WORLD TRADE  
ORGANIZATION  G/SG/N/8/PAN/1 
G/SG/N/10/PAN/1 7 June 2007 
 
 
(07-2367) 
Committee on Safeguards Original:   Spanish 
  
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON 
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT 
THEREOF CAUSED BY INCREASED IMPORTS 
 
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C) 
OF THE AGREEMENT ON SAFEGUARDS
 
PANAMA 
  
(Printed BOPP film in rolls and printed PVC film in rolls
) 
   The following notification, dated 31 May 2007, has been received from the Permanent Mission of Panama.  
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  In light of the agreed format for notificati ons (document G/SG/W/1 of 23 February 1995), 
Panama hereby provides notification to the Committe e on Safeguards of findings of serious injury or 
threat thereof caused by increased imports. 
  On 21 May 2007, the National Directorate for the Administration of International Trade 
Agreements and Trade Protection (DINATRADEC) of the Ministry of Trade and Industry made an 
affirmative determination that printed BOPP film in  rolls and printed PVC film in rolls, classified 
under tariff subheadings 3920.20.90 and 3920.49.00 of Panama's Tariff Nomenclature, were being 
imported during the investigation pe riod (January 2003 to June 2006) in such increased quantities and 
under such conditions as to be the principal cause of serious injury to domestic producers of like or directly competitive products.   The initiation of the investigation that led to these determinations was notified to the 
Committee on Safeguards on 28 September 2006 in document G/SG/N/6/PAN/1. 
  DINATRADEC Resolution No. 003 of 21 May 200 7 contains all the findings and reasoned 
conclusions reached on all pertinent issues of fact and law during the investigation.  Panama will 
provide a copy of this Resolution to the WTO Secretariat.
1  It is our understanding that the Secretariat 
will make a copy of this document available to Members on request.  Resolution No. 003 of 
21 May 2007 is a public document that can also be downloaded from the Ministry web site at  
http://www.mici.gob.pa/exportaciones/Resolucion%20N003.pdf . 
 
                                                      
1 Resolution No. 003 of 21 May 2007 on the final determination in the investigation into printed BOPP 
film in rolls and printed PVC film in rolls is available for review by interested delegations, who are requested to 
contact Mrs Hilary Budd, Office 1028, telephone 022 739 5109. G/SG/N/8/PAN/1 
G/SG/N/10/PAN/1 Page 2 
 
 
   Consistent with Article 12.3 of the Agreement on Safeguards, Panama is  prepared to consult 
with those Members having a substantial interest as exporters of the products concerned, with a view 
to, inter alia , reviewing the information provided in this  notification and the contents of the said 
Resolution, exchanging views on the measure propo sed and reaching an understanding on ways to 
achieve the objective set out in Article 8.1 of the Agreement.  Such Members are also requested to 
provide a direct contact point so that Panama ma y inform them without delay of any developments 
regarding the subject of any consultations.  G/SG/N/8/PAN/1 
 G/SG/N/10/PAN/1 
 Page 3 
 
 
  1. Provide evidence of serious injury or threat thereof caused by increased imports 
 DINATRADEC's analysis of serious injury to  the domestic industr y producing printed BOPP 
film in rolls and printed PVC film in rolls and its analysis of causation by increased imports appear on pages 29 to 44 of Resolution No. 003 of 21 May 2007. 
 
2. Provide information on whether there is an absolute increase in imports or an increase 
in imports relative to domestic production  (please see also Article 2.1 for the context) 
 DINATRADEC found that there had been an increase in imports of printed BOPP film in 
rolls and printed PVC film in rolls, both in absolu te volume and relative to the production in Panama 
of like goods.  DINATRADEC's findings regardi ng increased imports of the two products under 
investigation appear on pages 6 to 13 of Resolution No. 003.   DINATRADEC also made a negative determination following the analysis of increased imports for printed polypropylene sheets in rolls. On  the basis of this negative determination with 
regard to printed polypropylene sheets, the inves tigation terminated without a recommendation of the 
imposition of definitive safeguard measures.  
3. Provide precise description of the product involved 
 The products involved are printed BOPP film in rolls and printed PVC film in rolls.  Printed 
BOPP film in rolls is a product made from polypropy lene, with a monolayer structure and used for the 
manufacture of flexible packaging for packaging machin es.  This film is a type  of flexible packaging 
used mainly for products such as snacks, ci garettes, small packets of coffee and biscuits, inter alia . 
  Printed PVC film consists of rigid (non-stretch ) film in rolls for the manufacture of flexible 
packaging for packaging machines.  This type of fi lm is transparent, strong and acts as a good barrier 
against oxygen and humidity.  Its glossy finish, tr ansparency and lack of plastic memory mean that 
this material is used to make twist wrappers fo r sweets, lozenges and other confectionery.  Neither 
printed rigid PVC blister film nor stretch wrap film is included. 
 
4. Provide precise description of the proposed measure 
 The DINATRADEC Resolution regarding the most  appropriate remedy to address the injury 
over a period of one year recommended the application of a surtax or surcharge on c.i.f. import value 
of 48.4 per cent for printed BOPP film in rolls and 63.8 per cent for printed PVC film in rolls.  The 
period of application of these measures will include  that of the provisional safeguard measures 
applied as from 12 April 2007 pursuant to Cabinet Decree No. 7 of 11 April 2007.  The Cabinet 
Council will examine the DINATRADEC recommenda tion and decide on any action required to 
address the situation. 
 
5. Provide proposed date of introduction of the measure 
 Pursuant to Article 4 of Cabinet Decr ee No. 7 of 11 April 2007, Resolution No. 003 
terminating the administrative investigation was sent on 25 May 2007 to the Cabinet Council, which 
will exercise its sovereignty to decide when it deems appropriate to rule on the DINATRADEC 
recommendation.  The Cabinet Council, when deciding what  safeguard action, if any,  is to be taken, is 
not therefore subject to a statutory time-limit from the receipt of a DINATRADEC Resolution containing an affirmative determination of serious  injury to the corresponding domestic industry. 
 G/SG/N/8/PAN/1 
G/SG/N/10/PAN/1 Page 4 
 
 
   The Cabinet Council will examine the reco mmendation, which is based on Resolution 
No. 003 of 21 May 2007, and respond to the DINATRADEC recommendations.  
6. Provide expected duration of the measure  
 As noted above in point 4, the measure provided for in the DINATRADEC recommendation 
would have a duration of one (1) year for both products.  
7. For a measure with a duration of more than three years, provide the proposed date for 
the review (under Article 7.4) to be held not later than the mid-term of the measure, if 
such a date for the review ha s already been scheduled  
 As noted above in point 4, the safeguard  measures recommended by DINATRADEC for each 
of the products under investigation does not exceed one year.  
8. If the expected duration is over one year, provide expected timetable for progressive 
liberalization of the measure  
 As noted above in point 4, the safeguard  measures recommended by DINATRADEC for each 
of the products under investigation does not exceed one year.  
9. Provide information relating to the extension of a safeguard measure  
 Not applicable. 
 
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