. /.  WORLD TRADE  
ORGANIZATION  G/C/W/515 
14 March 2005 
 (05-1084) 
Council for Trade in Goods  
  
 
INTRODUCTION OF HARMONI ZED SYSTEM 1996 CHANGES  
INTO WTO SCHEDULES OF TARIFF CONCESSIONS 
 
Panama – Schedule CXLI
 
 
Draft Waiver Decision 
 
  The General Council,  
 Considering  that the Members of the WTO, by their Decisions of 13 December 1995, 
18 July 1996, 24 April 1997, 22 October 1997, 24 April 1998, 14 October 1998, 15 June 1999, 4 November 1999, 3 May 2000, 8 December 2000 and 8 May 2001
1 and acting pursuant to the 
provisions of paragraph 3 of Article IX of the WTO Agreement, suspended the application of the 
provisions of Article II of the GATT 1994 until 30 April 2002, for the purpose of enabling the Members listed in the Annex to the said Decisions, including Panama, to implement the 
recommended amendments to the Harmonized System nomenclature; 
 
Considering  that, by Decision WT/L/400 of 8 May 2001, the Members of the WTO also 
decided not to grant, on a collectiv e basis, any further extensions of waivers of the application of the 
provisions of Article II of the GATT 1994 with re gard to the implementation of the recommended 
amendments to the Harmonized System nomenclatu re, but that this would not preclude Members 
from requesting waivers on an individual basis; 
 
 Considering  that, by their Decisions of 13 May 2002, 24 July 2003 and 17 May 2004
2 and 
acting pursuant to the provisions of paragraph 3 of  Article IX of the WTO Agreement, the Members 
of the WTO suspended the application of the provisions of Article II of the GATT 1994 until 
30 April 2005, for the purpose of enabling Panama  to implement the recommended amendments to 
the Harmonized System nomenclature;  
Noting that Panama has requested a waiver extension for the reasons set out in its request
3; 
 
 Considering  that Panama will need more time to s ubmit pending information with a view to 
implementing the said amendments and in orde r to proceed with consultations or possible 
Article XXVIII negotiations;   Acting  pursuant to the provisions of paragra ph 3 of Article IX of the WTO Agreement; 
 
Decides , in view of the exceptional circumstanc es, to suspend the application of the 
provisions of Article II of the GATT 1994 until 30 Ap ril 2006, for the purpose of enabling Panama to 
                                                     
 
1 WT/L/124 + Corr.1, WT/L/173, WT/L/216, WT/L/243, WT/L/268, WT/L/281, WT/L/303, 
WT/L/338, WT/L/351, WT/L/379 and WT/L/400. 
2 WT/L/458, WT/L/524 and WT/L/570. 
3 G/L/736. G/C/W/515 
Page 2  
 
 implement the recommended amendments to the Ha rmonized System 1996 nomenclature, subject to 
the following conditions:  
1. Panama shall, where necessary, promptly  enter into negotiati ons and consultations 
with interested Members, pursuant to para graphs 1 to 3 of Article XXVIII of the 
GATT 1994; 
 
2. the negotiations and consultations menti oned above shall be completed no later than 
30 April 2006; 
 
3. pending the entry into force of the resu lts of the negotiations  or consultations 
mentioned, the other Members will be free to suspend concessions initially negotiated 
with Panama to the extent that they consid er that adequate compensation has not been 
offered for the introduction of the recommended amendments to the Harmonized System 1996 into Panama's Schedule of Concessions. 
 
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