WORLD TRADE  
ORGANIZATION  G/SG/N/8/PAN/1/Suppl.3 
G/SG/N/10/PAN/1/Suppl.3 12 November 2008 
 
(08-5503) 
Committee on Safeguards Original:   Spanish 
  
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON 
SAFEGUARDS ON MAKING A FINDING OF SERIOUS INJURY OR 
THREAT THEREOF CAUSED BY INCREASED IMPORTS 
 
NOTIFICATION UNDER ARTICLE 12.1(C) OF 
THE AGREEMENT ON SAFEGUARDS 
 
PANAMA 
 
(Printed BOPP Film and Printed PVC film, in Rolls
) 
 
Supplement  
   The following communication, dated 28 October 2008, is being circulated at the request of the delegation of Panama. 
 
_______________ 
 
  Panama reports that Decision No. 02 of  13 June 2008, recommending that the Cabinet 
Council not grant the extension, requested by th e company CELLOPRINT, S.A., of the safeguard 
measure established by Cabinet Decree No. 24 of 8 October 2007 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  (BOPP), was published on 14 July 2008 in 
Gazeta Oficial  (Official Journal) No. 26082. 
 
 Annexed hereto is a copy of Decision No. 02 of 14 July 2008. 
 G/SG/N/8/PAN/1/Suppl.3 
G/SG/N/10/PAN/1/Suppl.3 Page 2 
 
 
  REPUBLIC OF PANAMA 
 
MINISTRY OF TRADE AND INDUSTRY 
 
NATIONAL DIRECTORATE FOR THE ADMINISTRATION 
OF INTERNATIONAL TRADE TREATIES 
AND TRADE PROTECTION 
 
DECISION No. 02 
(of 13 June 2008) 
 
The National Director for the Administration of International 
Trade Treaties and Trade Protection 
 
in the exercise of her legal powers, 
 
WHEREAS 
 
Pursuant to Cabinet Decree No. 24 of 8 Oc tober 2007, the Cabinet Council established 
safeguard measures in respect of the following tw o products:  printed polypropylene (BOPP-type) 
film in rolls for packaging machines, and prin ted PVC film in rolls for packaging machines, 
consisting in a 48.4 per cent and a 63.8 per cent surc harge, respectively, on the c.i.f. value of the 
imported product;  
On 10 April 2008, in conformity with Article 58 of Decree-Law No. 7 of 2006 and 
Article 7.2 of the WTO Agreement on Safeguards of the World Trade Organization (WTO), the 
company CELLOPRINT, S.A. filed a request with the investigating authority of the Ministry of Trade and Industry (MICI) for a further 36-month extensio n of the safeguard measure concerning printed 
polypropylene (BOPP-type) film, which was due to expire on 13 April 2008; 
The information submitted by CELLOPRINT, S.A. along with its request included a technical 
report incorporating the arguments in support of the request for extension of the safeguard measure, 
an adjustment plan proposal, CELLOPRINT, S.A.'s  import statistics and data, audited financial 
statements and certificate of public registry listing, and the power of attorney given to GALINDO, ARIAS & LOPEZ, Attorneys at Law,  to represent the company;  
 
On 11 April 2008, the investigating authority issued Decision No. 01 of the Acting National 
Director for the Administration of Internationa l Trade Treaties and Trade Protection, accepting the 
request for the purposes of evaluation and sub sequent recommendation to the Cabinet Council; 
 
On 14 April 2008, Decision No. 01 of 11 April 2008 was notified to CELLOPRINT S.A.  On 
15 April, the Decision was notified to the importe rs, namely Productos Alimenticios Pascual, S.A., 
Alimentos del Istmo S.A., Nestlé Panamá , S.A., and Industrias Lácteas, S.A.;   
 
On 16 April 2008, both the Embassy of Peru in Panama and that of Colombia were informed 
of the acceptance of the evaluation process con cerning the request for extension filed by 
CELLOPRINT, S.A.;    
On 16 May 2008, Decision No. 01 of 11 April 2008 was published in a na tional newspaper in 
order to notify interested third parties and the general population;  G/SG/N/8/PAN/1/Suppl.3 
 G/SG/N/10/PAN/1/Suppl.3  Page 3 
 
 
  Upon completion of the notification process, Pr oductos Alimenticios Pascual, S.A., Envases 
Múltiples S.A. (EMUSA), and CELLOPRINT, S.A. a ppeared before the investigating authority and 
asserted legal interest in the investigation arisi ng from the request for extension of the safeguard 
measure concerning printed polypropyle ne (BOPP-type) film in rolls; 
 
On 20 May 2008, the investigating authority requested the legal representative of 
CELLOPRINT, S.A., through note DINATRADEC-N- 130-08, to submit evidentiary information 
pertaining to the sources of injury variables, su ch as domestic production trends, employment trends, 
productivity trends, financial indicators, and any othe r information pursuant to Article 7.2 of the WTO 
Agreement on Safeguards; 
 
On 23 May 2008, Cabinet Decree No. 9 of 19 May 2008 was published in Official Journal 
No. 26046, granting the investigating authority 15 working days to issue its final recommendation on the request for extension filed with the MICI;   
 
On 26 May 2008, Decision No. 01 of 11 Apr il 2008 was notified to the WTO Committee on 
Safeguards;  
On 3 June 2008, after an extended time-limit had be en granted to all the parties, the period of 
submission of information and evidence was decl ared closed, the investigating authority having 
before it all the views and arguments of the parties involved in the procedure; 
 
Having ascertained that all the parties involved in the procedure had submitted all information 
and arguments they considered appropriate, the onl y matter outstanding was to determine whether the 
request was consistent with Article 7. 2 of the WTO Agreement on Safeguards; 
 
Once all elements, data and evidence submitted by  the interested parties had been evaluated 
and the technical report of the National Directorat e for the Administration of International Trade 
Treaties and Trade Protection had been issued on 12 June 2008, containing the following findings in 
respect of the case:  
"As regards the analysis as to whether ' ...the safeguard measure con tinues to be necessary to 
prevent or remedy serious injury ' to the domestic industry and given that: 
 
(a) Imports of printed polypropylene (BOPP-t ype) film have dropped significantly since 
the application of the safeguard measure but still account for a major share in relation 
to domestic production; 
 
(b) the downward trend in imports of the produc t under investigation into the domestic 
market has been reversed; 
 
(c) the safeguard measure has not induced a sharp and immediate recovery of sales levels 
in kilogram terms; 
 
(d) output of the BOPP-type product in kilogr ams has barely shown partial signs of 
recovery during the period of implem entation of the safeguard measure; 
 
(e) the level of inventories of finished products  in kilogram terms has tended to rise in the 
most recent period; 
 
(f) employment has continued to decline during the period of implementation of the 
safeguard measure;  G/SG/N/8/PAN/1/Suppl.3 
G/SG/N/10/PAN/1/Suppl.3 Page 4 
 
 
   
(g) favourable productivity behaviour reflect s the rational approach taken by the 
company in its use of labour resources rath er than improvement in the state of the 
domestic industry;  
 
(h) the measure has had but little impact on fi nancial margins, which are still recording 
losses in almost all periods with respect  to the product under investigation;  
 
(i) the lack of consistency, clarity and adequ acy of information pertaining to utilization 
of installed capacity has prevented the investigating authority from reaching any 
conclusions regarding the be haviour of this variable; 
 
(j) the absence of information necessary for th e causality analysis has prevented the 
investigating authority from determining wh ether the domestic industry has recovered 
as a result of the reduction in imports ensui ng from the definitive safeguard measure;  
and 
 
(k) the information relating to the situation of injury to the domestic industry has not been 
duly substantiated and cannot therefor e be taken as such in this case, 
 
1. It is concluded that there is no evid ence that the safeguard measure concerning 
printed polypropylene (BOPP-type) film remains nece ssary to prevent or remedy serious injury to the 
domestic industry.   
2. Regarding the analysis as to whether ' there is evidence that the industry is 
adjusting... ', the case has not been made, according to the material on record, that the domestic 
industry manufacturing the product that is the subjec t of this request has be en re-adjusting in the 
course of the period of investigation."  
The principal findings in this investigation and the elements in support of those findings have 
been set forth in the relevant technical report, th e Directorate for the Administration of International 
Trade Treaties and Trade Protection, 
 
DECIDES 
 
FIRST
:  TO RECOMMEND , pursuant to the mandate established in Article 1 of Cabinet Decree 
No. 9 of 19 May 2008, to the Cabinet Council that it  not grant the extension of the safeguard measure 
requested by CELLOPRINT, S.A. in respect of prin ted film in rolls for the manufacture of flexible 
packaging of monolayer polypropylene for packagin g machines, produced by the biaxially oriented 
blow-moulding process (BOPP), established by Ca binet Decree No. 24 of 8 October 2007. 
 SECOND
:  TO NOTIFY  the parties that this Decision is open to appeal by transfer to a higher 
authority within a period of five (5) working days following notification of the Decision, in 
accordance with Articles 171 ff. of Law No. 38 of 2000.  THIRD
:  TO PUBLISH this Decision in the Official Journal,  or an extract thereof in a newspaper 
with recognized national circulation. 
  G/SG/N/8/PAN/1/Suppl.3 
 G/SG/N/10/PAN/1/Suppl.3  Page 5 
 
 
  STATUTORY BASIS
:  Decree-Law No. 7 of 2006, Law No. 23 of 1997, Law No. 38 of 2000. 
 Done at Panama City, this thirteenth day of June of the year two thousand and eight (2008). 
 
 
 
MELISSA DAVIS 
National Director for the Administration of International 
Trade Treaties and Trade Protection 
 
__________