Putting an end to a conflict that has affected the performance of the Colon Free Zone for more than two years, the World Trade Organization (WTO) announced that it has ruled in favor of Panama, concluding that the tariffs imposed by Colombia on the entry of footwear and textiles from Panama contradict the principles of the organization.

The expert WTO panel concluded its ruling and decided in favor of Panama, confirming that the measures taken by Colombia, establishing mixed tariffs on textiles and footwear, violate the country's commitments in the WTO, informed the Minister of Trade and Industry, Meliton Arrocha.

The statement by the Ministry of Trade and Industry states that "... The panel's decision is the result of a dispute settlement procedure initiated by Panama against Colombia with the World Trade Organization (WTO) over the adoption of mixed tariffs on textiles, clothing and footwear, which has adversely affected trade of products in the Colon Free Zone, highlighted Minister Arrocha.

The content of the judgment was made public today, 27 November, being circulated to all WTO members, and it was confirmed that the tariff measures taken by Colombia "are in violation of WTO agreements (GATT 1994) of the commitments made by that country and therefore the arguments and objections put forward by Colombia, failed to refute the demands and claims raised by Panama," said the Minister of Trade and Industry, Meliton Arrocha.

"With this ruling, the Arbitration Panel confirms that Colombia adopted measures which are inconsistent with its international obligations by imposing a joint tariff that exceeds the limits to which it committed to with the WTO and therefore Colombia should proceed to dismantle those measures, which unjustifiably have restricted trade in textiles and footwear, affecting the operations of the Colon Free Zone," said Minister Arrocha.

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