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1. Panama's first Trade Policy Review has allowed this Body to appraise in detail the evolution of its trade policies in recent years. I thank Minister Ferrer, Chief Negotiator Sheffer, Ambassador Harris and the rest of the Panamanian delegation, as well as the discussant, Mr. Glass, and Members who engaged in the discussion as part of this exercise.
2. Panama was warmly praised for its commitment to the multilateral trading system, including its constructive role in the Doha Development Agenda. Panama's full engagement in this review demonstrated beyond doubt not only that commitment but also its support of the TPRM and transparency in general. Members took note of Panama’s involvement in preferential agreements, including the recently completed agreement with the United States, Panama's main trading partner. Members also encouraged Panama to continue along the path of global economic integration which it has followed so successfully.
3. Members welcomed Panama's strong economic growth in recent years, which they linked to sound macroeconomic policies and the liberalization of the trade regime. Members highlighted the importance of a disciplined fiscal policy to sustain economic growth, particularly in view of the costly Canal expansion and the absence of monetary policy instruments. Panama was also encouraged to capitalize on the present auspicious economic environment to take steps to distribute more widely the benefits of growth.
4. Members noted that the Canal is of critical importance to the domestic economy, and gives Panama a unique place in international trade representing as it does a vital transit point for global commerce. Although Members welcomed the Canal expansion, they noted the need for its careful management while expressing some concerns about rising tolls. The Colon Free Zone is also important for Panama's economy, having become a continental distribution hub. The granting of tax breaks and export subsidies through export processing zones and other schemes was questioned in view of their cost and possible distorting effects.
5. Members appreciated Panama's modernization and liberalization of its trade regime, which had been undertaken in part on an autonomous manner. However, Members considered that transparency and predictability would be enhanced by simplifying the tariff structure and narrowing the gap between bound and applied tariffs. Panama provided responses to the various questions and concerns raised by Members over SPS measures and technical regulations. Panama was invited to speed up its negotiations to accede to the GPA.
6. Considering the great importance of services for its economy, Members congratulated Panama for undertaking reforms to modernize its services sector. They pointed out to the numerous benefits from past liberalization, and thus encouraged Panama to continue opening the sector. Panama was also invited to expand its GATS commitments as to reflect more closely the degree of access afforded in practice to foreign service suppliers. Panama indicated that it is working on its revised services offer, aiming to include additional commitments in many sectors that are already liberalized. It also provided responses to service-related questions concerning activities such as telecommunications, transport and retail trade.
7. In conclusion, this first Trade Policy Review of Panama has been invaluable in shedding light on developments since Panama acceded to WTO ten years ago. Members stressed that during this short period Panama had become an active and respected Member of this Organization. Members considered that the liberalization carried out in recent years had underpinned rapid economic growth, but encouraged Panama to undertake further reforms to ensure the sustainability of growth. I would also invite Panama to bind recent and future reforms in the WTO to give greater predictability to its trade and investment regime, as well as to strengthen the multilateral trading system from which, as a small, open economy, it greatly benefits.
8. I would like to close this meeting by thanking once again the Panamanian delegation, the Discussant, and the Members that took part in this meeting for contributing to an informative and engaging review. I would also like to express my appreciation to the Panamanian delegation for the comprehensive responses provided during the meeting. We look forward to receiving outstanding responses within the next month. | 
