WORLD TRADE  
ORGANIZATION  G/SG/Q1/PAN/4 
12 March 2010 
 (10-1329) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLE 12.6 OF THE AGREEMENT 
 
Follow-Up Questions from the UNITED STATES
 
Regarding the Replies of PANAMA1 
 
  The following communication, dated 10 March 2010, is being circulated at the request of the Delegation of the United States.    
_______________ 
 
  The United States thanks Panama for its response to our questions
2 and poses the following 
follow-up questions with regard to Panama's notification 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"  [hereinafter Executive Decree ].3   
 
Question 1 
 
In its reply to US question 4(a) regarding Ar ticle 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 range of  domestic products when the domestic industry is 
unable to provide financial data re lating to the production of the like or directly competitive domestic 
product.    
It is unclear to us what the term "more restri cted" means in this context.  The term "more 
restricted" suggests that Panama might base an a ffirmative injury determination on a finding that 
imports of a product are causing or threatening to cause serious injury to domestic producers of only some of the like or directly competitive domestic pr oducts.  This might cause Panama to overstate the 
impact of increased imports.  Did Panama instead m ean 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 would use the next availabl e data series from those firms that included the financial and other 
data on their operations producing the like or dir ectly competitive domestic product(s) and perhaps 
other products produced in the same plants, on th e same equipment and with the same workers?   
 
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 
                                                      
1 G/SG/Q1/PAN/3.   
2 G/SG/Q1/PAN/2.   
3 G/SG/N/1/PAN/2/Suppl.1.   G/SG/Q1/PAN/4 
Page 2  
 
  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"?   
 
• What criteria does Panama use to determine "interested party" status?   
 
• 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 fore ign government to interested party status?   
 
Question 3  
  With regard to Panama's response to ques tion 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 re levant to a safeguard proceeding are required to 
obtain competent legal counsel in Panama.  Panama  describes the term "competent attorney" as 
including all attorneys in Panama possessing a certifi cate of competency.  Panama also states in its 
answer that "persons, firms, and associations" par ticipating in safeguard proceeding must participate 
through such an attorney, and indicates that the at torney is responsible for representing interested 
parties in safeguard proceedings and for submitti ng all the documentation necessary "for the full 
exercise of the powers conferred upon him".  We wo uld appreciate it if Panama would please clarify 
the following:   
 
• Does the term "competent attorney" for these purposes include all attorneys licensed by the 
Government of Panama to practice law in Pana ma, or does it refer to a subset of attorneys 
such as those attorneys with exper tise in international trade law and who practice in that area?   
 
• Are foreign governments required to obtain lega l 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 inform ation it deemed relevant to a safeguard 
proceeding conducted by Panamanian officials directly to the officials conducting the 
proceeding, would the US Government 's submission be considered?   
 
• Does an interested party or any other person have  a right to submit information directly to the 
Panamanian competent authorities?  If so, under what circumstances and what types of 
information and views may be directly submitted?   
 
• What is meant by the term "for the full exerci se of the powers conferred upon him" – that is, 
what powers are conferred on the attorney?   
 
• What protections are in place to insure that required local counsel abide by confidentiality 
requirements as specified in the WTO Agreement on Safeguards?   
 
 Article 3, paragraph 1, of the WTO Agreem ent on Safeguards requires competent authorities 
to provide reasonable notice and public hearings or other appropriate m eans in which importers, 
exporters and other interested parties may "present evidence and their views".    
• Please explain how Panama's requirement that interested parties may participate in a 
safeguard proceeding only through a competent attorney is consistent with Article 3, 
paragraph 1, of the Safe guards Agreement.   
  G/SG/Q1/PAN/4 
 Page 3 
 
 
  Question 4  
 
 In its reply to US question 8(b) regard ing notification requirements under Article 156 
(Notification and public notice of the resolution)  and Article 170 (Conditio ns 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 list of "na tional newspapers with broad circulation"?   
 
• Please explain how Panama's reply to US question 8(b) is consistent with the requirement in 
Article 3, paragraph 1, of the WTO Safeguard s Agreement that competent authorities provide 
"reasonable public notice to all interested parties" of the investigation.   
 
Question 5 
 
 In its reply to US question 10 regard ing 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 th e proceedings regarding the essential facts under 
consideration used as a basis for the decision".    
• Please explain whether and how the interested part ies or their attorneys will have access to the 
evidence that has been submitted, including  evidence that is confidential business 
information.   
 
• 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?   
 
• Will Panamanian authorities identify in advan ce the "essential facts under consideration used 
as a basis for the decision"?   
 
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