WORLD TRADE  
ORGANIZATION  G/ADP/Q1/PAN/10 
G/SCM/Q1/PAN/10 28 April 2009 
 
 
(09-2041) 
Committee on Anti-Dumping Practices Committee on Subsidies and Countervailing Measures Original:   Spanish 
 
 
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS 
 
Replies to the Questions Posed by the EUROPEAN COMMUNITIES
1 
Regarding the Notification of PANAMA2 
   The following communication, dated 23 April 2009,  is being circulated at the request of the 
delegation of Panama. 
 
_______________ 
 
 
Question 1
 
 Article 12.4 provides that the Executive Organ shall establish the appropriate statistical 
methodology to be used for making fair pr ice comparisons for the purpose of determining 
dumping margins.  Could Panama please cl arify whether such methodology has been 
established, what its contents are and how it relates to Article 2.4.2 of the Anti-Dumping 
Agreement? 
 Reply
 
  Panama has established the methodology, whic h is set out in Article 25 of Executive Decree 
No. 1 of 8 January 2009 "Regulating Decree Law No . 7 of 15 February 2006, which establishes rules 
for the protection and safeguarding of national production and enacting other provisions".  The 
methodology consists of determining the differen ce between the normal value of the like product in 
the exporting country in the ordinary course of trade and the export price.  The Regulations 
implementing the Trade Protection Law abide by the parameters established in  Article 2.4.2 of the 
Anti-Dumping Agreement.  
Question 2
 
 
 Article 14 on threat of material injury  does not require that the increase of dumped 
imports and the likelihood of price depression or suppression should be significant, nor does it 
specify that the change in circumstances, whic h would create a situation in which the dumping 
would cause injury, must be clearly foreseen a nd imminent.  Could Panama please confirm that 
Article 3.7 ADA is fully applied?  
                                                     
 
1 G/ADP/Q1/PAN/6-G/SCM/Q1/PAN/6. 
2 G/ADP/N/1/PAN/2. G/ADP/Q1/PAN/10 
G/SCM/Q1/PAN/10 Page 2 
 
 
  Reply
 
  Executive Decree No. 1 of 8 January 2009, which implements the Trade Protection Law, 
recapitulates in Article 14 the provisions of Article  3.7 of the Anti-Dumping Agreement by providing 
that dumping will only be considered to constitute a threat of material injury when the change in 
circumstances which would create a situation in which the dumping would cause material injury is 
clearly foreseeable and imminent.  Panama therefore considers that it is in full compliance with the said Article of the Anti-Dumping Agreement.  Question 3
 
 
 Article 15 defines as one of the conditions for cumulation that products are "competitive 
with each other and with the domestic product".  This wording does not seem to fully cover the 
criteria set out in Article 3.3(b) of the ADA, which refers to the broader concept of conditions of 
competition.  In the light of this, could Pa nama please explain how it applies Article 15? 
 
Reply  
  Panama applies the provisions laid down in Article 16 of Executive Decree No. 1 of 
8 January 2009, which are entirely consistent with  Article 3.3(b) of the Anti-Dumping Agreement. 
 
Question 4
 
 
 According to Article 18, there shall be a ca usal link between the imports that are the 
subject of unfair trade practices and the injury to the domestic industry when the actual or 
potential material injury, damage, prejudice or impairment to the domestic industry producing 
the like product is a consequence of such impo rts.  Could Panama please clarify how it is 
ensured that the authorities examine the factors listed in Article 3.5 ADA? 
 
Reply  
 
 Panama can ensure that the factors listed in  Article 3.5 of the Anti-Dumping Agreement will 
be examined, pursuant to the powers conferred under Article 17 of Executive Decree No. 1 of 
8 January 2009, which states that the Investigatin g Authority shall conduct an examination of all 
relevant evidence available to it.  Question 5
 
 
 Could Panama please explain who are the "authorised parties" that can request a 
review under Article 19 and what type of authorisation is required? 
 
Reply  
 
 This issue is regulated under Article 142 of Executive Decree No. 1 of 8 January 2009, which expands on Article 19 of Decree La w No. 7 of 2006 and states that, pursuant to Article 11.3 of the 
Anti-Dumping Agreement, the applicant shall prove that it has the status of interested party in 
conformity with the provisions of Article 8(g) of Executive Decree No. 1 of 2009.  The fact of not 
being an interested party in the or iginal investigation that led to th e imposition of measures shall in no 
way prevent a new producer from being given such status and, if it meets the representativeness 
requirements, being entitled to act as an applicant.    G/ADP/Q1/PAN/10 
 G/SCM/Q1/PAN/10 
 Page 3 
 
 
  Question 6  
 
 Pursuant to Article 22, the Decree Law also  applies where the products concerned are 
not imported directly from the country of origin but from a third country, in which case the 
transaction shall be deemed to have taken pla ce between the country of origin and the Republic 
of Panama.  How does this provision relate to Article 2.5 ADA? 
 
Reply  
 
 This provision relates to the said Article in  that it provides that where products are not 
imported directly from the country of origin but are exported from an intermediate country, 
comparison may be made with the price in the country  of origin, as articulated in Article 2.5 of the 
Anti-Dumping Agreement.  Question 7
 
 
 Article 23.1:  Could Panama please clarify when the investigating authority would 
consider the volume of exports of a newcomer as representative and how imports of the newcomer are treated during the review investigation? 
 Reply
 
  This issue is addressed in greater detail in Articles 133 and 134 of Executive Decree No. 1 of 
8 January 2009, which expand on matters pertaini ng to the newcomer review, in accordance with 
Article 9.5 of the Anti-Dumping Agreement. 
 
Question 8
 
 
 Article 27 seems to suggest that the standing requirements (50 per cent of total 
production of the like goods produced by that  portion of the domestic industry expressing 
support or opposition and 25 per cent of total production) are alternative conditions.  Could 
Panama please confirm that it applies thes e criteria cumulatively in accordance with 
Article 5.4 ADA? 
 
Reply  
 
 Article 5.4 of the Anti-Dumping Agreement pr ecisely defines the parameters which determine 
standing;  Panama therefore confirms that it app lies these criteria cumulatively, without contravening 
the provisions of the Anti-Dumping Agreement.  
Question 9
 
 
 According to Article 28.7, an application shall contain information on import volumes and prices.  Do the investigating authorities also  require information on the evolution of import 
volumes and prices, in accordance with Article 5.2(iv) ADA? 
 
Reply
 
 
 The review conducted by the Investigating Aut hority consists of verifying and examining the 
evolution of import volumes and prices, which are ma de available to the Investigating Authority by 
the petitioning domestic industry.  The Investigati ng Authority requests that this information be 
veridical and probative. G/ADP/Q1/PAN/10 
G/SCM/Q1/PAN/10 Page 4 
 
 
  Question 10
 
 
 Article 36 provides that the Ministry may re quest the interested parties to supply at 
their cost questionnaires, expert reports, opinions  or technical parameters, and to take such 
administrative steps as may contribute to verificati on of the facts alleged.  Could Panama please 
explain what type of reports, opinions, etc., apart from the reply to the questionnaire, the 
investigating authority could request?  What would be the consequences if the interested parties 
did not supply such evidence? 
 Reply
 
  The Investigating Authority forms an opinion on the basis of the information contained in the file, for which reason this information needs to be verified.  Verification is carried out in accordance 
with Article 36 of Decree Law No. 7 of 2006 a nd Articles 50 and 51 of Executive Decree No. 1 of 
2009.  Article 52 of Executive Decree No. 1 of 2009 refers to cases in which an interested party 
refuses access to the necessary information, does not allow its verification, does not provide it within 
a reasonable time or significantly impedes the inv estigation;  in such cases, the Investigating 
Authority may formulate preliminary or definitive positive or negative determinations on the basis of the known facts and the best information available.  Question 11
 
 
 It appears from Article 41 that the investigating authority provides disclosure of the 
essential facts which form the basis for the recomm endation to apply definitive measures, in the 
form of a hearing.  Is such disclosure also pr ovided in writing?  Is disclosure also provided to 
parties not attending the hearing?  
Reply
 
  The essential facts are disclosed to the parties pr ior to the hearing.  Article 112 of Executive 
Decree No. 1 of 2009 creates a clear obligation on the Investigating Authority to prepare a report on 
the essential facts, which shall be sent to all inte rested parties at the time of convening the final 
hearing.  
Question 12
 
 
 Articles 41-42:  Since parties are only given three working days after the hearing to submit written arguments, and the Ministry only has ten working days upon receipt of these submissions, how does Panama en sure compliance with Article 6.9 which states that disclosure 
should take place in sufficient time fo r the parties to defend their interests? 
 
Reply
 
 
 Article 6.9 of the Anti-Dumping Agreement concerns disclosure of the essential facts to the parties in sufficient time for them to defend their in terests.  Panama has established, in Article 112 of 
Executive Decree No. 1 of 2009, that the report on th e essential facts shall be sent to all interested 
parties at the time of convening the hearing.  This convocation shall be sent in accordance with 
Article 111 of Executive Decree No. 1 of 2009 no less than  seven calendar days before the date of the 
said hearing, precisely to ensure that the pa rties may effectively defend their interests. 
   G/ADP/Q1/PAN/10 
 G/SCM/Q1/PAN/10 
 Page 5 
 
 
  Question 13  
 
 Does Panama have specific rules on sampling,  reflecting Articles 6.10, 6.10.1, 6.10.2 and 
9.4 ADA or are these provisions directly applied? 
 
Reply  
  Panama currently has no specific rules on sampling.  Question 14
 
 
 Could Panama explain what other actions resulting in failure to pay the countervailing 
or anti-dumping duties would be covered by Article 94.5? 
 Reply
 
  Panamanian legislation is open-e nded and is not restricted to a specific number of situations.  
The provision covers any action resulting in failure to pay the duties imposed. 
 
Question 15
 
 
 A number of provisions of the ADA are not, or only very summarily, reflected in the 
law.  This is for example the case for the determ ination of normal value (Article 2.2.1, 2.2.1.1 
and 2.2.2 ADA);  the determination of injury and causal link (Article 3.2, 3.4, 3.5 and 3.6 ADA);  hearings (Article 6.2);  undertakin gs (Article 8 ADA);  imposition of duties (Article 9.2, 9.3.1, 
9.3.2 and 9.3.3);  retroactivity (Article 10.2, 10 .4 and 10.5);  public notices (Article 12).  Does 
Panama have more detailed rules on these i ssues, or is the ADA directly applied? 
 
Reply
 
  Panama implemented Decree Law No. 7 of 2006 through Executive Decree No. 1 of 2009, 
which can be consulted in Gaceta Oficial de Panamá  (Official Gazette) No. 26201.  Executive Decree 
No. 1 of 2009 was notified to the WTO in document G/ADP/N/1/PAN/2/Suppl.1, G/SCM/N/1/PAN/2/Suppl.1 and G/SG/N/1/PAN/2/Suppl.1.  
__________