. /.   WORLD TRADE  
ORGANIZATION  G/ADP/Q1/PAN/6 
G/SCM/Q1/PAN/6 12 April 2007 
 
(07-1474) 
Committee on Anti-Dumping Practices 
Committee on Subsidies and Countervailing Measures Original:   English 
 
 
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS 
 
Questions Posed by the European Communities  
Regarding the Notification of Panama1 
 
  The following communication, dated 3 April 2007, is being circulated at the request of the Delegation of the European Communities.   
 
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 Questions to Panama (G/ADP/N/1/PAN/2):  "Decree Law No . 7 of 15 February 2006 establishing 
rules for the protection and safeguarding of na tional production and enacting other provisions". 
 
1. Article 12.4 provides that the Executive Organ shall establish the appropriate statistical 
methodology to be used for making fair price co mparisons for the purpose of determining dumping 
margins.  Could Panama please clarify whether such methodology has been established, what its 
contents are and how it relates to Article  2.4.2 of the Anti-Dumping Agreement? 
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 s hould be significant, nor does it specify that the 
change in circumstances, which would create a situation in which the dumping would cause injury, 
must be clearly foreseen and imminent.  Could Panama please confirm that Article 3.7 ADA is fully applied? 
3. Article 15 defines as one of the conditions for cumulation that products are "competitive with 
each other and with the domestic product".  This word ing does not seem to fully cover the criteria set 
out in Article 3.3(b) of the ADA, which refers to th e broader concept of conditio ns of competition.  In 
the light of this, could Panama please explain how it applies Article 15? 
4. According to Article 18 there shall be a causal link between the imports that are the subject of 
unfair trade practices and the injury to the domes tic 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 imports.  Could Panama please clarify how it is ensured that the authorities examine the factors listed in Article 3.5 ADA? 
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? 
                                                     
 
1 G/ADP/N/1/PAN/2.    G/ADP/Q1/PAN/6 
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  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 place between the c ountry of origin and the Republic of Panama.  How 
does this provision relate to Article 2.5 ADA? 
7. Article 23.1:  Could Panama please clarify when  the investigating authority would consider 
the volume of exports of a newcomer as representati ve and how imports of the newcomer are treated 
during the review investigation? 
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 dom estic industry expressing su pport or opposition and 
25 per cent of total production) are alternative conditions.  Could Panama please confirm that it 
applies these criteria cumulatively in  accordance with Article 5.4 ADA? 
9. According to Article 28.7, an application sh all contain information on import volumes and 
prices.  Do the investigating authorities also requi re information on the evolution of import volumes 
and prices, in accordance with Article 5.2 (iv) ADA? 
10. Article 36 provides that the Ministry may request th e interested parties to supply at their cost 
questionnaires, expert reports, opinions or technical parameters, and to take such administrative steps 
as may contribute to verification of the facts allege d.  Could Panama please explain what type of 
reports, opinions etc., apart from the reply to th e questionnaire the investigating authority could 
request?  What would be the consequences if the interested parties do not supply such evidence? 
11. It appears from Article 41 that the investigati ng authority provides disclosure of the essential 
facts which form the basis for the recommendation to  apply definitive measures, in the form of a 
hearing.  Is such disclosure also provided in wr iting?  Is disclosure also provided to parties not 
attending the hearing?  
12. Article 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 ensure compliance with Article 6. 9 which states that disclosure should take place in 
sufficient time for the parties to defend their interests? 
13. Does Panama have specific rules on sampling, re flecting Article 6.10, 6.10.1, 6.10.2 and 9.4 
ADA or are these provisions directly applied? 
14. Could Panama explain what othe r actions resulting in failure to  pay the countervailing or anti-
dumping duties would be covered by Article 94.5? 
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 determination of normal value (Articles 2.2.1, 2.2.1.1, 2.2.2 
ADA);  the determination of injury and causal link (Articles 3.2, 3.4, 3.5 and 3.6 ADA);  hearings 
(Articles 6.2);  undertakings (Artic le 8 ADA);  imposition of duties (Artic les 9.2, 9.3.1, 9.3.2, 9.3.3);  
retroactivity (Article 10.2, 10.4, 10.5);  public notices (Article 12).  Does Panama have more detailed 
rules on these issues, or is the ADA directly applied? 
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