Canada - Panama FTA (2010)
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Coasting Trade Act, S.C. 1992, c. 31

Description: Cross-Border Trade in Services

The prohibitions under the Coasting Trade Act set out in Schedule of Canada, Annex II, at pages II-C-14-16, do not apply to a vessel that is owned by the U.S. Government when used solely for the purpose of transporting goods owned by the U.S. Government from the territory of Canada to supply Distant Early Warning sites.

Annex I. Schedule of Panama

Sector:

All Sectors

Sub-sector:

Retail Sales

Industry Classification:

Type of Reservation:

National Treatment (Article 9.04)

Senior Management and Boards of Directors (Article 9.08)

Measures:

Article 293 of the 1972 Constitution

Articles 4, 7 and 16 of Executive Decree 35 of May 24, 1996

Description: Investment

Only the following persons may own a retail business in Panama:

a Panamanian national by birth;

a natural person who, on the date of entry into force of the 1972 Constitution, was a naturalized Panamanian national, the spouse of a Panamanian national or a natural person who had a child with a Panamanian national;

a natural person who has been a naturalized Panamanian national for at least 3 years;

a foreign national or a juridical person organized under the domestic law of a foreign country that owned a lawful retail business in Panama on the date of entry into force of the 1972 Constitution; and

a juridical person, whether organized under the domestic law of Panama or another country, if ownership of that person is held by a natural person described in subparagraph (a), (b), (c) or (d), as set out in paragraph 5 of Article 293 of the 1972 Constitution.

However, a foreign national not authorized to own a retail business may participate in those companies that sell products manufactured by those companies.

Sector:

Real Property

Sub-sector:

Industry Classification:

Type of Reservation:

National Treatment (Article 9.04)

Measures:

Articles 290 and 291 of the 1972 Constitution

Description: Investment

A foreign government, foreign official or foreign state enterprise may not own real property in Panama, except property used for an embassy.

A foreign national, or enterprise organized under the laws of Panama owned entirely or partially by foreign nationals, may not own real property within 10 kilometers of Panama’s borders.

Sector:

Public Utilities

Sub-sector:

Industry Classification:

Type of Reservation:

National Treatment (Article 9.04)

Measures:

Article 285 of the 1972 Constitution

Description: Investment

The majority of the capital of a private enterprise engaged in public utilities that operate in Panama shall be owned by a Panamanian person, except where provided by domestic law.

Sector:

All Sectors

Sub-sector:

Industry Classification:

Type of Reservation:

National Treatment (Article 10.03)

Senior Management and Boards of Directors (Article 9.08)

Measures:

Article 322 of the 1972 Constitution

Articles 13, 14 and 86 of Law No. 19 of June 11, 1997

Description: Investment and Cross-Border Trade in Services

Preference is given to a Panamanian national over a foreign national for contractual positions in the Panama Canal Authority. A foreign national may be hired instead of a Panamanian national, provided that the position is difficult to fill and that all channels for hiring a qualified Panamanian national have been exhausted and that it is authorized by the Canal Authority Administrator. If the only applicants for a position with the Panama Canal Authority are foreign nationals, preference is given to a foreign national with a Panamanian spouse or a foreign national who has lived in Panama for 10 consecutive years.

Only a Panamanian national can be a director of the Panama Canal Authority.

Sector:

Artistic Activities

Sub-sector:

Musicians and Artists

Industry Classification:

CPC 9619 Other Entertainment Services

CPC 96191 Theatrical Producer, Singer Group, Band and Orchestra Entertainment Services

Type of Reservation:

National Treatment (Article 10.03)

Measures:

Article 1 of Law No. 10 of January 8, 1974

Article 1 of Executive Decree No. 38 of August 12, 1985

Description: Cross-Border Trade in Services

An employer who hires a foreign orchestra or musical group is required to hire a Panamanian orchestra or musical group to perform at each one of the locations where the foreign orchestra or musical group performs. This obligation exists for the duration of the foreign orchestra or musical group’s contract. This Panamanian orchestra or musical group must receive at least the amount of USD 1,000.00 per performance. Each member of the group must receive no less than USD 60.00 of this amount.

A Panamanian artist performing alongside a foreign artist must be hired on the same terms and with the same professional considerations. This applies but is not limited to promotions, publicity and advertising related to the event, regardless of the media used.

The hiring of a foreign artist for promotions, or the charitable donation or exchange of the services or works of a foreign artist, will only be approved if it does not adversely affect or displace a Panamanian artist. In any case, the hiring must be submitted for evaluation by an expert to determine the value of the service and work provided for the purpose of paying union fees and dues.

Sector:

Tourism and Travel-related Services

Sub-sector:

Travel Agencies and Tour Operator Services

Industry Classification:

CPC 7471 Travel Agency and Tour Operator Services

Type of Reservation:

National Treatment (Articles 9.04 and 10.03)

Measures:

Article 2 of Law No. 73 of December 22, 1976

Description: Investment and Cross-Border Trade in Services

To engage in the business of Travel Agency in the territory of Panama, a supplier must meet the criteria set out in this Annex at pages I-PA-1 to I-PA-2. A natural person engaged in this business in the territory of Panama must be a Panamanian national.

Sector:

Communications

Sub-sector:

Services of Transmission of Radio and Television Programs

Industry Classification:

CPC 9613 Radio and Television Services

Type of Reservation:

National Treatment (Articles 9.04 and 10.03)

Most-Favoured-Nation Treatment (Article 10.04)

Senior Management and Boards of Directors (Article 9.08)

Measures:

Article 285 of the 1972 Constitution

Articles 14 and 25 of Law No. 24 of June 30, 1999

Articles 152 and 161 of Executive Decree No. 189 of August 13, 1999

Description: Investment and Cross-Border Trade in Services

A concession to operate a public radio or public television station in Panama may be granted to a natural person or to an enterprise. In the case of a natural person, the concessionaire must be a Panamanian national. In the case of an enterprise, at least 65% of the shares of the concessionaire must be owned by a Panamanian national.

Each senior manager and director of an enterprise operating a public radio or public television station must be a Panamanian national.

Under no circumstances may a foreign government or a foreign state enterprise supply, by itself or through a third party, public radio or public television services or hold a controlling interest, directly or indirectly, in an enterprise that supplies those services.

A concessionaire of a public radio or public television service may not broadcast an advertisement originating within Panama containing an announcement made by an announcer who does not have a licence issued by the National Authority of Public Services. That licence may only be obtained by a Panamanian national or a national of a country that has granted reciprocal rights to Panamanian nationals.

For greater certainty, this reservation is without prejudice to Article 23.06 (Exceptions – Cultural Industries).

Sector:

Communications

Sub-sector:

Telecommunication Services

Industry Classification:

CPC 752 Telecommunication Services

Type of Reservation:

National Treatment (Article 9.04)

Measure:

Article 21 of Law No. 31 of February 8, 1996

Description: Investment

An enterprise that is directly or indirectly owned or controlled by a foreign government or in which a foreign government is a partner may not supply telecommunications services in the territory of Panama.

Sector:

Education

Industry Classification:

CPC 92 Education Services

Type of Reservation:

National Treatment (Article 10.03)

Level of Government:

Central

Measure:

Article 100 of the 1972 Constitution

Description: Cross-Border Trade in Services

Only a Panamanian national may teach Panamanian history and civic education in the territory of Panama.

Sector:

Electrical Energy

Sub-sector:

Industry Classification:

CPC 171 Electrical Energy

Type of Reservation:

Market Access (Article 10.05)

Measures:

Articles 32, 45 and 46 of Law No. 6 of February 3, 1997

Description: Cross-Border Trade in Services

Electric power transmission services in the territory of Panama may be supplied only by the Government of Panama.

Electric power distribution services in the territory of Panama will be supplied by 3 enterprises for a period of 15 years, under concessions granted by theNational Authority of Public Services. This period started on October 22, 1998.

Sector:

Crude Petroleum, Hydrocarbons and Natural Gas

Sub-sector:

Industry Classification:

CPC 120 Crude Petroleum and Natural Gas

Type of Reservation:

Local Presence (Article 10.06)

Performance Requirements (Article 9.06)

Measures:

  • Chapter   One INITIAL PROVISIONS AND GENERAL DEFINITIONS 1
  • Section   A General Definitions 1
  • Article   1.01 Definitions of General Application 1
  • Article   1.02 Country-specific Definitions 1
  • Section   B Initial Provisions 1
  • Article   1.03 Establishment of the Free Trade Area 1
  • Article   1.04 Relation to other Agreements 1
  • Article   1.05 Extent of Obligations 1
  • Article   1.06 Relation to Environmental and Conservation Agreements 1
  • Article   1.07 Reference to other Agreements 1
  • Annex 1.06  Multilateral Environmental Agreements 1
  • Chapter   Two NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 1
  • Article   2.01 Definitions 1
  • Article   2.02 Scope of Application 1
  • Section   I National Treatment 1
  • Article   2.03 National Treatment 1
  • Section   II Tariffs 1
  • Article   2.04 Tariff Elimination 1
  • Article   2.05 Temporary Admission of Goods 1
  • Article   2.06 Duty-Free Entry of Certain Commercial Samples and Printed Advertising Material 2
  • Article   2.07 Good Re-Entered after Repair or Alteration 2
  • Section   III Non-Tariff Measures 2
  • Article   2.08 Import and Export Restrictions 2
  • Article   2.09 Distilled Spirits 2
  • Article   2.10 Export Taxes 2
  • Article   2.11 Customs User Fees and Similar Charges 2
  • Article   2.12 Customs Valuation 2
  • Section   IV Agriculture 2
  • Article   2.13 Agricultural Export Subsidies 2
  • Article   2.14 Domestic Support Measures for Agricultural Products 2
  • Article   2.15 State Trading Enterprises 2
  • Article   2.16 Tariff-Rate Quotas - Pork and Beef 2
  • Article   2.17 Administration and Implementation of Tariff-Rate Quotas 2
  • Article   2.18 Agricultural Safeguard Measures for Frozen Pork 2
  • Section   V Consultations 2
  • Article   2.19 Consultations and Committee on Trade In Goods and Rules of Origin 2
  • Chapter   Three RULES OF ORIGIN 2
  • Article   3.01 Definitions 2
  • Article   3.02 Originating Goods 3
  • Article   3.03 Certain Textile and Apparel Goods 3
  • Article   3.04 Value Test 3
  • Article   3.05 Accumulation 3
  • Article   3.06 De Minimis 3
  • Article   3.07 Fungible Materials and Goods 3
  • Article   3.08 Sets or Assortments of Goods 3
  • Article   3.09 Accessories, Spare Parts and Tools 3
  • Article   3.10 Indirect Materials 3
  • Article   3.11 Intermediate Materials Used In Production 3
  • Article   3.12 Packaging Materials and Containers for Retail Sale 3
  • Article   3.13 Packing Materials and Containers for Shipment 3
  • Article   3.14 Transit and Transshipment 3
  • Article   3.15 Interpretation and Application 3
  • Article   3.16 Consultation and Modifications 3
  • Chapter   Four CUSTOMS PROCEDURES 3
  • Article   4.01 Definitions 3
  • Section   I Certification of Origin 4
  • Article   4.02 Certificate of Origin 4
  • Article   4.03 Obligations Regarding Importations 4
  • Article   4.04 Exceptions 4
  • Article   4.05 Obligations Regarding Exportations 4
  • Section   II Administration and Enforcement 4
  • Article   4.06 Records 4
  • Article   4.07 Origin Verifications 4
  • Article   4.08 Confidentiality 4
  • Article   4.09 Penalties 4
  • Section   II Advance Rulings 4
  • Article   4.10 Advance Rulings 4
  • Section   IV Review and Appeal of Determinations of Origin and Advance Rulings 4
  • Article   4.11 Review and Appeal 4
  • Section   V Uniform Regulations 4
  • Article   4.12 Uniform Regulations 4
  • Section   VI Cooperation 4
  • Article   4.13 Cooperation 4
  • Article   4.14 Customs Procedures Sub-Committee 4
  • Chapter   Five TRADE FACILITATION 5
  • Article   5.01 Objectives and Principles 5
  • Article   5.02 Rights and Obligations 5
  • Article   5.03 Cooperation 5
  • Article   5.04 Future Work Program 5
  • Chapter   Six SANITARY AND PHYTOSANITARY MEASURES 5
  • Article   6.01 Relation to other Agreements 5
  • Article   6.02 SPS Issue Avoidance and Resolution 5
  • Article   6.03 SPS Coordinators 5
  • Chapter   Seven TECHNICAL BARRIERS TO TRADE 5
  • Article   7.01 Definitions 5
  • Article   7.02 WTO Agreement on Technical Barriers to Trade 5
  • Article   7.03 Scope 5
  • Article   7.04 Joint Cooperation 5
  • Article   7.05 International Standards 5
  • Article   7.06 Transparency 5
  • Article   7.07 Contact Points 5
  • Chapter   Eight EMERGENCY ACTION 5
  • Article   8.01 Definitions 5
  • Article   8.02 Global Safeguard Measures 6
  • Article   8.03 Bilateral Emergency Actions 6
  • Article   8.04 Notification and Discussions 6
  • Article   8.05 Standards for Emergency Actions 6
  • Article   8.06 Administration of Emergency Action Proceedings 6
  • Chapter   Nine Investment 6
  • Section   A Definitions 6
  • Article   9.01 Definitions 6
  • Section   B Investment 6
  • Article   9.02 Scope of Application 6
  • Article   9.03 Relation to other Chapters 6
  • Article   9.04 National Treatment 6
  • Article   9.05 Most-Favoured-Nation Treatment 6
  • Article   9.06 Minimum Standard of Treatment 6
  • Article   9.07 Performance Requirements 6
  • Article   9.08 Senior Management and Boards of Directors 6
  • Article   9.09 Reservations and Exceptions 6
  • Article   9.10 Transfers 6
  • Article   9.11 Expropriation 7
  • Article   9.12 Compensation for Losses 7
  • Article   9.13 Transparency 7
  • Article   9.14 Subrogation 7
  • Article   9.15 Denial of Benefits 7
  • Article   9.16 Health, Safety and Environmental Measures 7
  • Article   9.17 Corporate Social Responsibility 7
  • Article   9.18 Special Formalities and Information Requirements 7
  • Section   C Settlement of Disputes between an Investor and the Host Party 7
  • Article   9.19 Purpose 7
  • Article   9.20 Claim by an Investor of a Party on Its Own Behalf 7
  • Article   9.21 Claim by an Investor of a Party on Behalf of an Enterprise 7
  • Article   9.22 Conditions Precedent to Submission of a Claim to Arbitration 7
  • Article   9.23 Submission of a Claim to Arbitration 7
  • Article   9.24 Consent to Arbitration 7
  • Article   9.25 Arbitrators 7
  • Article   9.26 Agreement to Appointment of Arbitrators 7
  • Article   9.27 Consolidation 7
  • Article   9.28 Documents To, and Participation Of, the other Party 7
  • Article   9.29 Place of Arbitration 7
  • Article   9.30 Public Access to Hearings and Documents 7
  • Article   9.31 Submissions by a Non-Disputing Party 8
  • Article   9.32 Governing Law 8
  • Article   9.33 Expert Reports 8
  • Article   9.34 Interim Measures of Protection and Final Award 8
  • Article   9.35 Finality and Enforcement of an Award 8
  • Article   9.36 Receipts Under Insurance or Guarantee Contracts 8
  • Article   9.37 Exclusions 8
  • Article   9.38 Suspension of other Agreements 8
  • Annex 9.11  Expropriation 8
  • Annex 9.31  Submissions by a Non-Disputing Party 8
  • Annex 9.37  Exclusions 8
  • Chapter   Ten CROSS-BORDER TRADE IN SERVICES 8
  • Article   10.01 Definitions 8
  • Article   10.02 Scope of Application 8
  • Article   10.03 National Treatment 8
  • Article   10.04 Most-Favoured-Nation Treatment 8
  • Article   10.05 Market Access 8
  • Article   10.06 Local Presence 8
  • Article   10.07 Reservations 8
  • Article   10.08 Domestic Regulation 8
  • Article   10.09 Recognition 8
  • Article   10.10 Denial of Benefits 8
  • Article   10.11 Transfers and Payments 8
  • Chapter   Eleven TELECOMMUNICATIONS 8
  • Article   11.01 Definitions 9
  • Article   11.02 Scope of Application 9
  • Article   11.03 Access to and Use of Public Telecommunications Transport Networks or Services 9
  • Article   11.04 Procedures for Licences or Concessions 9
  • Article   11.05 Conduct of Major Suppliers 9
  • Article   11.06 Universal Service 9
  • Article   11.07 Allocation and Use of Scarce Resources 9
  • Article   11.08 Regulatory Body 9
  • Article   11.09 Enforcement 9
  • Article   11.10 Resolution of Domestic Telecommunication Disputes 9
  • Article   11.11 Transparency 9
  • Article   11.12 Forbearance 9
  • Article   11.13 Relation to other Chapters 9
  • Article   11.14 International Standards and Organizations 9
  • Chapter   Twelve FINANCIAL SERVICES 9
  • Article   12.01 Definitions 9
  • Article   12.02 Scope of Application 10
  • Article   12.03 National Treatment 10
  • Article   12.04 Most-Favoured-Nation Treatment 10
  • Article   12.05 Right of Establishment 10
  • Article   12.06 Cross-Border Trade 10
  • Article   12.07 New Financial Services 10
  • Article   12.08 Treatment of Certain Information 10
  • Article   12.09 Senior Management and Boards of Directors 10
  • Article   12.10 Non-Conforming Measures 10
  • Article   12.11 Exceptions 10
  • Article   12.12 Transparency 10
  • Article   12.13 Self-Regulatory Organizations 10
  • Article   12.14 Payment and Clearing Systems 10
  • Article   12.15 Financial Services Committee 10
  • Article   12.16 Consultations 10
  • Article   12.17 Dispute Settlement 10
  • Article   12.18 Investment Disputes In Financial Services 10
  • Chapter   Thirteen TEMPORARY ENTRY FOR BUSINESS PERSONS 10
  • Article   13.01 Definitions 10
  • Article   13.02 General Principles 11
  • Article   13.03 General Obligations 11
  • Article   13.04 Grant of Temporary Entry 11
  • Article   13.05 Provision of Information 11
  • Article   13.06 Contact Points 11
  • Article   13.07 Dispute Settlement 11
  • Article   13.08 Relation to other Chapters 11
  • Chapter   Fourteen COMPETITION POLICY, MONOPOLIES AND STATE ENTERPRISES 11
  • Article   14.01 Definitions 11
  • Article   14.02 Competition Policy 11
  • Article   14.03 Designated Monopolies 11
  • Article   14.04 State Enterprises 11
  • Article   14.05 Dispute Settlement 11
  • Chapter   Fifteen ELECTRONIC COMMERCE 11
  • Article   15.01 Definitions 11
  • Article   15.02 Scope and Coverage 11
  • Article   15.03 General Provisions 11
  • Article   15.04 Customs Duties on Digital Products Delivered Electronically 11
  • Article   15.05 Relation to other Chapters 11
  • Chapter   Sixteen GOVERNMENT PROCUREMENT 11
  • Article   16.01 Definitions 11
  • Article   16.02 Scope and Coverage 11
  • Article   16.03 Security and General Exceptions 12
  • Article   16.04 General Principles 12
  • Article   16.05 Publication of Procurement Information 12
  • Article   16.06 Publication of Notices 12
  • Article   16.07 Conditions for Participation 12
  • Article   16.08 Technical Specifications and Tender Documentation 12
  • Article   16.09 Time Limits for the Submission of Tenders 12
  • Article   16.10 Limited Tendering 12
  • Article   16.11 Treatment of Tenders and Awarding of Contracts 13
  • Article   16.12 Disclosure of Information 13
  • Article   16.13 Domestic Review Procedures 13
  • Article   16.14 Modifications and Rectifications to Coverage 13
  • Article   16.15 Committee on Procurement 13
  • Article   16.16 Further Negotiations 13
  • Article   16.17 Information Technology 13
  • Chapter   Seventeen ENVIRONMENT 13
  • Article   17.01 Affirmations 13
  • Article   17.02 Agreement on the Environment 13
  • Article   17.03 Relationship between this Agreement and the Agreement on the Environment 13
  • Chapter   Eighteen LABOUR 13
  • Article   18.01 Affirmations 13
  • Article   18.02 Objectives 13
  • Article   18.03 Obligations 13
  • Article   18.04 Cooperative Activities 13
  • Chapter   Nineteen TRADE-RELATED COOPERATION 13
  • Article   19.01 Objectives 13
  • Article   19.02 Contact Points 13
  • Chapter   Twenty TRANSPARENCY 13
  • Section   A Publication, Notification and Administration of Laws 13
  • Article   20.01 Definitions 13
  • Article   20.02 Publication 13
  • Article   20.03 Notification and Provision of Information 14
  • Article   20.04 Administrative Proceedings 14
  • Article   20.05 Review and Appeal 14
  • Article   20.06 Cooperation to Promote Increased Transparency 14
  • Section   B Anti-Corruption 14
  • Article   20.07 Definitions 14
  • Article   20.08 Statement of Principles 14
  • Article   20.09 Anti-corruption Measures 14
  • Article   20.10 Cooperation In International Fora 14
  • Chapter   Twenty-One ADMINISTRATION OF THE AGREEMENT 14
  • Article   21.01 The Joint Commission 14
  • Article   21.02 Agreement Coordinators 14
  • Annex 21.01  Committees and Subcommittees, Country Coordinators and Contact Points 14
  • Chapter   Twenty-Two DISPUTE SETTLEMENT 14
  • Article   22.01 Definitions 14
  • Article   22.02 Cooperation 14
  • Article   22.03 Scope and Coverage 14
  • Article   22.04 Choice of Forum 14
  • Article   22.05 Consultation 14
  • Article   22.06 Good Offices, Conciliation and Mediation 14
  • Article   22.07 Establishment of a Panel 14
  • Article   22.08 Panel Selection 14
  • Article   22.09 Qualifications of Panellists 14
  • Article   22.10 Rules of Procedure 14
  • Article   22.11 Panel Reports 15
  • Article   22.12 Implementation of the Final Report 15
  • Article   22.13 Non-Implementation - Suspension of Benefits 15
  • Article   22.14 Review of Compliance and Suspension of Benefits 15
  • Article   22.15 Referrals of Matters from Judicial or Administrative Proceedings 15
  • Article   22.16 Private Rights 15
  • Article   22.17 Alternative Dispute Resolution 15
  • Annex 22.03  Nullification or Impairment 15
  • Annex 22.10  Rules of Procedure 15
  • Chapter   Twenty-Three EXCEPTIONS 15
  • Article   23.01 Definitions 15
  • Article   23.02 General Exceptions 15
  • Article   23.03 National Security 16
  • Article   23.04 Taxation 16
  • Article   23.05 Disclosure of Information 16
  • Article   23.06 Cultural Industries 16
  • Article   23.07 World Trade Organization Waivers 16
  • Chapter   Twenty-Four FINAL PROVISIONS 16
  • Article   24.01 Annexes, Appendices and Footnotes 16
  • Article   24.02 Amendments 16
  • Article   24.03 Reservations and Unilateral Declarations 16
  • Article   24.04 Entry Into Force 16
  • Article   24.05 Termination 16
  • Article   24.06 Accession 16
  • Annex I  Reservations for existing measures 16
  • Annex I  Schedule of Canada 16
  • Annex I  Schedule of Panama 20
  • Annex II  Reservations for Future Measures 23
  • Annex II  Schedule of Canada 23
  • Annex II  Schedule of Panama 25