Canada-Panama Free Trade Agreement

Annex II - Schedule of Panama

Sector: Social Services

Sub-sector:

Industry Classification:

Type of Reservation: National Treatment (Articles 9.04 and 10.03)

Most-Favoured-Nation Treatment (Articles 9.05 and 10.04)

Local Presence (Article 10.06)

Performance Requirements (Article 9.07)

Senior Management and Boards of Directors (Article 9.08)

Market Access (Article 10.05)

Description: Investment and Cross-Border Trade in Services

Panama reserves the right to adopt or maintain a measure for providing law enforcement and correctional services, as well as the following services to the extent that they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health care or child care.

Existing Measures:

Sector: Native Populations and Minorities

Sub-sector:

Industry Classification:

Type of Reservation: National Treatment (Articles 9.04 and 10.03)

Most-Favoured-Nation Treatment (Articles 9.05 and 10.04)

Local Presence (Article 10.06)

Performance Requirements (Article 9.07)

Senior Management and Boards of Directors (Article 9.08)

Description: Investment and Cross-Border Trade in Services

Panama reserves the right to adopt or maintain a measure denying to foreign investors and their investments or to foreign service providers a right or privilege granted to minorities with social or economic disadvantages or native populations in their reservation areas.

Existing Measures:

Sector: Issues Related to the Panama Canal

Sub-sector:

Industry Classification:

Type of Reservation: National Treatment (Articles 9.04 and 10.03)

Local Presence (Article 10.06)

Performance Requirements (Article 9.07)

Senior Management and Boards of Directors (Article9.08)

Market Access (Article 10.05)

Description: Investment and Cross-Border Trade in Services

1. Panama reserves the right to adopt or maintain a measure related to the management, administration, operation, maintenance, conservation, modernization, exploitation, development or ownership of the Panama Canal and the reverted areas that restrict the rights of foreign investors and services providers.

2. The Panama Canal includes the aquatic route proper, as well as its anchorages, dock berths and entrances; lands and marine, lacustrine and fluvial waters; locks; auxiliary dams; docks; and water control structures.

3. The reverted areas under the administration of the Inter-Oceanic Region Authority include the lands, buildings and facilities and other goods that have reverted to the Republic of Panama according to the Treaty of the Panama Canal of 1977 and its Annexes (Torrijos-Carter Treaty).

4. Notwithstanding Panama’s reservation in the Schedule of Panama, Annex II at page II-PA-9, Panama shall accord to investors of Canada treatment with respect to the Panama Canal and the reverted areas no less favourable than it accords, in like circumstances, to investors of a non-Party under a free trade agreement in force or signed prior to the date of entry into force of this Agreement.

Existing Measures:

Sector: State Enterprises

Sub-sector:

Industry Classification:

Type of Reservation: National Treatment (Article 9.04)

Senior Management and Boards of Directors (Article9.08)

Description: Investment

1. Panama reserves the right to limit the transfer or disposal of an interest held in an existing state enterprise so that only Panamanian nationals may receive that interest. This reservation only applies to the initial transfer or disposal of the interest, except as provided in the Schedule of Panama, Annex I at page I-PA-4 (Public Utilities).

2. For greater certainty,

  • a. where Panama transfers an interest in an existing state enterprise to another state enterprise, that transfer is not an initial transfer or disposal of the interest for purposes of paragraph 1; and
  • b. where Panama transfers or disposes of an interest in an existing state enterprise in multiple phases, paragraph 1 applies separately to each phase.

3. If Panama transfers or disposes of an interest in an existing state enterprise as described in paragraph 1, Panama may adopt or maintain a measure related to the nationality of the senior management and members of the board of directors of an enterprise that receives that interest.

Existing Measures:

Sector: Construction Services

Sub-sector:

Industry Classification:

Type of Reservation: National Treatment (10.03)

Local Presence (Article 10.06)

Description: Cross-Border Trade in Services

Panama reserves the right to adopt or maintain residency, registration or other local presence requirements, or to require a financial guarantee provided that it is necessary to ensure compliance with Panamanian law and private contractual obligations.

Existing Measures:

Sector: Fisheries and Services Incidental to Fishing

Sub-sector:

Industry Classification:

Type of Reservation: National Treatment (Article 9.04 and 10.03)

Most-Favoured-Nation Treatment (Article 9.05 and 10.04)

Description: Investment and Cross-Border Trade in Services

Panama reserves the right to adopt or maintain a measure relating to requirements for investments in, ownership or control of, and operation of, vessels engaged in fishing and related activities in waters under Panamanian jurisdiction.

Existing Measures:

Sector: All Sectors (For greater certainty, this reservation is subject to paragraph 4 of the Schedule of Panama, Annex II at pageII-PA-4)

Sub-sector:

Industry Classification:

Type of Reservation: Most-Favoured-Nation Treatment (Articles 9.05)

Description: Investment

1. Panama reserves the right to adopt or maintain a measure that accords differential treatment to countries under a bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement.

2. Panama reserves the right to adopt or maintain a measure that accords differential treatment to countries under a bilateral or multilateral international agreement in force or signed after the date of entry into force of this Agreement, involving:

  • a. aviation;
  • b. fisheries; or
  • c. maritime matters, including salvage.

Existing Measures:

Sector: All Sectors

Sub-sector:

Industry Classification:

Type of Reservation: National Treatment (Article 10.03)

Most Favoured Nation Treatment (Article 10.04)

Local Presence (Article 10.06)

Market Access (Article 10.05)

Description: Cross-Border Trade in Services

1. Panama reserves the right to adopt or maintain a measure affecting the provision of a service provided in the exercise of governmental authority.

2. A “service provided in the exercise of governmental authority” means a service that is not provided on a commercial basis or in competition with a service provider.

Existing Measures:

Sector: All Sectors

Sub-sector:

Industry Classification:

Type of Reservation: Market Access (Article 10.05)

Description: Cross-Border Trade in Services

Subject to reservations within the Schedule of Panama, Annex I at pages I-PA-13 (Electrical Energy), I-PA-40 (Telecommunications Services),I-PA-42 (Hotel and Restaurant Services), I-PA-43 (Recreational, Cultural and Sporting Services), I-PA-44 (Postal Services) and I-PA-45 (Ports and Airports), Panama reserves the right to adopt or maintain a measure that is not inconsistent with Panama’s obligations under Article XVI of the GATS.

Measures:

Sector: Transport Services

Sub-sector: Road Transport Services

Industry Classification:

Type of Reservation: National Treatment (Articles 9.04 and 10.03)

Local Presence (Article 10.06)

Performance Requirements (Article 9.07)

Senior Management and Boards of Directors (Article9.08)

Market Access (Article 10.05)

Description: Investment and Cross-Border Trade in Services

1. Panama reserves the right to adopt or maintain a measure that restricts the provision of services and investment related to scheduled passenger transportation, non-scheduled passenger transportation, rental services of commercial freight vehicles with operator, and bus terminal services.

2. Cabotage by land within the borders of Panama is reserved for domestic carriers.

Existing Measures: