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: