WT/COMTD/RTA/10/1  
 
17 July 2018 
(18-4423) Page: 1/33 
Committee on Trade and Development  
Dedicated Session on Regional Trade Agreements   
 
FACTUAL PRESENTATION  
PARTIAL SCOPE AGREEM ENT BETWEEN PANAMA A ND THE DOMINICAN REPUBLIC  
(GOODS ) 
Report by the Secretariat  
This report, prepared for the consideration of the Partial Scope  Agreement between 
Panama and the Dominican Republic , has been drawn up by the WTO Secretariat on 
its own responsibility and in full consultation with the Parties. The factual presentation 
reproduces as closely as possible the terminology used in the Agreement and in the 
comments provided and does not imply official endorse ment or acceptance by the 
Secretariat of such terminology. The report has been drawn up in accordance with the 
rules and procedures contained in the Decision for a Transparency Mechanism for 
Regional Trade Agreements (WT/L/671) and thus does not imply any value judgement 
by the Secretariat regarding the contents of the Agreement.  
Any technical questions arising from this report may be addressed to Jean-Daniel Rey 
(tel: +41 22 739 5264) . Any statistical questions arising from this report may be 
addressed to  Rowena Cabos (tel: +41 22 739 5185) . 
 
 
 
  WT/COMTD/RTA/10/1  
 
- 2 - 
 
  TABLE O F CONTENTS  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 3 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 3 
2   CHARACTERISTIC ELEMENT S OF THE AGREEMENT  ................................ ......................  6 
2.1   Background Information  ................................ ................................ ...............................  6 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ .............  7 
3.1   Import duties and charges, and quantitative restrictions ................................ ...................  7 
3.1.1    General provisions  ................................ ................................ ................................ .... 7 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ..........  7 
3.1.3    Liberalization schedule  ................................ ................................ ..............................  7 
3.1.3.1    Panama  ................................ ................................ ................................ ................  8 
3.1.3.2    The Dominican Republic  ................................ ................................ ......................... 11 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .....15 
3.2   Rules of origin  ................................ ................................ ................................ ............ 15 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................. 17 
3.4   Regulatory Provisions of the Agreement  ................................ ................................ ........ 17 
3.4.1    Standards (sanitary and phytosanitary me asures and technical barriers to trade)  ............ 17 
3.4.2    Trade remedies  ................................ ................................ ................................ .......17 
3.4.2.1    Safeguard mechanisms  ................................ ................................ .......................... 17 
3.4.2.2    Anti-dumping and countervailing measures  ................................ .............................. 18 
3.4.3    Subsidies and State -aid ................................ ................................ ............................ 18 
3.4.4    Customs -related procedures ................................ ................................ ...................... 19 
3.4.5    Other regulations  ................................ ................................ ................................ .....19 
3.4.5.1    Free Zones  ................................ ................................ ................................ ........... 19 
3.4.5.2    Facilitation, cooperation and exchange of commercial information  ............................... 19 
3.4.5.3    Transit  ................................ ................................ ................................ ................. 19 
4   GENERA L PROVISIONS OF THE AGREEMENT  ................................ .............................  20 
4.1   Transparency  ................................ ................................ ................................ ............. 20 
4.2   Current payments and capital movements  ................................ ................................ .....20 
4.3   Exceptions  ................................ ................................ ................................ ................. 20 
4.4   Accession and Withdrawal ................................ ................................ ............................ 20 
4.5   Institutional framework  ................................ ................................ ............................... 20 
4.6   Dispute settlement  ................................ ................................ ................................ .....21 
4.7   Relationship with other agreements concluded by the Parties  ................................ ........... 21 
4.8   Government procurement  ................................ ................................ ............................ 23 
4.9   Intellectual Property Rights  ................................ ................................ .......................... 23 
4.10   Other  ................................ ................................ ................................ ...................... 23 
4.10.1    Review Clause  ................................ ................................ ................................ .......23 
4.10.2    Investment  ................................ ................................ ................................ ........... 23 
4.10.3    Payment and reciprocal credit compensation agreements  ................................ ............ 23 
ANNEX 1  ................................ ................................ ................................ ........................  24  WT/COMTD/RTA/10/1  
 
- 3 - 
 
   
Key Facts  
 
Parties to the Agreement:  The Dominican Republic  and 
Panama  
 
Date of Signature:    17 July 1985  
 
Date of Entry into Force:  8 June 1987 (Ratification of the 
text of the Agreement)  
  2 November 2003 (Definition  of 
the Lists of Goods)  
 
Date of Notification:   18 March 2016  
 
Full implementation:   2 November 2003 
 
 
1  TRADE ENVIRONMENT1 
1.1.  The Free Trade Agreement between Panama , and the Dominican Republic , hereinafter 
referred to as "the Agreement" is one of Panama 's 16 , and the Dominican Republic 's 4 RTAs 
notified to the WTO .2  
1.2.  In 2016, Panama 's GDP was estimated at US$ 55 billion, while that of the Dominican Republic  
was US$72  billion. Averaged over the period 2014 -2016, the Parties' trade (goods and services) to 
GDP ra tio was 52.7 for Panama  and 27.1 for the Dominican Republic.  Globally, Panama  was the 
59th largest exporter and the 52th largest importer, while the Dominican Republic  was the 62nd 
largest exporter and the 88th largest importer in the world.  
1.1  Merchandise tr ade 
1.3.  In 2016, Panama 's merchandise exports amounted to US$ 10.1 billion ( 0.06% of global 
exports) and imports amounted to US$ 18.7 billion ( 0.12% of global imports). In the same year, 
the Dominican Republic 's merch andise exports amounted to US $9.8 billion (0. 06 % of global 
exports) and imports amounted to US$ 17.1 billion (0. 11% of global imports). For both Parties 
manufactured products represented the main commodity group traded ( 92.5% and 90.6% 
respectively of Panama 's exports and imports; and 51.3% and 66.7% respectively of the 
Dominican Republic 's exports and imports).  
1.4.  Chart 1.1 summarizes the trends in global and bilateral trade of the Parties. Both Parties  
experienced a trade deficit  with the world during most of the period 2001 -2016, with the exception 
of the period 2003 -2004, during which the data show a trade surplus for the Dominican Republic . 
With respect  to trade between the Parties, data from the INEC (Panama's national institute for 
statistics and census) , used for Panama,  show a period of almost co nstant ( except 2004)  trade 
surplus until 2007  when the trend was reversed. The trade deficit continued until the en d of 2016. 
Statistics from UNSD Comtrade, used for the Dominican Republic, however shows a constant trade 
deficit for the Dominican Republic  with respect to Panama for the entire period (2001 -2016).  
1.5.  Based on  2016 trade data3, the Dominican Republic  was Panama's 29th largest source for 
imports4 (representing 0.3% of Panama's  total imports) and 26th largest destination for exports5 
                                                
1 Source: WTO Trade Profiles (January 2018), unless otherwise specified.  
2 RTAs in goods and services counted as one and only agreements in force, notified to the WTO. Source: 
WTO Database on RTAs (January 2018).  
3 Source: Instituto Nacional de Est adística y Censo  (INEC) (for Panama) and UNSD Comtrade (for the 
Dominican Republic). The national statistics of the Parties may differ slightly from the, also official, 
international sources usually used in the preparation of factual presentations.  
4 The five top s ources of imports for Panama were: the US (32.1%); the EU(28) (13.8%); China 
(11.5%); Mexico (6.6%); and Costa Rica (4.9%). Source: Instituto Nacional de Est adística  y Censo  (INEC).  WT/COMTD/RTA/10/1  
 
- 4 - 
 
  (representing 0.5% of Panama's  total exports). Panama  was the Dominican Republic's 24th largest 
source for imports6 and 10th largest destination for exports7 (representing 0.3% and 0.5% of t he 
Dominican Republic's  total imports and exports).  
Chart 1.1 Panama and the Dominican Republic: bilateral and total merchandise trade, 
2001 -2016  
 
Source:  UNSD Comtrade and Instituto Nacional de Estadística y Censo (INEC).  
 
1.6.  The commodity structure of trade between Panama  and the Dominican Republic , as well as of 
their global trade, is shown in Chart 1.2 on the basis of Harmonized System (HS) sections.  Two 
reference periods are used; 2001 -2003, before  the Agreement  entered into force , through the 
conclusion of the negotiat ion leading to the adoption of the Regulation of application of the 
Agreement  (hereinafter referred to as "the Regulation") , and the most recent three year period fo r 
which data are available, 2014 -2016.  
1.7.  The Chart shows that, between 2001 and 2003, chemic al products , textiles , and machinery  
accounted together for almost three quarters of the Dominican Republic 's imports from Panama  
(respectively corresponding to 33.8%, 24.1%, and 14.5%  of its imports from Panama ). These 
three categories of commodities were  also respectively, the Dominican Republic 's fourth, seventh, 
and largest import categories globally (respectively 9.1%, 6.1%, and 18.7 % of its global imports), 
and Panama 's sixth, seventh, and sixteenth  largest exports globally (respectively 2.4%, 1.7%, and 
0.1% of its exports to the world). During the period 2014 -2016, chemical products, prepared 
foodstuffs (including beverages, spirits, and tobacco), and base metals accounted together for 
more than half of the Dominican Republic's imports from Panama  (respectively corresponding to 
29.6%, 14.9% and 12.3%% of its imports from Panama). These three categories of commodities 
were also respectively the Dominican Republic's third, fifth, and eighth largest import categories 
globally (respe ctively 8.9%, 7.3% and 6.6% of its global imports), and Panama's seventh, third, 
and fourth largest exports globally (respectively 3.2%, 14.8%, and 12.1% of Panama's exports to 
the world) .  
1.8.  The three commodities most imported by Panama  from the Dominican Republic, between 
2001 and 2003, were base metals, plastics, and prepared foodstuffs  (representing respectively 
41.1%, 28.2%, and 13.7 % of Panama 's imports from its partner). The same commodities were 
also Panama's respectively sixth, eight h, and fifth largest global imports (representing 6.4%, 4.4% 
and 8.1% of Panama's global imports) and the Dominican Republic 's sixth, twelfth, and second  
largest exports to the world (respectively 5.9, 1.5%, and 12 % of the Dominican Republic's global 
                                                                                                                                                  
5 The five top destination of exports from Panama were: the EU(28) (30.6%) ; the US (21%); Costa Rica 
(6.2%); China (5.8%); and Chinese Taipei (4.4%). Source: Instituto Nacional de Estadística  y Censo  (INEC).  
6 The five top sources of imports for the Dominican Republic were: the US (42.1%); the EU(28) 
(13.3%); China (13.1%); Mexi co (5.7%); and Brazil (4.3%). Source: UNSD Comtrade.  
7 The five top destination of exports from the Dominican Republic were: the US (52.3%); the EU(28) 
(9.5%); Haiti (9.2%); Canada (8.8%); and India (6.8%). Source: UNSD Comtrade.  
0100200300400500600700800
0510152025
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016US$ million US$ billionB. Dominican Republic 2001 -2016
Imports from Panama (Right Axis)
Exports to Panama (Right Axis)
Total Imports
Total Exports
020406080100120140160180200
02468101214161820
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016US$ million US$ billionA. Panama 2001 -2016
Imports from Dominican Republic (Right Axis)
Exports to Dominican Republic (Right Axis)
Total Imports
Total ExportsWT/COMTD/RTA/10/1  
 
- 5 - 
 
  exports ). During the  period 2013 -2015, th e three commodities most imported by Panama from the 
Dominican Republic were plastics, chemical products, and machineries (representing respectively 
23.3%, 22.1%, and 21.5 % of Panama's imports from its partner). The same commodities were 
also respectively Panama's eighth, fourth, and  largest global imports (representing  respectively  
4.4%, 9.2%, and 18.8 % of Panama's global imports) and the Dominican Republic's tenth, sixth, 
and fifth  largest exports to the world (respectively 3.8%, 6.1%, and 7.9 % of the Dominican 
Republic's global exports) . 
Chart 1.2 Panama -Dominican Republic: product composition of merchandise trade, 
annual average  
 
Annual average: 2001 -2003 (inner circle); 2014 -2016 (outer circle) . 
Source:  UNSD Comtrade and Instituto Nacional de Estadística y Censo (INEC).  
34
24141051330
10
1512726Dominican Republic 
imports from Panama18
17
121083519
16
9
11936Panama global imports
19
13
11
974216
18
9
8 742Dominican Republic global 
imports41
281454812
23
6
222115Panama imports from 
Dominican Republic
39
129882412
16
8
11 2131Dominican Republic global 
exports
CRI 48
23105312 28
24 1512619Panama global exports
Total: 
2001 -2003: US$ 791 million
2014 -2016: US$ 716 millionTotal: 
2001 -2003: US$ 5 million
2014 -2016: US$ 23 millionTotal: 
2001 -2003: US$ 3 billion
2014 -2016: US$ 13 billionTotal: 
2001 -2003: US$ 4 billion
2014 -2016: US$ 9 billion
Total: 
2001 -2003: US$ 118 million
2014 -2016: US$ 78 millionTotal: 
2001 -2003: US$ 5 billion
2014 -2016: US$ 18 billion
Prepared foodsVegetablesLive animals
PlasticsChemicalsMinerals
TextilesWood pulpWood and 
articles of woodMachinery
Base 
metalsPrecious 
stonesVehiclesFootwear
OpticalOtherWT/COMTD/RTA/10/1  
 
- 6 - 
 
  2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  The Agreement was signed on 17 July 1985.  It entered into force on 8 June 1987 .8 However, 
it was only in February 2003 that  the Permanent Mixed Commission  (hereinafter referred to as 
"the Commission") , established by the Agreement, concluded its negotiations to establish the list 
of products subject to preferential treatment  (hereinafter referred to as "the List").  It also ado pted 
the Regulation , which entered into force on 2 November 2003 together with its Annex containing 
the List . The Agreement, including the Regulation that forms an integral part of it,  was notified to 
the WTO on 18 March 2016  under paragraph 4(a) of the En abling Clause  (see document 
WT/COMTD/N/49) . The text of the Agreement, together with its annexes, is available on the 
Parties' official websites:  
Panama : http://www.mici.gob.p a/detalle.php?cid=15&sid=57&clid=33&id=2469  
The Dominican Republic :  
https://www.micm.gob.do/direcciones/comercio -exterior/acuerdo -rd-panama  
 
2.2.  The Agreement is composed of 22 Articles, including a transitional Article, while the 
Regulation is composed of 9 Chapters. An Annex to the Regulation contains the L ist of products 
covered by the Agreement, while other specific Annexes attached to Chapter III complement the 
provisi ons on rules of origin.  Box 2.1 below summarizes the structure of the Regulation of 
application.  
Box 2.1 Structure of the Regulation of application of the A greement  and relation to  the 
Agreement  
Titles, 
Chapters  Title/description  Relevant Articles of  the 1985 
Agreement9 
Chapter I  Definitions   
Chapter II  Preferential regime applicable to the covered products  Articles I, IX 
Chapter III  Rules of origin  Articles III, IV  
Chapte r IV Competition rules (covering safeguards, antidumping 
and countervailing measures)  Articles  VIII, X,  
Chapter V  Facilitation, cooperation and exchange of commercial 
information  Articles  VI, XIII,  
Chapter VI  Transit  Article XII,  
Chapter VII  Institutional provisions (Permanent Mixed Commission)  Articles XVI, XVII,  
Chapter VIII Dispute settlement  Article XVIII  
Chapter IX  Final provisions   Articles XIX, XX, XXI,  transitional 
Article.  
   
Annex  List of covered products  Articles II, V, VI, VII,  
Source:  Secretariat based on the Regulation of application of the Agreement.  
2.3.  One of the main objectives of the Agreement is to establish a preferential exchange regime 
that could amount to free trade, through preferential treatment or tariff reductions (Article I) . 
While the Agreement signed in 1987 establishes the principle of pre ferential trade, the Regulation 
of app lication that was adopted in 2003  and the List of tariff concessions , provides  preferential 
treatment between the Parties .10 
2.4.  A critical role was played by the  Commission11 established  under the Agreement , inter alia , to 
coordinate the actions necessary to ensure the implementation of the Agreement. The Commission 
met twice in 2002 and 2003 to identify the products which would benefit from preferential 
treatment granted by the Agreement  (Articles XVI and XVII) . The Comm ission also agreed in 2003 
on the terms of the Regulation , including the Annex listing the Parties' tariff concessions , which 
                                                
8 According to the notific ation by the Parties, 8 June 1987 is the date of entry into force indicated for 
Panama, while 2 November 2003 is the date of entry into force indicated with respect to the Dominican 
Republic.  
9 Articles XI, XIV and XV of the 1985 Agreement are not specifically referred to in the Regulation.  
10 As anticipated in Article II.  
11 See, below, the section on the institutional framework.  WT/COMTD/RTA/10/1  
 
- 7 - 
 
  allowed it to become operative on 2 November 2003.  The Regulation and its Annexes form an 
integral part of the Agreement (Article 86 of the Regulation).  
3  PROVISIONS ON TRADE IN GOODS  
3.1.  The Agreement's coverage is limited to trade in goods . Moreover, preferential treatment is 
specifically granted to the products identified in the List(s) of concessions agreed by the Parties. 
The List wa s adopted by the Commission in 2003 and entered into force on 2 November of that 
year when preferential treatment became effective .  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.2.  Under Article IX of the Agreement and Article 5  of the Regulation, t he Parties commit  to 
apply national treatment to the imported products originating and covered by the Agreement . 
Moreover, under the same provisions, they  agree  that the covered products shall, as a principle12, 
not be subject to any ty pe of quantitative measure (Article IX of the Agreement and Article 5 of 
the Regulation).  Under the same provisions, the Parties also confirm that the MFN principle  is 
applicable with respect to internal taxes being imposed domestically on products of the other Party 
covered by the Agreement.   
3.3.  Moreover, Article IX also establishes that the products covered by the Agreement, shall not, 
as a principle and with some exceptions, be subject to any type of quantitative restriction. Other 
mentions of quantitative restrictions (QRs), including import quotas or controls and other 
quantitative measures for the products that are traded  under  the Agreement  can be found in 
particular in Article s VIII, and XVII of the Agreement .13 The Agreement foresees that quantitative 
measures, generally of a transitory nature, may be taken by a Party, under certain conditions and 
when facing certain difficulties  in terms of competition from products imported from the other 
Party. The provisions in the Agreement and the Regulation addres sing these aspects are described 
below in  the section covering trade remedies.   
3.1.2   Liberalization of trade and tariff lines  
3.4.  The list of products eligible for preferential treatment is annexed  to the Regulation.  
3.5.  The Agreement and the Regulation provide for t he modification of the List, including through 
the addition of new products, through an amendment procedure that requires the adoption of such 
changes by the Commission .14 To date, no such adjustment has taken place  
3.1.3   Liberalization schedule  
3.6.  Duty free access  to each Party's market  is granted to the products covered in the Annex 
attached to the Regulation , provided the origin of the imported product is certified as foreseen in 
Chapter III of the Regulation. Such preferential treatment  became immediately effect ive on 2 
November 2013 , when the Regulation entered into force .  
3.7.  The List of tariff concessions  is divided in four sections:  
a. Section I covers 120 products15, for which duty free treatment  is granted  to the goods  
originating in one of the Part ies and exported to the other. In the Tables below, this 
category  is referred to as "Doble V ía". 
                                                
12 For exceptions see Section 4.3 below.  
13 Disciplines on QRs are de scribed below under sections addressing safeguard, antidumping and 
countervailing measures.  
14 See Article VII of the Agreement and Articles 3 and 4 of the Regulation.  
15 Corresponding to 114 eight -digit tariff lines in Panama's tariff, and 107 eight -digit t ariff lines in the 
Dominican Republic's tariff. Section I covers, inter alia , agricultural products (poultry, fish, dairy products, 
selected vegetables, meat or fish preparations, selected vegetable and fruit preparations); other edible 
preparations, some alcoholic beverages; some prepared animal fodder; medicaments; cosmetic preparations; WT/COMTD/RTA/10/1  
 
- 8 - 
 
  b. Section II covers 24 products16 originating in the Dominican Republic for which Panama 
grants duty free treatment . In the Tables below, this category is referred t o as "Una 
Vía". 
c. Section III covers 26 products17, for which duty free treatment is granted by the 
Dominican Republic to goods originating in Panama.  In the Tables below, this category is 
referred to as "Una V ía".  
d. Section IV covers 29 products18, for which d uty free treatment is granted to goods 
originating in a Free Zone of one Party and exported to the other Party.  In the Tables 
below, this category is referred to as "Zonas francas".   
3.1.3.1   Panama  
3.8.  Panama 's applied tariff in 2018  consisted of 8,579  lines at the eight -digit level (HS  1996 
nomenclature ). 99.77 % of the tariff rates were ad valorem  and 20 lines had non -ad valorem  
tariffs.19  
3.9.  As depicted in Table 3.1 below, 153 tariff lines are covered by Panama's liberalization 
commitments under the Agre ement . The elimination of customs duties for products originating in 
the Dominican Republic took place immediately at the date of entry into force of the Agreement 
(2 November 2003).  These lines represent 1.8% of Panama's tariff, corresponding to 3.8% of 
Panama's total imports from the Dominican Republic (during the period 2001 -2003) .20 29.4% of 
Panama's tariff was already duty -free on an MFN basis when the Agreement entered into force, 
corresponding to 46.7% of its total imports from the Dominican Republic.21 21 tariff lines 
(corresponding to 0.1% of Panama's imports from the Dominican Republic22) out of the 
153 covered by the liberalization programme were duty -free for imports from MFN sources before 
the entry into force of the Agreement. After the entry into  force of the Agreement, 5,924 tariff 
lines,  representing 69.1% of Panama's tariff and  corresponding to 49.6% of Panama's imports 
from the Dominican Republic (2001 -2003)23, remain dutiable.  
3.10.   As illus trated in Table  3.2, the  products which will remain subject to duties can be found in 
all HS Section s at rates identical to the MFN rate . Chart 3.1 below  shows duty rates for imports 
from the Dominican Republic by HS Chapter. The tariffs remaining for imports from the Dominican 
Republic ra nge from 5.7% for Chapter 84 to 58.3% for Chapter 10 . 
                                                                                                                                                  
paper for fax; some plastics; some wood articles; some paper and paperboard products; felt; some clothing 
accessories; cast glass and rolled glass; some articles of iron or steel; some aluminium products; some 
electrical parts and articles; some parts of vehicles; furniture; and some miscellaneous manufactured articles.  
16 Corresponding to 21 eight -digit tariff lines in Panama's tariff. Section II covers, inter alia , garlic ; 
marble and limestone; petroleum oils; some pharmaceutical equipment (gauze, bandages and similar articles, 
etc.); animal or vegetable fertilisers; after -shave preparation; tubes, pipes and hoses; some rubber products; 
suit-cases and products of the kind;  some iron and steel products; some material made of base metal; and 
some electrical equipment.  
17 Corresponding to 24 eight -digit tariff lines in the Dominican Republic's tariff.  Section III covers, inter 
alia, some fish products; printing ink; odoriferous  substances and mixtures; some chemical products; some 
plastics; articles of wood; some cotton products; some made up articles; articles of asbestos -cement; some 
railway track construction material; some aluminium products; and some miscellaneous manufactu red articles.  
18 Corresponding to 18 eight -digit tariff lines in Panama's tariff, and 21 eight -digit tariff lines in the 
Dominican Republic's tariff. Section IV covers, inter alia , some medicaments; some cosmetic material; some 
plastics; paper and paperboar d products; some specific fabrics; some parts of footwear; some electrical 
equipment; and some medical equipment.  
19 Eight lines covering prohibited goods, and twelve lines with "other duties" (other than ad valorem , 
specific, compound, and/or mixed duties).  
20 Using the data for the period  2013-2015, the liberalized  lines correspond to 17.6% of Panama's total 
imports from the Dominican Republic . 
21 Using the data for the period 2013 -2015, the share of Panama's MFN du ty-free tariff, corresponds  to 
24.5% of its total imports from the Dominican Republic.  
22 0.5% using the data for the period 2013 -2015.  
23 Using the data for the period 2013 -2015, the share of remain dutiable lines corresponds to 58.4% of 
Panama's total impo rts from the Dominican Republic.   
  WT/COMTD/RTA/10/1  
 
- 9 - Table 3.1 Panama  
Tariff elimination commitments under the Agreement and corresponding average trade   
Duty phase -out period  Number of 
lines  % of total 
lines in 
Panama 's 
tariff schedule  Value of Panama 's 
imports from Dominican 
Republic   
US$ '000 % of Panama 's total 
imports from  
Dominican Republic  Value of Panama 's imports 
from Dominican Republic   
Under the Free Zone  
US$ '000 
2001 -2003  2013 -2015  2001 -2003  2013 -2015  2001-2003  2013 -2015  
Covered under the Agreement  
Already MFN duty -free 21 0.2 4.6 106.9  0.1 0.5   
"Una Vía" 16 0.2 0.0 10.2 0.0 0.1   
"Doble Vía"  95 1.1 154.6  673.9  3.3 3.4   
"Doble Vía "  (from "Zonas francas")  21 0.2 16.5 2,752.6  0.4 13.6 35,369  101,472  
Sub-total  153 1.8 175.7  3,543.6  3.8 17.6   
Not covered under the Agreement  
Already MFN duty -free 2,502  29.2 2,163.3  4,826.1  46.6 24.0   
MFN dutiable  5,924  69.1 2,303.3  11,739.8  49.6 58.4   
Sub-total  8,426  98.2 4,466.6  16,565.9  96.2 82.4   
Total  8,579  100.0  4,642.3  20,109.5  100.0  100.0    
Note:  Based on HS 1996 nomenclature. While the List of concession is based on HS 1996 nomenclature, it is currently applied by Pana ma on the basis 
of the recommendations of the 6th amendment of WCO as of January 1st 2017.  
Source:  WTO estimates based on data pro vided by Panama authorities, WTO -IDB and Instituto Nacional de Estadística y Censo ( INEC).  
 
 WT/COMTD/RTA/10/1  
 
- 10 - 
 
  Table 3.2 Panama: Tariff  elimination under the Agreement, by HS Section   
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -
free 
lines 
under 
the  
MFN 
2003 Number of duty -free lines under the 
Agreement  
Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  Already 
MFN 
duty-
free "Una 
Vía" "Doble  
Vía" "Doble 
Vía"  
(from 
"Zonas 
francas")  
I 23.6 376 20 1 3 9  343 25.3 
II 11.4 423 119   1  303 15.9 
III 11.8 68 16     52 15.4 
IV 14.3 542 58 1  27  456 16.3 
V 7.6 186 72     114 12.4 
VI 4.2 1,229  782 6 3 13 8 417 12.0 
VII 5.2 425 232 1 2 4 1 185 11.5 
VIII 12.6 126 1     125 12.7 
IX 7.6 167 59 1  3 1 103 11.9 
X 7.3 424 185   8 1 230 12.9 
XI 8.1 1,254  442 5 1 6  800 12.6 
XII 11.8 164 4 2    158 12.2 
XIII 9.7 293 37 1 3 1  251 11.2 
XIV 7.3 65 23     42 11.3 
XV 7.6 925 325 3 2 8  587 11.7 
XVI 6.3 1,019  87   1 8 923 6.9 
XVII 11.9 276 20   2  254 12.9 
XVIII 9.9 300 15    2 283 10.4 
XIX 14.5 24      24 14.5 
XX 11.8 284 1  2 12  269 11.7 
XXI 7.8 9 4     5 14.0 
Total  8.8 8,579  2,502  21 16 95 21 5,924  12.5 
Note:  Based on HS 1996 nomenclature. While the List of concession is based on HS 1996 nomenclature, it 
is currently applied by Panama on the basis of the recommendations of the 6th amendment of WCO 
as of January 1st 2017.  
Source:  WTO estimates based on data pro vided by Panama authorities and the WTO -IDB. WT/COMTD/RTA/10/ 1 
 
- 11 - 
 
  Chart 3.1 Panama: Average of dutiable rates, by HS Chapter  
 
Note:  Based on the HS 1996 nomenclature . 
Source:  WTO estimates based on data provided by Panama authorities and the WTO -IDB. 
 
3.1.3.2   The Dominican Republic  
3.11.   The Dominican Republic 's applied tariff in 2018  consisted of 6,825  lines at the HS eight -digit 
level (HS  2002). All tariff rates were ad valorem .  
3.12.   As depicted in Table 3.3  below, 152 tariff lines are covered by the Dominican Republic's  
liberalization commitments under the Agreement. The elimination of customs duties for products 
originating in Panama  took place immediately at the date of entry into force of the Agreement 
(2 November 2 003). These lines represent 2.2% of the Dominican Republic's  tariff, corresponding 
to 30.6% of the Dominican Republic's  total imports from Panama  (during the period 2001 -2003) .24 
13.2% of the Dominican Republic's  tariff was already duty -free on an MFN basis when the 
Agreement entered into force, corresponding to 41.3% of its total imports from Panama.25 11 tariff 
lines (corresponding to 28.7% of the Dominican Republic's  imports from Panama26) out of the 
152 covered by the liberalization programme were duty -free for imports from MFN sources before 
the entry into force of the Agreement. After the entry into force of the Agreement, 5,784  tariff 
                                                
24 Using the data for the period  2013-2015, the liberalized  lines correspond to 19.8% of the Dominican 
Republic's  total imports from Panama.  
25 Using the data for the period 2013 -2015, the share of the Dominican Republic's  MFN duty -free tariff, 
corresponds  to 11.6% of its total imports from Panama.  
26 0.1% using the data for the period 2013 -2015.  
010203040506070
010203040506070809101112131415161718192021222324Average Duty Rate (%)
HS Chapter01-24
0246810121416
2527293133353739414345474951545658616365676971737578808284868890929496Average Duty Rate (%)
HS Chapter25-97
Preferential MFNWT/COMTD/RTA/10/1  
 
- 12 - 
 
  lines,  representing 84.7% of the Dominican Republic's  tariff and  correspondi ng to 56.8% of the 
Dominican Republic's  imports from Panama  (2001 -2003)27, remain dutiable.  
3.13.   As illustrated in Table 3.4, the products which will remain subject to duties can be found in 
all HS Section s of the Dominican Republic's tariff at rates identical to the MFN rate s. Chart 3.2 
below  shows the duties remaining once the Agreement is implemented by HS Chapter; the 
average tariff rates range from 3% in HS 26, 30, 47, 81, and 86 to 25.9% in HS Chapter 2 . 
                                                
27 Using the data for the period 2013 -2015, the share of remain dutiable lines corresponds to 68.6% of 
the Dominican Republic's  total imports from Panama.   
  WT/COMTD/RTA/10/1  
 
- 13 - Table 3.3 Dominican Republic  
Tariff elimination commitments under the Agreement and corresponding average trade   
Duty phase -out period  Number of 
lines  % of total lines in 
Dominican Republic 's 
tariff schedule  Value of Dominican 
Republic 's imports from 
Panama  
US$ '000 % of Dominican Republic 's 
total imports from  
Panama  Value of Dominican 
Republic 's imports of from 
Panama of products 
manufactured  
under the Free zone  
US$ '000 
2001-2003  2013-2015 2001-2003  2013-2015 2002 -2003  2014 -2016  
Already MFN duty -free 11 0.2 38,322.3  44.9 28.7 0.1   
"Una Vía"  23 0.3 111.9  106.0  0.1 0.1   
"Doble Vía"  87 1.3 2,125.5  6,411.0  1.6 7.6   
"Doble Vía " (from "Zonas 
francas ") 31 0.5 304.1  10,118.4  0.2 12.0 0.6 7.7 
Sub-Total  152 2.2 40,863.8  16,680.3  30.6 19.8   
Already MFN duty -free 889 13.0 16,814.8 9,709.3  12.6 11.5   
MFN dutiable  5,784  84.7 75,947.8 57,684.3  56.8 68.6   
Sub-total  6,673  97.8 92,762.6 67,393.6  69.4 80.2   
Total  6,825  100.0  133,626.4 84,073.9  100.0  100.0    
Note:  Based on HS 2002 nomenclature. While the List of concession is based on HS 2002 nomenclature, it is currently applied by the Dominican Republic  on 
the basis of the recommendations of the 6th amendment of WCO  as of January 1st 2017.  
Source:  WTO estimates based on data  provided by the Dominican Republic authorities and the WTO -IDB. 
 
 
 
 
 
 WT/COMTD/RTA/10/1  
 
- 14 - 
 
  Table 3.4 Dominican Republic: Tariff elimination under the Agreement, by HS Section   
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines 
under the  
MFN 2003  Number of duty -free lines under the 
Agreement  
Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  MFN 
duty 
free "Una 
Vía" "Doble 
Vía" "Doble Vía" 
(from "Zonas 
francas")  
I 16.4 293 44 2  10  237 19.4 
II 12.5 408 99  1 1  307 16.4 
III 8.1 65 1     64 8.2 
IV 17.1 309 13 1  23  272 18.0 
V 4.3 184 4  4   176 4.2 
VI 4.5 1,085  118 3 4 9 11 940 5.0 
VII 9.3 277 7 1 4 3 1 261 9.4 
VIII 11.5 99   2   97 11.3 
IX 7.0 120    3 1 116 6.7 
X 7.7 195 26 1  10 1 157 8.4 
XI 8.8 902 391 3  3 2 503 15.7 
XII 17.5 72     2 70 17.7 
XIII 10.4 171    2  169 10.5 
XIV 17.9 57      57 17.9 
XV 8.1 695 8  6 7  674 8.0 
XVI 5.3 1,056  163  2 1 9 881 6.3 
XVII 9.6 263 5   2  256 9.8 
XVIII 7.8 346     4 342 7.8 
XIX 20.0 32      32 20.0 
XX 17.2 189 10   13  166 18.1 
XXI 20.0 7      7 20.0 
Total  8.8 6,825  889 11 23 87 31 5,784  10.0 
Note:  Based on HS  2002 nomenclature. While the List of concession is based on HS 2002 nomenclature, it 
is currently applied by the Dominican Republic on the basis of the recommendations of the 6th 
amendment of WCO as of January 1st 2017.  
Source:  WTO estimates based on data  provided by the Dominican Republic authorities and the WTO -IDB. 
 WT/COMTD/RTA/10/1  
 
- 15 - 
 
  Chart 3.2 Dominican Republic: Average of dutiable rates, by HS Chapter  
 
Note: Based on the HS 2002 nomenclature.  
Source:  WTO estimates based on data provided by the Dominican Republic authorities and the WTO -IDB. 
 
3.1.4   Tariff rate quotas  
3.14.   Neither the  Agreement nor the Regulation contain s provision s on commitment by a Party to 
grant concession s to the other through the use of tariff rate quotas (TRQs) .  
3.2  Rules of origin  
3.15.   There are v arious provisions in the Agreement that relate to rules of origin for products 
traded between the Parties to be granted preferential treatment (Articles III, IV, and V of the 
Agreement). The Regulation provides for clarificati on and detailed modalities for the application of 
such provisions. In particular, in Chapter III of the Regulation, there are disciplines on the 
determination of origin (Section B of Chapter III of the Regulation); other elements relating to the 
determination of origin are in Section C and procedures relating to the certification and verification 
of origin  are in Section D. Moreo ver, Annex I to Chapter III of the Regulation contains product -
specific rules of origin, while Annex II to the same Chapter provides for a model certificate of 
origin.  
3.16.   A good qualifies as originating when:  
a. it is wholly obtained as defined in Article 9 of the Regulation ; 
WT/COMTD/RTA/10/1  
 
- 16 - 
 
  b. it is produced in the territory of any Party from non-originating materials having 
undergone substantial  transformation as defined in Annex I to Chapter III (of the 
Regulation) ; or 
c. it is produced in either Party, and despite the fact that o ne or more non -originating 
materials did not comply with the required change in tariff classification, it met one of 
the criteria contained in Article 8.1.c)iii) of the Regulation.  
3.17.   Annex I of Chapter III of the Regulation contains product -specific rules of  origin and outlines 
the conditions that need to be fulfilled for goods to qualify as originating when non -originating 
materials are used in their production. A change in tariff classification, at the HS Chapter, or 
Sub-Chapter  levels constitutes the main criteria used to determine origin for goods having 
undergone sufficient transformation . Nevertheless, a maximum percentage of added value28 
(25%) is set for non -originating material  in the case of some prepared food29, and can be used as 
an alternative crite rion for certain goods.30 Annex 3 -A also specifies for which tariff lines a specific 
manufacturing or processing operation confers, or contributes to confer , origin.31 Moreover, f or a 
number of goods, the condition for qualifying as wholly obtained is also c larified .32 Minimal 
operations or processes which, in themselves or in combination, do not confer origin are identified 
in Article 11 of the Regulation.33 
3.18.   A de minimis  tolerance rule of 10% of the transaction value of the good  (adjusted on an 
f.o.b.  basis), is applicable to non -originating materials used in the production of a good (Article 12 
of the Regulation ).  
3.19.   Section C of Chapter III of the Regulation  also contains, under Articles 12 through 20 , 
disciplines on other elements relating to the determinatio n of the origin of goods. This is in 
particular the case with respect to the treatment of indirect materials not incorporated in the 
merchandise; accessories, spare parts, or tools delivered with a good; goods put up in sets; 
containers and packaging mater ials in which a good is stored for retail sale; containers, packing 
materials and products shipments of a good; goods exported from one Party to the other Party and 
in transit through the territory of any third -country34; and fungible goods .  
3.20.   Cumulation  of origin is governed by the provisions of Article 20 of the Regulation  under 
which a good that originates in a Party is considered originating in the other Party when used as a 
material in the production of a product there.  
3.21.   Section D of Chapter III of the R egulation  governs the application of procedures  relating to 
the certification and verification of origin. Provisions under this Section cover issues like the 
                                                
28 Disciplines on calculating the regional value content (RVC) are contained in Article 10 of the 
Regulation. While Article IV of the Agreement states that the covered products will also be considered as 
originating when they contain im ported raw material whose aggregated national added value is not less than 
35%, it seems that the Regulation did not maintain this condition to qualify as originating.  
29 Some products classified under HS 210500.  
30 This is particularly the case for goods cl assified under HS Chapters 17 -18 (some sugar products); 
28-29, 31 -33, and 35 -39 (some chemical products, plastics and rubber); 50 -60, and 62 -63 (some textiles and 
textile products); 70 -71, 73, 76, and 82 -83 (some metals); and 84 -96 (machinery, vehicles, in struments and 
miscellaneous manufactured articles).  
31 This is the case particularly for some products classified under HS Chapters 33 (essential oils and 
resinoids, perfumery, cosmetic or toile preparations).  
32 This is the case for most products classified  under HS Chapters 03 (fish and crustaceans, molluscs 
and other aquatic invertebrates); 04 (some dairy products); and 25 (some stones).  
33 While Article IV of the Agreement states that the covered products will also be considered as 
originating when they co ntain imported raw material whose aggregated national added value is not less than 
35%, the Regulation is silent on that particular condition to be fulfilled for a product to qualify as originating. 
The Parties confirm that that specific condition does not  apply.  
34 Other transit -related disciplines are in Chapter VI of the Regulation.  WT/COMTD/RTA/10/1  
 
- 17 - 
 
  certification and declaration of origin35; obligations with respect to imports36; obligations regard ing 
exportations37; procedures for verifying origin38; confidentiality39; sanctions40; and cooperation .41 
3.22.   The Regulation establishes, in its Article 54, a Technic al Committee of Rules of Origin,  under 
the aut hority of the Permanent Mixed Commission42. 
3.3  Export duties and charges, and quantitative restrictions  
3.23.   The Agreement does not contain specific provisions on export duties and charges, and 
quantitative restrictions.  However, Article IX establishes that the products covered by the 
Agreement, shall not, as a pr inciple and with some exceptions, be subject to any type of 
quantitative restriction, without distinguishing between import s and export s. 
3.4  Regulatory Provisions of the Agreement  
3.4.1   Standards  (sanitary and phytosanitary measures and technical barriers to trade)  
3.24.   Though the Agreement does not contain specific provisions on sanitary and phytosanitary 
measures or on technical  barriers to trade , it implicitly makes a general reference to it in Article IX 
of the Agreement, which states that the prohibition of quantita tive restrictions does not apply to, 
inter alia , health and safety controls applicable in the territories of the Parties . 
3.4.2   Trade remedies  
3.25.   The Agreement foresees that, when a Party considers, after verification, that a company or 
a sector of the industry are placed at a competitive disadvantage and are facing serious problems 
of competition, that Party may take some actions that may be compar ed, or are similar , to trade 
remedies (Articles VIII and X of the Agreement). These provisions are complemented by those in 
Chapter IV (on completion problems) of the Regulation.  
3.4.2.1   Safeguard mechanisms  
3.4.2.1.1   Global safeguards  
3.26.   The Agreement does not specifically re fer to global safeguards, though accounts should be 
taken of the safeguard mechanisms in place under the WTO (Article 62 and 64 of the Regulation).  
3.4.2.1.2   Bilateral safeguards  
3.27.   When it can be demonstrated by a Party that serious problems are caused by imports from  
the other Party, the matter may be brought to the attention of the Commission, which may 
authorize the adoption of quantitative measures applied against imported products covered under 
the Agreement, as appropriate. The importing Party may adopt quantitat ive measures, of a 
transitory nature, that it deems appropriate, while the Commission is considering the remedy. The 
Agreement foresees a period of up to 30 days for the consideration of a safeguard measure.  
3.28.   Remedies may take different forms:  
                                                
35 See Article 21 of the Regulation. The Parties have developed a single format for the certificate of 
origin, which is reproduced in Annex II to Chapter III of the Regulation.  
36 See Articles 22 through 24 of the Regulation.  
37 See Articles 25 through 29 of the Regulation, covering issues such as endorsement of a declaration of 
origin by a Party's administrative authority, or sanctions in case of evading compliance with certification 
requirements.  
38 See Articles 30 through 54 of the Regulation covering, inter alia, the verification procedure in case of 
doubt about the origin of a good, including the verification of compliance with the requirements concerning the 
value of regional content, the calculation of the de minimis ; the cooperation through the provisio n of data 
essential for verifying the origin of a product; review and app eal of determinations of origin.  
39 See Articles 55 and 56 of the Regulation.  
40 See Articles 57 and 58 of the Regulation.  
41 See Articles 59 through 61 of the Regulation.  
42 See Section 4.5 below.  WT/COMTD/RTA/10/1  
 
- 18 - 
 
  a. a quantitat ive measure, usually applied on a temporary basis, though the measure may 
be prolonged as long as necessary to remedy the situation causing a competitive 
disadvantage;  
b. a suspension, also usually applied temporarily, of the preferential treatment granted 
under the Agreement;  
c. the imposition of fees or other restrictions; or  
d. the exclusion of  a product from  the List of products benefiting from the preference .43 
3.29.   Article VIII of the Agreement, as complemented by Article 62 of the Regulation, also allows  
safeguard measures to be taken, including in case of serious problems of competition affected by 
changes in the exchange rate regime44; this shall be governed by the mechanisms and procedures 
under Chapter IV of the Regulation but may also be addressed thr ough safeguard -related 
mechanisms as foreseen under the WTO  Agreement . In particular, Article 64 of the Regulation 
governs how investigations shall be conducted to determine the existence and degree of intensity 
of the damage as well as the causal link bet ween increased imports and the distortion to the 
importing countries' industry, based on evidence. The investigation may take into account the 
corresponding WTO provisions.45  
3.4.2.2   Anti-dumping and countervailing measures  
3.30.   While there is no specific mention of th e term s "dumping" and  "antidumping", the 
Agreement (and the Regulation) makes a reference to both the concept of dumping and the 
possibility to use antidumping measures.  
3.31.   With respect to dumping, the Parties recognize that unfair trade46 practices may distor t 
trade. Consequently, each Party shall avoid , by the legal means at its disposal , the export of goods 
at a price lower  than their actual cost of production in order to avoid distortions in the production 
and trade of the importing Party (Article X of the Agreement and Article 63 of the Regulation).  
3.32.   The Agreement establishes that when any Party considers that there is evidence of unfair 
trade, the case shall be submitted to the Commission for consideration. While the matter is being 
considered, for a period  of up to 30 days, the affected Party may temporarily impose a provisional 
antidumping duty. The Agreement (and the Regulation) refers to the deposit of a security. In case 
unfair trade is confirmed as a result of the study (investigation) conducted by the  Commission, the 
security shall be definitively collected or adjusted if needed. As in the above -mentioned case of 
safeguard measures, the WTO antidumping -related mechanisms and procedures may be taken into 
account when implementing Article 63 of the Regul ation.47 
3.33.   The Agreement does not refer specifically to countervailing measures . Nevertheless, the 
above -mentioned paragraphs refer to measures available to the Parties in case of unfair trade, 
which could also cover countervailing measures.  
3.4.3   Subsidies and St ate-aid 
3.34.   The Agreement does not contain any specific disciplines on subsidies and/or state -aid. It, 
however, governs the Parties' ability to take certain measures against unfair trade, including 
neutralizing  the negative effects of subsidies, as described above.  
                                                
43 In that case, the exclusion of the product for the List shall become effective 90 days after the 
adoption of the measure by the Commission.  
44 In case a Party changes its exchange rate regime it shall expeditiously notify the other  Party 
(Article  65 of the Regulation).  
45 The Parties clarify that, to date, no measure has been taken under Article VIII of the Agreement.  
46 Under the Agreement "unfair trade" refers to practices that cause or threaten to cause material injury 
or prejudice  to a domestic industry, or retard significantly the creation of a branch of domestic industry. For 
the purpose of implementing the Agreement, dumping and subsidies are considered unfair trade practices 
(Article 1k of the Regulation).  
47 The Parties clarif y that, to date, no measure has been taken under Article X of the Agreement and/or 
Article 63 of the Regulation.  WT/COMTD/RTA/10/1  
 
- 19 - 
 
  3.4.4   Customs -related procedures  
3.35.   In Article 67 of the Regulation the Parties agree to avoid administrative and customs -related 
discriminatory practices.  
3.4.5   Other regulations  
3.4.5.1   Free Zones  
3.36.   Article V of the Agreement provides that the goods produced in the free zones established in 
the territories of either Part y may, exceptionally, be granted duty free access  under the 
Agreement, as granted by the Commission.  In Article 6 of the Regulation, the preferential 
treatment is granted in all cases (and not in exception al circumstances) though only when the 
product is definitively imported into  the customs territory of the Party. The approval of the 
Commission remains mandatory.48 Moreover, The Regulation provides that the administrative 
authorities of the importing Party  shall establish the mechanisms necessary for the appropriate 
admission of the goods covered by the Agreement and which have been processed in the free 
zones.49  
3.4.5.2   Facilitation, cooperation and exchange of commercial information  
3.37.   Article XIII of the Agreement contains various commitments made by the Parties to 
strengthen their economic cooperation. In particular, the Parties agree to allocate resources to  
promot e trade between them selves ; the exchange of commercial delegations; as well as 
participation in comme rcial fairs in each other's territories.  
3.38.   The Parties also agree to exchange information on their respective markets with a view to 
contribute to the strengthening of bilateral trade.  
3.39.   Through the establishment of a bilateral business Committee, the Parties undertake to 
provide all the necessary assistance to the business communities of both Parties in order to 
promote and facilitate commercial relations between them.  
3.40.   Article 67 of the Regulation reiterates some of these commitments. Both Parties also agree 
to exchange , on a semi-annual basis , updated information on all aspects that relate to the 
operation of the Agreement and the Regulation.  
3.41.   In Articles XIV of the Agreement, the Parties commit to facilitate trade under  the Agreement 
through the establishment  of mechanisms necessary to optimize the use of financial, 
transportation and storage facilities, as well as to implement a system of payment compensation.  
These commitments  are reiterated in Article 79 of the Regulation.50 
3.4.5.3   Transit  
3.42.   Under Chapter VI of the Regulation , which  complements Article XII of the Agreement , the 
Parties agree to accord full freedom of transit across each Party  for goods destined to the other 
Party. In Article 68 of the Regulation specific modalities address the treatment of transit 
operation s. Nevertheless, goods in transit remain subject to the payment of fees for the delivery of 
the service, as applicable, and to the fulfilment of health -related measure s and/or security and 
police -related operations.  
 
                                                
48 The Parties clarify that this provision has not been used. An interested Party can submit its interest to 
the Commission, and commit to clear ly indicate the place of manufacture of the articles, prior to the 
negotiation of each one of them.  
49 The Dominican Republic clarifies that the  only mechanism for granting access to free trade zone 
products is the product list in Section IV of the Annex to  the Agreement (List of Products Manufactured in Free 
Trade Zones ). For the rest, the customs procedure to determine the origin is the same ap plicable to all other 
products.  
50 The Parties clarify that, although it is contemplated in the Agreement, no such  system has been 
defined yet.  WT/COMTD/RTA/10/1  
 
- 20 - 
 
  4  GENERAL PROVISIONS O F THE AGREEM ENT 
4.1  Transparency  
4.1.  Article XIII of the Agreement and 67 of the Regulation define certain mechanisms to promote 
and contribute to transparency in relation to the objectives pursued in the Agreement. The section 
above on facilitation, cooperation and exchange of commercial information details some of the 
commitments made by the  Parties.  
4.2.  Moreover, i n Article XV of the Agreement, the Parties agree to notify each other  when 
modifications are made to their monetary system s. 
4.2  Current payments and capital movements  
4.3.  The Agreement foresees that all payments resulting from commercial transactions between 
the Parti es shall be made in US dollars through the Payment and Reciprocal Credits Agreement 
established between the Dominican Republic Central Bank and the National Bank  of Panama 
(Article XI of the Agreement).  In this context,  Article 66 of the Regulation states  that the Parties 
shall coordinate the necessary mechanisms allowing implementing  the Payment and Reciprocal 
Credits mechanism.  Moreover , the Parties also commit, in Article XIV of the Agreement, to 
implement a system of payment compensation .51 
4.3  Exceptions  
4.4.  Though t he Agreement does not specifically refer to either general or security exceptions , it 
implicitly makes a general reference to them in Article IX of the Agreement, which states that the 
prohibition of quantitative restrictions does not apply to, inter alia , safety or police controls 
applicable in the territories of the Parties.   
4.4  Accession and Withdrawal  
4.5.  The Agreement does not cont ain any specific provision on accession to the Agreement. It 
however provides, in Article XX of the Agreement, for the possibility granted to a Party to 
denounce the Agreement at any time, with the Agreement ceasing to exist one year after such 
notificatio n. Moreover, the Agreement is concluded initially for a duration of 10 years from the 
date of exchange of the instruments of ratification. It is then automatically extended for period s of 
5 years unless the Parties decide otherwise (Article XX).   
4.5  Institutional framework  
4.6.  A Permanent Mixed  Commission (referred to "the Commission" in the present factual 
presentation) is established by Article XVI to, inter alia , coordinate actions to be developed in 
compliance with the Agreement. Among the initial att ributions of the Commission (Article XVII of 
the Agreement) was the approval  of the List of preferential tariff concessions grant ed by each 
Party.  This was achieved in 2003, paving the way for the entry into force of the tariff preferences 
on 2 November fo r the products identified in the Annex to the Regulation.  The Commission is also 
mandated to study and resolve problems and conflicts related to the application of the Agreement 
and possible unfair trade practices that may affect trade between Parties . The Commission may 
also, inter alia , propose modification s or extension s of the Agreement to the Parties, establish 
criteria and norms that may be adopted for the determination of the origin of the goods covered 
by the Agreement ; carry out the functions, work  and studies entrusted to it by the Parties; and 
recommend mechanisms that can promote joint investments for the development of new activities 
of particular interest to both Parties. Chapter VII of the Regulation of application52 clarifies and 
further devel ops the role and the main features of the Commission. It, inter alia , states that 
decisions by the Commission shall, in principle, enter into force on the date of and through an 
exchange of notes by the Parties. The Commission may also create and designate  permanent or 
                                                
51 The Parties clarify that, although it is contemplated in the Agreement, no such system has been 
defined yet in the context of current payments and capital movements.  
52 Articles 69 through 79 of the Regulation.  WT/COMTD/RTA/10/1  
 
- 21 - 
 
  temporary working groups involved with the development of studies or the execution of the work 
of the Commission.53  
4.7.  In addition and as a complement to the Commission, the Agreement establishes a Bilateral 
Business Committee (Art. XIII  of the Agreement ) and a Technical Committee on Rules of Origin 
(Article 54 of the Regulation).  
4.6  Dispute settlement  
4.8.  Under Article XVIII of the Agreement  the Parties  agree to resolve differences that may arise 
regarding the interpretation or application of t he spirit of the Agreement within and according to 
the dispute settlement provisions contained in the Regulation, in particular those included in 
Chapter VIII (Articles 80 through 84 of the Regulation).  
4.9.  According to the Regulation, disputes shall be resol ved, in the first instance through direct 
arrangement between both Parties' administrative authorities. Should such a process fail to resolve 
the issue, the matter may be referred to the Commission for consideration (Article 80). Chapter 
VIII of the Regula tion contains some procedural indications to guide the work of the Commission.  
4.10.   In case of dispute s between the Parties on the interpretation or application of any of the 
provisions of the Agreement, the Parties agree to follow the procedure described in A rticle 84 of 
the Regulation and summarized in Chart 4. 2, which involves , successively , consultations; 
consideration by the Commission; and arbitration. According to Article 84 of the Regulation, the 
Commission shall develop the procedural elements applicab le by the arbitration body.54  
Chart 4.1 Dispute Settlement Mechanism established by the Agreement  
 
4.7  Relationship with other agreements concluded by the Parties  
4.11.   Article XX of the Agreement confirms that the Parties may sign protocols and additional 
agreements that facilitate the execution of the Agreement.  
4.12.   The Agreement for the Promotion and Reciprocal Protection of Investments  (APRPI)  
between the Dominican Republ ic and Panama was signed  in Santo D omingo on 6 February 2003.55 
The exchange of letters  for the entry into force took place  on 15 December  2003 and 3 August  
2006. The APRPI entered into force on 17 September  2006. To date, there are no othe r relevant 
bilate ral agreements . 
                                                
53 The Parties clarify that they are currently having exchanges to consider the inclusion of more products 
within the framework of the Agreement.  
54 The Parties clarify that no such procedural elements have been developed yet. They also indicate 
that, to date, the dispute  settlement mechanism designed in the Agreement has never been used.  
55 Approved by Law No. 76 of 3 December  2003 and published in the Official Gazette of Panama No. 
24,943 of  9 December  2003.  
Direct arrangement between 
Administrative Authorities  
(Art. 80 R.)  
R: Regulation.  
Source:  WTO Secretariat based on the Agreement.  
Consultations (Art. 84a R.)  
Matter referred to the 
Commission (Art. 84b R.)  
Procedure to be developed by 
the Commission (Art. 84c R.)  
Arbitration (Art. 84c R.)  WT/COMTD/RTA/10/1  
 
- 22 - 
 
  4.13.   With respect to Panama , the Bilateral Protocols it concluded with five Central American  
States ( Guatemala, El Salvador, Honduras, Nicaragua, and Costa Rica)  are in force until the 
integration of Panama into the Central American Integration Subsystem (SICA) is completed .  
4.14.   Table 4.1 below shows the Parties' RTAs, notified and non -notified, other than the 
Agreement.  
Table 4.1 Panama  – Dominican Republic:  Participation in other RTAs (notified and non -
notified in force), as of 30 January  2018 
RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
Panama  
Mexico - Panama  01-Jul-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
EFTA - Central America  
(Costa Rica and Panama)  19-Aug-14a Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
European Union - Central America  01-Aug-13b Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
Central American Common 
Market (CACM) - Accession of 
Panama  06-May-13 c Goods  2017 GATT Art. XXIV  
Canada - Panama  01-Apr-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
United States - Panama  31-Oct-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Panama - Peru 01-May-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Panama – Nicaragua  
(Panama - Central America)d 21-Nov-09 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
Panama - Guatemala  
(Panama - Central America)d 20-Jun-09 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
Panama - Honduras  
(Panama - Central America)d 09-Jan-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Panama - Costa  Rica  
(Panama - Central America)d 23-Nov-08 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Panama - Chile 07-Mar-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
Panama - Singapore  24-Jul-06 Goods & 
Services  2007 GATT Art. XXIV & GATS Art. V  
Panama - Chinese Taipei  01-Jan-04 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Panama - El Salvador  
(Panama - Central America)d 11-Apr-03 Goods & 
Services  2005 GATT Art. XXIV & GATS Art. V  
Panama - Trinidad and Tobago  04-Jul-16 Goods  Not notified  
LAIA - Accession of Panama  03-May-12 Goods  Not notified  
Panama - Israel  06-Oct-10 Goods  Not notified  
Panama - Cuba  
[LAIA, AAP.CE N°71]  20-Aug-09 Goods  Not notified  
Colombia - Panama  
[LAIA, AAP.A25TM N°29]  01-Jan-95 Goods  Not notified  
Dominican Republic  
European Union - CARIFORUM 
States EPA  01-Nov-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
Dominican Republic - Central 
America - United States Free 
Trade Agreement (CAFTA -DR) 01-Mar-07 Goods & 
Services  2006 GATT Art. XXIV & GATS Art. V  
Dominican Republic - Central 
America  04-Oct-01e Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
CARICOM - Dominican Republic  05-Feb-02 Goods  Not notified  
a Dates of entry into force: For Costa Rica, Panama and Norway: 19 -Aug-14; For Costa Rica, Panama, 
Liechtenstein and Switzerland: 29 -Aug-14; For Costa Rica, Panama and Iceland: 5 -Sept-14. 
b  The notifications made in February 2013 (see WT/REG332/N/1 and S/C/N/680) st ated 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 dates of entry into force between the EU 
and Central American countries are awaited.  WT/COMTD/RTA/10/1  
 
- 23 - 
 
  c  The Central American Common Market (CACM) was notified in 1961 and entered in to force on 4 
June 1961. . 
d  [Panama: please clarify and confirm the current status of these bilateral protocols to the Central 
America -Panama Free Trade Agreement, following t he accession of Panama to the Central American 
Common Market in May 2013.]  
e Dominican Republic and El Salvador: 04 -Oct-01, Guatemala: 15 -Oct-01, Honduras: 19 -Dec-01, 
Costa Rica: 07 -Mar-02, and N icaragua : 03-Sept-02.  
Source:  WTO Secretariat.  
4.8  Government procurement  
4.15.   The Agreement does not contain specific provisions on government procurement.  
4.9  Intellectual Property Rights  
4.16.   The Agreement does not contain specific provisions on intellectual property rights . 
4.10  Other  
4.10.1   Review Clause  
4.17.   In Article VI of the Agreement, t he Parties undertake to examine annuall y, through the 
Commission , the result of the commercial exchange of the previous year with a view to evaluating 
trade developments and, as necessary, review the List of concessions . One of the objectives of the 
review  should be to increase reciprocal trade between the Parties for their mutual interest. Article 
78 of the Regulation complements the review clause. It mandates the Commission to conduct 
annual meetings to ensure compliance with Article VI. These meetings sh all be conducted in the 
course of the second half of each year .56  
4.10.2   Investment  
4.18.   One of the functions given to the Commission is to make recommendations to the Parties 
with respect to mechanisms that may contribute to the promotion of joint investments for the  
development of new activities of particular interests to both Parties.57  
4.10.3   Payment and reciprocal credit compensation agreements58 
4.19.   One of the functions given to the Commission is to propose to the Parties the approval of a 
payment and reciprocal credit compe nsation agreement.59  
                                                
56 The Parties clarify that, in practice, the meetings are held a s necessary for specific purposes.  
57 The Parties clarify that, to date, no recommendation has been made with respect to the promotion of 
joint investments.  
58 See also Section 4.2 above on current  payments and capital movements . 
59 The Parties clarify that t his has not taken place yet.  WT/COMTD/RTA/10/1  
 
- 24 - 
 
  ANNEX 1  
INDICATORS OF TRADE LIBERALIZATION UNDER  THE AGREEMENT  
Panama  
1. Table A1.1 shows tariff liberalization by Panama  in relation to imports from the Dominican 
Republic  (by total, agricultural and non -agricultural products). In 2003, Panama 's average applied 
MFN rate was 8.8% overall1 (7.6% for non -agricultural products and 15.4% for agricultural 
products2). 29.4% of Panama's tariff (2,523 tariff lines) was duty free on an MFN basis  in 20033 
(31.3% for non-agricultural products and 19.2% for agricultural products4) including  21 tariff lines 
(out of 153) covered by the Agreement already MFN duty -free before the entry into force of the 
Agreement.  At the time of entry into force of the Agreement ( 2 November 2003 ), the Dominican 
Republic 's exporters enjoyed an absolute margin of preference of 0.2% vis-à-vis the prevailing 
MFN tariff and 0.2 %, as well , for both non-agricultural  goods and agricultural products. The share 
of the 2,655 duty free tariff lines applicable to imports from the Dominican Republic  immediately 
at the entry into force of the Agreement , including the 153 lines covered by the Agreement,  was 
31.1% (20.8% for agricultural products and 33.1% for non -agricultural products).  
Table A1. 1 Panama: Indicators of MFN tariff rates and preferential rates for imports 
from the Dominican Republic  
Origin 
of 
goods  Year ALL PRODUCTS  Agricultural productsa 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 2003 8.8 12.5 29.4 15.4 19.1 19.2 7.6 11.1 31.3 
 2017 7.7 11.9 35.3 14.8 19.1 22.8 6.4 10.2 37.6 
DR 2003 8.6 12.5 31.1 15.2 19.2 20.8 7.4 11.1 33.1 
a WTO Definition.  
Note:  Based on the HS 1996 nomenclature.  
Source:  WTO estimates based on data provided by Panama authorities and the WTO -IDB. 
 
2. Table A1.2 a gives an indication of additional market access in Panama resulting from the 
entry into force of the Agreement for the Dominican Republic's top 25 global exports, which 
accounted for 71.2% of its global exports in 2001 -2003 and corresponded to 88 lines in  Panama's 
tariff at the HS six-digit level (using the HS  1996). In 2003, prior to the entry into force of the 
Agreement, 16 of these tariff lines already had (MFN) duty free access to Panama's market. With 
the entry into force of the Agreement, in November  2003, 2 additional tariff lines among those 
corresponding to the Dominican Republic's 25 top global exports became duty free; leaving 70 
tariff lines with MFN dutiable tariffs . 
 
 
 
 
 
 
                                                
1 7.7% in 2017.  
2 For 2017, these figures are, respectively 6.4% and 14.8%.  
3 35.3% in 2017.  
4 For 2017, these figures are, respectively 37.6% and 22.8%.  WT/COMTD/RTA/10/1  
 
- 25 - 
 
  Table A1.2a Panama: Market access opportunities under the agreement for Dominican 
Republic's top 25 exports to the world  
Dominican Republic 's top export products  
in 20 01 -2003 Access Conditions to Panama 's import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2003  No. of 
duty free 
lines 
under the 
agreement  
2003  
Remain  
Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
duty 
free 
lines  No. of 
dutiable  
lines  
901890  Instruments and appliances used in 
medical, surgical or veterinary 
sciences, n.e.s.  7.3 6.3 2 2 1 1 
620711  Men's or boys' underpants and 
briefs of cotton (excl. knitted or 
crocheted)  6.9 15.0  2  2 
711319  Articles of jewellery and parts 
thereof, of precious metal other 
than silver, whether or not plated 
or clad with precious metal  6.8 10.0  1  1 
620342  Men's or boys' trousers, bib and 
brace overalls, breeches and shorts, 
of cotton  6.5 13.0  10  10 
620349  Men's or boys' trousers, bib and 
brace overalls, breeches and shorts 
of textile materials  5.7 13.5  10  10 
720260  Ferro-nickel  4.6 15.0  1  1 
240210  Cigars, cheroots and cigarillos 
containing tobacco  4.2 15.0  1  1 
271000  Petroleum oils and oils obtained 
from bituminous minerals (excl. 
crude); preparations containing >= 
70% by weight of petroleum oils or 
of oils obtained from bituminous 
minerals, these oils b eing the basic 
constituents of the preparations, 
n.e.s.  3.2 6.4 13 8  8 
621210  Brassieres of all types of textile 
materials, whether or not 
elasticated, incl. knitted or 
crocheted  2.4 15.0  1  1 
620791  Men's or boys' singlets and other 
vests, bathrobes, dressing gowns 
and similar articles of cotton  2.3 13.8  4  4 
853690  Electrical apparatus for switching 
electrical circuits, or for making 
connections to or in electrical 
circuits, for a voltage <= 1.000  v 2.1 10.0  2  2 
853650  Switches for a voltage <= 1.000 v  2.0 5.0  1  1 
481890  Paper, cellulose wadding or webs of 
cellulose fibres, of a kind used for 
household or sanitary purposes, in 
rolls of a width < = 36 cm, or cut to 
size or shape; articles of paper 
pulp, paper, cellulose wadding or 
webs of cellulose fibres for 
household, sanitary or hospital use  1.9 10.0  2  2 
170111  Raw cane sugar  1.8 151.0   1  1 
620462  Women's or girls' trousers, bib and 
brace overalls, breeches and shorts 
of cotton  1.6 12.5  6  6 
853110  Burglar or fire alarms and similar 
apparatus  1.5 10.0  1  1 
180100  Cocoa beans, whole or broken, raw 
or roasted  1.4 15.0  1  1 WT/COMTD/RTA/10/1  
 
- 26 - 
 
  Dominican Republic 's top export products  
in 20 01 -2003 Access Conditions to Panama 's import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2003  No. of 
duty free 
lines 
under the 
agreement  
2003  
Remain  
Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
duty 
free 
lines  No. of 
dutiable  
lines  
610990  T-shirts, singlets and other vests of 
textile materials, knitted or 
crocheted  1.4 10.0  2  2 
610690  Women's or girls' blouses, shirts 
and shirt -blouses of textile 
materials, knitted or crocheted  1.2 12.5  2  2 
851790  Parts of electrical apparatus for line 
telephony or line telegraphy, incl. 
line telephone sets with cordless 
handsets and telecommunication 
apparatus for carrier -current line 
systems or digital line systems and 
videophones, n.e.s.  1.2 5.0  1 1  
640610  Uppers and parts thereof  1.1 0.0 1    
640590  Footwear with outer soles of rubber 
or plastics, with uppers other than 
rubber, plastics, leather or textile 
materials; footwear with outer soles 
of leather or composition leather, 
with uppers other than leather or 
textile materials; footwear with 
outer so les of wood, cork, 
paperboard, furskin, felt, straw, 
loofah, etc., with uppers other than 
leather, composition leather or 
textile materials, n.e.s.  1.1 15.0  2  2 
611249  Women's or girls' swimwear of 
textile materials, knitted or 
crocheted  1.0 10.0  1  1 
080300  Bananas, incl. plantains, fresh or 
dried 0.9 13.8  4  4 
620899  Women's or girls' singlets and other 
vests, briefs, panties, neglige es, 
bathrobes, dressing gowns, 
housecoats and similar articles of 
textile materials  0.9 14.2  6  6 
  Total of above  71.2  16 72 2 70 
Note:  Based on the HS 1996 nomenclature . 
Source:  WTO estimates based on data provided by Panama authorities, WTO -IDB and the UNSD, Comtrade 
database.  
 
3. Table A1.2 b gives similar information as the previous Table (A1.2a) using data from the 
period 2013 -2015. The list of the  Dominican Republic 's top 25 global exports  products is therefore 
slightly different than if based on the 2001 -2003 data. It accounted for 66% of its global exports in 
2013-2015 and corresponded to 104 lines in Panama 's tariff. In 2003, prior to the entry into force 
of the Agreement, 27 of these tariff lines already had (MFN) duty free access to Panama 's market. 
With the ent ry into force of the Agreement  5 additional tariff lines among those corresponding  to 
the Dominican Republic's 25 top global exports also became duty free; leaving 72 tariff lines with 
MFN dutiable tariffs . WT/COMTD/RTA/10/1  
 
- 27 - 
 
  Table A1.2b Panama: Market access opportunities under the agreement for Dominican 
Republic's top 25 exports to the world  
Dominican Republic 's top export products  
in 201 3 -2015 Access Conditions to Panama 's import markets  
HS number and description of 
the product  Share in 
global 
exports 
(%) MFN 2003  No. of duty 
free lines 
under the 
agreement  
2003  
Remain  
Dutiable  
Average 
MFN 
applied  
rate (%)  No. of 
duty 
free 
lines  No. of 
dutiable  
lines  
710812  Gold, incl. gold plated 
with platinum, 
unwrought, for non -
monetary purposes (excl. 
gold in powder form)  14.8 0.0 1    
901890  Instruments and 
appliances used in 
medical, surgical or 
veterinary sciences, 
n.e.s.  9.0 6.3 2 2 1 1 
240210  Cigars, cheroots and 
cigarillos containing 
tobacco  6.3 15.0  1  1 
853620  Automatic circuit 
breakers for a voltage 
<= 1.000 v  4.1 3.0  1  1 
610910  T-shirts, singlets and 
other vests of cotton, 
knitted or crocheted  3.3 10.0  2  2 
271000  Petroleum oils and oils 
obtained from bituminous 
minerals (excl. crude); 
preparations containing 
>= 70% by weight of 
petroleum oils or of oils 
obtained from bituminous 
minerals, these oils being 
the basic constituents of 
the preparations, n.e.s.  2.8 6.4 13 8  8 
080300  Bananas, incl. plantains, 
fresh or dried  2.8 13.8  4  4 
711319  Articles of jewellery and 
parts thereof, of precious 
metal other than silver, 
whether or not plated or 
clad with precious metal 
(excl. articles > 100 
years old)  2.6 10.0  1  1 
180100  Cocoa beans, whole or 
broken, raw or roasted  2.4 15.0  1  1 
521213  Woven fabrics of  cotton, 
containing 
predominantly, but < 
85% cotton by weight, 
other than those mixed 
principally or solely with 
man-made fibres, 
weighing <= 200 g/m², 
dyed 1.9 0.0 1    
392690  Articles of plastics and 
articles of other materials 
of heading 3901 to 3914, 
n.e.s. 1.8 3.8 9 9 1 8 WT/COMTD/RTA/10/1  
 
- 28 - 
 
  Dominican Republic 's top export products  
in 201 3 -2015 Access Conditions to Panama 's import markets  
HS number and description of 
the product  Share in 
global 
exports 
(%) MFN 2003  No. of duty 
free lines 
under the 
agreement  
2003  
Remain  
Dutiable  
Average 
MFN 
applied  
rate (%)  No. of 
duty 
free 
lines  No. of 
dutiable  
lines  
640510  Footwear with uppers of 
leather or composition 
leather  1.8 15.0  2  2 
640399  Footwear with outer soles 
of rubber, plastics or 
composition leather, with 
uppers of leather  1.6 11.7  9  9 
300610  Sterile surgical catgut, 
similar sterile suture 
materials and sterile 
tissue adhesives for 
surgical wound closure; 
sterile laminaria and 
sterile laminaria tents; 
sterile absorbable 
surgical or dental 
haemostatics  1.5 7.5  2 1 1 
252329  Portland cement (excl. 
white, whether or not 
artificially coloured)  1.1 10.0  1  1 
170111  Raw cane sugar (excl. 
added flavouring or 
colouring)  1.1 151.0   1  1 
621210  Brassieres of all types of 
textile materials, whether 
or not elasticated, incl. 
knitted or crocheted  1.1 15.0  1  1 
620342  Men's or boys' trousers, 
bib and brace overalls, 
breeches and shorts, of 
cotton  1.0 13.0  10  10 
220840  Rum and tafia  0.9 15.0  1 1  
210390  Preparations for sauces 
and prepared sauces; 
mixed condiments and 
seasonings (excl. soya 
sauce, tomato ketchup 
and other tomato sauces, 
mustard, and mustard 
flour and meal)  0.9 15.0  6  6 
901839  Needles, catheters, 
cannulae and the like, 
used in medical, surgical, 
dental or veterinary 
sciences  0.7 10.0  1  1 
520939  Woven fabrics of cotton, 
containing >= 85% 
cotton by weight and 
weighing > 200 g/m², 
dyed  0.7 0.0 1    
110100  Wheat or meslin flour  0.7 10.0  2  2 
260300  Copper ores and 
concentrates  0.7 10.0  1  1 
630790  Made up articles of textile 
materials, incl. dress 
patterns, n.e.s.  0.7 14.1  11 1 10 
 Total of above  66.0  27 77 5 72 
Note:  Based on the HS 1996 nomenclature . 
Source:  WTO estimates based on data provided by Panama authorities, WTO -IDB and the UNSD, Comtrade 
database.  WT/COMTD/RTA/10/1  
 
- 29 - 
 
  The Dominican Republic  
4. Table A1.3  shows tariff liberalization by the Dominican Republic in relation to imports from 
Panama (by total, agricultural and non -agricultural products). In 2003, the Dominican Republic's 
average applied MFN rate  was 8.8% overall5 (8% for non -agricultural products and 13.4% for 
agricultural products6). 13.2% of the Dominican Republic's tariff (900 tariff lines) was duty free on 
an MFN basis in 20037 (12.6% of non -agricultural products and 16.8% of agricultural pro ducts8), 
including 11 tariff lines (out of 152) covered by the Agreement already MFN duty -free before the 
entry into force of the Agreement . At the time of entry into force of the Agreement (2 November 
2003), Panama's exporters enjoyed an absolute margin o f preference of 0.3% vis-à-vis the 
prevailing MFN tariff . The share of the 1,041 duty free tariff lines applicable to imports from 
Panama immediately at the entry into force of the Agreement, including the 152 lines covered by 
the Agreement, was  15.3%  (18.7% for agricultural products and 14.7% for non -agricultural 
products).  
Table A1. 3 Dominican Republic: Indicators of MFN tariff rates and preferential rates for 
imports from Panama  
Origin 
of 
goods  Year ALL PRODUCTS  Agricultural productsa 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 2003 8.8 10.1 13.2 13.4 16.2 16.8 8.0 9.1 12.6 
 2017 7.6 16.3 53.4 12.9 18.9 31.7 6.6 15.5 57.3 
Panama  2003 8.5 10.0 15.3 13.1 16.1 18.7 7.7 9.0 14.7 
a WTO Definition.  
Note:  Based on the HS 2002 nomenclature.  
Source:  WTO estimates based on data  provided by the Dominican Republic authorities and the WTO -IDB. 
 
5. Table A1.4 a gives an indication of additional market access in the Dominican Republic 
resulting from the entry into force of the Agreement for Panama's top 25 glob al exports, which 
accounted for 77.7% of its global exports in 2001 -2003 and corresponded to 58 lines in the 
Dominican Republic's tariff at the HS six -digit level (using the HS  2002). In 2003, prior to the 
entry into force of the Agreement, 3 of these tari ff lines already had (MFN) duty free access to the 
Dominican Republic's market. With the ent ry into force of the Agreement 11 additional tariff lines, 
out of the overall 55 dutiable lines under the Dominican Republic's tariff covering Panama's 25 top 
globa l exports, became duty free for exports from Panama. 44 tariff lines therefore remained 
dutiable for exports, including exports originating in Panama .  
                                                
5 7.6% in 2017.  
6 For 2017, these figures are, respectively 6.6% and 12.9%.  
7 53.4% in 2017.  
8 For 2017, these figures are, respectively 57.3% and 31.7%.  WT/COMTD/RTA/10/1  
 
- 30 - 
 
  Table A1.4a Dominican Republic: Market access opportunities under the agreement for 
Panama's top 25 expo rts to the world.  
Panama 's top export products  
in 2001 - 2003  Access Conditions to Dominican Republic 's 
import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2003  No. of 
duty free 
lines 
under the 
agreement  
in 2003  
Remain  
dutiable  
Average 
MFN 
applied 
rate 
(%) 
No. of 
duty free  
lines  
No. of 
dutiable 
lines 
080300  Bananas, incl. plantains, fresh or 
dried 14.7 20.0  4  4 
030342  Frozen yellowfin tunas "thunnus 
albacares"  10.6 3.0  1  1 
030410  Fresh or chilled fillets and other fish 
meat, whether or not minced  8.2 20.0  4  4 
030613  Frozen shrimps and prawns, whether 
in shell or not, incl. shrimps and 
prawns in shell, cooked by steaming 
or by boiling in water  7.8 20.0  2 2  
030219  Fresh or chilled salmonidae  (excl. 
trout "salmo trutta, oncorhynchus 
mykiss, oncorhynchus clarki, 
oncorhynchus aguabonita, 
oncorhynchus gilae, oncorhynchus 
apache and oncorhynchus 
chrysogaster", pacific salmon 
"oncorhynchus nerka, oncorhynchus 
gorbuscha, oncorhynchus keta, 
oncorhync hus tschawytscha, 
oncorhynchus kisutch, oncorhynchus 
masou and oncorhynchus rhodurus", 
atlantic salmon "salmo salar" and 
danube salmon "hucho hucho")  5.7 20.0  1 1  
080719  Fresh melons (excl. watermelons)  3.0 20.0  1  1 
010210  Pure-bred breeding bovines  2.8 0.0 1    
030559  Dried fish, salted, not smoked (excl. 
cod and other fillets)  2.4 14.0  2  2 
160520  Shrimps and prawns, prepared or 
preserved  2.4 20.0  1 1  
080711  Fresh watermelons  1.8 20.0  1  1 
170111  Raw cane sugar (excl. added 
flavouring or colouring)  1.8 15.0  1  1 
020130  Fresh or chilled bovine meat, 
boneless  1.5 40.0  2  2 
030269  Fresh or chilled freshwater and 
saltwater fish  1.4 20.0  1  1 
090111  Coffee (excl. roasted and 
decaffeinated)  1.4 14.0  1  1 
300390  Medicaments consisting of two or 
more constituents mixed together for 
therapeutic or prophylactic uses, not 
in measured doses or put up for 
retail sale  1.4 3.0  1 1  
960390  Mops and leather dusters; prepared 
knots and tufts for broom or brush 
making; squeegees of rubber or 
other flexible materials; brooms and 
brushes, n.e.s.  1.3 18.5  4 2 2 
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, 
n.e.s.  1.3 10.3  6  6 WT/COMTD/RTA/10/1  
 
- 31 - 
 
  Panama 's top export products  
in 2001 - 2003  Access Conditions to Dominican Republic 's 
import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2003  No. of 
duty free 
lines 
under the 
agreement  
in 2003  
Remain  
dutiable  
Average 
MFN 
applied 
rate 
(%) 
No. of 
duty free  
lines  
No. of 
dutiable 
lines 
030611  Frozen rock lobster and other sea 
crawfish "palinurus spp.", "panulirus 
spp." and "jasus spp.", whether in 
shell or not, incl. rock lobster and 
other sea crawfish in shell, cooked by 
steaming or by boiling in water  1.2 20.0  1 1  
271011  Light oils and preparations, of 
petroleum or bituminous minerals 
which >= 90% by volume distil at 
210°c  1.1 5.8  12 1 11 
271091  Waste oils containing polychlorinated 
biphenyls [pcbs], polychlorinated 
terphenyls [pcts] or polybrominated 
biphenyls [pbbs]  1.1 14.0  1  1 
271099  Waste oils containing mainly 
petroleum or bituminous minerals 
(excl. those containing 
polychlorinated biphenyls [pcbs], 
polychlorinated terphenyls [pcts] or 
polybrominated biphenyls [pbbs])  1.1 14.0  1  1 
240210  Cigars, cheroots and  cigarillos 
containing tobacco  1.1 20.0  1  1 
210390  Preparations for sauces and prepared 
sauces; mixed condiments and 
seasonings  1.0 20.0  3  3 
230120  Flours, meals and pellets of fish or 
crustaceans, molluscs or other 
aquatic invertebrates, unfit for 
human consumption  1.0 4.0 1 1  1 
030623  Shrimps and prawns, whether in 
shell or not, live, dried, salted or in 
brine, incl. shrimps and prawns in 
shell, cooked by steaming or by 
boiling in water  0.9 13.3 1 2 2  
Total of the above  77.7  3 55 11 44 
Note:  Based on the HS 2002 nomenclature.  
Source:  WTO estimates based on data provided by the Dominican Republic authorities, WTO -IDB and 
Instituto Nacional de Estad ística y Censo (INEC) . 
6. Table A1.4 b gives similar informa tion as the previous Table (A1.4 a) using data from the 
period 2013 -2015.  The list of Panama's top 25 global exports products is therefore slightly 
different than if based on the 2001 -2003 data.  These products accounted for 75.2% of its global 
exports in 2013 -2015 and corresponded to 44 lines. In 2003, prior to the entry into force of the 
Agreement, 2 of these tariff lines already had (MFN) duty free access to the Dominican Republic's  
market . With the en try into force of the Agreement,  8 additional tariff line s out of the overall 
42 dutiable lines under the Dominican Republic's tariff covering  Panama's 25 top global exports 
became  duty free for exports from Panama. 34 tariff lines therefore remained dutiable for exports, 
including exports originating in Panama .  WT/COMTD/RTA/10/1  
 
- 32 - 
 
  Table A1.4b Dominican Repub lic: Market access opportunities under the agreement for 
Panama's top 25 exports to the world.  
Panama 's top export products  
in 2013 - 2015  Access Conditions to Dominican Republic 's 
import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2003  No. of 
duty free 
lines 
under the 
agreement  
in 
2003  
Remain  
dutiable  
Average 
MFN 
applied 
rate 
(%) 
No. of 
duty 
free 
lines  
No. of 
dutiable 
lines 
080300  Bananas, incl. plantains, fresh or 
dried 12.4 20.0  4  4 
160520  Shrimps and prawns, prepared or 
preserved  4.7 20.0  1 1  
030613  Frozen shrimps and prawns, whether 
in shell or not, incl. shrimps and 
prawns in shell, cooked by steaming 
or by boiling in water  4.7 20.0  2 2  
080430  Fresh or dried pineapples  4.2 20.0  2  2 
030219  Fresh or chilled salmonidae  4.1 20.0  1 1  
720410  Waste and scrap, of cast iron "ecsc" 
(excl. radioactive)  4.0 3.0  1  1 
230120  Flours, meals and pellets of fish or 
crustaceans, molluscs or other 
aquatic invertebrates, unfit for 
human consumption  3.8 4.0 1 1  1 
170111  Raw cane sugar (excl. added 
flavouring or colouring)  3.0 15.0  1  1 
710812  Gold, incl. gold plated with platinum, 
unwrought, for non -monetary 
purposes (excl. gold in powder form)  2.9 14.0  1  1 
740400  Waste and scrap, of copper  2.8 3.0  1  1 
220840  Rum and tafia  2.7 20.0  1 1  
020230  Frozen, boneless meat of bovine 
animals  2.6 22.5  2  2 
410419  Hides and skins of bovine "incl. 
buffalo" or equine animals, in the wet 
state "incl. wet -blue", tanned, 
without hair on, whether or not split  2.4 8.0  1  1 
300490  Medicaments consisting of mixed or 
unmixed products for therapeutic or 
prophylactic purposes, put up in 
measured doses "incl. those in the 
form of transdermal administration" 
or in forms or packings for retail sale  2.3 3.0  6 3 3 
030269  Fresh or chilled freshwater and 
saltwater fish  2.2 20.0  1  1 
760200  Waste and scrap, of aluminium  2.2 3.0  1  1 
080711  Fresh watermelons  2.0 20.0  1  1 
440399  Wood in the rough, whether or not 
stripped of bark or sapwood, or 
roughly squared  1.9 3.0  3  3 
440349  Tropical wood specified in the 
subheading note 1 to this chapter in 
the rough, whether or not stripped of 
bark or sapwood, or roughly squared  1.8 3.0  3  3 
151110  Crude palm oil  1.8 3.0  1  1 
481910  Cartons, boxes and cases, of 
corrugated paper or paperboard  1.7 14.0  1  1 
030379  Frozen freshwater and saltwater fish  1.6 20.0  1  1 WT/COMTD/RTA/10/1  
 
- 33 - 
 
  Panama 's top export products  
in 2013 - 2015  Access Conditions to Dominican Republic 's 
import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2003  No. of 
duty free 
lines 
under the 
agreement  
in 
2003  
Remain  
dutiable  
Average 
MFN 
applied 
rate 
(%) 
No. of 
duty 
free 
lines  
No. of 
dutiable 
lines 
150420  Fats and oils of fish and their 
fractions, whether or not refined 
(excl. liver oils and chemically 
modified)  1.2 3.0  2  2 
090122  Roasted, decaffeinated coffee  1.1 20.0  1  1 
761290  Casks, drums, cans, boxes and 
similar containers, incl. rigid or 
collapsible tubular containers, of 
aluminium, for any material (other 
than compressed or liquefied gas), of 
a capacity of <= 300 l, n.e.s.  1.0 5.3 1 2  2 
Total of the above  75.2  2 42 8 34 
Note:   Based on the HS 2002 nomenclature.  
Source:  WTO estimates based on data provided by the Dominican Republic authorities, WTO -IDB and 
Instituto Nacional de Estad ística y Censo (INEC).  
__________