WORLD TRADE  
ORGANIZATION  G/SG/Q1/PAN/5 
29 March 2010 
 (10-1680) 
Committee on Safeguards Original:   Spanish 
  
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLE 12.6 OF THE AGREEMENT 
 
Replies to the Follow-Up Qu estions from the UNITED STATES
1 
Regarding the Replies of PANAMA2 
 
  The following communication, dated 25 March 2010, is being circulated at the request of the delegation of Panama.  
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Question 1 
In its reply to US question 4(a) regarding Article 35(b)(ix)(x) (Determination of serious 
injury ) of the Executive Decree , Panama states that it will consider the impact of imports on the 
production of a "more restricted" group or rang e of domestic products when the domestic 
industry is unable to provide financial data relating to the production of the like or directly competitive domestic product. 
 
It is unclear to us what the term "more restricted" means in this context.  The term 
"more restricted" suggests that Panama might ba se an affirmative injury determination on a 
finding that imports of a product are causing or threatening to cause seriou s injury to domestic 
producers of only some of the like or directly co mpetitive domestic products.  This might cause 
Panama to overstate the impact of  increased imports.  Did Panama instead mean to state that, 
if it were unable to compile a data series for domestic firms on their operations producing the like or directly competitive product alone, it wo uld use the next available data series from those 
firms that included the financial and other da ta on their operations producing the like or 
directly competitive domestic product(s) and p erhaps other products produced in the same 
plants, on the same equipment and with the same workers? 
 
Reply
 
 
 The term "more restricted"  in the context of Article 35(b)(ix) and (x) of Executive 
Decree No. 1 of 2009  is used to establish the range or group of products that includes the like or 
directly competitive domestic product and on the basi s of which the impact on the production of the 
like-product will be examined in cases where data on this factor do not permit it to be identified 
separately. 
   
                                                     
 
1 G/SG/Q1/PAN/4. 
2 G/SG/Q1/PAN/3. G/SG/Q1/PAN/5 
Page 2  
 
   
Question 2 
 
 In its two-part reply to US question 6 regarding Article 45 (Access to the file
) of the 
Executive Decree , Panama indicates that it will make non-confidential information in its files 
available only to persons who have been found to  be "interested parties".  We would appreciate 
it if Panama would please clarify the following: 
 
• How does an entity become designated as an "interested party"? 
Reply  
 
 Any government entity of a country which exports the product under investigation may 
request, without any other formalities, that the Inves tigating Authority consider it to be an interested 
party, provided that it complies with the provisions of Article 32(d)(ii) of Executive Decree No. 1 of 2009.  
 • What criteria does Panama use to determine "interested party" status? 
 
Reply
 
  Any party that wishes to be considered as an "interested party" must request such status from 
the Investigating Authority.  The request will be gr anted if the party complies with the provisions of 
Article 32(d) of Executive Decree No. 1 of 2009.  
 • Would a foreign government be an interested party if it requested such status?  
Would a foreign government have to prove that it has an interest in the matter?  
If so, what level of interest would normally be required for the foreign 
government to interested party status? 
 
Reply
 
 
 A foreign government may be an interest ed party provided that the product under 
investigation is produced by or originates from th at country, pursuant to Article 32(d) of Executive 
Decree No. 1 of 2009.  
Question 3 
 
 With regard to Panama's response to question number 7 regarding Article 49 
(Professional Representation ) of the Executive Decree , we understand from Panama's response 
that all parties wishing to participate in or  submit information relevant to a safeguard 
proceeding are required to obtain competent le gal counsel in Panama.  Panama describes the 
term "competent attorney" as including all a ttorneys in Panama possessing a certificate of 
competency.  Panama also states in its answ er that "persons, firms, and associations" 
participating in safeguard proceeding must partic ipate through such an attorney, and indicates 
that the attorney is responsible for representing interested parties in safeguard proceedings and 
for submitting all the docume ntation necessary "for the full exercise of the powers conferred 
upon him".  We would appreciate it if Pa nama would please clarify the following: 
 
• Does the term "competent attorney" fo r these purposes include all attorneys 
licensed by the Government of Panama to practice law in Panama, or does it  G/SG/Q1/PAN/5 
 Page 3 
 
 
  refer to a subset of attorneys such as those attorneys with expertise in 
international trade law and who practice in that area? 
Reply  
  The term "competent attorney" refers to any attorney certified by Panama's Supreme Court of 
Justice to practise law in the Republic of Panama. 
 
 • Are foreign governments required to obtain legal counsel in Panama in order to 
make submissions in safeguard proceedings involving imports from their 
country?  For example, if the US Government wanted to submit information it 
deemed relevant to a safeguard proceed ing conducted by Panamanian officials 
directly to the officials conducting the proceeding, would the US Government's 
submission be considered? 
 Reply
 
  Neither a foreign government nor any other intere sted party is required to retain the services 
of an attorney in order to present its views or submit information or evidence.  The services of an 
attorney are, however, required to make legal reque sts in the event of a motion, an appeal, a writ 
summoning a party to give evidence, etc. 
 
 • Does an interested party or any other p erson have a right to submit information 
directly to the Panamanian competen t authorities?  If so, under what 
circumstances and what types of information and views may be directly 
submitted? 
 
Reply
 
  Yes, all interested parties may submit informa tion directly to the Investigating Authority.  
This information may be sent by registered mail, e- mail or fax or be submitted directly to the offices 
of the Investigating Authority.  
 • What is meant by the term "for the full exercise of the powers conferred upon 
him" - that is, what powers are conferred on the attorney? 
 
Reply
 
  The powers conferred on an attorney under Pa namanian law cover all the procedures required 
to mount an effective defence for the client. 
 
 • What protections are in place to insu re that required local counsel abide by 
confidentiality requirements as specified in the WTO Agreement on Safeguards? 
 Reply
 
  An attorney who fails to fulfil his obligations may be reported to the national bar association.  
If he is found responsible, disciplinary action may be  taken against him according to the severity of 
the violation, including cancellation of his practising certificate.  G/SG/Q1/PAN/5 
Page 4  
 
   Article 3, paragraph 1, of the WTO Agreement on Safeguards requires competent 
authorities to provide reasonable notice and pub lic hearings or other appropriate means in 
which importers, exporters and other interested  parties may "present evidence and their 
views". 
 
• Please explain how Panama's requirem ent that interested parties may 
participate in a safeguard proceeding only through a competent attorney is consistent with Article 3, paragraph 1, of the Safeguards Agreement. 
Reply
 
  Article 114 of Executive Decree No. 1 of 2009 pr ovides that parties have the possibility of 
representing themselves, without assistance from an attorn ey.  Likewise, an attorney is not required to 
present views, submit evidence, consult the file or receive information from the competent authority. 
 
Question 4 
 
 In its reply to US question 8(b) regarding notification requirements under Article 156 
(Notification and public notice of the resolution)  and Article 170 (Conditions and requirements)  
of the Executive Decree , Panama states that the investigating authority will publish notices 
"in national newspapers with broad circulation or in the Official Journal".  ( Emphasis added)  
 
• Does Panama maintain an official lis t of "national newspapers with broad 
circulation"? 
Reply  
  No.  
 • Please explain how Panama's reply to US  question 8(b) is consistent with the 
requirement in Article 3, paragraph 1, of the WTO Safeguards Agreement that 
competent authorities provide "reasona ble public notice to all interested 
parties" of the investigation. 
 Reply
 
  Article 60 of Decree-Law No. 1 of 2009 provides for the notification of trade protection procedures.  Publication in the Official Journa l or a national newspaper with broad distribution 
constitutes only one notification procedure.  Other fo rms of notification include e-mails, direct mail or 
delivery to the exporting member's accredite d diplomatic representation in Panama. 
 
 The Investigating Authority thereby ensures th at public notice is provided to all interested 
parties.   G/SG/Q1/PAN/5 
 Page 5 
 
 
  Question 5 
 
 In its reply to US question 10 regarding Article 175 (Convening of the hearing)  of the 
Executive Decree , Panama explains that the hearing is held "after the evidence is submitted and 
its purpose is to inform and hear parties to the proceedings regarding the essential facts under 
consideration used as a basis for the decision".  
• Please explain whether and how the interest ed parties or their attorneys will 
have access to the evidence that has been submitted, including evidence that is 
confidential business information. 
Reply
 
 
 All parties and their attorneys have access to all the public evidence submitted to the 
Investigating Authority.  Confidential informati on may be accessed solely by the Investigating 
Authority and the party by which it was submitted.  
 • In the absence of such access, how will an  interested party or its attorney know 
what evidence has been submitted and thus have the ability to make arguments regarding the "essential facts" under consideration? 
 
Reply
 
 
 Information deemed to be confidential must be submitted together with a non-confidential 
summary, which will be made available to all pa rties, as provided for in Article 54 of Executive 
Decree No. 1 of 2009.  
 • Will Panamanian authorities identify in advance the "essential facts under 
consideration used as a basis for the decision"? 
 
Reply
 
 
 Yes.  Pursuant to Article 112 of Executive Decr ee No. 1 of 2009, the Investigating Authority 
is required to issue a report setting forth the essentia l facts upon convening the hearing, that is to say, 
not less than seven (7) calendar days prior to the date of the hearing. 
 
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