WORLD TRADE  
ORGANIZATION  G/SG/N/7/PAN/1/Suppl.1 
G/SG/N/11/PAN/1/Suppl.1 24 April 2007 
 
 
(07-1672) 
Committee on Safeguards Original:   Spanish 
  
 
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON 
SAFEGUARDS RELATING TO A PROVISIONAL SAFEGUARD 
MEASURE PROVIDED FOR IN ARTICLE 6 
 
NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2, 
OF THE AGREEMENT ON SAFEGUARDS 
 
Supplement
 
  
 The following communication, dated 16 April 2007,  is being circulated at the request of the 
delegation of Panama.  
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 1. Specify the product subject to the proposed provisional safeguard measure  
See paragraph A.1 of document G/SG/N/11/PAN/1. 
2. Specify the proposed provisional safeguard measure 
 
See paragraph A.2 of document G/SG/N/11/PAN/1. 
3. Specify the proposed date of introduction of the provisional safeguard measure 
 
The provisional safeguard measure will enter into force on 12 April 2007, the date of the 
enactment and publication of the respective law in the Gaceta Oficial del Estado  (Official Gazette). 
4. Specify the expected duration of the provisional safeguard measure 
 
The provisional safeguard measure will remain in force throughout the investigation, provided 
that this period does not exceed 200 days. 
5. Provide the basis for: 
 
 (i) making a preliminary determination, as provided for in Article 6, that increased 
imports have caused or are threa tening to cause serious injury 
See paragraph A.5 of document G/SG/N/11/PAN/1. 
 (ii) the determination of critical circu mstances where delay would cause damage 
which it would be difficult to repair 
 
See paragraph A.6 of document G/SG/N/11/PAN/1. G/SG/N/7/PAN/1/Suppl.1 
G/SG/N/11/PAN/1/Suppl.1 Page 2 
 
 
  6. Offer of consultations under Article 12.4 
 
The Republic of Panama reiterates its offer of  consultations on the provisional safeguard 
measures at any time following their entry into force. 
7. Other information 
 
Annexed hereto is a copy of  Cabinet Decree No. 7 of 11 April 2007 Imposing provisional 
safeguard measures, as published in Offici al Gazette No. 25,769 of 12 April 2007.  G/SG/N/7/PAN/1/Suppl.1 
 G/SG/N/11/PAN/1/Suppl.1  Page 3 
 
 
  CABINET DECREE NO. 7 
(of 11 April 2007) 
 
Imposing Provisional Safeguard Measures 
 
THE CABINET COUNCIL, 
pursuant to the authority conferred upon it by the Constitution and the law, 
 
WHEREAS 
 
The Government of Panama recognizes the importa nce of taking action in the form of the 
introduction of emergency measures to counteract im ports of goods in such quantities or under such 
conditions as to cause or threaten to cause serious or material in jury to the Panamanian productive 
sector, in accordance with the parameters of the World Trade Organization;   
The commitments undertaken by the Republic of Panama upon accession to the World Trade 
Organization must be observed, in accordance w ith Law No. 23 of 1997 "Approving the Marrakesh 
Agreement Establishing the World Trade Organizati on and the Protocol of Accession of Panama to 
the said Agreement together with its annexes and schedule of commitments, bringing domestic 
legislation into line with international regulations, and enacting other provisions".  This Law reflects 
Panama's commitment to establishing and regulati ng trade protection procedures through its national 
legislation, in compliance with the guidelines and pr inciples set out in the corresponding agreements;   
Safeguard measures are regulated in the Re public of Panama by Decree Law No. 7 of 
15 February 2006 "Establishing rules for the protec tion and safeguarding of national production and 
enacting other provisions", in particular Title III:  Safeguard Measures;  Title IV: Administrative 
Investigation; and Title V:  Final Provisions, a nd by the Agreement on Safeguards, as contained in 
Law No. 23 of 1997 "Approving the Marrakesh Agreement Establishing the World Trade 
Organization and the Protocol of Accession of Pana ma to the said Agreement together with its 
annexes and schedule of commitments, bringing dom estic legislation into line with international 
regulations, and enacting other provisions";   
An application for an administrative investigati on with a view to the imposition of a safeguard 
measure was filed on 11 August 200 6 before the National Directorate for the Administration of 
International Trade Agreements and Trade Protecti on of the Ministry of Trade and Industry by the 
enterprise Celloprint, S.A., as part of the domestic  industry producing plastic sacks and bags, on the 
basis of Articles 61 et seq. of Decree Law No. 7 of 2006.  At the same time, Celloprint, S.A. made a 
special request for the application of a provisiona l safeguard measure throughout the duration of the 
administrative investigation;  
Pursuant to Resolution No. 001 of 11 Septem ber 2006 of the Chief of International Trade 
Negotiations under the Ministry of Trade and I ndustry, published in national newspapers on 
24 September 2006 and in Official Gazette of the Republic of Panama No. 25,642 of 
29 September 2006, an administrative investigation was initiated in respect of safeguard measures on 
the following products:  printed film in rolls for the manufacture of flexible packaging of "monolayer" 
polypropylene, and printed sheets in rolls for the manufacture of flexible packaging of "multilayer" 
polypropylene for packaging machines, both classi fied under subheading 3920.20.90 of Panama's 
Import Tariff; and printed film in rolls for the manufac ture of flexible packaging of polyvinyl chloride 
(PVC) for packaging machines, classified under subh eading 3920.49.00 of Panama's Import Tariff;   
 G/SG/N/7/PAN/1/Suppl.1 
G/SG/N/11/PAN/1/Suppl.1 Page 4 
 
 
  Pursuant to Resolution No. 002 of 6 February  2007 of the National Directorate for the 
Administration of International Trade Agreements an d Trade Protection of the Ministry of Trade and 
Industry, the Cabinet Council is recommended, as est ablished in Article 79 of Decree Law No. 7 of 
2006, to impose provisional safeguard measures on two of the products under investigation, given that 
the file reveals the existence of critical circ umstances where delay would cause damage to the 
domestic industry which it would be difficult to repa ir, pursuant to a preliminary determination that 
there is clear evidence that increased im ports have caused serious injury;    
The aforementioned Resolution No. 002 of 6 February 2007 clearly sets out the elements 
supporting the application of the provisional safeguard measure, as well as the relevant 
considerations, supporting evidence and period of application or duration recommended; 
In accordance with Article 200(7) of the Constitu tion of the Republic of Panama, the Cabinet 
Council is responsible for establis hing and amending tariffs, rates a nd other provisions pertaining to 
the customs regime.   
HEREBY DECREES THE FOLLOWING: 
 
Article 1.  A provisional safeguard measure is hereby imposed on printed film in rolls for the 
manufacture of flexible packaging of monolayer pol ypropylene for packaging machines, produced by 
the biaxially oriented blow-moulding process,  and classified under subheading 3920.20.90 of 
Panama's Import Tariff, equivalent to a 59.9 per cent surcharge on the c.i.f. value of the imported 
product, in addition to the MFN tariff of six per cent applicable to the product.   
 
Article 2.  A provisional safeguard measure is hereby imposed on printed film in rolls for the 
manufacture of flexible packaging of polyvinyl chlo ride (PVC) for packaging machines and classified 
under subheading 3920.49.00 of Panama's Import Tari ff, equivalent to a 79.0 per cent surcharge on 
the c.i.f. value of the imported product, in addition to the MFN tariff of zero per cent applicable to the 
product. 
 Article 3.   Pursuant to Article 60 of Decree Law No. 7 of 2006 and Article 9.1 of the Agreement on 
Safeguards, these provisional safeguard measures  shall not be applied against imports from 
developing country Members of the World Trad e Organization, with the exception of China, 
Colombia and Peru, given that developing countries with an individual share of less than three per 
cent (3%) of imports of printed polypropylene a nd PVC film into Panama do not collectively account 
for nine per cent (9%) or more of total imports.  Article 4.  The Investigating Authority is mandated to comp ly, within thirty (30) working days, with 
Article 76 of Decree Law No. 7 of 2006, which provides that the decision to end the administrative 
investigation shall be sent to the Cabinet Council.  
 Article 5.  Pursuant to Article 200(7) of the Constitution of the Republic of Panama, a certified copy 
of this Cabinet Decree shall be  sent to the National Assembly. 
 Article 6.  This Cabinet Decree shall take effect on the date of its enactment. 
 
FOR PUBLICATION AND IMPLEMENTATION  
Done at Panama City on the eleventh day of April of the year two thousand and seven (2007). 
MARTÍN TORRIJOS ESPINO 
President of the Republic  G/SG/N/7/PAN/1/Suppl.1 
 G/SG/N/11/PAN/1/Suppl.1  Page 5 
 
 
  Minister of the Interior and Justice 
OLGA GOLCHER  Minister of Foreign Affairs 
SAMUEL LEWIS NAVARRO 
 Minister of Education MIGUEL ANGEL CAÑIZALES  
Minister of Public Works 
BENJAMIN COLAMARCO PATIÑO  Minister of Health CAMILO ALLEYNE 
 
Minister of Labour and Labour Development  REYNALDO RIVERA  Minister (Acting) of Trade and Industry  CARMEN GISELA VERGARA 
 
Minister of Housing BALBINA HERRERA ARAUZ  Minister of Agricultural Development 
GUILLERMO SALAZAR NICOLAU 
 Minister of Social Development MARIA ROQUEBERT LEON  Minister of the Economy and Finance 
CARLOS VALLARINO R. 
 Minister for Canal Affairs RICAURTE VASQUEZ MORALES  
UBALDINO REAL SOLIS 
Minister of the Presidency and Secretary-General of the Cabinet Council   
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