 
telecommunications network or service offered in its territory or on a cross-border basis, including 
private leased circuits, on reasonable and non-discriminatory terms, for conducting its business 
                                               
70 In the case of Honduras, the Secretariat of St ate for Industry and Trade, the Central Bank of 
Honduras and the National Banking and Insurance Commis sion. In the case of Nicaragua, the Ministry of 
Development, Industry and Trade, the Central Bank of Nicaragua, the Superintendency of Banks and Other 
Financial Institutions. In the case of Guatemala, the Mi nistry of the Economy, the Bank of Guatemala and the 
Superintendency of Banks. In the case of Panama, the Ministry of Trade and Indu stries through the Deputy 
Minister of Foreign Trade, or his successor, in co nsultation with the corresponding competent authority 
(Superintendency of Banks, Superintendency of In surance and Reinsurance an d National Securities 
Commission). 
71 See also Section 5.6 (I nstitutional framework). 
72 In the case of Panama, it is understood that priv ate networks used for the private communications of 
an enterprise may not be connected to the public telecommunications networks, may not be used for providing 
telecommunications services, even free of charge, to third persons which are not subsidiaries, branches or 
affiliates of the enterprise or ow ned by it or under its control. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 60 - 
 
  (Article 13.04). Each Party will guarantee that persons of the other Party are permitted to: (i) buy 
or lease and connect terminal or other equipment that interfaces with the public network; (ii) interconnect leased or self-owned private circuits with the public networks in the territory of the other Party or across its borders, on conditions mutually accepted by those persons, in 
conformity with the provisions of Annex 13.04; (iii)  carry out switching, signalling and processing 
functions; and (iv) use the operating protocols of their choice in conformity with the technical plans of each Party. The prices of public tele communications services will reflect their direct 
economic costs. This is not to be interpreted as preventing cross subsidies between public 
services. The Parties will ensure that persons of the other Party may use the public networks and services to transmit information to its territory and to access the information contained in databases. Each Party will ensure that no unnecessary conditions are imposed in connection with 
capacity and the protection of the technical integrity of the public services. 
4.113.  With regard to enhanced services (Article 13.05), the processing of licences for the 
provision of these services must be transparent, non-discriminatory and flexible, and the 
information required must be adapted to that established in the legislation in force in the Party. 
The Party will not require that: (i) the service be provided to the public in general; (ii) the tariffs be justified in conformity with the costs; (iii) a tariff or price be registered
73; (iv) its networks be 
interconnected with one customer in particular; or (v) compliance with some specific technical 
standard for an individual interconnection.  
4.114.  In accordance with Article 13.06, standardization measures relating to connection will be 
adopted only to prevent technical damage an d electromagnetic interference, prevent the 
malfunctioning of the pricing, payment and invo icing equipment, guarantee user security and 
ensure the efficient use of the radiofrequency spectrum. However, each Party may require approval for connection to the public network. Conformity assessment procedures must be 
transparent and non-discriminatory and must permit any technically qualified entity to carry out 
the assessment. Whenever conditions allow, each Party will endeavour to adopt, as part of its assessment procedures, provisions for accepting the results of tests carried out by laboratories or 
facilities in the territory of the other Party. 
4.115.  If a Party maintains or designates a mono poly or there is a main provider or dominant 
operator for providing public telecommunications networks and services, the Party will endeavour 
to take measures to prevent it from using its dominant position to engage in anti-competitive 
practices (cross subsidies, predatory behaviour and discrimination in network access) 
(Article 13.07). 
4.116.  Where transparency is concerned, each Party will make available to the public its measures 
relating to access to public telecommunications networks and services
74 (Article 13.08). In the 
event of incompatibility between the provisions of Chapter 13 and those of another chapter, the 
provisions of Chapter 13 will take precedence . The Parties also recognize the importance of 
international compatibility and interoperability standards and undertake to promote them in the 
competent international bodies (Article 13.10).75 Article 13.11 deals with the exchange of 
information and consultations for the purpose of  determining the possibility of even greater 
liberalization of the trade in telecommunications services, including public services. 
4.6.3  International land freight transport 
4.117.  Annex 11.16 establishes a non-discriminatory mechanism for international land freight 
transport between the Parties. It guarantees full freedom of transit76 through the territory of the 
Parties for land freight transport from the territory of one Party to the territory of any other Party.  
                                               
73 Except to correct anti-competitive practices or when the service provider is a monopoly or main 
supplier. 
74 Namely, tariffs and prices, interface specifications, the bodies responsible for drafting standards, 
connection conditions and notification , permit registration, certificate, licence or concession requirements. 
75 The International Telecommunication Union, the International Organization for Standardization and 
the Inter-American Telecommunication Commission. 
76 Freedom of transit entails a guarantee of free compet ition in the hiring of transport and free access to 
the whole of the national territory, includin g export processing zones and free zones. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 61 - 
 
  4.118.  The Annex applies to: (i) local motor vehicle freight transport or cabotage; (ii) local and 
international rail freight and passenger transport; and (iii) local and international passenger transport. The Agreement incorporates the "Regulations on International Customs Transit, Declaration Form and Instructions"
77 and its amendments, together with any other equivalent 
successor provisions.  
4.119.  The Parties undertake not to collect duties, taxes or payments for land freight transport 
services other than those in Appendix 11.16 (6).78 Article 11.06 (commercial presence) also 
applies to this sector. 
4.120.  The Parties undertake to establish, two year s after the entry into force of the Agreement, a 
work programme aimed at achieving greater coverage in the land transport sector.  
4.6.4  Maritime Transport Agreem ent between Guatemala and Panama 
4.121.  The Maritime Transport Agreement between Guatemala and Panama (MTA) (Annex 22.03 
(g)) applies to measures adopted or maintained by a Party in maritime transport services and auxiliary maritime industries.
79 In the event of incompatibility between the MTA and other 
agreements concluded between the Parties, th e former will apply to the extent of the 
incompatibility. 
4.122.  Under the MTA, the Parties agree to: (i) encourage their vessels to participate in maritime 
transport between their ports and not to prevent vessels flying other flags, to participate in 
maritime transport between their ports and ports of third parties under their respective rules and; (ii) and to cooperate to eliminate obstacles which might impede the development of maritime trade between their ports and interfere with acti vities connected with that trade (Article 5). 
Shipping companies from third parties or vessels flying their flags may participate, on the basis of 
reciprocity, in the transport of goods in the fr amework of bilateral trade between the Parties. 
Furthermore, the Parties endeavour to implement the relevant international instruments 
concerning safety of vessels, protection of th e marine environment and the living and working 
conditions of seamen (Article 5.2 and 3). The shi pping companies operating in the territories of the 
Parties shall be entitled to establish functionin g representation (Article 8). The Parties shall 
facilitate and expedite customs, health and other administrative formalities applicable in their ports 
and facilitate the use of available port reception facilities. However, the Agreement does not and will not affect each Party's legal provisions referring to existing or future obligations under international agreements, laws and regulations (Article 9). 
4.123.  The MTA also contains provisions on the recognition of vessels (Article 10) and crew 
members' documents (Article 11), the disembarkment of crew members (Article 12) and cooperation and exchange of information (Article 19). Article 13 concerns migration permits which 
inter alia allow crew members of a Party the right to enter or transit the territory of the other 
Party, to reach their vessel, with the consent of the relevant authorities of that other Party. No visa will be required. Furthermore, there are sp ecial provisions for when crew members disembark 
for reasons of health, or other valid reasons and in cases where crew members are not nationals of 
one of the Parties. Notwithstanding articles 11, 12  y 13 the applicable laws and regulations of the 
Parties concerning entry, stay and termination of stay of crew from third parties remain in force and do not restrict the right of either Party to refuse entry for a crew member they consider 
undesirable (Article 14). Under Article 17, the Parties will grant temporary entry free of any duty, 
charge or contribution to the equipment and machinery of auxiliary maritime industries for repair, provisioning, commercial diving, inspection, cleaning and other services.  
4.124.  Disputes on the implementation or interpretation of the Maritime Transport Agreement will 
be governed by the provisions of Article 20 (Dis pute Settlement) of the Agreement. However on 
the composition of an arbitral group, the ar bitrators must possess specialized knowledge or 
                                               
77 Adopted by Resolution No. 65-2001 (COMRIEDRE) of the Council of Ministers responsible for 
Economic Integration and Regional Development. 
78 The Parties undertake to collect duties, taxes or payments for land freight transport services that are 
in conformity with Articles 11.03 (national treatment) and 11.04 (MFN). 
79 Auxiliary maritime industry, vessels, ports and crew  members of a Party, are defined respectively in 
Article 1 of the Maritime transport Agreement. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 62 - 
 
  experience in maritime transport services and shall comply with the conditions stated in 
Article 20.10). 
4.125.  Finally a Committee80 on Maritime Transport is established which will be in charge of all 
matters included in the MTA. 
5  GENERAL PROVISIONS OF THE AGREEMENT 
5.1  Transparency 5.1.  In addition to the provisions on transpar ency contained in the various chapters, Chapter 18 
takes a more general approach to the subject. Each Party will designate an information centre for 
facilitating communication between the Parties on any topic covered by the Agreement (Article 18.02).
81 Each Party will ensure that its laws, regulations, procedures and administrative 
rulings of general application are published pr omptly or otherwise made available so that 
interested persons and the other Party may become acquainted with them (Article 18.04). 
5.2.  All the administrative procedures by means of which these measures are applied will 
guarantee that, wherever possible, the persons of the other Party directly affected by a procedure 
receive reasonable notice - in conformity with domestic provisions - of its initiation, including 
information on its nature, the authority legally responsible for initiating it and a description of all controversial issues. Moreover, each Party will ensure that, if time, the nature of the procedure, 
and the public interest permit, these persons are afforded a reasonable opportunity to present 
facts and arguments in support of their positions before any final administrative action is taken, and that its procedures are in conformity with the national legislation (Article 18.06). 
5.3.  The Parties will maintain judicial or admi nistrative procedures for the prompt review and - 
where justified - correction of the definitive ad ministrative actions covered by the Agreement. 
These tribunals will be independent of the office or authority responsible for the administrative application of the law and will have no substantial interest in the outcome of the matter. 
Moreover, the Parties to the procedure will be gu aranteed a reasonable opportunity to support and 
defend their positions and the decision adopted will be based on the evidence and arguments 
submitted to the administrative authority. Finally, each Party will ensure, subject to the 
subsequent appeal or review procedure for whic h its national legislation provides, that these 
decisions are implemented by the competent authority (Article 18.07).  
5.2  Current payments and capital movements 5.4.  Articles 10.10 and 12.17 require the Parties to permit all transfers related with a covered 
investment to be made without delay, in a freely convertible currency and at the exchange rate in 
effect in the market on the transfer date.
82 However, these transfers may be prevented by the 
equitable and non-discriminatory application of the relevant laws.83 The restrictions applied to 
transfers must be compatible with the IMF's Articles of Agreement and may not take the form of 
tariff surcharges, quotas, licences or similar measures (Article 21.04.5). 
5.5.  A Party may prevent transfers by a financial institution or a provider of cross-border financial 
services or for the benefit of a subsidiary or person related thereto by applying measures 
                                               
80 The competent authorities will be: for Guatemala, the Ministry of Communications, Infrastructure and 
Housing and, for Panama, the Maritime Authority of Panama (Article 4). 
81 The Information Centres are: for Honduras, the Economic Integration and Trade Policy Division of the 
Secretariat of State for Industry and Commerce; for Guatemala, the Foreign Trade Division of the Ministry of 
Economy; for Nicaragua, the Foreign Trade Division of the Ministry of Development, Industry and Trade; and 
for Panama, the Administration of International Trade Ag reements and Trade Defense Division of the Ministry 
of Trade and Industry. 
82 These transfers include: profits, dividends, interest, capital gains, royalty payments, administrative, 
technical assistance and other charges, gains in kind and other sums derived from investment; payments made for expropriation and compensati on; and payments resulting from the settlement of disputes. 
83 In cases of bankruptcy, insolvency or protection of  the rights of creditors; final administrative or 
judicial decisions; non-fulfilment of the obligation to report transfers of currency and other monetary 
instruments; guarantees of the enforcement of judgment s and arbitration awards made in judicial proceedings; 
or the issuing, marketing or trading of securities. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 63 - 
 
  associated with the maintenance, soundness, integrity or financial responsibility of financial 
institutions or providers of financial services (Article 12.09).  
5.6.  Under the Maritime Transport Agreement, Guatemala and Panama shall grant each other's 
shipping companies the right to free transfer, in convertible currency at the prevailing exchange 
market rates, of all revenues earned by those companies from activities covered by the 
Agreement. No charges other than normal bank ch arges will be applicable to those transfers. On 
the basis of reciprocity, the Parties will grant tax free treatment to income obtained by vessels of 
one Party in the territory of the other Party, according to their national legislation. 
5.3  Exceptions 5.7.  According to Article 21.02, the general exce ptions of the Agreement are based on Article XX 
of the GATT 1994 and its interpretative notes and on  subparagraphs (a), (b) and (c) of Article XIV 
of the GATS, provisions which are incorporated in the Agreement and form part thereof. 
No provision of the Agreement will be interpreted as: (i) obliging a Party to provide or give access to information whose disclosure is considered contrary to its essential security interests; 
(ii) preventing a Party from adopting measures that it considers necessary for the protection of its 
essential security interests; and (iii) preventing a Party from adopting measures that it considers necessary to fulfil its obligations under the Unit ed Nations Charter for the maintenance of peace 
and international security (Article 21.03). 
5.8.  In addition to these general, security and balance of payments exceptions, the Agreement 
does not apply to taxation, except in those cases in which the WTO Agreement also establishes the corresponding rights and obligations. No provisio n of the Agreement will affect the rights and 
obligations of any of the Parties derived from a tax convention. 
5.4  Accession and Withdrawal 5.9.  The Agreement does not contain any provision concerning the accession of third parties. 
5.10.  In accordance with Article 22.05, any Party may denounce the Agreement. Provided that 
Panama is not the Party that denounces it, the Agreement will remain in force for the other Parties. This denunciation will take effect 180 days after having been notified to the other Party, 
without prejudice to the possibility of another date being agreed. 
5.5  Institutional framework 5.11.  Article 19.01 establishes the Treaty Administration Commission
84, whose functions include 
overseeing the implementation of the Agreem ent, assessing the results and recommending 
changes, settling disputes relating to the inte rpretation or application of the Agreement, 
supervising the work of all the committees and examining any questions that might affect the 
operation of the Agreement. In performing thes e functions, the Commission will be able to 
delegate responsibilities to standing or ad hoc committees and expert groups. The Commission will 
be able to modify85, inter alia, tariff reduction programmes, for the purpose of accelerating such 
reductions, rules of origin, and the Annexes relating to services, and may draw up any regulations 
necessary for the implementation of the Agreemen t. The Commission may also hold meetings and 
adopt decisions when the representatives of Panama and one or more countries of Central America are present, to deal with matters of bilateral interest. The Commission will establish its own rules and procedures and adopt all decisions by consensus. It will meet at least once a year (ordinary 
meetings) and at the request of one of the Parties (extraordinary meetings).  
                                               
84 The Commission will be composed of the Secretary of State for Industry and Trade, in the case of 
Honduras, The Minister of  D e v e l o p m e n t ,  I n d u s t r y  a n d  T r a d e ,  i n  t h e  c a s e  o f  N i c a r a g u a ,  t h e  M i n i s t e r  o f  t h e  
Economy, in the case of Guatemal a and, the Minister for Trade and Industry, in the case of Panama. 
85 Honduras and Panama undertake to review the market access commitments subscribed by both 
Parties eighteen months after entry into force of the bilateral Protocol at the latest (Transitory Article of the 
Protocol). Guatemala and Panama agree to review the Prot ocol every two years after entry into force (Article 6 
of the Protocol). Nicaragua and Panama agree to subs cribe a Cooperation Agreement one month after signing 
the Protocol (Article 5 of the Protocol). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 64 - 
 
  5.12.  Article 10.2 establishes the Treaty Administrative Subcommission86, whose responsibilities 
include preparing and revising technical documents, following up on decisions adopted by the Commission and supervising the work of the committees. The Subcommission will also establish its rules and procedures. 
5.13.  As far as the committees (Article 19.05) are concerned, apart from the Committees on 
Trade in Goods (Article 3.16); Sanitary and Phytosanitary Measures (Article 8.11); Standardization, Metrology and Authorization Procedures (Article 9.12); Investment and Cross-
Border Trade in Services (Article 11.14); Financial Services (Article 12.11); Government 
Procurement (16.13); and Intellectual Property (Article 17.05), the Commission may create other ad hoc or permanent committees as required for the implementation of the Agreement. 
Additionally, a Committee on Maritime Transport is established under the MTA between Guatemala 
and Panama Annex 22.03 (g) to the Agreement. 
5.14.  The Committees shall: (i) supervise the im plementation of the Chapter of the Agreement 
under their competence; (ii) consider measures submitted by a Party, that may affect the effective 
implementation of the Agreement; (iii) request te chnical reports; evaluate and recommend to the 
Commission proposals for modifications, amendments or additional provisions to the Chapters under their competence; and (iv) implement matters delegated by the Commission. The 
Commission and the Sub-commission shall supervise the work of all committees established under 
the Agreement. 
5.15.   Each Committee or Subcommittee will be able to create ad hoc expert groups to carry out 
the technical studies it considers necessary in order to fulfil its mandate (Articles 19.06 and 
19.07).  
5.6  Dispute settlement 5.16.  Chapter 20 of the Agreement deals with dispute settlement in general, while Section B of 
Chapter 10 (investment) deals with disputes between investors and States, and investments 
relating to financial services.  
5.17.  Chapter 20 covers disputes between the Parties with respect to the interpretation or 
implementation of the Agreement. Under Arti cle 20.04 the complaining Party must choose the 
Agreement or the WTO as the forum. The chosen forum will be used to the exclusion of the other. 
5.18.  Each Party may request consultations in writing (Article 20.06) with the other Party on any 
existing or planned measure which it considers might affect the operation of the Agreement. The 
Parties will do everything possible to arrive at an agreed settlement. If the consultations do not 
settle the dispute within 30 days (15 days in urgent cases where the dispute relates to perishable products
87), the Parties may refer the question to the Commission, which will meet within 
ten days. The Commission may call in technical advisers or create the expert groups it considers 
necessary, resort to good offices, conciliation, mediation or other dispute settlement procedures, or make recommendations (Article 20.07). 
5.19.  The Party that requested intervention by  the Commission may request the establishment of 
an arbitral panel (Article 20.08) to examine the question. If a Party decides to refrain from participating as a complaining party, it may intervene only as a third Party, if it has a substantial interest and notifies its interest in participating within ten days of receipt of the request for the 
establishment of an arbitral panel. The establishment of arbitral panel may not be requested for 
safeguard measures which have been merely proposed (Article 6.05). The three-member arbitral panel will be chosen from a list of possible arbitrators drawn up by the Parties (Article 20.09).
88 
                                               
86 The Subcommission will be composed of the Director General of Treaty Administration of the 
Secretariat of State for Industry an d Trade, in the case of Honduras, the Director of Integration and 
International Treaties Administration of the Ministry of  Development, Industry and Trade, in the case of 
Nicaragua, a representative of the Ministry of the Economy, in the case of Guatemala,  and the National 
Director for International Negotiatio ns of the Ministry of Trade and Industry, in the case of Panama. 
87 "Perishable products" is taken to mean pe rishable agricultural and fishery products. 
88 Before the Agreement enters into force, the Parties will, by common accord, draw up the 
"List of national arbitrators" and the "List of non-part y country arbitrators". Each Party will designate five WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
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  The Parties to the dispute will try to agree on the appointment of the chairman of the arbitral 
panel. If they are unable to agree, the chairman will be chosen, by drawing lots, from a list of 
arbitrators from non-parties, and each Party will choose a national arbitrator of the other Party from the "List of national arbitrators".
89 If a Party does not select an arbitrator, the latter will be 
appointed, by drawing lots, from among the national members of the other Party included in the 
"List of national arbitrators". The Model Rules of Procedure (Article 20.12) of the panel include the 
right to a hearing before the arbitral panel, as well as the opportunity to submit written initial 
claims and responses, which will be confidential . Third parties will have the opportunity to be 
heard and to submit communications in writing (Article 20.13). 
5.20.  Within 90 days of the meeting at which it was set up, the arbitral panel will present to the 
Parties its preliminary report, which will contain its findings of fact, its determination regarding the 
measure, its recommendations and the time-limit for implementation of the report. Following 
written comments from the disputing Parties within 14 days of the preliminary report being presented, the final report (Article 20.16) will be presented to them within 30 days of the 
presentation of the preliminary report, unless the Parties agree on another time-limit. The final 
report will be binding on the Parties on the term s and conditions specified therein, and the period 
for compliance will not exceed six months (Article 20.17). 
5.21.  Unless the Parties notify the Commission of  their agreement to implement the final report, 
within 15 days of the time-limit fixed by the arbitral panel the latter will determine whether the respondent Party has complied with that report. If not, the complaining Party may suspend concessions in accordance with the provisions of Article 20.18.
90 Once the concessions have been 
suspended, the Parties, at the request of on e of them, may establish an arbitral panel91 to 
determine whether the report has been complied with or whether the level of the concessions 
suspended by the complaining Party is excessive. If this panel is composed of the same arbitrators 
as settled the dispute, it will present its report within 30 days of receiving the request; if not, the 
period allowed will be 60 days. 
5.22.  Chart 5.1 below indicates the steps in the dispute settlement process. 
                                                                                                                                               
national arbitrators for the "List of national arbitr ators" and five non-party country arbitrators for the 
"List of non-party country arbitrators". 
89 In matters concerning maritime transport and financial services the arbiters shall possess specialized 
knowledge or experience in maritime tran sport and financial services, respectively. 
90 The suspension of concessions will last until the respondent Party complies with the final report or 
until the Parties arrive at an agreemen t. However, if the respondent Party consists of two or more Parties and 
one of them complies with final report  or reaches an agreement with the complaining Party, the latter must lift 
the suspension of concessions with respect to that Party. 
91 The procedure for this arbitral panel will be established in accordance with the Model Rules of 
Procedure. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 66 - 
 
  Chart 5.1 Dispute settlement mechanism specific to the Agreement 
 
 
 
  
  
 Consulta  tions  
(Art. 20.06)    
Commission   
(meeting within a period o f  10 
day s)  (Art. 20.07)  Alternative methods of dis  pute 
settlement   (i.e. good  of fices, 
conciliation, media  tion)  
(Art. 20.07)   
Request for establishment o f  
an  arbitral    group  (Art. 20.08)   
Preliminary report  
(Art. 20.15  )  
Final  report   
(Art. 20.16)   
C o mpliance  
(Art.   20.17)   Non - compliance  
Suspension of concessions  
Art. 20.18.2  30  days  
  
  30  days  (15  days   if perishable  
products are involved)    
30   days  (15  days  if 
perishable  
products are  
involved  )   
Establishment of the   arbitral  
group  (Art. 20.11  ) 30 d ay s  
  
  
90 d ay s  
  
  
30  days  
   
  
  
6 m onths  
  
  
6 m onths  + 15 day  s   
  
Decision of the group on  up  on 
c o mpliance or level o f suspension    
Report issued    60 days -  (30 if the same)  Publication  
(Art. 20.16)   15   d ay s  
 
 Comment  s by  
the  Parties   WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 67 - 
 
  5.23.  Section B of Chapter 20 deals with internal  procedures and the settlement of private trade 
disputes. If a question of interpretation or application arises in a judicial or internal administrative procedure, or a court or administrative body requ ests the opinion of a Party, the Commission will 
try to agree on an appropriate response. The Party in whose territory the court is located will 
present the interpretation agreed by the Commission  in conformity with the rules of that forum 
and, if the Commission cannot agree on any interpretation or response, any Party may submit its own opinion (Article 20.19). Where the rights of private individuals are concerned, no Party may 
grant right of action under its legislation against the other Party on the basis that a measure is 
incompatible with the Agreement. Finally, the Parties will encourage and facilitate the use of arbitration and other alternative means of settling disputes between private individuals. To this 
end, each Party will maintain appropriate procedures for arbitration and the recognition and 
enforcement of arbitral awards (Article 20.21).
92 T h e  C o m m i s s i o n  w i l l  b e  a b l e  t o  e s t a b l i s h  a  
Consultative Committee on Private Trade Disputes composed of persons with specialized knowledge in this field. 
5.24.  In the case of disputes between an investor of a Party and a Party, Section B of Chapter 10 
establishes the time limits and conditions for submitting a claim for arbitration and the procedures that must be followed. The investor may submit the claim for arbitration in accordance with: 
(i) the ICSID Convention, if the two States are parties; (ii) the rules of the ICSID mechanism, if 
only one of the States is party to the Convention; or (iii) the UNCITRAL Arbitration Rules. Consent and submission of a claim to arbitration implies fulfilment of the requirements of: (i) Chapter II of the ICSID Convention and the rules of the Suppl ementary Mechanism; (ii) Article II of the 
New York Convention; and iii) Article I of the Inter-American Convention. 
5.7  Relationship with other agreements concluded by the Parties 5.25.  In Article 1.04 the Parties confirm their rights and obligations under the WTO Agreement 
and other agreements to which they are parties.  In the event of incompatibility between the 
Agreement and the WTO or other agreements, the Ag reement will take precedence, unless there is 
agreement to the contrary. However, if there is  incompatibility between the Agreement and the 
specific trade obligations established in: (i) the Convention on International Trade in Endangered 
Species of Wild Fauna and Flora (CITES); (ii) the Montreal Protocol on Substances that Deplete the Ozone Layer; or (iii) the Basel Convention on  the Control of Transboundary Movements of 
Hazardous Waste and their Disposal, these will take precedence, provided that, if the Parties have 
an equally effective option and reasonable means for fulfilling their obligations, they do so in the 
way least incompatible with the provisions of the Agreement. 
5.26.  Table 5.1 lists other regional trade agreements (notified and non-notified) involving the 
Parties. 
Table 5.1 Panama and Honduras, Nicaragua and Guatemala: Participation in other 
regional trade agreements (notified and non- notified, in force), as of 20 January 2014 
Trading partner 
or Agreement Date of 
entry into 
force Type of 
Agreement Notification of the GATT or WTO 
Year WTO provision 
PANAMA  
EU – Central 
America  01.08.13a Goods and 
services 2013 Article XXIV of the GATT and Article V 
of the GATS 
Canada 01.04.13 Goods and 
services 2013 Article XXIV of the GATT and Article V 
of the GATS 
United States 31.10.12 Goods and 
services 2012 Article XXIV of the GATT and Article V 
of the GATS 
Peru 01.05.12 Goods and 
services 2012 Article XXIV of the GATT and Article V 
of the GATS 
Costa Rica  
(Central America) 23.11.08 Goods and 
services 2009 Article XXIV of the GATT and Article V 
of the GATS 
                                               
92 Honduras, Guatemala, Nicaragua and Panamá are pa rties to the Convention on the Recognition and 
Enforcement of Foreign Arbitral Awards (1958) and to  the Inter-American Conv ention on International 
Commercial Arbitration (1975). Furthermore, the Part ies legislation on mediat ion and arbitration are: 
Guatemala's Arbitration Law and Decree (Decreto del Congreso) Nº 67-95; Nicaragua's Law Nº 540 of 25 May 2005; and Panama's Decree (Decreto Ley) Nº 5 of July 8 1999. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 68 - 
 
  Trading partner 
or Agreement Date of 
entry into 
force Type of 
Agreement Notification of the GATT or WTO 
Year WTO provision 
Chile 07.03.08 Goods and 
services 2008 Article XXIV of the GATT and Article V 
of the GATS 
Singapore 24.07.06 Goods and 
services 2007 Article XXIV of the GATT and Article V 
of the GATS 
Chinese Taipei 01.01.04 Goods and 
services 2009 Article XXIV of the GATT and Article V 
of the GATS 
El Salvador (Central 
America) 11.04.03 Goods and 
services 2005 Article XXIV of the GATT and Article V 
of the GATS 
CACM - Accession of Panama 06.05.13 Goods Not notified 
LAIA – Accession of 
Panama 03.05.12 Goods Not notified 
Colombia [LAIA, 
AAP.A25TM No. 29] 01.01.95 Goods Not notified 
Dominican Republic 08.06.87 Goods Not notified 
Mexico [LAIA, 
AAP.A25TM No. 14] 01.05.83 Goods Not notified 
GUATEMALA  
EU – Central 
America 01.12.13a Goods and 
services 2013 Article XXIV of the GATT and Article V 
of the GATS 
Mexico - Central 
America  01.09.13 b Goods and 
services 2013 Article XXIV of the GATT and Article V 
of the GATS 
Chile (Chile-Central America) 23.03.10 Goods and 
services 2012 Article XXIV of the GATT and Article V 
of the GATS 
Colombia 
(Colombia-Northern 
Triangle) 12.11.09 Goods and 
services 2012 Article XXIV of the GATT and Article V 
of the GATS 
CAFTA-DR 01.07.06 Goods and 
services 2006 Article XXIV of the GATT and Article V 
of the GATS 
Chinese Taipei 01.07.06 Goods and 
services 2011 Article XXIV of the GATT and Article V 
of the GATS 
Dominican 
Republic-Central 
America  15.10.01 Goods and 
services 2012 Article XXIV of the GATT and Article V 
of the GATS 
Mexico (Mexico-
Northern Triangle) 15.03.01b Goods and 
services 2006 Article XXIV of the GATT and Article V 
of the GATS 
CACM 04.06.61 Goods 1961 Article XXIV of the GATT 
CACM - Accession 
of Panama 06.05.13 Goods Not notified 
Cuba [LAIA, 
AAP.A25TM No. 36] 18.05.01 Goods Not notified 
Venezuela [LAIA, 
AAP.A25TM No. 23] 10.04.86 Goods Not notified 
    
HONDURAS  
EU – Central 
America 01.08.13a Goods and 
services 2013 Article XXIV of the GATT and Article V of 
the GATS 
Mexico - Central 
America  01.01.13b Goods and 
services 2013 Article XXIV of the GATT and Article V of 
the GATS 
Colombia 
(Colombia-Northern 
Triangle) 27.03.10 Goods and 
services 2012 Article XXIV of the GATT and Article V of 
the GATS 
Chile (Chile-Central 
America) 19.07.08 Goods and 
services 2011 Article XXIV of the GATT and Article V of 
the GATS 
Chinese Taipei 01.03.08 Goods and 
services 2010 Article XXIV of the GATT and Article V of 
the GATS 
CAFTA-DR 01.04.06 Goods and 
services 2006 Article XXIV of the GATT and Article V of 
the GATS WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 69 - 
 
  Trading partner 
or Agreement Date of 
entry into 
force Type of 
Agreement Notification of the GATT or WTO 
Year WTO provision 
Dominican 
Republic-Central 
America  19.12.01 Goods and 
services 2012 Article XXIV of the GATT and Article V of 
the GATS 
Mexico (Mexico-
Northern Triangle) 01.06.01b Goods and 
services 2006 Article XXIV of the GATT and Article V of 
the GATS 
CACM 04.06.61 Goods 1961 Article XXIV of the GATT 
CACM - Accession 
of Panama 06.05.13 Goods Not notified 
Venezuela [LAIA, AAP.A25TM No. 16] 22.09.86 Goods Not notified 
NICARAGUA  
EU – Central 
America 01.08.13a Goods and 
services 2013 Article XXIV of the GATT and Article V of 
the GATS 
Mexico - Central 
America  01.09.12b Goods and 
services 2013 Article XXIV of the GATT and Article V of 
the GATS 
Chile (Chile-Central America) 19.10.12 Goods and 
services 2013 Article XXIV of the GATT and Article V of 
the GATS 
Chinese Taipei 01.01.08 Goods and 
services 2009 Article XXIV of the GATT and Article V of 
the GATS 
CAFTA-DR 01.04.06 Goods and 
services 2006 Article XXIV of the GATT and Article V of 
the GATS 
Dominican 
Republic-Central 
America  03.09.02 Goods and 
services 2012 Article XXIV of the GATT and Article V of 
the GATS 
Mexico 01.07.98 b Goods and 
services 2005 Article XXIV of the GATT and Article V of 
the GATS 
GSTP 19.04.89 Goods 1989 Enabling Clause 
CACM 04.06.61 Goods 1961 Article XXIV of the GATT 
CACM - Accession 
of Panama 06.05.13 Goods Not notified 
Venezuela [LAIA, AAP.A25TM No. 25] 18.01.74 Goods Not notified 
Colombia [LAIA, 
AAP.A25TM No. 6] n.a. Goods Not notified 
 
a  EU-Central America: The notifications made in February 2013 (see WT/REG332/N/1 and S/C/N/680) 
states that: "Provisional application of the Agreement by all signatory parties is expected in the course 
of the second quarter 2013"; Further notifications to confirm the specific dates of entry into force 
between the EU and Central American countries are awaited. 
b  Mexico - Central America: in force with El Salvador, Nicaragua (01.09.12), Honduras (01.01.13), Costa Rica (01.07.13) and Guatemala (01.09.13). According to Article 21.7 of the Agreement, older bilateral Agreements between Mexico and Central American countries have, or are to become inactive upon entry into force of this Agreement; relevant noti fications are being prepared by the Parties. 
 LAIA:  Latin American Integration Association. CAFTA-DR: Free Trade Agreement between Central America, the United States and the Dominican Republic. CACM:  Central American Common Market. GSTP:  Global System of Trade Preferences among Developing Countries  Source: WTO Secretariat. 
 
5.8  Government procurement 
The aim of Chapter 16, which concerns government  procurement, is to create and maintain a 
single government procurement market.93 The Parties undertake to guarantee: (i) the participation 
of the other Party's suppliers on equal terms; (ii) transparency and non-discrimination; and (iii) 
the development of cooperation and technical assistance mechanisms in their government 
procurement markets. Neither Honduras, nor Nicaragua or Guatemala are party to the WTO Agreement on Government Procurement. Panama is an observer in the Committee on Government 
                                               
93 The Chapter will begin to govern 18 months afte r the Agreement enters into force (Article 16.15). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 70 - 
 
  Procurement. Panama applied for accession to th e GPA in 1997 but it withdrew its application and 
its offers.94  
 5.27.  Except as stipulated in Annexes 16.01
95 and 16.0296, the Chapter applies to procurement 
envisaged in the existing legislation of the Parties concerning: (i) goods; (ii) services, except as 
stipulated in the Annexes to Chapters 11 (Cross-Border Trade in Services) and 12 (Financial Services); and (iii) public works. Th e Chapter does not apply to procurement by the 
Panama Canal Authority or its successor. Neither does it apply to: (i) subsidies or donations 
granted to a State-owned enterprise or to loans, guarantees or insurance backed by a Party; and (ii) governmental services or functions.
97 
5.28.  Under their procurement procedures, exce pt for direct procurement, the Parties grant 
national treatment to each other's goods, services and suppliers (Article 16.04). They undertake to 
establish and maintain procedures for administrative and judicial appeal that make it possible for administrative decisions affecting covered government procurement activities to be reviewed 
(Article 16.07). They also stipulate that in the event of privatization no compensation may be 
demanded (Article 16.09). 
5.29.  Under article 16.11 the Parties establish a Government Procurement Committee, with the 
following functions: (i) unless the Parties otherwise agree, to review the results of applying 
Chapter 16 every two years; (ii) to carry out consultations and studies to incorporate the entities of Annex 16.01 within its sphere of application; to coordinate the exchange of information; and to promote the design of training programmes for the competent entities.
98  
5.30.  Chapter 20 (Dispute Settlement) does not apply to administrative and/or judicial measures 
and decisions taken at any stage in the gove rnment procurement process of the Parties. 
5.9  Intellectual property rights 
5.31.  In Chapter 17, which relates to intellectual property, the Parties confirm their rights and 
obligations under the provisions of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) (Article 17.01 ). The Parties undertake to establish in their 
legislation effective administrative, civil and criminal procedures for ensuring adequate protection 
for intellectual property rights (Article 17.02).
99 Under Article 17.05 the Parties establish an 
Intellectual Property Committee, whose composition is indicated in Annex 17.05 and whose function will be to seek the most appropriat e means of implementing the TRIPS Agreement.
100 
Concerning dispute settlement, under Article 17.06, when consultations held in the Committee are 
not successful, if the Parties so agree, such co nsultations shall be deemed to constitute the 
consultations envisaged in Article 20.06. 
5.32.  Moreover, in Article 3.12 the Parties undertake to protect geographical indications (GIs) and 
designations of origin protected by the legislatio n of the Party that claims protection and whose 
description corresponds to that in paragraph 1 of Article 22 of the TRIPS Agreement. To this end, 
the Parties must notify GIs or designations of origin that should be considered within the scope of 
the protection. This will apply without prejudice to the recognition which the Parties may grant to homonymous GIs and designations of origin which may lawfully belong to a non-party. 
                                               
94 WTO document GPA/ACC/PAN/1, dated 9 August 2013. 
95 Excluded Institutions. 
96 Types of procurement excluded. 
97 For example: the implementation of laws, social rehabilitation, pension or unemployment insurance 
services or social security and welfare, education, public training, health, and infant care or child protection services. 
98 See also Section 5.6 (I nstitutional framework). 
99 Honduras indicated it has approved laws to this en d, for example, Decree Nº 4-99-E on Copyright and 
Related Rights, Decree  Nº 12-99-E on Industrial Property, and the new Code on Civil and Administrative 
Procedures approved by Legislative Decree Nº 211-2006. Panamá indicated it has introduced important modifications to its legislation, for example, Law Nº 61 of 5 October 2012 on Industrial Property, Law Nº 63 of 5 October 2012 on the Protection of New Varieties of Plants and Law Nº 64 de 10 October 2012 on Copyright 
and Related Rights. Guatemala indica ted that procedures ha ve been adopted and are described in the 
Industrial Property Law and the Copyright and Related Rights Law of Guatemala.  
100 See also Section 5.6 (I nstitutional framework). WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 71 - 
 
  5.10  Other 
5.10.1  Competition policy 5.33.  Provisions concerning competition policy  and monopolies and State-owned enterprises are 
contained in Chapter 15 of the Agreement.  
5.34.  The Parties propose to establish mechanisms to facilitate and promote the development of 
competition policy and guarantee the application of rules on free competition between and within the Parties (Article 15.01). Within two years they  will examine the expansion of the contents of 
Chapter 15.
101 This expansion will be achieved by making special reference to practices that harm 
or impede the free play of competition in the pr oduction, processing, distribution and supply of 
goods or services (Article 15.02). 
5.35.  No provision of the Agreement is to be  interpreted as preventing the Parties from 
designating or maintaining a monopoly or State-owned enterprise, if its legislation so permits. If a 
Party intends to designate a monopoly, it will endeavour to introduce conditions that minimize or eliminate any cancellation or impairment of conc essions and, wherever possible, will notify the 
other Party (Article 15.03). Likewise, except in the case of the purchase of goods or services by 
government agencies, for official purposes with no intention of reselling them commercially or using them in the production of goods or in th e provision of services for their commercial sale, 
each Party will ensure that monopolies or State-owned enterprises: (i) act in the exercise of 
regulatory or administrative powers or other go vernmental functions in a manner compatible with 
the obligations of the Parties under the Agreement; (ii) grant non-discriminatory treatment when buying or selling the monopolized good or service;  and (iii) do not use their monopolistic position 
to resort to anti-competitive practices (15.03.4).  
5.10.2  Environment 5.36.  With regard to the environment, no provis ion in Chapter 10 shall be construed to prevent a 
Party from adopting, maintaining or enforcing any measure that it considers appropriate to ensure 
that investment activity complies with ecological and environmental legislation. The Parties recognize that it is inappropriate to encourage investment by relaxing domestic health, safety or 
environmental measures. Accordingly, no Party shall exempt or repeal such measures, or 
undertake to do so, as an encouragement for the expansion or retention of an investment. If a Party considers that the other Party has encouraged such investment, it may request consultations (Article 10.15). 
 
  
                                               
101 Honduras indicated the Law on the Promotion of Competition approved by Decree Nº 357-2005 of 
4 February 2006 and its Regulations approved by Acuerdo Nº 001-2007, and the Law on Consumers' 
Protection, Decree Nº 24-2008. Panamá introduced reforms through Law Nº 45 of 31 October 2007, and Executive Decree Nº 8-A of 22 January 2008. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 72 - 
 
  ANNEX 11 
1. Tables A1.1, A1.2, A1.3 and A1.4 show tariff liberalization by Panama, Honduras Nicaragua 
and Guatemala by all products, agricultural products and non-agricultural products. 
2. In 2009, the average MFN tariff applied by Pana ma was 8.3%; after the entry into force of 
the Agreement, the average tariff applied to impo rts from Honduras and Guatemala respectively 
fell to 3.9% and 2.6%. The average tariff applied to agricultural products was reduced from 14.6% to 7.9% for imports from Honduras and to 7.2% for Guatemala while that applied to non-
agricultural products from 7.1% to 3.2% for Honduras and to 1.4% for Guatemala. The tariff 
applied to agricultural products was about double that applied to non-agricultural products. As a result of the Agreement, Honduran exporters enjoye d a relative margin of preference of 46.1% in 
the case of agricultural products and 55.8% in th e case of non-agricultural products, as compared 
with the MFN tariff in force. Guatemalan exporters enjoyed a relative margin of preference of 51% 
for agriculture and 76% for non-agricultural produc ts. The share of duty-free lines with respect to 
imports from Honduras rose from 31.3% in the MFN regime to 69.9% (from 22.4% to 64.2% in 
the case of agricultural products and from 33.0% to 71.0% in the case of non-agricultural 
products). For imports from Guatemala the share of duty free lines increased to 82.4% overall, 
and to 71.1% and 82.6% in agriculture and non-agricultural products. In 2018, ten years after the 
implementation of the Agreement, the proportion of  duty-free tariff lines will have increased to 
85.4% for Honduras and 82.4% for Guatemala: 78.6% and 88.6% for Honduras and Guatemala respectively in the case of agricultural products and 86.7% and 97.5% in the case of non-agricultural products. By the end of the implemen tation period, in 2026 (2028 for Guatemala), it is 
expected that the proportion of duty-free tariff li nes for imports from Honduras will have increased 
to 87.2% for Honduras and 97.5% for Guatemala, 86.5% and 96.4%in the case of agricultural products and 87.4% and 97.7%in the case of non-agricultural products. 
3. In 2010, the average MFN tariff applied by Pana ma was 8.3%; after the entry into force of 
the Agreement, the average tariff applied to imports from Nicaragua fell to 2.2%. The average tariff applied to agricultural products from Nicaragua was reduced from 15.3% to 6% and that 
applied to non-agricultural products from 7.0% to 1.4%. The tariff applied to agricultural products 
was about double that applied to non-agricultural products. As a result of the Agreement, Nicaraguan exporters enjoyed a relative margin of preference of 60.8% in the case of agricultural 
products and 80% in the case of non-agricultural  products, as compared with the MFN tariff in 
force. The share of duty-free lines with respect to  imports from Nicaragua rose from 30.5% in the 
MFN regime to 86.5% (from 21.1% to 78.1% in the case of agricultural products and from 32.3% to 88.1% in the case of non-agricultural products ). In 2019, ten years after the implementation of 
the Agreement, the proportion of duty-free tariff lines will have increased to 90.4%: 87.0% in the 
case of agricultural products and 91.0% in the case  of non-agricultural products. By the end of the 
implementation period, in 2024, it is expected th at the proportion of duty-free tariff lines for 
imports from Nicaragua will have increased to 90. 6%, 88.5% in the case of agricultural products 
and 91.0% in the case of non-agricultural products. 
Table A1.1 Panama: Indicators of MFN tari ff rates and preferential rates for imports 
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 2009 8.3  12.1 31.3  14.6 18.9 22.4 7.1 10.6 33.0  
  2010 8.3 12.0 30.5 15.3 19.4 21.1 7.0 10.4 32.3 
Honduras 2009 3.9  13.0 69.9  7.9 22.0 64.2 3.2 10.9 71.0  
  2010 3.6 11.8 69.9 7.4 20.7 64.2 2.8 9.8 71.0 
  2011 3.2  10.7 69.9  6.9 19.3 64.2 2.5 8.7 71.0  
  2012 2.9 9.6 69.9 6.4 18.0 64.2 2.2 7.6 71.0 
  2013 2.5  13.4 81.1  6.0 22.3 73.3 1.9 10.9 82.6  
  2014 2.5 13.0 81.1 5.8 21.6 73.3 1.8 10.5 82.6 
                                               
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. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 73 - 
 
  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 
(%) 
  2015 2.4  12.6 81.1  5.6 21.0 73.5 1.8 10.2 82.6  
  2016 2.3 12.2 81.1 5.4 20.3 73.5 1.7 9.9 82.6 
  2017 2.2  11.7 81.1  5.2 19.6 73.5 1.7 9.5 82.6  
  2018 2.1 14.7 85.4 5.0 23.4 78.6 1.6 12.0 86.7 
  2019 2.1  14.5 85.4  4.9 22.9 78.6 1.6 12.0 86.7  
  2020 2.1 14.4 85.4 4.8 22.4 78.6 1.6 11.9 86.7 
  2021 2.1  14.2 85.4  4.7 21.9 78.6 1.6 11.9 86.7  
  2022 2.0 14.1 85.4 4.6 21.5 78.6 1.6 11.8 86.7 
  2023 2.0  15.8 87.1  4.5 32.1 86.0 1.6 12.4 87.4  
  2024 2.0 15.7 87.1 4.5 32.0 86.0 1.6 12.4 87.4 
  2025 2.0  15.7 87.1  4.5 31.9 86.0 1.6 12.4 87.4  
  2026 2.0 15.8 87.2 4.5 33.0 86.5 1.6 12.4 87.4 
Guatemala 2009 2.6  14.7 82.4  7.2 25.1 71.1 1.7 11.1 84.6  
  2010 2.4 13.5 82.5 6.8 23.6 71.1 1.5 10.0 84.6 
  2011 2.1  12.2 82.5  6.3 22.0 71.1 1.4 8.8 84.6  
  2012 1.9 10.9 82.5 5.8 20.3 71.1 1.2 7.6 84.6 
  2013 1.7  11.1 84.9  5.3 24.2 78.0 1.0 7.2 86.2  
  2014 1.5 9.8 84.9 4.9 22.2 78.0 0.8 6.1 86.2 
  2015 1.3  8.6 84.9  4.4 20.1 78.0 0.7 5.1 86.2  
  2016 1.1 7.3 85.0 4.0 18.3 78.4 0.6 4.1 86.3 
  2017 0.9  6.0 85.1  3.5 16.2 78.4 0.4 3.1 86.3  
  2018 0.7 18.1 96.1 3.0 26.4 88.6 0.3 11.1 97.5 
  2019 0.7  18.1 96.2  2.9 26.1 88.8 0.3 11.3 97.6  
  2020 0.7 17.8 96.2 2.8 25.3 88.8 0.3 11.3 97.6 
  2021 0.7  17.4 96.2  2.8 24.7 88.8 0.3 11.2 97.6  
  2022 0.7 17.0 96.2 2.7 23.9 88.8 0.3 11.2 97.6 
  2023 0.5  17.9 97.1  1.9 28.9 93.4 0.3 12.0 97.7  
  2024 0.5 17.7 97.1 1.9 28.2 93.4 0.3 12.0 97.7 
  2025 0.5  17.6 97.1  1.8 28.2 93.5 0.3 12.0 97.7  
  2026 0.5 17.5 97.1 1.8 27.8 93.6 0.3 12.0 97.7 
  2027 0.5  17.2 97.1  1.7 27.2 93.6 0.3 12.0 97.7  
  2028 0.5 20.1 97.5 1.7 47.8 96.4 0.3 12.0 97.7 
Nicaragua 2010 2.2  16.0 86.5  6.0 27.3 78.1 1.4 12.1 88.1  
  2011 2.1 15.5 86.5 5.8 26.3 78.1 1.4 11.8 88.1 
  2012 2.0  15.0 86.5  5.5 25.3 78.1 1.4 11.5 88.1  
  2013 2.0 14.5 86.5 5.3 24.3 78.1 1.3 11.1 88.1 
  2014 1.9  14.9 87.3  5.1 26.9 81.1 1.3 11.1 88.5  
  2015 1.8 14.5 87.3 4.9 26.2 81.1 1.2 10.9 88.5 
  2016 1.8  14.1 87.3  4.8 25.5 81.1 1.2 10.6 88.5  
  2017 1.7 13.8 87.3 4.7 24.8 81.1 1.2 10.3 88.5 
  2018 1.7  13.4 87.3  4.5 24.0 81.1 1.2 10.1 88.5  
  2019 1.6 17.1 90.4 4.4 33.7 87.0 1.1 12.5 91.0 
  2020 1.6  17.0 90.4  4.3 33.3 87.0 1.1 12.5 91.0  
  2021 1.6 16.9 90.4 4.3 32.9 87.0 1.1 12.5 91.0 
  2022 1.6  16.8 90.4  4.2 32.6 87.0 1.1 12.5 91.0  
  2023 1.6 16.7 90.4 4.2 32.2 87.0 1.1 12.5 91.0 
  2024 1.6  17.1 90.6  4.1 36.1 88.5 1.1 12.5 91.0  
a WTO Definition. 
Note:  For Nicaragua: data is based on the HS 2007 nomenclature. For Guatemala and Honduras, data is 
based on the HS  2009 nomenclature.  
Source: WTO estimates based on da ta provided by Nicaragua, Honduras and Guatemala and WTO-IDB 
database.  WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 74 - 
 
  4. In 2009, following the entry into force of the Agreement, the average preferential tariff 
applied by Honduras to imports from Panama was 3.4%, as compared with an applied MFN rate of 6.0%. The average tariff applied to agricultural products from Panama fell from 11.1% to 5.4% and that applied to non-agricultural products fr om 5.1% to 3.1%, which gave Panama's exporters 
an average margin of preference of 51.3% an d 18.7%, respectively, as compared with the 
MFN tariff in force. When the Agreement entered into force, Honduras' share of duty-free tariff lines increased from 47.2% to 69.5%: the duty-fr ee lines corresponding to agricultural products 
increased from 23.9% to 69.4% while those corresponding to non-agricultural products increased 
to a lesser extent, from 51.1% to 69.6%. In 2018, af ter ten years of application of the Agreement, 
Honduras' global share of duty-free lines for imports from Panama will be 84.2%: 80.9% in the case of agricultural products and 84.8% in that of non-agricultural products. At the end of the 
implementation period, in 2026, 85.4% of its tari ffs will be zero for imports from Panama, 86.8% 
in the case of agricultural products and 85.2%  in the case of non-agricultural products. 
Table A1.2 Honduras: Indicators of MFN tari ff 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 2009 6.0 11.3 47.2 11.1 14.5 23.9 5.1 10.5 51.1 
Panama 2009 3.4 11.1 69.5 5.4 17.6 69.4 3.1 10.0 69.6 
 2010 3.1 10.1 69.5 5.1 16.7 69.4 2.8 9.1 69.6 
 2011 2.8 9.2 69.5 4.8 15.7 69.4 2.5 8.1 69.6 
 2012 2.5 8.2 69.5 4.5 14.8 69.4 2.2 7.1 69.6 
 2013 2.2 11.4 80.7 4.2 17.3 75.5 1.9 10.1 81.6 
 2014 2.1 11.1 80.7 4.1 16.7 75.5 1.8 9.8 81.6 
 2015 2.1 10.8 80.8 4.0 16.3 75.7 1.8 9.6 81.6 
 2016 2.0 10.5 80.8 3.8 15.7 75.7 1.7 9.4 81.6 
 2017 2.0 10.2 80.8 3.7 15.2 75.7 1.7 9.1 81.6 
 2018 1.9 12.1 84.2 3.6 18.6 80.9 1.6 10.7 84.8 
 2019 1.9 12.0 84.2 3.5 18.3 80.9 1.6 10.7 84.8 
 2020 1.9 12.0 84.2 3.4 18.0 80.9 1.6 10.7 84.8 
 2021 1.9 11.9 84.2 3.4 17.7 80.9 1.6 10.7 84.8 
 2022 1.9 11.8 84.2 3.3 17.4 80.9 1.6 10.7 84.8 
 2023 1.9 12.7 85.4 3.3 24.5 86.7 1.6 10.9 85.2 
 2024 1.9 12.7 85.4 3.3 24.5 86.7 1.6 10.9 85.2 
 2025 1.9 12.7 85.4 3.3 24.5 86.7 1.6 10.9 85.2 
 2026 1.9 12.7 85.4 3.3 24.6 86.8 1.6 10.9 85.2 
 
a WTO Definition. Note: For the calculation of averages, specific duties are excluded and the ad valorem  parts of alternate 
rates are included. Based on the HS 2007 nomenclature. 
Source: WTO estimates based on Honduras' categories in the Agreement and WTO-IDB. 
5. In 2010, following the entry into force of the 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. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 75 - 
 
  Table A1.3 Nicaragua: Indicators of MFN tari ff 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.  
 
6. In 2009, following the entry into force of the Agreement, the average preferential tariff 
applied by Guatemala to imports from Panama was 1.6%, as compared with an applied MFN rate 
of 5.9%. The average tariff applied to agricultural products from Panama fell from 10.0% to 3.9% and that applied to non-agricultural products fr om 5.2% to 1.3%, which gave Panama's exporters 
an average margin of preference of 61% and 75%,  respectively, as compared with the MFN tariff 
in force. When the Agreement entered into forc e, Guatemala's share of duty-free tariff lines 
increased from 47.2% to 87.1%: the duty-free li nes corresponding to agricultural products 
increased from 23.4% to 71.1% while those corresponding to non-agricultural products increased 
to a lesser extent, from 51.3% to 89.8%. In 2018, af ter ten years of application of the Agreement, 
Guatemala's global share of duty-free lines for im ports from Panama will be 96.6%: 85.5% in the 
case of agricultural products and 98.5% in that of non-agricultural products. At the end of the 
implementation period, in 2028, 98.1% of its tari ffs will be zero for imports from Panama, 94.4% 
in the case of agricultural products and 98.7%  in the case of non-agricultural products. 
Table A1.4 Guatemala: Indicators of MFN tari ff 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 2009 5.9 11.2 47.2  10.0 13.1 23.4 5.2 10.7 51.3  
Panama 2009 1.6 12.7 87.1 3.9 13.3 71.1 1.3 12.3 89.8 
  2010 1.5 11.5 87.1  3.6 12.4 71.1 1.1 11.1 89.9  
  2011 1.3 10.4 87.1 3.3 11.4 71.1 1.0 9.8 89.9 
  2012 1.2 9.2 87.1  3.0 10.4 71.1 0.9 8.5 89.9  
  2013 1.0 8.9 88.5 2.7 11.3 75.9 0.7 7.9 90.7 
  2014 0.9 7.8 88.5  2.5 10.4 75.9 0.6 6.7 90.7  
  2015 0.8 6.8 88.5 2.3 9.6 75.9 0.5 5.5 90.7 
  2016 0.7 5.7 88.6  2.1 8.9 76.1 0.4 4.3 90.7  
  2017 0.5 4.7 88.6 1.9 8.1 76.1 0.3 3.1 90.7 
  2018 0.4 11.9 96.6  1.7 11.9 85.5 0.2 11.8 98.5  
  2019 0.4 11.9 96.7 1.7 11.8 85.9 0.2 12.1 98.5 
  2020 0.4 11.5 96.7  1.6 11.3 85.9 0.2 12.0 98.5  
  2021 0.4 11.2 96.7 1.5 10.8 85.9 0.2 11.9 98.5 WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 76 - 
 
  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 
(%) 
  2022 0.4 10.8 96.7  1.5 10.3 85.9 0.2 11.7 98.5  
  2023 0.3 12.8 97.6 1.1 12.4 91.1 0.2 13.3 98.7 
  2024 0.3 12.6 97.6  1.1 12.0 91.1 0.2 13.3 98.7  
  2025 0.3 12.5 97.6 1.0 11.7 91.2 0.2 13.3 98.7 
  2026 0.3 12.3 97.6  1.0 11.5 91.3 0.2 13.3 98.7  
  2027 0.3 11.7 97.7 0.8 10.2 91.7 0.2 13.3 98.7 
  2028 0.3 13.9 98.1  0.8 14.5 94.4 0.2 13.3 98.7  
a WTO Definition. 
Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. 
 Based on the HS 2002 nomenclature.  Source: WTO Secretariat estimates based on data provided by Guatemala and WTO-IDB Database.   
7. Table A1.5 below shows the market access opportunities for Panama's top 25 export 
products in Honduras. In 2006-2008, these exports accounted for 41.2% of Panama's global 
exports and covered 41 tariff lines. At the time of entry into force of the Agreement 14 tariff lines, accounting for 12.6% of global exports, were already duty-free under the MFN regime. After the 
entry into force of the Agreement, Honduras liberalized another 11 tariff lines. It will have 
liberalized 5 more lines in 2013, another 3 by 2018, and 1 more by 2023. As a result, in the case of Panama's top 25 exports to Honduras, 7 tariff lines (Chapters 61: Articles of apparel and clothing accessories, knitted or crocheted; and 62: Articles of apparel and clothing accessories, not 
knitted or crocheted) representing 8% of its global exports, will still be subject to duties at the end 
of the implementation period. 
Table A1.5 Honduras: Market access opportunities under the agreement for Panama's 
top 25 exports 
Panama's top export products in 2006-2008  Access conditions to Ho nduras' import markets  
MFN (2009)  Duty-free in 
No. of lines 
remaining 
dutiable HS number and description of the product 
Share in 
global exports 
(%) Average 
MFN 
applied 
rate (%)  No. of tariff 
lines 
2009 
2013 
2018 
2023 Duty-free 
Dutiable 
300439 --Medicaments containing hormones 
or other products of 29.37 but not 
containing antibiotics 6.1 0.0 2       
640299 -- Other footwear with outer soles and 
uppers of rubber or plastics, not 
covering the ankle. 3.4 15.0  2 1  1   
330300 Perfumes and toilet waters. 3.1  15.0  1 1     
611090 - of other textile materials 1.9 15.0  1     1 
300490 Medicaments (excluding goods of 
heading 30.02/ 30.05/ 30.06/ 3004.10-3004.50) consisting of 
mixed/unmixed products for 
therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems)/in forms or 
packings for retail sale 1.8
 0.0 6       
852872 Other colour reception apparatus for 
television, whether/not incorporating 
radio-broadcast receivers or sound or 
video recording or reproducing 
apparatus, 1.7 12.5  2  2    
540710 - woven fabrics obtained from high 
tenacity yarn of nylon or other polyamides or of polyesters 1.7
 0.0 1       
620462 Women's/girls', trousers, bib and 
brace overalls, breeches & shorts 
(excluding swimwear; excluding 
knitted or crocheted), of cotton 1.5 15.0  1     1 WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 77 - 
 
  Panama's top export products in 2006-2008  Access conditions to Ho nduras' import markets  
MFN (2009)  Duty-free in 
No. of lines 
remaining 
dutiable HS number and description of the product 
Share in 
global exports 
(%) Average 
MFN 
applied 
rate (%)  No. of tariff 
lines 
2009 
2013 
2018 
2023 Duty-free 
Dutiable 
640291 Other footwear with outer soles & 
uppers of rubber or plastics, covering the ankle. 1.5
 15.0  2   2   
620469 Women's/girls', trousers, bib & brace 
overalls, breeches & shorts (excl. 
swimwear; excl. knitted/crocheted), 
of textile materials other than 
wool/fine animal hair/cotton/synthetic 
fibres 1.5 15.0  1     1 
640319 Sports footwear other than ski-boots 
or cross-country ski footwear or snowboard boots, with outer soles of rubber or plastics or leather or composition leather and uppers of 
leather 1.4
 15.0  1 1     
300420 Medicaments containing other 
antibiotics (excl. of 3004.10), put up 
in measured doses/forms/packings for 
RS 1.4 0.0 2       
080719 Melons (excl. watermelons), fresh 1.2  15.0  1 1     
220830 - Whiskies 1.2 10.0  2 2     
080300 Bananas, including plantains, fresh or 
dried. 1.2 15.0  4 3   1  
910219 Wrist-watches, electrically operated, 
whether/not incorporating a stop-
watch facility (excl. of 9102.11 & 
9102.12), other than with case of 
precious metal/metal clad with 
precious metal 1.1 15.0  1  1    
852190 Video record ing/repr. appa ratus other 
than magnetic tape-type, whether/not incorporating a video tuner 1.1
 15.0  1  1    
841510 - Window or wall types, self-contained 
or "split-system" 1.1 15.0  1  1    
620342 Men's/boys' trousers, bib & brace 
overalls, breeches & shorts (excl. swimwear; excl. knitted/crocheted), of cotton 1.1
 15.0  1     1  
711319 -- of other precious metal, whether or 
not plated or clad with precious metal 1.0 15.0  1 1     
620590 Men's/boys' shirts (exclud. 
knitted/crocheted), of other textile 
materials, other than of cotton/man-
made fibres. 1.0 15.0  2     2  
611020 Jerseys, pullovers, cardigans, waist-
coats & similar articles, 
knitted/crocheted, of cotton 1.0 15.0  1     1 
852580 - Television cameras, digital cameras 
and video camera recorders 1.0 0.0 2       
080711 -- Watermelons 1.0 15.0  1 1     
294190 Antibiotics & their derivatives (excl. of 
2941.10-2941.50); salts thereof 0.9 0.0 1       
Total of above 41.2  14 27 11 5 3 1 7 
Note: Based on HS 2007 nomenclature. 
Source: WTO estimates based on Honduras' categories  in the Agreement and UNSD, Comtrade database. 
8. Table A1.6 below shows the market access conditions for Honduras' top 25 export products 
in Panama. In 2006, 2007, 2009 Honduras' exports of these top 25 products accounted for 73.0% of its total exports and covered 60 tariff lines, of  which 10, representing 15.5% of total exports, 
were already duty-free under the MFN regime. Upon  the entry into force of the Agreement, in 
2009, another 19 tariff lines became duty-free. Out of the 31 tariff lines that continued to be 
subject to duties, 16 will become duty-free in 2013, another 2 in 2018 and 9 more in 2023. At the end of the implementation period 4 tariff lines will  still be subject to duties: coffee, not roasted, 
not decaffeinated; palm oil, crude and other; and cane sugar. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 78 - 
 
  Table A1.6 Panama: Market access opportuni ties under the agreement for Honduras' 
top 25 exports 
Honduras' top export products in 2006, 2007, 2009  Access conditions to Panama's import markets  
MFN (2009) Duty-free in 
No. of lines 
remaining 
dutiable HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%)  No. of tariff 
lines 
2009 
2013 
2018 
2023 Duty-free 
Dutiable 
090111 Not decaffeinated 20.6  30.0  1     1  
854430 Ignition wiring sets and other wiring sets 
of a kind used in vehicles, aircraft or ships  8.0 10.0  1 1     
080300 Bananas, including plantains, fresh or 
dried. 6.8 13.8  4 3   1  
490700 Unused postage, revenue or similar 
stamps of current or new issue in the 
country in which they have, or will have, a 
recognized face value; stamp-impressed 
paper; banknotes; cheque forms; stock, 
share or bond certificates and similar 
documents of title. 5.4 11.1 2 12  12    
030613 Shrimps and prawns  4.6 15.0  1 1     
271112 Propane 2.9 0.0 1       
151110 Crude oil 2.8  20.0  1     1  
240210 Cigars, cheroots and cigarillos, containing 
tobacco 2.4 15.0  1 1     
710812 Other unwrought forms 2.3  0.0 1       
260800 Zinc ores and concentrates. 2.0 10.0  1 1     
080719 Melons (excl. watermelons), fresh 1.5  15.0  1 1     
030611 Rock lobster and other sea crawfish 
(palinurus spp., panulirus spp., 
jasus spp.) 1.4 15.0  1 1     
151190 Palm oil, other than crude, & fractions 
thereof , whether/not refined but not chemically modified 1.3
 20.0  1     1  
340119 Other (Soap & organic surface-active 
products & preparations) 1.3 10.2  5    5  
711291 Of gold, including metal clad with gold but 
excluding sweepings containing other precious metals 1.2
 0.0 1       
261690 Other precious metal ores and 
concentrates (other than silver ores) 1.1 5.0 1 1 1     
440710 Coniferous (wood sawn or chipped) 1.0  3.8 2 2 2     
170111 Cane suga r 1.0 144.0   1     1 
080430 Pineapples 0.9  15.0  2 2     
240220 Cigarettes containing tobacco 0.9 15.0  1 1     
870899 Othe r parts and accessories of motor 
vehicles 0.9 3.3 1 2  2    
030420 Frozen fillets 0.8 15.0  2 2     
260700 Lead ores and concentrates. 0.8  10.0  1 1     
261610 Silver ores and concentrates 0.7 10.0  1 1     
190590 Othe r (bread, pastry, cakes, biscuits, etc.)  0.6 11.3 1 7  2 2 3  
Total of above 73.0  10 50 19 16 2 9 4 
Note: Based on HS 2002 nomenclature. Honduras export data for 2008 are not available, 2009 data were 
used instead 
Source: WTO estimates based on data provided by  Panama, WTO-IDB and UNSD, Comtrade database. 
9. Table A1.7 below shows the market access opportunities for Panama's top 25 export 
products in Nicaragua. In 2007-2009, these exports accounted for 47.3% of Panama's global 
exports and covered 40 tariff lines. At the time of entry into force of the Agreement 13 tariff lines, accounting for 21% of global exports, were al ready duty-free under the MFN regime. After the 
entry into force of the Agreement, Nicaragua liberalized another 19 tariff lines. It will have 
liberalized 2 more lines in 2019. As a result, in the case of Panama's top 25 exports to Nicaragua, 
6 tariff lines (Chapters 61: Articles of apparel and clothing accessories, knitted or crocheted; and 62: Articles of apparel and clothing accessories, no t knitted or crocheted) representing 7.1% of its 
global exports, will still be subject to duti es at the end of the implementation period. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 79 - 
 
  Table A1.7 Nicaragua: Market access opport unities under the agreement for Panama's 
top 25 exports. 
Panama's top export products in 2007-2009  Access Conditions to 
Nicaragua's import markets 
MFN (2010) Duty-
free in  
Remain dutiable HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%) No. of 
tariff 
lines Duty-free  
Dutiable 
2010 
2019 
294190 Antibiotics & their derivatives (excl. of 2941.10-2941.50); salts 
thereof 8.4 0 1         
300439 Medicaments containing hormones/other products of 29.37 but not 
containing antibiotics, put up in measured doses/forms/packings 
for RS 6.4 0 2         
640299 Other footwea r with outer soles & uppers of rubber/plastics, not 
covering the ankle. 3.1 15   2 2     
330300 Perfumes & toilet waters 3.1 15   1 1     
852872 Other colour reception apparatus for television, whether/not 
incorporating radio-broadcast receivers/sound/video recording/reproducing apparatus, 2.0
 15   2 2     
300490 Medicaments (excluding goods of heading 
30.02/30.05/30.06/3004.10-3004.50) consisting of 
mixed/unmixed products for therapeutic/prophylactic uses, put up 
in measured doses (including those in the form of transdermal 
administration systems)/in forms/packings for retail sale 2.0 0 6         
300420 Medicaments containing other antibiotics (excl. of 3004.10), put up 
in measured doses/forms/packings for RS 1.9 0 2         
611090 Jerseys, pullovers, cardigans, waist-coats & similar articles, 
knitted/crocheted, of textile materials other than 
wool/Kashmir/other fine animal hair/cotton/man-made fibres 1.7 15 0 1     1 
540710 Woven fabrics obt. from high tenacity yarn of nylon/other 
polyamides/polyesters 1.5 0 1         
640319 Sports footwear other than ski-boots/cross-country ski 
footwear/snowboard boots, with outer soles of 
rubber/plastics/leather/composition leather & uppers of leather 1.4 15   1 1     
620462 Women's/girls', trousers, bib & brace overalls, breeches & shorts 
(excl. swimwear; excl. knitted/crocheted), of cotton 1.4 15   1     1 
640291 Other footwear with outer soles & uppers of rubber/plastics, 
covering the ankle. 1.3 15   2 2     
620469 Women's/girls', trousers, bib & brace overalls,  breeches & shorts 
(excl. swimwear; excl. knitted/crocheted), of textile materials 
other than wool/fine animal hair/cotton/synthetic fibres 1.2 15   1     1 
220830 Whiskies 1.1 7.5   2 2     
852799 Other reception apparatus for radio-broadcasting, excl. 8527.91 & 
8527.92 1.1 15   3 3     
852190 Video recording/repr. apparatus other than magnetic tape-type, 
whether/not incorporating a video tuner 1.1 15   1 1     
841510 Window/wall type ai r-conditioning machines, self-contained/split-
system, comprising a motor-driven fan & elements for changing the temp. & humidity, including those machines in which the humidity cannot be separately regulated 1.1
 15   1 1     
620342 Men's/boys' trousers, bib & brace overalls, breeches & shorts (excl. 
swimwear; excl. knitted/crocheted), of cotton 1.0 15   1     1 
910219 Wrist-watches, electrically operated, whether/not incorporating a 
stop-watch facility (excl. of 9102.11 & 9102.12), other than with case of precious metal/metal clad with precious metal 1.0
 15   1 1     
611020 Jerseys, pullovers, cardigans, waist-coats & similar articles, 
knitted/crocheted, of cotton 0.9 15   1     1 
711319 Articles of jewellery & parts thereo f , of other precious metal (excl. 
silver), whether/not plated/clad with precious metal 0.9 15   1 1     
080719 Melons (excl. watermelons), fresh 0.9 15   1 1     
620690 Women's/girls' blouses, shirts & shirt-blouses (excl. 
knitted/crocheted), of textile materials other than silk/silk 
waste/wool/fine animal hair/cotton/man-made fibres 0.9 15   1     1 
620590 Men's/boys' shirts (exclud. knitted/crocheted), of other textile 
materials, other than of cotton/man-made fibres. 0.9 15   2   2   
852580 Television cameras, digital cameras & video camera recorders  0.8 5 1 1 1     
Total of above 47.3   13 27 19 2 6 
Note: Based on HS 2012 nomenclature. 
 Source: WTO estimates based on data provided  by Nicaragua and UNSD, Comtrade database. 
 WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 80 - 
 
  10. Table A1.8 below shows the market access conditions for Nicaragua's top 25 export products 
in Panama. In 2007-2009 Nicaragua's exports of these top 25 products accounted for 71.0% of its total exports and covered 59 tariff lines, of which 5, representing 14.1% of total exports, were already duty-free under the MFN regime. Upon th e entry into force of the Agreement, in 2010, 
another 17 tariff lines became duty-free. Out of the 42 tariff lines that continued to be subject to 
duties, 9 will become duty-free in 2019. At the en d of the implementation period 33 tariff lines will 
still be subject to duties (coffee, not roasted, not decaffeinated; raw cane sugar; milk in powder; 
women's/girls' blouses and shirts; men's/boys' trousers; undenatured ethyl alcohol; extracts 
essences and concentrates of coffee; women's/girls trousers and T-shirts, singlets and other vests) representing 29.6% of Nicaragua's global exports. 
Table A1.8 Panama: Market access opportuni ties under the agreement for Nicaragua's 
top 25 exports 
Nicaragua's top export products 2007, 
2008, 2009 Share in 
global 
exports 
(%) Access Conditions to Panama's import markets  
HS number and description of the product  
MFN (2010)  Duty-free 
in 
Remain dutiable Average 
MFN applied 
rate (%) No. of tariff 
lines 
2010 
2019 Duty-free  
Dutiable 
090111 Coffee, not roasted, not decaffeinated  14.4 30.0   1     1  
020230 Meat of bovine animals, frozen, boneless  6.4 25.0   1   1   
020130 Meat of bovine animals, fresh/chilled, 
boneless 5.1 30.0   1   1   
710812 Gold (incl. gold plated with platinum), in 
unwrought forms (excl. powder) 4.9 0.0 1         
120220 Ground-nuts, not roasted/othw. cooked, 
shelled, whether/not broken 4.4 5.0 1 1 1     
170111 Cane sugar, raw, in solid form, not 
containing added flavouring/colouring matter 3.3 144.0    1     1 
030613 Shrimps & prawns, whether/not in shell, 
frozen 3.2 15.0   1   1   
854430 Ignition wiring sets & other wiring sets of a 
kind used in vehicles/aircraft/ships 2.8 10.0   1 1     
040221 Milk in powder/granules/other solid form, 
unsweetened, fat content by weight >1.5% 2.4 28.8   4     4  
071333 Kidney beans, incl. white pea beans 
(Phaseolus vulgaris), dried, shelled, 
whether/not skinned/split 2.2 13.3 1 3   3   
040690 Cheese (excl. of 0406.10-0406.40) 2.2  23.8   4 4     
240210 Cigars, cheroots & cigarillos containing 
tobacco 2.1 15.0   1 1     
620630 Women's/girls' blouses, shirts & shirt-
blouses (excl. knitted/crocheted), of cotton 2.0 11.7   3     3  
030611 Rock lobster & other sea crawfish (Palinurus 
spp., Panulirus spp., Jasus spp.), 
whether/not in shell, frozen 1.9 15.0   1   1   
610610 Women's/girls' blouses, shirts & shirt-
blouses, knitted/crocheted, of cotton 1.6 12.5   2     2  
010290 Live bovine animals other than pure-bred 
breeding animals 1.5 15.0   4 4     
620342 Men's/boys' trousers, bib & brace overalls, 
breeches & shorts (excl. swimwear; excl. knitted/crocheted), of cotton 1.5
 11.0   10     10  
071332 Small red (Adzuki) beans (Phaseolus/Vigna 
angularis), dried, shelled, whether/not 
skinned/split 1.4 15.0 1 2 2     
220710 Undenatured ethyl alcohol of an alcoholic 
strength by volume of 80% vol. 1.2 15.0 1 2     2  
210111 Extracts, essences & concentrates of coffee  1.2 35.0   2     2 
220210 Waters, incl. mineral waters & aerated 
waters, containing added sugar/other 
sweetening matter/flavoured 1.2 15.0   2   2   
620462 Women's/girls', trousers, bib & brace 
overalls, breeches & shorts (excl. swimwear; 
excl. knitted/crocheted), of cotton 1.1 10.0   6     6 WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 81 - 
 
  Nicaragua's top export products 2007, 
2008, 2009 Share in 
global 
exports 
(%) Access Conditions to Panama's import markets  
HS number and description of the product  
MFN (2010)  Duty-free 
in 
Remain dutiable Average 
MFN applied 
rate (%) No. of tariff 
lines 
2010 
2019 Duty-free  
Dutiable 
220840 Rum & tafia 1.1  15.0   3 3     
040630 Processed cheese, not grated/powdered  1.0 30.0   1 1     
610910 T-shirts, singlets & other vests, 
knitted/crocheted, of cotton 0.9 10.0   2     2  
Total of above 71.0   5 59 17 9 33 
 
Note: Based on HS 2007 nomenclature.   Source:  WTO estimates based on data provided by Panama, WTO-IDB and UNSD, Comtrade database. 
 
11. Table A1.9 below shows the market access opportunities for Panama's top 25 export 
products in Guatemala. In 2006-2008, these exports accounted for 42.4% of Panama's global 
exports and covered 37 tariff lines. At the time of  entry into force of the Agreement 1 tariff line, 
accounting for 1.7% of global exports, were al ready duty-free under th e MFN regime. After the 
entry into force of the Agreement, Guatemala liberalized another 27 tariff lines and it will have liberalized by 2018, nine more lines. As a result, at the end of the implementation period all 
Panama's top 25 exports to Guatemala will be duty-free.  
Table A1.9 Guatemala: Market access opport unities under the agreement for Panama's 
top 25 exports. 
Panama's top export products in 2006-2008  Access Conditions to 
Guatemala's import markets  
MFN (2009) Duty-
free in  HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%) No. of 
tariff 
lines Duty-free 
Dutiable 
2009 
2018 
300439 Medicaments containing hormones /other products of 29.37 but not 
containing antibiotics, put up in measured doses/forms/packings for RS 6.2
 5.0   2 2    
640299 Other footwear with outer soles & uppers of rubber/plastics, not 
covering the ankle. 3.5 15.0   1   1 
330300 Perfumes & toilet waters 3.2  15.0   1 1    
852812 Reception app. for television, whether or not incorp. radio-broadcast 
recei ... 2.5 12.5   2 2   
611090 Jerseys, pullovers, cardigans, waist-coats & similar articles, 
knitted/crocheted, of textile materials other than wool/Kashmir/other 
fine animal hair/cotton/man-made fibres 1.9 15.0   1   1 
300490 Medicaments (excluding goods of heading 
30.02/30.05/30.06/3004.10-3004.50) consisting of mixed/unmixed 
products for therapeutic/prophylactic uses, put up in measured doses 
(including those in the form of transdermal administration systems)/in 
forms/packings for retail sale 1.8 5.0   6 6   
540710 Woven fabrics obt. from high tenacity yarn of nylon/other 
polyamides/polyesters 1.7 0.0 1       
620462 Women's/girls', trousers, bib & brace overalls, breeches & shorts 
(excl. swimwear; excl. knitted/crocheted), of cotton 1.6 15.0   1   1 
640291 Other footwear with outer soles & uppers of rubber/plastics, covering 
the ankle. 1.5 15.0   1   1 
620469 Women's/girls', trousers, bib & brace overalls, breeches & shorts 
(excl. swimwear; excl. knitted/crocheted), of textile materials other 
than wool/fine animal hair/cotton/synthetic fibres 1.5 15.0   1   1 
640319 Sports footwear other than ski-boots/cross-country ski 
footwear/snowboard boots, with outer soles of rubber/plastics/leather/composition leather & uppers of leather 1.5
 15.0   1   1 
300420 Medicaments containing other antibiotics (excl. of 3004.10), put up in 
measured doses/forms/packings for RS 1.4 5.0   2 2   WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 82 - 
 
  Panama's top export products in 2006-2008  Access Conditions to 
Guatemala's import markets  
MFN (2009) Duty-
free in  HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%) No. of 
tariff 
lines Duty-free 
Dutiable 
2009 
2018 
080719 Melons (excl. watermelons), fresh 1.2  15.0   1 1    
220830 Whiskies 1.2 30.0   2 2   
080300 Bananas, incl. plantains, fresh/dried 1.2  15.0   4 4    
910219 Wrist-watches, electrically operated, whether/not incorporating a 
stop-watch facility (excl. of 9102.11 & 9102.12), other than with case 
of precious metal/metal clad with precious metal 1.2 15.0   1 1   
852190 Video recording/repr. apparatus other than magnetic tape-type, 
whether/not incorporating a video tuner 1.2 15.0   1 1    
841510 Window/wall type ai r-conditioning machines, self-contained/split-
system, comprising a motor-driven fan & elements for changing the 
temp. & humidity, including those machines in which the humidity 
cannot be separately regulated 1.1 15.0   1 1   
620342 Men's/boys' trousers, bib & brace overalls, breeches & shorts (excl. 
swimwear; excl. knitted/crocheted), of cotton 1.1 15.0   1   1 
711319 Articles of jewellery & parts thereof , of other precious metal (excl. 
silver), whether/not plated/clad with precious metal 1.1 15.0   1 1   
620590 Men's/boys' shirts (exclud. knitted/crocheted), of other textile 
materials, other than of cotton/man-made fibres. 1.0 15.0   1   1 
611020 Jerseys, pullovers, cardigans, waist-coats & similar articles, 
knitted/crocheted, of cotton 1.0 15.0   1   1 
030410 Fish fillets & oth. fish meat, whether or not minced (excl.  of 03.02), 
fres ... 1.0 15.0   1 1    
852540 Still image video cameras & oth. video camera recorders; digital 
cameras 1.0 10.0   1 1   
080711 Watermelons, fresh 1.0  15.0   1 1    
Total of above 42.4 12.4 1 36 27 9 
Note: Based on HS 2002 nomenclature. 
 Source: WTO estimates based on data provided  by Guatemala and UNSD, Comtrade database. 
 
12. Table A1.10 below shows the market access conditions for Guatemala's top 25 export 
products in Panama. In 2006-2008 Guatemala's ex ports of these top 25 products accounted for 
52.2% of its total exports and covered 92 tariff lines, of which 28, representing 13.9% of total 
exports, were already duty-free under the MF N regime. Upon the entry into force of the 
Agreement, in 2009, another 36 tariff lines beca me duty-free. Out of the 28 tariff lines that 
continued to be subject to duties, one will be come duty-free in 2016 and another 22 in 2018. At 
the end of the implementation period 5 tariff line s will still be subject to duties: coffee, not 
roasted, not decaffeinated; cane sugar; palm oi l, crude; and undenatured ethyl alcohol of an 
alcoholic strength by volume of 80% vol..  
Table A1.10 – Panama: Market access o pportunities under the agreement for 
Guatemala's top 25 exports. 
Guatemala's top export products in 2006-2008  Access Conditions to Panama's import 
markets 
Remain dutiable MFN (2009)  Duty-free in  
HS number and description of the product  Share 
in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%) No. of tariff 
lines Duty-
free 
Dutiable  
2009 
2016 
2018 
090111 Coffee, not roasted, not decaffeinated 9.5  30.0   1       1 
170111 Cane sugar, raw, in solid form, not cont. added 
flavouring/colouring matter  5.8 144.0    1       1 
610610 Women's/girls' blouses, shirts & shirt-blouses, 
knitted or crocheted. 5.3 12.5   2     2    
080300 Bananas, incl. plantains, fresh/dried 5.1 13.8   4 4       
270900 Petroleum oils & oils obtained from bituminous 
minerals, crude 4.8 0.0 1           
261610 Silver ores & concs.  2.6 10.0   1 1       WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 83 - 
 
  Guatemala's top export products in 2006-2008  Access Conditions to Panama's import 
markets 
Remain dutiable MFN (2009)  Duty-free in  
HS number and description of the product  Share 
in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%) No. of tariff 
lines Duty-
free 
Dutiable  
2009 
2016 
2018 
090830 Cardamoms 2.4  7.5 1 1 1       
610510 Men's/boys' shirts, knitted or crocheted, of cotton  1.7 15.0   1     1   
400122 Technically spec. nat. rubber (TSNR) 1.6  15.0   1 1       
151110 Palm oil, crude 1.3 20.0   1       1 
300490 Medicaments (excl. of 30.02/30.05/30.06) 
consisting of mixed/unmixed prods.  1.2 0.0 5           
080719 Melons (excl. watermelons), fresh 1.2 15.0   1 1       
620463 Women's/girls', trousers, bib & brace overalls, 
breeches & shorts-  1.1 12.5   6     6    
400110 Natural rubber latex, whether or not pre-
vulcanised 0.9 0.0 2           
220710 Undenatured ethyl alcohol of an alcoholic 
strength by volume of 80% vol. 0.9 10.0 1 2       2 
210410 Soups & broths & preps. therefo r 0.8 9.7 4 13 13       
701090 Carboys, bottles, flasks, jars, pots, phials & oth. 
conts., of glass, of a 0.8 8.0 7 8 8       
220210 Waters, incl. min. waters & aerated waters, cont. 
added sugar/oth. sweeteni  0.7 15.0   2     2   
611020 Jerseys, pullovers, cardigans, waist-coats & sim. 
arts., knitted or crochet  0.7 15.0   2     2    
300450 Medicaments cont. vitamins/oth. prods. of 29.36 
(excl. of 3004.10-3004.40),  0.7 0.0 2           
271019 Petroleum oils & oils obt. from bituminous mins. 
(excl. crude) & preps. oth  0.7 9.6 4 8 7   1    
620462 Women's/girls', trousers, bib & brace overalls, 
breeches & shorts 0.7 12.5   6     6   
610620 Women's/girls' blouses, shirts & shirt-blouses, 
knitted or crocheted, of ma  0.7 12.5   2     2    
481910 Cartons, boxes & cases, of corrugated 
paper/paperboard 0.7 15.0   1   1     
271112 Propane, liquefied 0.7  0.0 1           
Total of above 52.2 11.1 28 64 36 1 22 5 
 
Note: Based on HS 2007 nomenclature.   Source:  WTO estimates based on data provided by Panama, WTO-IDB and UNSD, Comtrade database. 
 
 WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 84 - 
 
  ANNEX 2 
TARIFF QUOTAS UNDER THE AGREEMENT 
Table A2.1 Tariff quotas maintained by Honduras and Panama under the Agreement 
Products Tariff classification 
Honduras Out of quota 
tariff rate 
Honduras 
2009a Tariff classification 
Panama Out of quota 
tariff rate 
Panama 
2009a 
Bovine meat 02011000; 02012000; 
02013000; 
02021000; 02022000; 
02023000 15% 02011000; 02021000 15% 
 02012000; 02013000; 
02022000 30% 
 02023000 25% 
Swine meat   02031100; 02031120 60% 
  02031210; 02031290; 70% 
02031100; 02031200;  02031910; 02031920; 
02031900; 02032100; 15% 02031990; 02032110; 
02032200; 02032900  02032120; 02032210;  
  02032290; 02032910; 
  02032920; 02032990 
Liquid milk, 
exclusively of the type 
known as UHT 04012000 35% 04012010; 04012020; 
04012090 60% 
Processed 
cheese, not 
grated or 
powdered 04063000 35% 04063000 30% 
Palm oil, 
crude 15111000 5% 15111000 20% 
Stockings and 
socksb 61151090; 61159500; 
G61159600; 61159900 15% 61159200; 61159390; 
61159990 0% 
a The out of quota rates are the same as the MFN rates except for socks, in the case of Panamá. 
b The in-quota and out of quota rules of origin are different. 
 
Source: Annex 3.04 of the Agreement, Tariff Reduction Programme between Honduras and Panama 
WTO-IDB. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 85 - 
 
  Table A2.2 Tariff quotas maintained by Nicaragua and Panama under the Agreement 
Products Tariff classification 
Nicaragua Tariff rate  
Nicaragua 
2010 Tariff classification 
Panama Tariff rate 
Panama 
2010 
MFN Out of 
Quota MFN Out of 
Quota 
Bovine meat 
Category "C"  0201100000; 0201200011; 
0201201119; 0201200091; 
0201200099; 0201300011; 0201300019; 0201300099; 0202100000; 0202200011; 0202200019; 0202200091; 
0202200099; 0202300011; 
0202300019; 0202300091; 
0202300099  30% 27% 02011000; 02021000 
 
02012000; 02013000; 
02022000  
 
02023000  15% 
 
30% 
  
25% 13.5% 
 
27% 
  
22.5% 
Boneless 
swine meat 0203190010; 0203190090; 
0203290010; 0203290090  15% 15% 02031920; 02032920 
additionally 02031910; 
02031990; 02032910; 
02032990 but only for 
boneless swine meat  70% 70% 
Onions and 
shallots Category "D"  07031011; 07031012; 
07031013; 07031019; 
07031020  15% 14% 0703.10.00 72% 67.2% 
Instant coffee 2101110010; 2101120000  15% 15% 21011110; 21011220  40% 40% 
Tomato saucea 
Category "A" 21032000  15% 0% 21032091 
21032099  30% 
25% 0% 
0% 
Ketchupa 
Category "A"  21032000  15% 0% 21032010  30% 0% 
a The in-quota rule of origin is different from that applied ex-quota. 
Source: Annex 3.04 of the Agreement, Tariff Reduction Programme between Nicaragua and Panama, 
WTO-IDB. WT/REG278/1/Rev.1 • WT/REG331/1/Rev.1 • WT/REG336/1/Rev.1 
- 86 - 
 
  Table A2.3 Tariff quotas maintained by Guatemala and Panama under the Agreement 
Products 
and TRP category Tariff classification 
Guatemala Tariff rate 
Guatemala 
2009 Tariff 
classification 
Panama Tariff rate 
Panama 
2009  
MFN Out of 
Quota MFN Out of 
Quota 
Bovine meat 
Category "C"  02011000; 02012000; 
02013000; 02021000; 
02020000; 02023000  15%  13.5% 02011000; 02021000  15% 13.5% 
    02012000; 02013000; 
02022000  30% 27% 
    02023000 25% 22.5% 
Swine meat Category 
"G" 02031100; 0203.1200; 
02031900; 02032100; 
02032200; 02032900  15% 15% 02031110; 02031120 60% 60% 
    02031210; 02031290; 
02031910; 02031920; 
0231990; 020321100; 
02032120; 02032210; 
02032290; 02032910; 
02032920; 02032990 
 70% 70% 
Liquid milk, 
exclusively of the type 
known as UHT Category "C"  04011000AA; 
04012000AA; 
04013000AA 15% 13.5% 04011000AA; 
04012000AA 60% 56.7% 
Processed cheese, 
not grated or 
powdereda  
Category "C"  04063000 
 15% 13.5% 04063000 
 30% 27% 
Fresh unripened 
cheesea  
Category "C"  04069010  15% 13.5% 04061010 30% 27% 
Potatoes 07019000  15% 15% 07019000  81% 81% 
White onions 07031012 15% 15% 07031000AA 72% 72% 
Refined soya –bean 
oil and refined 
sunflower oilc 15079000; 15121900 
 15% 15% 15079000; 
15121900 
 20% 
30% 20% 
30% 
Crude Palm oil 15111000 5% 5% 15111000 20% 20% 
Chicken wings 
Category "H"  16023290BB 15% 15% 16023210CC; 
16023290CC 15% 15% 
Frozen pastry 
product  
Category "B7"  19059000CC 15% 12.9% 19059060 10% 8.5% 
Other Tomato 
saucesb 21032000 15% 14.6% 21032091 
21032099 50% 
25% 50% 
25% 
 
a The rules of origin change ten years af ter entry into force of the Agreement. 
b The in-quota and out of quota rules of origin are different.  Source: Annex 3.04 of the Agreement, Tariff Reduction Programme between Guatemala and Panama,  WTO-IDB.   
_________