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Establishment restrictions

PANAMA

Reported in 2014

Chapter Investment  |  Sub-chapter Other restrictive practices related to foreign investment
Law No. 31 of 8 February 1996
The Telecommunications Law (Law No. 31 of 1996) authorizes the majority of foreign capital participation in companies providing public telecommunication services, with the exception of foreign companies which another state controls or in which it has a majority holding.
Coverage Telecommunication sector
Establishment restrictions

PANAMA

Reported in 2015

Chapter Investment  |  Sub-chapter Screening of investment and acquisitions
Informal investment screening
While there is no formal investment screening for foreign direct investment, the Government of Panama does monitor large foreign investments. However, to date, there are no reports of discriminatory screening practices in the sectors covered.
Coverage Horizontal
Fiscal Restrictions

PANAMA

Reported in 2015

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
WTO Agreement on Government Procurement
Panama is not a member of the WTO Agreement on Government Procurement (GPA). In July 2013, Panama withdrew its application for accession to the GPA.
Coverage Horizontal
Source
  • USTR, 2015 National Trade Estimate Report on Foreign Trade Barriers: https://ustr.gov/sites/default/files/2015%20NTE%20Combined.pdf
Fiscal Restrictions

PANAMA

Reported in October 2014

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Executive Decree No. 366
There are no preferences for domestic suppliers in Panama's procurement procedures, but there is provision for promoting competitive participation by micro, small and medium enterprises (MSMEs). This is set out in Executive Decree No. 366, which stipulates that, when bids are equal, if one of the bidders is an MSME, it should be awarded the contract.
Coverage Horizontal
Source
  • WTO Trade Policy Review Report by the Secretariat, Panama, Document WT/TPR/S/301/Rev.1, 14 October 2014
Fiscal Restrictions

PANAMA

Reported in 2015

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Political influence
Political interests are reported to have often influenced procurement decisions. Panamanian business leaders have expressed concerns regarding what they believe is excessive use of sole-source contracting. U.S. firms have expressed concerns about how the government of Panama establishes and evaluates the criteria used to select a procurement winner.
Coverage Horizontal
Source
  • USTR, 2015 National Trade Estimate Report on Foreign Trade Barriers: https://ustr.gov/sites/default/files/2015%20NTE%20Combined.pdf
Fiscal Restrictions

PANAMA

ITA signatory? I II

Chapter Tariffs and Trade Defence  |  Sub-chapter Applied tariffs on digital goods
Average MFN rate
4.15%
Weighted average MFN rate
2.5%
Maximum tariff rate
15%
Coverage rate of zero-tariffs
48.48%

Coverage: Digital goods
Sources

Trading restrictions

PAKISTAN

Reported in March 2018

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
No de minimis rule
Pakistan has no de minimis rule, which means that there is no minimum value below which a good is exempted from duties and taxes collected by customs.
Coverage Horizontal
Trading restrictions

PAKISTAN


Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
Fragmented e-payment market
According to complaints from some business reports in Pakistan, there are only a few banks which offer debit cards that can be used for online payments or have the facility of transferring money from online accounts to other bank accounts.

Furthermore, the vast amount of different payment gateways by different banks and/or telecom companies has created a fragmented market which means that online businesses have to manage different banks and strike deals with several payment suppliers in order to reap larger market share.
Coverage E-retailing
Trading restrictions

PAKISTAN

Since 2002

Chapter Standards  |  Sub-chapter Encryption
Electronic Certification Accreditation Council Certification
Officially, Pakistan requires entities using encryption and cryptography services to obtain accreditation from the Electronic Certification Accreditation Council, which falls under the Ministry of Information Technology. In practice, this requirement is not consistently enforced. For example, WhatsApp is widely used in Pakistan, despite the company’s April 2016 announcement that it would employ end-to-end encryption. However, Research in Motion (RIM), the makers of BlackBerry mobile devices, faced scrutiny from the government regarding its use of encryption.
Coverage Horizontal
Trading restrictions

PAKISTAN

Since 2015

Chapter Standards  |  Sub-chapter Product screening and testing requirements
Instruction from the Ministry of Interior
The national telecom carriers were ordered to cease offering services that route email through BlackBerry Enterprise Server (BES) starting from December 2015. One of the services of BES is email encryption, which prevents tracking of the origin and messages sent through it. Security concerns and lack of Pakistan's capabilities for decryption have been cited as the reason behind the decision.
Coverage BlackBerry Enterprise Server (BES)
Trading restrictions

PAKISTAN

Since 1996

Chapter Standards  |  Sub-chapter Product screening and testing requirements
Telecom Act 1996
Under the Telecom Act 1996 (section 29), the type approval by Pakistan Telecommunication Authority (PTA) is required for any telecommunication terminal equipment that can be directly or indirectly connected with PSTN (Public Switched Telephone Network) and radio equipment. However, the PTA generally accepts foreign standard test reports as the basis for approval. The applicant for the approval may be a foreign manufacturer.

It is reported that such type approval for a local manufacturer is twice cheaper (5000 PKR, approx. 48USD) than for a foreign one (100 USD).

Tablet PC with Wi-Fi only functionality has been exempted by the type approval of the PTA as of August 2015 Authority Decision.
Coverage Telecommunication terminal equipment and radio equipment
Trading restrictions

PAKISTAN

Since 1996

Chapter Standards  |  Sub-chapter Product safety certification (EMC/EMI, radio transmission)
Telecom Act 1996
Chapter 2 of the Telecom Act requires that telecom equipment should conform to the standards adopted by the Pakistan Telecommunications Authority (PTA). Section 29 stipulates that no terminal equipment can be directly or indirectly connected with public switched network unless it has been type approved by PTA. The equipment required for testing terminal equipment and network conditions shall also be presented to the Authority for approval.
Coverage Telecommunication sector
Trading restrictions

PAKISTAN

Since February 2017

Chapter Quantitative Trade Restrictions  |  Sub-chapter Import restrictions
State Bank of Pakistan Circular No. 02 of 2017
On 24 February 2017, the State Bank of Pakistan (SBP) imposed a 100% cash margin requirement on the import of certain consumer items, including mobile phones. This measure obliges importers to deposit the total amount of the transaction value in a commercial bank before the opening of an import letter of credit.
Coverage Several products, including mobile phones and reception apparatus
Trading restrictions

PAKISTAN

Reported in 2015

Chapter Quantitative Trade Restrictions  |  Sub-chapter Import restrictions
Regulation on audiovisual broadcasting
Pakistan prohibits the importation, sale, distribution and transmission of films the government deems inconsistent with local religious and cultural standards.
Coverage Audiovisual broadcasting (films)
Trading restrictions

PAKISTAN

Reported in 2015

Chapter Quantitative Trade Restrictions  |  Sub-chapter Import restrictions
Import ban
Products from Israel are not allowed to be imported into Pakistan as well as any item made in third party countries which contain components made in Israel.
Moeover, Pakistan bans 1,209 items from India.
Coverage All products from Israel and selected products from India
Sources