WT/REG357/3  
 
2 May 2016  
(16-2460)  Page: 1/2  
Committee on Regional Trade Agreements  Original: English  
 
FREE TRADE AGREEMENT BETWEEN THE EFTA STATES AND CENTRAL AMERICA – 
COSTA RICA AND PANAMA (GOODS AND SERVICES) 
QUESTIONS AND REPLIES 
 The following communication, dated 29 April 2016,  is being circulated at the request of the 
delegations of the EFTA States and Central America (Costa Rica and Panama).  
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  This document reproduces the follow-up questions addressed to the Parties following 
the 80th Session of the CRTA and the responses submitted. 
 
Questions from the delegation of the United States 
 
1.1.  The Factual Presentation notes (para. 4. 17) that the Parties' schedules of specific 
commitments and MFN exemptions are subject to "periodic review." 
 Could the parties describe the struct ure and timeframe for these "periodic" 
reviews? How many reviews have been undertaken to date, and what have been the 
outcomes of these reviews? 
 
 With regard to the nature of commitments, the Factual Presentation suggests that, for a majority of Parties to this Agreement,  services liberalization commitments are not 
very different than those undertaken by those  Parties in the GATS. This is unfortunate. 
  The periodic review of the Schedules of Specific Commitments and the List of MFN 
Exemptions is foreseen under Article 4.20 of the Ag reement. This provision is aimed at achieving a 
higher level of liberalization. The meetings of  the Joint Committee under the Agreement provide 
the framework for such reviews. Reviews or commercial interest analyses have not been 
undertaken to date.  
 1.2.  With regard to investment in non-se rvices sectors, the Factual Presentation 
(para. 4.100) suggests that the Agreement allows the Parties to unilaterally add new 
reservations against the National Treatment obligation, after entry into force of the Agreement. 
 Could the Parties confirm whether this  description of th e operation of the 
Agreement with respect to investment is corre ct? If so, what is the trade policy rationale 
for allowing individual Parties to unilatera lly alter commitments to lessen the scope of 
non-discrimination?  
 
 The Agreement foresees the possibility for Parties to adopt new reservations as long as the Parties concerned ensure that the overall level of commitments under the Agreement is not affected (Article 5.4). Any new reservations need to be notified. The Agreement also provides for 
the possibility for any Party to request consultations on the reservation. 
 
 WT/REG357/3 
 
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  1.3.  Could the EFTA parties please indicate  when we can expect notification of its 
agreement with the GCC, which has been in force since July 2014? Why has this agreement not been notified sooner? 
 The Parties are currently discussing the appropriate format of the WTO notification.  
 
1.4.  We also note the list of non-notified LAIA agreements of which Panama is a party 
and we request that Panama notify th ose agreements as soon as possible.  
 The Republic of Panama is undergoing the due diligences with LAIA to notify these 
Agreements, within the framework of our commitments as Member of the WTO.  
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