Colaboradores en esta edición José Javier Rivera J. Rafael Fernández Lara Consejo Vicente Feliciano Solene Belardi Editorial Giovana del C. Miranda Garzola David Rodríguez Jonathan Forget Ailen Galván Casilda Quiróz Lidia Dominguez Lucila Rivas Milena Vergara Ana Sofía Corrales Mariela de Sanjur José Javier Rivera J. Giovana del C. Miranda G.

Portada y Diagramación: Idalia Ballesteros Gabriela Melgar Donna Ballestero Rodrigo Gordón

Fotografía: Mariela De Sedas de Sanjur Rivera, Bolívar y Castañedas

@rbc_abogados

RBC Abogados

JULY 2017

Editorial PANAMÁ CANAL 06 PILOTS: LABOR CASTE Content

42. Polítics START AND END OF THE COTO CONFLICT

46. Panamanian Economy SAVING THE SOCIAL SECURITY FUND

57. World Economy IMF’S MANAGING DIRECTOR CHRISTINE LAGARDE URGES TO TAKE MEASURES TO STRENGTHEN WORLD GROWTH AND DEVELOP INCLUSIVE ECONOMIES

68. Environmental Capsule

70. Illustrious People THE ONE WHO HAS ARRIVED: EMMANUEL MACRON

74. Sports Capsule

84. Cultural Capsule Invited Writer Santos no levanta el secreto sobre el galeón San José 08 Consult Doctrine & Jurispru- dence BEYOND REQUEST FOR EX- Norms TRADITION OF PANAMA BY 18 RICARDO MARTINELLI of interest 11 Legislación y Economía July 2017 Editorial PRÁCTICOS DEL CANAL: CASTA LABORAL Giovana del C. Miranda Garzola [email protected]

t is well known that number of collaborators ment, transfers and promotions are gov- who uninterruptedly serve in the Panama Canal erned by merit competition and based on the Authority rebuilds the 8 thousand people, most preparation, qualities, suitability and expe- Iof them Panamanians and that according to their rience of worker or candidate to each posi- efforts and sacrifices the Panama Canal pro- tion, preferring Panamanians over foreigners. vides a service to the world maritime commerce. In the same vein, since June last year, the coun- Based on this, base salary is fixed taking into try fulfilled its commitment to upgrade the in- account salary category, which is determined ter-oceanic route, allowing neo-panamax ships according to the position, allocations, re- to use the route to transport goods, efficiently sponsibilities and in each category there are and generating environmental impact savings. degrees and steps, which allows the worker within a category, prior fulfillment of the pa- According to current regulations, the Panama rameters can ascend another step and each Canal Authority has exclusive responsibility for one represents a better income or salary. the operation, administration, operation, mainte- nance, upgrading and modernization of the Ca- According to the General Regulation of Person- nal, as well as its related activities and services, nel Administration, there are eight categories in accordance with the rules Constitutional laws within which are, executive, management, expert in force, in order for the Canal to operate in a safe, professionals, non-manual, manuals, special continuous, efficient and profitable manner. manuals, special and miscellaneous specials. In addition to the base salary, workers The Authority is subject to a special labor re- may receive additional annual compensa- gime, based on a system of merits and equal tion for remaining available, bonuses, bo- opportunities, in such a way that recruit- nuses, gratuities or compensation, as

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well as a reward and incentive program. engineers who largely assumed tasks of de- sign, control, the expansion project, personnel Likewise, they have at least five Collective La- who monitoring water quality and maintain- bor Conventions subscribed with: 1. Union of ing Canal’s assets, which are concerned with Pilots of the Panama Canal, which will rule un- preservation of the environment and the ca- til the end of 2021. 2. Non-Professional Work- pacity to produce electricity, water and other ers’ Unit, which groups more than 80 % Of the benefits for the country. Likewise, those who workers of the Canal which will run until Sep- are monitoring trends in use of the inter-oce- tember 30, 2019. 3. Professional Workers Unit, anic route with other strategic, logistic and effective until December 30, 2019. 4. Union of transport purposes and therefore the produc- Captains and Officers of Coverage (UCOC) that tive use of country’s geographical position. will govern for four years. 5. International Fire- fighters Association (IAFF), Local 13, exclusive It is within this context that a set of economic representative of the Firefighters Negotiating benefits that has the consequence of gener- Unit, which will be in force until June 25, 2021. ating an excessive remuneration is unequal. Worse still if the system doesn’t agree We have brought up these general elements, with a high productivity and with the pos- given that in recent days the amount of sala- sibility to optimize the use of new sys- ries paid by the Canal pilots has been made tem of locks in the extended Canal. public, which, using the inherited system of so- That is why it is mandatory that these is- cial stratification, is clearly superior to the rest sues be discussed with the utmost of the salary categories that Exist in the ACP. force, safeguarding interests of most of ACP’s collaborators and collective ben- According to information published by La Pren- efit that the Panama Canal must provide. sa newspaper in its July 17 and July 18 present year deliveries, the approximately 275 workers We can’t, under any circumstances, re- working in the Canal earned in the year 2016 peat historical error of the SUNTRACS that revenues of approximately 124 million dollars has generated a perverse sequel in val- between salary and overtime, this means that ue of constructions in our country, since 25% of the Canal’s budget goes to the payroll it is a service that must be competitive in of the pilots. They are without prejudice to ve- the offer of maritime services worldwide. hicles, special schedules, waiting area and pos- sibility of providing services to third parties. The historic responsibility of the Canal admin- istrator and his Board of Directors, at this stage There is no doubt that the Collective Agree- of negotiation of this Collective Convention, re- ment signed between ACP and the pi- quires firmness, economic fundamentals and lots, signed last year, set an exorbitant in- the ability to make decisions that are redis- crease in wages and other benefits that tributive over time and that are not affected by now gravitate on the profits of this entity. threats of force actions that affect the guarantee of uninterrupted service of the Panama Canal. Some of the distinctive features of the ACP part- ners are related to the continuous improvement Amanecerá y veremos… of their skills, for example the cable hangers,

7 Legislación y Economía July 2017 Invited Writer Santos no levanta el secreto sobre el galelón San José

Fuente: Jesus Garcia Calero www.abc.es/cultura

thousand meters under surface of the sea, near Cartagena de Indias, Regarding financing, Santos said that wasA discovered in December 2015 the there is already an investor overshad- wreck of a Spanish galleon, San José. owed by the secret that surrounds ev- erything and said that he is willing to Yesterday, in the colonial city, Colom- accept conditions that are still a mys- bian President Juan Man- SECRETS: tery but, if we listen to the uel Santos appeared to, as words of the president and had announced, tell “the The investor, the Minister of Culture, Mariana progress achieved” in fu- equipment and the Garcés, << meets the high- ture excavation of sunken financing remain est scientific, technologi- galleon on June 8, 1708. under state secre- cal and financial standards cy. There is no such required and guarantees a In fact, not much data was process fully respectful of offered, in fast-paced tele- reserve in purely the historical and heritage vision format that even had scientific projects, values of the galleon >>. a hostess, but if they were based on knowledge once again fed high expecta- sharing. The man will allow, in tions and adorned with patri- the words of authori- otic borders investigation, of ties, that Colombia ac- which Spain remains apart as if that galleon cess virtually unlimited resourc- had nothing to do with our history. It is also es and technologies for this project. the tomb of almost 600 Spanish sailors.

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This unknown investor - worthy of a mon- Both the president and the minister, ac- ument next to Blas de Lezo if we believe in companied by the heads of the Colom- the praise of the president - is also willing bian Navy and the director of the official to hire the “best team in the world”, called archaeological institution, the ICANH, to make a turning point in archeology, But Ernesto Montenegro, didn’t fail to un- of which we don’t know anything yet. We derline the scientific challenge that the do know that a project like this needs a galleon poses: << Nobody has proposed multidisciplinary set of such a dig Complete to this specialists in archeology, TECHNOLOGY: depth >> As an archaeolo- oceanography, geology gist at the head of the project, and engineering to handle What has been Montenegro highlighted the ROVs and other deep-sea shown makes it pos- amount of historical infor- exploration vehicles. It is sible to ensure the mation collected, as well as worth remembering that highest technology the immense bank of images Spain has experience in available to specia- that already has after sev- this type of wrecks, since eral campaigns on the price. the Mercedes frigate is at lists. Expectations a depth of 1,130 meters. are very high in this One of the few new data of- regard. fered yesterday had to do The act of yesterday before with a map of the Colom- cameras was more a gala, gala of the gal- bian Caribbean, guarded in the Library leon, in which also it wasn’t revealed what of Congress of the United States that a will be the remuneration that will obtain Colombian investigator had found af- that unknown investor, so that it is still ter forty years dedicated to the search difficult to evaluate its intentions. And we of the galleon and that was determi- must remember that Colombia passed an nant to locate the place of shipwreck. Act that allows to sell part of the recov- ered property However, Mon- in order to pay tenegro re- the excavation. vealed that current and Santos said, climatic stud- yes, that on July ies have been 14 will become carried out to official agree- reproduce the ment, a Public behavior of the Private Part- ship during the nership with battle in which that investor, Charles Wager open to com- wrecked the petition from galleon, which other investors. suffered an explosion in the bow and was swallowed by the sea in a few minutes .

9 Legislación y Economía July 2017

ARCHEOLOGY: It will When they found the sonar anomaly, learned that it was probably San Jose, be the first intact galleon according to Montenegro, by bronze excavated, although the cannons that were later documented. great depth does not ad- On the treasure, there is little to specu- vise a complete interven- late, after the book by Carla Rahn << tion. It is outrageous that The treasure of the galleon San José >> published by Marcial Pons in Spain. cooperation with Spain However, ICANH estimates that there should be totally ruled may be 10 million elements in the reser- out. voir, including pieces of the ship’s struc-

ect associated with a group of treasure hunters The press and international scien- tific community fell upon it. The ultimate purpose remains in full force: to deacti- vate the international right of protection of underwater patrimony. Santos decides how and with whom he pleases about the fate of a war grave. Perhaps the fate of the rest of underwater cultural heritage of Hispanic origin in the world is not his problem and that is why it surprises San- ture, cargo remains and crew wounds. tos so much that his legacy is the biggest favor to international industry of plunder. More human remains of Span- >>L&E ish sailors that surely kept for 300 years in the abyssal silence.

During the ceremony, authorities worked hard to offer high-tech images and tech- nology, plus security provided by Co- lombian Navy to operations. Santos announced that there will be a large mu- seum <> in Carta- gena, and laboratories will be created for conservation of pieces at naval base.

But Spain remains banished from the project. According to lawyer José María Lancho, specializing in underwater heri- tage << Santos initially conceived a proj-

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Norms of INTEREST

PROTECTION OF NEWBORNS

Giovana del C. Miranda Garzola. - Attorney [email protected]

n July 11, Law 55 was passed, through which the Family, with the purpose of receiving protection mechanisms will be developed and provisionally guarding a newborn. Ofor newborns delivered by their mother to a receiving center, with the objective of pro- Another aspect that is contemplated is viding the necessary assurances in those that the voluntary surrender of a newborn cases in which their life is or may be at risk. by his mother to a receiving center, for the first time, will not be the subject of a crimi- The standard develops the terms of con- nal investigation, except in those circum- fidential information, receiving center, stances in which the minor is evidenced or foster family, suitable staff and newborn; suspected to have been Victim of abuse. Being understood as a receiving center for those health posts, health centers, lo- It should be noted that the mother can cal primary health care units, polyclinics, only do it once in the course of her life. public and private medical centers, shel- ters at the national level, with suitable Likewise establishes obligations that re- personnel certified by the National Se- ceiving center acquires with respect to the cretariat for Children, Adolescents and newborn and exempts appropriate per-

11 Legislación y Economía July 2017

sonnel that provides first aid to newborn or moves it to an emergency service of cri- minal or civil responsibility for the actions NEW RULES FOR that this implies, provided that it acts ac- cording to existing protocols of care, with THE SHARED professional diligence and prudence and that doesn’t mediate fraud in the action. BANKING

The SENNIAF Protection Directora- te, in the case of a recidivist mother, must send the file and all informa- tion to the Public Prosecutor’s Office Giovana del C. Miranda Garzola. - Attorney to carry out the respective investiga- [email protected] tions, which doesn’t prevent newborn from being given the care he requires.

Law 55 amends the Penal Code by intro- ducing article 148-A which establishes that the mother who for first time is deli- vered to a receiving center within first se- ven days of life certified by a pediatrician he Superintendency of Banks issued is exempt from criminal responsibility or a TAgreement No.006-2017 of July 4, 2017, suitable doctor in the absence of the first. which establishes new provisions on shared banking, in the sense of establish- Law 55 will be regulated. ing that the Superintendency may grant

authorization when it considers them vi- We believe that this Act opens a debate within ethical and religious framework. able, so that one or several banks and one However, in the face of exorbitant figu- or more financial entities, all established in res of pregnancies of minors, the heart Panama and belonging to same econom- of the Law is to preserve life not only ic group, share offices and/or personnel. of the born, but also of the nasciturus, through option of delivery for adoption. Agreement No.006-2017 eliminates Agree- ment No. 7-2010 of November 2010 and In our view, determination and action on there is a need and need to update scope the sexual education of our population, an of provisions on shared banking, in order effective tool for the prevention and reduc- that concept of shared banking will be ap- tion of unwanted pregnancies, is needed. plied to other financial entities established L&E and belonging to same economic group, to share offices and/or personnel. L&E

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PARTICIPACIÓN DE MUJERES EN JUNTAS DIRECTIVAS ESTATALES

Giovana del C. Miranda Garzola - Attorney [email protected]

ith the approval of Law 56 of July ment of a year of desertion, having to 11, 2017, the right of women to ac- have at least 10% of a participation Wcess and active participation in the of women in its boards of directors. decision-making of public and private entities of the country is established. The second stage will apply to the two years of validity, which will force It has been established that, in central boards to have at least 20% of wom- government institutions, decentralized, en’s participation and third public enterprises, financial interme- stage, will apply to three years diaries and those regulated by them, of force that will force it to which have a board of directors, a board count With a 30% participa- of administration or similar, must desig- tion in its boards of directors. nate at least 30% of women of its totality. L&E

On the other hand, for institutions where appointments are periodic, the State will seek to maintain a minimum participation of women through the different periods.

Law 56 will be applied in a staggered way, that is, in three different stages, the first being applied to the fulfill-

13 Legislación y Economía July 2017

INDUSTRIAL PROPERTY LAW REGULATIONS

Pedro O. Bolívar Cisneros.- Attorney [email protected]

y means of Executive Decree No.85 of July B4, 2017, a new legal regulation has been gene- rated that regulates Law 61 of October 5, 2012 (Industrial Property Law), which responds to commitments acquired in the Free Trade Agreements in the area of Industrial Property, but also managed to lay foundations for an • Indications of Geographical Indications Industrial Property office, which has an auto- (IG), indications of (IP) and Denominations mated system, whose legal validity is recog- of Origin (DO). nized by a new law (paperless procedures). • Patents of Invention. • Industrial designs. The introduction and/or development of to- • Fees and Rights. pics on intangible assets will allow govern- ment to promote registration of trademarks The Register of Powers is developed and their use as a source to obtain eco- in the DIGERPI, so that the applicant to nomic financing in commercial activities. do their paperwork, will only make re- ference to the inscription of the Power. In the area of technology, it is expected that a significant number of requests for protection It regulates the processing of natio- will be generated in Panama, which entails nal patents and PCT, in order to streng- feeding databases of trademark and patent then the patents that have better recog- office (DIGERPI) with state-of-the-art tech- nition both nationally and internationally. nological information, which must have an effect on the country’s scientific community. In the area of trademarks, everything related to multiclass marks is regulated in greater detail This Decree regulates Law 35 of and the registration procedure is simplified. 1996 and Law 61 of 2012 that modi- fied and/or revoked articles of Law 35. It contemplates who and how to pro- cess a geographical indication, inclu- The regulation consists of 179 arti- ding the content of the regulation of use. cles, which cover the following topics: The subject of electronic processing for • Electronic systems. applications to DIGERPI is developed, • Compulsory Licenses.

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and fees and fees for registration of In- tellectual Property rights are increased. Pursuant to article 174 of the Labor Code, the minimum wage will be fixed periodically, This regulation closes the circle of the at least every two years, according to the re- commitments acquired by Panama in the commendation of the Minimum Wage Com- commercial treaties that it has celebrated. mission and by Executive Decree.

It is a new route of opportunities for peo- In this context, Executive Decree 293 of De- ple or companies (nationals, residents cember 22, 2015, which establishes current with commercial or industrial or foreign minimum wage began to apply on January establishments) in Panama, to protect 1, 2016, so that it will be for Commission to their Industrial Property Rights abroad. determine, if it is appropriate, the new rate of Wage, taking into account many factors, As a result, the new legal framework, whi- one of them being productivity, which is fun- le not eliminating traditional registration damental for determination of a salary pay- system, implies a more economical and ment and that has been approach of emplo- simple route for companies to protect their yer sector. brands in Panama and abroad, improving their competitiveness in the global mar- Increasing minimum wage disproportiona- ket and preserving welfare of consumers. tely produces a harmful effect for the eco- nomy of Minimum Wage and Executive De- As a final conclusion, it can be noted that cree. Panama has a modern regulation in the field of Industrial Property, which will allow the In this context, Executive Decree 293 of entities to negotiate treaties or internatio- December 22, 2015, which establishes the nal trade agreements, not having any type current minimum wage began to apply on of difficulty when analyzing the issues of January 1, 2016, so that it will be the respon- Industrial Property as part of the subjects sibility of the Commission. L&E of an international treaty or agreement. L&E

COMMISSION ON MINIMUM WAGE

Giovana del C. Miranda Garzola - Attorney [email protected]

The Ministry of Labor and Labor Development issued Executive Decree No.17 of July 19, 2017, which appoints members of the National Mi- nimum Wage Commission, who represent the government sector, the employer sector and the trade union sector.

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FORUM ON LABOR FLEXIBILITY OR MIGRATORY RESTRICTION WHAT DO WE NEED?

Giovana del C. Miranda Garzola - Attorney [email protected]

T he Panamanian Associa- tion of Business Executives (APEDE) presented the La- bor Flexibility or Migration Restriction forum What do we need?, in which Experts from both the public and private sectors participa- ted, highlighting the parti- cipation of the Minister of Labor and Labor Develo- pment and the Director of National Migration Service.

This is an issue that, for the last few months, has been subject of several for- According to studies conducted, it is es- mal debates, as well as social networks, timated that between 2017 and 2027 which ignite spirits of those living in this the country will continue to grow and in territory, regardless of whether we are areas such as construction there will be a Panamanians or foreigners. A factor of shortage of workers of around 26,819, for utmost importance in the development tourism is estimated to be at least 4,113 and peaceful coexistence in our country. and in agricultural sector will be 3,203 and that from 28 to 45% of jobs generated The Minister of Labor stated, among by the economy between 2013 and 2025 other things, that state and private uni- will require importation of professionals. versities are required to update acade- mic offer to what the market really needs He presented various steps taken by and not to stay in traditional professions. the Ministry in this area and it is im- portant that there is no unfair compe- Country requires technical training, to fill tition between companies and this is vacancies in the country and that “the achieved when companies that have growth of our country is in its human ta- foreign personnel, the same is legali- lent, the more skilled, the more qualified.” zed, that the fact that some Companies 16 comply with the regulations and others don’t, resulting in unfair competition.

of Knowledge and coordination between He made clear that there must be an or- all institutions, whether the National Mi- derly labor migration and that there are se- gration Service, the Ministry of Labor and veral challenges, such as the definition of the Social Security Fund, is not a question a labor migration policy, the strengthening of closing the borders, but that there is a of the legal framework, adoption of legal control as foreigners will continue to enter sanctions in line with current times and the Panama, since Requires skilled labor and implementation of standards. He added professionals, but not from any foreigner. that in “Panama there are companies that In our opinion, migration policy is are models of an orderly labor migration”. nothing more than “a public policy that contains a normative framework For its part, Director of Migration, presen- of action directed to the manage- ted a summary of what actions developed ment of a country’s migratory issues.” by the Institution for migration control to the country, made reference to interna- As a result, migratory movements are tional agreements that it has and that a major challenge for countries, which allow detection of people who intend to require complex, adequately formu- enter the country but who have a police lated decisions that require a long- record or are required in other countries. range vision, which implies a short, He said that there is a constant monito- medium and long-term calculation. ring of the entrance and exit gates of the Panama, is a country that historically country, recognized that sometimes it has had a constant migratory flow and in is not easy to meet all the requirements one way or another we have been able to that are required to stay in the country. coexist with it, it is true, were other times, now we are in a globalized world and mi- Another participant, Juan Gabriel Gonza- grations that as we know can be due to lez, concluded by stating that talent has various reasons, are also part of globali- no nationality, that there must be flexibili- zation, maximizing our attractive country ty to import academics, there must be fair potential and greater economic growth in and non-disloyal competition, no poverty the region especially for people with skills should be imported and the Panamanian and knowledge qualified, aimed at bringing must be trained to compete in a world about changes in our youth and education. Globalized and that “foreign jugglers” or “well-cared for” are not required here.

In summary, ex- perts agreed that a labor migration policy is required, changes in migra- tion and labor laws, better immigra- tion controls, that allow the entry of people who actua- lly come to country to contribute, that 17 there is a transfer Legislación y Economía July 2017

Consult Doctrine & JURISPRUDENCE

AUTHENTICATION OF EXTENSIVE DOCUMENTS SHOULD BE CARRIED OUT BY THE SECRETARY OR THE OFFICIAL THAT MAKES HIS TIMES IN PUBLIC REGISTRATION

Source: Attorney General’s Office Administration

he Public Prosecutor’s Office, through ve proceedings substantiated by the Pu- consultation C-066-17 of July 5, 2017, had blic Registry of Panama, would be viable to Tthe opportunity to acquit the question rai- authenticate them by placing institutional sed by the Director of the Public Registry seal on each page and a “mooring seal” in on the legal feasibility of authenticating the last one; Based on the jurisprudential extensive documents (eg, public deeds and standards established in reiterated juris- administrative records) by placing the ins- prudence of the Third Chamber of the Su- titutional seal on each page and a “mooring preme Court of Justice.” seal” on the last page. The criterion of the Office of the Attorney To absolve question raised, the Attorney General is based, among other things, General considered that “given the absence on fact that procedure to be followed for of a general or special administrative pro- authentication of copies of documents is- cedure that establishes the procedure to sued by State institutions or retained in the be followed, to authenticate the registered State’s archives is regulated by the Judicial public deeds and records of administrati- Code, being of particular interest in case in

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question, contemplated in articles 183 and 3) This seal must contain: a) the date of following of Book Two, which establish du- authentication; b) The phrase “faithful ties and obligations of the Secretaries of copy of its original” and, c) signature of the Judicial Dispatch and provisions of articles official who holds the original; 833 and following of the same body of Ru- les, which regulate probative value of do- 4) Said “mooring seal” will only protect the cumentary evidence, particularly of public document in which it has been stamped documents. and that which are properly folded;

Authority considers that these rules may be 5) The document must bear institutional applied by institutions of the Public Admi- seal of the Public Registry of Panama, on nistration, when their special legal regime each page.” or other rules of administrative procedure governing similar matters don’t include a Interesting the approach of the Office of the special procedure for authentication. Public Prosecutor in which it details and precise, orients the official about procedu- In this particular case, it would correspond re that should be used for the authentica- to the General Secretary of the Public Re- tion of extensive documents by the Public gistry of Panama, to authenticate copies Registry, for it has a probative value before that are required, as indicated by those re- courts of justice or the instance in ques- gulations. tion. L&E

In the absence of a rule that establishes the procedure to be followed, the Attorney´s Office considers that, in order to authenti- cate copies of extensive documents, such as those registered in Public Registry, or information contained in registry system, Institutional on each page and a “mooring seal” on the last one.

Prosecutor concludes, stating that “we be- lieve that such authentication should be carried out in accordance with above-men- tioned jurisprudence, in the sense that:

1) The Secretary or General Secretary, or the official or who acts as a manager, must extend authentication;

2) The document must bear, at the end, the seal of authentication and fresh signature (understood, the “seal of tie”);

19 Legislación y Economía July 2017 BEYOND REQUEST FOR EXTRADITION OF PANAMA BY RICARDO MARTINELLI

Lucila Itzel Rivas Guerrero - Attorney [email protected]

Beyond request for extradition made The Judge acknowledges that: “Former Pre- by the Supreme Court of Justice of Panama, sident Martinelli is free to waive any extradi- theM Supreme Court of United States of Ame- tion proceedings and return to Panama ex- rica has prepared an analysis of principles peditiously where he can apply again for bail governing extradition between United Na- of release.” tions, international treaties and conventions adopted between the two countries, leaving But this is not “a criminal case where bail a clear precedent, that research and libera- would ordinarily be granted. This is an admi- tion is not just a matter of bail. nistrative procedure under international law for the certification and approval of the deci- Judge Torres begins among other comments sion of the Department of State to obtain the stating that: “In the exercise of the jurisdic- extradition of this person at the request of a tion that we are charged with enforcing, and foreign government. although this case is in its infancy, the Court has reviewed the entire file to determine Our law assumes that the Court will keep the whether the requirements of justice autho- defendant in custody “until such delivery.” rize the Exercise of the power to grant bail.” (“International law responds to a high purpo- se when subscribing to the determination by

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Nations to rely on their national courts to “Article 338. A public servant who removes enforce legitimate laws and procedures).” or misbehaves in any way, or consents that another person appropriates, subtracts FUND ISSUES from, or misbehaves in any way, money, se- curities or property, whose administration, Within the ruling, the judge analyzes the perception or custody has been entrusted fundamental issues, this case refers to the to him by reason of his position, will be pu- potential extradition of former President nished with imprisonment from four to ten Ricardo Alberto Martinelli Berrocal. years.

He then states that on October 9, 2015, Ma- If the amount of appropriation ex- gistrate Harry Diaz of the Supreme Court of ceeds one hundred thousand balboas Justice of Panama issued an indictment (B/.1,000,000.00), or if the money, securi- against former President Martinelli for four ties or appropriate goods were destined for offenses. welfare purposes or development or so- cial support programs, the penalty shall be OFFENSES FOR WHICH THEIR EXTRADI- eight to fifteen years in prison.” TION IS REQUESTED 4. Misappropriation of use of public funds 1. Interception of telecommunications in violation of article 341 of the Penal Code, without judicial authorization, violating Ar- which reads as follows: ticle 167 of the Criminal Code of Panama which states that: “Article 341. A public servant who, for purposes other than service, uses for his “Article 167. Any person who, without the own benefit or for the benefit of others, or authorization of the judicial authority, in- allows another to use money, securities, tercepts telecommunications or uses tech- assets that are under his charge due to his nical artifices of listening, transmitting, re- functions or that are under his custody pu- cording or reproducing conversations not nished with imprisonment of one to three addressed to the public, shall be punished years, or its equivalent in days penalties or with two to four years’ imprisonment. arrest of weekends.

2. Follow-up, prosecution, and surveillance The same penalty shall apply to the public without judicial authorization, violating Ar- servant who uses official services or servi- ticle 168 of the Criminal Code of Panama ces for his benefit or allows another to do which reads as follows: so.

“Article 168. Any person who, without co- REPORTING CONDITIONS rresponding authorization, pursues, pur- sues or supervises a person for unlawful purposes, shall be punished with two to four years in prison. The same sanction will be imposed on whoever sponsors or pro- motes these events.”

3. Misappropriation of funds in violation of article 338 of the Criminal Code of Panama which states the following: 21

This treaty, ac- According to the request for extradition, cording to trans- Panamanian court argued that former Pre- cript, states that sident Martinelli Berrocal was unable to “the United Sta- appear before the court when he was sum- tes America and moned for a hearing on charges on Decem- the Republic of ber 21, 2015, so that the Court of Justice Panama, ratify issued An order for the arrest of Martinelli the commitment Berrocal.” to deliver to any person who is Likewise, in request for extradition from charged with cri- Panama, Judge Jerónimo Mejía, who has mes and speci- role of judge of guarantees, requested that fies that within former President Martinelli be detained in the jurisdiction of order that extradition of the same to the one of the parties, where asylum is sought, Republic of Panama be made effective. can be granted based on evidence accor- ding to laws of the Place where the fugitive ALLEGATIONS BY DEFENSE is, so his apprehension would be justified.”

According to former President Martinelli, Treaty between the United States of Ame- current president was elected Juan Carlos rica and the Republic of Panama providing Varela to the presidency in 2014, launched for extradition of criminals, dated May 25, criminal investigations against him. 1904. This treaty provides that the signatories Due to actions of President Varela in Fe- shall grant extradition in the case of offen- bruary 2015, former President Martinelli ses against public funds; Where in any traveled to the United States, and on July class of cases the embezzlement exceeds 15, 2015 filed an application for asylum, the sum of two hundred dollars. In addition, providing the US government with his ad- an authenticated copy of the detention dress and fingerprints. authorization must be sent in the country where the crime was committed, the legal Former President Martinelli openly dis- provisions violated, the evidence gathered. cussed, in a hearing with the security de- partment on March 16, 2017, pending Both countries have signed an agreement investigations against him, including in- on cybercrime, which states that: vestigations by government team of politi- Each Party shall adopt the necessary le- cal opponents, Martinelli denied any invol- gislative measures and any other measu- vement in illegal activities. res necessary to prevent offenses under its national law, when there is an intentional INTERNATIONAL TREATIES interception by technicians, private trans- missions from a computer, computer sys- Judge Torres referred to a series of impor- tem, including electromagnetic information tant international treaties signed by both systems . countries, among which we can mention the following: Convention on the Art of Cybercrime of 23 November 2001: Treaty of Extradition between the United This article applies to extradition between States of America and the Republic of Pa- countries for crimes established in accor- nama of May 25, 1904, April 8, 1905 and dance with articles 2 to 11 of this Conven- 22 May 8, 1905. tion, in relation to the punishment under the laws of both parties deprivation of li-

berty for a maximum period of one year, or sing parliamentary immunity, since he is by a more severe penalty. a member of the Central American Parlia- ment, that is PARLACEN. The final treaty cited by government is co- rruption, this treaty consecrates crimes In addition, charges attributed come from such as: embezzlement of State-owned rumors, and no single interception is iden- funds, ie each State will adopt legislative tified. In addition mention is made of Mr. and other measures as may be necessary Ronny Rodríguez of the director of the Na- to establish as crimes, embezzlement of tional Police, who have called him seve- funds by officials for their own benefit or ral times to serve as a protected witness benefit from a third party, whether from pu- against him. blic or private funds, entrusted to the offi- The former president maintains that evi- cial by virtue of his position. dence against him is weak and doesn’t have the force of law, because there is no SUPPOSED CONFLICT OF LAWS connection between the attributable crime and evidence presented. Among arguments enunciated by the de- fense of the former president cited article CASE ANALYSIS 191 of the National Constitution of the Re- public of Panama, which states: We begin by acknowledging that the fe- deral extradition statute doesn’t provide “Article 191. The President and Vice Presi- explicit authority for a US District Court to dent of the Republic are only responsible in grant bail for potential extradition. the following cases: The great interest of the government in 1. For overreaching in their constitu- denying bail stems from its need to ensu- tional functions, re that the United States complies with its 2. For acts of violence or coercion in obligations under international treaty. course of electoral process; By impeding the meeting of the National Assembly, by This is because the extradition treaties hindering exercise of functions of this or create a binding obligation of the United other public bodies or authorities establis- States government to deliver fugitives who hed by the Constitution; are required for extradition. 3. For crimes against international personality of the State or against the Pu- blic Administration.

In the first two cases, pe- nalty will be dismissal and disqualification to exer- cise public office for the term established by law. In third case, common law will apply.

According to this article, former President Martinelli said that crime attributed is the interception of wiretaps without ju- 23 dicial authorization, in addition to posses-

That is, admission to bail and extradition In the event that if the United States would should be in practice an unusual and ex- release and escape a foreign fugitive traordinary thing, because whole procedu- the government would suffer the emba- re is opposed to our historical ideas on bail. rrassment and this could create potential reciprocal breach by other countries. Bail is taken from our courts not from the theory of punishment, but from the The “supreme importance” of an extradi- defendant’s duty not to escape. tion treaty supports denial of bail in foreign cases for extradition proceedings. Persons accused of crimes in foreign lands have not probably violated the laws of this Evidence of special circumstances was es- country; Therefore, it is absurd that our tablished to allow a limited number of ca- State or Nation receives the money of the ses in which bail may be granted because accused. Nor can such money influence any risk of flight is too significant a risk for the demanding government, from an inter- tolerance of the national interest. national point of view, is ridiculous.

In the case of Venezuela when he sought The granting of bail in any case of extradi- the extradition of a former president and tion seems to escape the limited jurisdic- military leader, who ruled Venezuela from tion of the Court. But we must also apply 1948 to 1958. the current doctrine of the Supreme Court granting us some limited power to grant When extradition was requested, it was ar- bail even in an extradition case. We pro- gued that there were financial crimes that ceed to look for special circumstances in were carried out during his presidential this case. term. SPECIAL CIRCUMSTANCES IN THE CASE After fleeing Venezuela to Miami, last de- OF RICARDO MARTINELLI cision of the district court was to deny bail because the petitioner didn’t show the The unique situation of former President special reasons that justified to this Court Martinelli as the former head of the Pana- that he should benefit him with a bail. On manian State, is that he has sought asylum the contrary, all relevant facts and circum- in this country. But even assuming that stances that exist at this time all lead to the qualified as a special circumstance, we conclusion that the most reasonable and still can’t grant the petition to release this most appropriate course is to deny appe- defendant, based on the risk of leak that is llant granting of the bond. present in this file.

No amount of money could counteract the REASONS WHICH ARGUE THE APPLICA- damage that would be sustained by the TION FOR BOND United States. The obligation of this country under its 1. Former President Martinelli main- treaty with Venezuela is of supreme impor- tains as a special circumstance that he has tance. numerous demands with a high probability of success in his favor. The concept of bail is only relevant in our 2. The government of Panama has to criminal justice system based on its incen- offer evidence that holds reasonable dou- tive to appear in court for fear of defendant’s bts about the culpability of the above cri- and probably his family’s penalty. 24 mes.

3. The Provisional Detention order was 5. In this case there was no diploma- faulty. tic need to deny bail because under South 4. The parliamentary immunity is a de- African law, fraud is an offense. fense that will assert in the corresponding procedural stage. Therefore, decision in Taitz is distinguis- 5. The above crimes don’t qualify for hable and doesn’t support defendant’s ar- an extradition order. gument that the nature of his offense and 6. It is a process of a political nature. his lack of a criminal history are the special 7. The extradition process will be pro- circumstances that support his release. longed. 8. You need to collect the evidence to DECISION OF JUDGE POINTED IN JURIS- prove falsity of allegations. PRUDENCE 9. Your age and your health. The former president has applied for bail SPECIAL CIRCUMSTANCES based on the relevance of proving that he doesn’t pose a serious risk of flight. “We dont find in this case the real and spe- cial circumstances sufficient to grant bail Within that context, courts have considered contrary to presumption of detention.” a defendant’s financial means, foreign con- nections, age, and seriousness of crimes Even if bail was available in Panama, this is holding that in Beresford-Redman’s case; not a special circumstance for our purpo- The defendant was a risk of flight becau- ses. What we do is the right thing because se he is a man of considerable means, with several courts have rejected such a request access to substantial economic resources. in similar circumstances. After reviewing the record in this case, we We find no special circumstance present in find the weight of evidence against former this file based on this diplomatic theory of President Martinelli regarding his wealth, necessity, alleged by the former president. foreign connections, age, and the serious- ness of crimes. The criminal record of former President Martinelli is not a special circumstance, we The weight of evidence is undoubtedly don’t consider that a clean criminal record sufficient to support pre-trial detention. could be a special circumstance as happe- ned in a case of Taitz where several factors Former President Martinelli is a serious were present: risk of escape because he could use his wealth spread to flee the country and to 1. The complexity of the case, which stay abroad. Martinelli is an extremely rich involved 434 fraud accounts and substan- individual. tial questions if the crimes were subject to extradition. He reportedly owns an airplane, a yacht, 2. Delay of extradition hearing, which two helicopters, and the 99 supermarket wouldn’t likely occur for at least six months. chain in Panama, which generates more 3. The defendant was allergic to cer- than $ 700 million in revenue annually. tain substances present in the food, to the soap used in the correctional institution. Martinelli can easily use his accumulated 4. Correctional facility lacked facilities wealth to support himself and his family and materials for the defendant to practice after fleeing to another country. their religion. (“Any individual who is facing imprison- 25 ment if convicted and has at his disposal $

200 million in the U.S., in cash has grounds to flee...”). Based on the presumption that applies here, and the risk of a form of escape that Martinelli is a serious risk of escape becau- exists, we have no intention to contradict se he could use his reported foreign con- the obligations of our Nation’s treaty to nections to settle abroad. According to the suffer from an erroneous determination of government’s request, the arrest of Marti- bail on an individual with means, And the nelli is based on having multiple passports power to abandon his defense of this case. and significant contacts with foreign coun- tries. Former President Martinelli believes that the judicial procedure in Panama is a witch- The courts have held that significant con- hunt initiated by his political opponents. tacts with foreign countries are an impor- tant factor in determining their risk of flight. This dilemma posed in the circumstances All these considerations are firmly present of this case poses too great a risk to the in this case. The unique political situation Court and our Executive Power. of Martinelli may give rise to considera- tions of special circumstance. The obligations of our nation that pre- sent themselves of multiple treaties with a Their professional ties in many countries neighbor in our region of the world are su- including Brazil where extradition is often preme. difficult are the current obstacles to secu- ring in this case. In addition, from a practical perspective of the issues, the implementation of the Martinelli is a serious risk of escape becau- extradition treaties is one that our Nation se he could spend the rest of his life in pri- takes very seriously. We undoubtedly in- son if convicted in Panama. The severity of voke extradition treaties for pending cases their crimes also contribute to the high risk in our jurisdictions beyond inviting us to of escape. The former president is sixty- obtain the extradition of loved ones in fo- six years old and faces a potential 21-year reign countries. Thus our executive branch sentence in Panama. has a vested interest in enforcing our own treaty obligations for fear that other trea- Although it is also entirely possible that the ty partners will refrain from doing so in the government’s threatening 21-year senten- future. ce is exaggerated, especially considering the fact that former President Martinelli That is our obligation under the 1904 treaty may ultimately end up with all charges filed with Panama, as well as the rest of the si- against him in Panama. However, any pe- milar extradition treaties that we are limited riod of imprisonment is serious, given their to, so we are not hesitant to take any risk age and situation. That consideration cer- with regard to the subject of extradition. tainly supports the position of the govern- ment in this case. For the foregoing reasons, the following is decreed: Former President Martinelli remains a se- rious risk of escape despite his ties to our The defendant will remain in the custody of community, although he certainly has a the United States court. substantial connection in South Florida, A hearing will be set for July 25, 2017, at and owns property and assets that are 9:00 am in the United States courtroom, theoretically insured here, but the greater James Lawrence 99, Northeast 4th Street, 26 connection and Which predominates are 10-5 courtroom, Miami, Florida the ties in many other parts of the world.

. person or the applicant for the precautio- nary measure, as well as their purchasing TORRES de /s/ Edwin G. Torres EDWIN G. power, connections, personal or professio- Judge of the United States magistrate nal ties that they have, represent a high risk at the moment To accede to requests of OUR OPINION freedom under figure of the bond as in this case happened. It is evident that in the United States of Ame- rica processes are resolved differently than The judge argued that as a state you can’t in the rest of our Latin American countries. take the risk of releasing former president The defense of the former president consi- as if it were ordinary circumstances, be- dered within its strategy a request for bail cause the damages or consequences for of release where a large sum of money was the whole state apparatus would be very involved. However, Judge Torres among his serious. arguments to deny this request of a supre- me importance to the agreements, treaties On August 3 of this year, a hearing is sche- and international conventions, taking into duled to discuss the substantive issues account the importance of fulfilling the that will make possible extradition of for- obligations between Nations when they ra- mer President Martinelli. tify a convention beyond its borders . American procedural law is made up of a multitude of doctrines and jurisprudence Our Code of Criminal Procedure, in its arti- that are intertwined at the moment of ma- cle 241, provides for the possibility of being king decisions with the federal laws of the released even if the person is the subject of different states, giving the judge absolute an investigation stating that: freedom of which is being acted in full right and attention to the supremacy of laws “All imputed persons have the right to secu- applicable to the case. L&E re bail of safe jail, in order not to be arrested or after being arrested, to obtain their free- dom during the process.”

It is not that the American Courts give a contrary sense to the respect of funda- mental guarantees, as the fact of being at liberty while it completes the process. What happens in the particular case of for- mer president in our view and with fear of being mistaken is that a complex analysis of norms that govern international law, the control of conventionality, including the constitutional block, is required because it must be analyzed from a perspective that turns to a right not of people only but of States.

Otherwise, as Judge Torres rightly pointed out, the link between reciprocity between Member States would be lost.

In our view, there is a marked precedent that 27 the quality of the person, ie the extraditable

ROOM I CANCEL RESOLUTION OF FEBRUARY 16, 2016 IN THE SUMMARY PROCESS OF ACQUISITIVE PRESCRIP- TION FILED BY SUNILDA CALDERON FRÍAS AGAINST LUO WEIZHI

Lidia Dominguez - Legal Assistant [email protected]

Under presentation of Judge Angela Rus- ce it is confirmed and now it is ob- so de Cedeño, the Resolution of January ject of this extraordinary resource. 26, 2017, related to the cassation Appeal against the Order of February 16, 2016, POSITION OF THE ROOM issued by the Superior Court of the Se- cond Judicial District, is issued. Sum- The legal representative of Mrs. CAL- mary of acquisitive prescription of do- DERÓN FRÍAS, presented as a rea- minion, filed against Mr. LUO WEIZHI. son violation of substantive rules of law, in concept of misinterpretation of The interposed claim falls, on the who- the rule of law that, in her opinion, has le of the estate No. 20897 with location had a substantial influence, in the ope- code No. 9901, inscribed in roll 22443 rative part of the decision appealed. and document 10 of the property section of the Public Registry, province of Vera- The appeal is based on three grounds: guas, since the plaintiff claims that it has owned Public, peaceful and in good faith (i) Explains that the Superior Court of the for over fifteen years the property and Second District (Coclé and Veraguas), in currently its owner is Mr. LUO WEIZHI. confirming the decision of the first ins- tance, bases its decision “by misinterpre- The application is admissible on January ting the substantive rule of law at issue, 16, 2015, the Second Circuit Court of Vera- arguing that it was a new process bet- guas; However, on July 10, 2015, by means ween them Parties, on the same claim of Order No. 724, the admission decision is and the same facts, regardless of the revoked because of the alleged existence route chosen, while the latter is pending.” of lis pendens, taking into account article 674 of the Judicial Code; Since it indicates (ii) The second is that the appellate that “there is a Summary of Prescription court “erroneously interpreted that the of Sunilda Calderón against Charity Muri- substantive rule of applied law allows llo, on the same pretension and the same the extension of its legal effects to pro- facts”. Another reason is that “the pres- ceedings regardless of whether or not cription is of a real nature, and therefore, they are between the same parties.” Ar- when dealing with the same farm, there gues that this misleading interpreta- is already a procedure of limitation on tion, which influenced the result, since the same farm, regardless of the owner.” its claim was inadmissible and made it impossible for our company to initiate a 28 This decision is appealed by the appli- cant; But in decision of first instan-

process against a natural person other plaintiff is the same person, Mrs. SUNIL- than that mentioned in an earlier process. DA ELENA CALDERÓN FRÍAS, and on the defendant, if it appears, another person as (iii) el tercero, fungía como owner of the real property, without Howe- colofón del segundo. ver, because it is a real action, it falls on the farm and not on a particular person, that is, In that sense, the allegedly misunderstood independently of the owner of the property. norm is article 674 of the Judicial Code, a legal provision, of a substantive nature. As for the facts, these are based on the very nature of the process, on the suppo- The appellant - explains that the breach sed possession of the land and, therefo- of rules occurred by commission, since re, it is indifferent if an ordinary process the provision provides that “a new pro- is instituted and then a summary pro- cess can’t be initiated between the same cess, for which the law Different, the de- parties, on the same claim and the same termined time in possession of the thing. facts”, which has not occurred here. The error of the court of appeal is proven, He adds that there are two different proces- from the extract that the Chamber trans- ses: one promoted against Mr. LUO WEIZHI, cribed; That is, even if it is expressed that natural person other than CARIDAD VE- the acquisitive prescription of dominion RÓNICA MURILLO PÉREZ GUZMÁN, with is a declarative claim of real character whom the plaintiff had an earlier process. that falls on the thing and is distinguis- hed from a personal action that affects The foregoing entails violation of Article 9 the person, does not constitute sufficient of the Civil Code, which establishes that: justification to leave aside the literality of the norm , Where it is ordered that for the “Proposed a suit can’t be initiated a new declaration of lis pendens it is necessary process between same parties, on the that there be uniformity of parts, preten- same claim and the same facts, regard- sion and facts in processes in process. less of which route is chosen while the first is pending. The Judge shall order Affirmation that the ad quem points out ex officio or at the request of a party the at the beginning of his analysis, but that rejection of the second suit, proving the it obliterates when giving primacy to the existence of the previous one and that in element of the pretension to the detriment it the same parts appear and it is about of the other points; The decision will the- the same thing and the same facts.” refore be cancel, since the second plea put forward by applicant has been reliably es- The Superior Court of the Second Judi- tablished since there was an infringement cial District, in its decision expresses that of Article 9 of the Civil Code. Consequently, “lis pendens occurs when it comes to Auto 724 of 10 July 2015 of the Second same parties and interprets that acqui- Civil Circuit Court of Veraguas is revoked. sitive prescription of dominion is” a real action “that” falls on the property and not The Chamber reiterates that the fact that on a certain person “ And adds that in the the claim of the applicant resides on the two processes it is the same property. same property doesn’t imply that defen- dants’ criterion regarding the lis pendens He adds that, if we compare the claims, shouldn’t be taken into account. Likewise, we will see that, as regards the parties, the the legal precept is clear when contem- 29

plating three aspects that must concur of the Second Judicial District, within in unison and with similar value: equali- the summary proceedings that SUNLL- ty of parts, facts and pretension; Finally, DA ELENA CALDERÓN FRÍAS filed against it doesn’t concern chosen legal route. Mr. LUO WEIZHI and, therefore, to revoke Auto No. 724 of July 10, 2015 preferred It is for this reason that, in view of the fo- by the Second Civil Circuit Court of Vera- regoing, THE FIRST CIVIL ROOM, HOU- guas, which revokes the decision of ad- SE, The decision of February 16, 2016 mission in this case, in the proceedings of the Superior Court of the Second Ju- against Mr. LUO WEIZHI, for The fact dicial District within the summary pro- of the existence of a process CARIDAD ceedings that SUNLLDA ELENA CALDE- VERÓNICA MURILLO PÉREZ GUZMÁN, RÓN FRÍAS filed against Mr. LUO WEIZHI. although it is true, the process falls on the same farm, not so on the same peo- Consequently, and as the court of appeal, ple, is why we agree that the same must REVOCATES Auto No. 724 of July 10, 2015 of be taken into account the literal tenor of the Second Civil Circuit Court of Veraguas. the rule (Article 9 CC) as established by the Tribunal and to address said claim, Regarding the decision taken by the First allowing the parties to be able to present Civil Chamber, we consider its success and argue in order to obtain answers to with regard to CANCEL, the decision of the requested rights to be recognized. L&E February 16, 2016 of the Superior Court

TAX ADMINISTRATIVE COURT DECLARED PROVEN THE INCIDENT OF KIDNAP SURVEY WITHIN THE EXECUTIVE PROCESS BY COACTIVE CO-INSTANCE COURTED BY EXECUTIVE COURT FOURTH OF GENERAL DIRECTORATE OF INCOME OF MINISTRY OF ECONOMY AND FINANCE

Casilda Quiroz - Legal Asisstant [email protected] VIEWS

The Provincial Revenue Administrator of issued by the First Executing Court of Los Santos, by means of Note No. 218- the General Directorate of Revenue of 01-385, forwarded a Kidnap Removal in- the Ministry of Economy and Finance. cident filed before said entity by the spe- cial apportionment of the taxpayer, within BACKGROUND the Coactive Collection Process that fo- llows it where Issued the Order Execu- The First Executing Court of the Ge- tion Order No. 201-514-JC-1, where he neral Directorate of Revenue by Reso- issued a warrant of payment until the lution No. 201-513-JC-1 initiates the 30 concurrence of BALBOAS WITH 02/100 Coactive Collection Process against

the taxpayer up to the sum of BALBOAS 2- That Resolution No. 201-513- CON 02/100, broken down as follows: JC-1, violates Numeral 11 of Ar- • Taxes on the Natural person’s Inco- ticle 1650 of the Judicial Code. me. • Taxes on Income from Disposal of 3- That the General Directorate of Revenue Real Estate and Other Movable Pro- ordered the sequestration of savings ac- perty. counts in the name of the taxpayer, all with • Tax Declaration of Timbres. sums of money less than balboas (B /.). • Educational insurance Social insuran- 4- That in view of the above, proceeded with ce contributions. the lifting of the abduction of said bank ac- counts, for being executed in an illegal way. All with normal accounts, including in- terest generated at the date of cance- REPLY OF THE EXECUTIVE COURT llation plus 20% additional surcharge. That by means of a resolution No First Executing Court of the General Di- TAT-ADM-209, the Tax Administrati- rectorate of Income Book of order of pa- ve Court represented by the undersig- yment by executive branch against the ned Judge, decided to admit the Inci- Taxpayer through Auto 201-514-JC-1. dent of removal of kidnap that was filed by the taxpayer’s special agent, where By means of Order No. 201-515-JC-1, it they order transfer of said Resolution. was ordered to sequester movable and immovable property, bank accounts, sa- The Fourth Execution Judge, represen- vings accounts, checking accounts, fixed ting the Department of Coercive Juris- terms, security boxes and any other right diction of the General Directorate of Re- registered in the name of the taxpayer. venue, formally presented its allegations within the Incidence of Abduction Sur- We proceeded with the sending of Offi- vey, against Resolution No. 201-513- ce No. 201-01-716-JC to all public and JC-1, which was duly received by the private banking entities at national le- Secretary of Procedures of this Court. vel, which are in keeping with the provi- sions; Ordering the withholding of funds The allegations were ba- up to the sum of BALBOAS CON 00/100. sed on the following facts:

That Resolution No. 201-513-JC-1 or- ARGUMENTS OF THE INCIDENT dered kidnap of movable and immova- ble property, bank savings accounts, and The special agent of the Taxpayer other assets in the name of the taxpayer. through its writing supports the INCI- DENT OF KIDNAP SURVEY, basing the That, in a coercive collection pro- following facts and their considerations: cess, it is a question of protecting all the assets that each taxpayer has. 1- That Resolution No. 201-5134C-1, or- dered the seizure of movable and immo- That by means of Order of Seizure No. vable property, bank accounts. Of savings, 201-515-JC-1 of March 15, 2016, a se- among others in the name of the taxpayer. ries of offices were sent to the ban- king entities, Vehicular Registry, So- cial Security Fund and Public Registry; 31

And these entities respond to the or- For the Court, it is evident that the taxpa- der contained in the car in question. yer maintains a clear, liquid, enforceable and time-lagged debt in favor of the Tax That the Banco General subse- Administration, however, it is observed quently informed the following: that the rule is clear when setting limits to The taxpayer maintains two the scope of precautionary measures that bank accounts in this entity. can be practiced on the assets of the exe- Multibank stated that taxpayer main- cutor, in a process of coercive collection, tains a Bank Account in said e n t i t y. meaning that these measures are aimed at procuring payment of overdue obliga- In view of the above, it is pos- tions of the executed, through their as- sible to appreciate the clear in- sets, rather than deprive him completely tent of the taxpayer to evade action. of the ability to satisfy Their basic needs, within the provisions of the standard. In view of the aforementioned grounds, the Tax Administration, through its repre- In reference to the claims of the performer, sentative, requested that the Incident of on the taxpayer’s intention to keep certain Kidnap Uprising be declared Not Tested. amounts in his bank accounts with a view to avoiding this type of actions are taken against him, it is very important not to lose OF THE INCIDENT PROCESS sight of the fact that the executed person is in freedom To manage its assets, in this That the Tax Administrative Tribunal, re- case its savings accounts, except for res- presented in the Unitarian Chamber, after trictions provided for by law, without this admitting the Incident of Rise of Kidnap implying an obvious intention to evade its and ordered the transfer, issues Resolu- obligations, to the Tax Administration or tion No. TAT-AUD-010, by which, pursuant the actions that it may exercise against it. to article 531 of the Judicial Code, Orders the holding of a hearing in order to provide The Court determined that it is appropriate orally the Incident of Rise of Kidnapping, to declare the Incident of Kidnap Survei- resolving in the act what corresponds. llance to be proven, specifically on bank accounts sequestered in the name of the taxpayer, since according to the texts cited THE COURT’S CONSIDERATIONS in this controversy they are exempt from this measure because funds Not exceed The Court proceeded to resolve dispu- the minimum amount excepted by law. te in order to hear in a single instance of third parties, incidents, exceptions and nullities that are submitted in processes RESOLUTIVE PART of collection coercive, in accordance with provisions of article 1247-F of Tax Code. The ADMINISTRATIVE TAX CPURT deci- In light of the foregoing, petition con- ded to DECLARE PROBATE the Incident of tained in the Incident of Abduction Sur- Rise of Kidnap within the executive pro- veillance letter filed with Tax Admi- cess by means of a coercive collection nistration, which issued the Executive established by the Fourth Executing Court Order No. 201-514-JC-1, was exami- of the General Directorate of Revenue of 32 ned. Freed order of payment until con- the Ministry of Economy and Finance. L&E. currence of BALBOAS WITH 02/100.

SUPREME COURT OF JUSTICE SETS FIRST JANUARY 2018 TO APPLY THE ACCUSING CRIMINAL SYSTEM

Aileen Galvan- Asistente Legal [email protected]

y decision of June 5, 2017, the colini Arosemena, against the Special An- Plenum of the Supreme Court of ti-Corruption Prosecutor of the Attorney Justice, resolves four actions of General’s Office. Habeas Corpus Against the Spe- cial Anti-Corruption Prosecutor All of these actions seek to declare the ille- ofB the Office of the Attorney General of the gality of order contained in Provisional Or- Nation because of the investigation order der No. 1 of January 23, 2017, which in its and other measures adopted by means of a operative part reads as follows: January 23, 2017. FIRST: Receive investigative statement to The Habeas Corpus interposed were in favor FEDERICO JOSÉ SUÁREZ, with personal of the following persons and against the fo- identification card No. 8-230-1437, RICAR- llowing acts: DO FRANCOLINI AROSEMENA, with docu- ment 8-336-255; EVELYN IVETT VARGAS 1. Guillermo Julio Sáez Llorens, against the REYNAGA with document 9-704-1060; Special Anti-Corruption Prosecutor’s Office RICARDO ALBERTO MARTINELLI LINARES of the Attorney General’s Office, entry N° 65- with document 8-729¬2361 and LUIS EN- 17. RIQUE MARTINELLI LINARES with docu- 2. Federico José Suárez Cedeño, against the ment 8-752¬335; GUILLERMO SAEZ LLO- Special Anti-Corruption Office of the Attor- RENZ (sic) with document 8-213-2564; ney General of the Nation, entry N° 75-17. ANA ISABEL SUÁREZ CEDEÑO with ID No. 3. Ana Isabel Suárez Cedeño, against the 8-260-54; MARIO MARTINELLI with do- Special Anti-Corruption Office of the Attor- cument number 8-173-139 and NITZELA ney General of the Nation, entry N° 76-17. BONILLA PEREZ with personal identifica- 4. Against the order of conduction and in- tion card No. 8-468-895 for being suspec- vestigation by the Public Prosecutor’s ted violators of the provisions contained in Office 1 Anti-corruption against Federico Book II of the Criminal Code, Title VII, Chap- José Suárez, Ricardo Francolini Aroseme- ter IV, that is to say For a crime AGAINST na, Evelyn Vargas Reynaga, Ricardo Alber- THE ECONOMIC ORDER, specifically CAPI- to Martinelli Linares, Luis Enrique Martinelli TAL BLANKING. Linares, Guillermo Sáez Llorens, Ana Isabel Suarez Cedeño, Mario Martinelli and Nitzela SECOND: To order the conduction of FE- Bonilla Pérez, entry N° 77-17. DERICO JOSÉ SUÁREZ, with personal identification card No. 8-230-1437, RI- This same situation was also noticed in CARDO FRANCOLINI AROSEMENA, with file No. 91-17 corresponding to the Action ballot 8-336-255; EVELYN IVETT VARGAS of Habeas Corpus filed by the lawyer Juan REYNAGA with document 9-704-1060; RI- 33 Domingo Ibarra, in favor of Riccardo Fran- CARDO ALBERTO MARTINELLI LINARES

with document 8-729-2361 and LUIS ENRI- But the Anti-Corruption Attorney of the Offi- QUE MARTINELLI LINARES with document ce of the Attorney General of the Nation re- 8-752-335; GUILLERMO SAEZ LLORENZ ported: (sic) with document 8-213-2564; ANA ISA- BEL SUÁREZ CEDEÑO with ID No. 8-260-54; “1. This Prosecutor’s Office has not ordered MARIO MARTINELLI with ID number 8-173- to apply precautionary measure of Provi- 139 and NITZELA BONILLA PEREZ with per- sional Detention, against GUILLERMO SAEZ sonal identity card No. 8-468-895, to this LLORENZ (sic) with personal identification office with the purpose of rendering their card No. 8-213-2564. disclaimers in Diligence of Inquiry State- ment...” 2. This Office has no custody of GUILLERMO SAEZ LLORENZ (sic) with personal identifi- What was appropriate in this case was to de- cation card No.8-213-2564...” termine whether or not the measures taken by the Investigating Agent were legal and B. FEDERICO JOSÉ SUÁREZ CEDEÑO whether or not these constitute a real threat In support of the interposed action, it is to the freedom of the accused; Although they pointed out that: are pretensions of different actors, all are re- lated to each other, because all are linked to “...FIRST: The Special Anti-Corruption alleged criminal acts investigated within the Prosecutor’s Office of the Attorney General same criminal process, for this reason pro- of the Nation, according to news reports in ceed to accumulate all the claims, to analy- the media, has initiated an investigation and ze the procedural situation of each accused. as a result of this has been ordered driving and therefore we must deduce the existence A. GUILLERMO JULIO SÁEZ LLORENS of an inquiry Dated January 23, 2017, against our represented, for the alleged commission The interposed action is requesting that the of an offense against the Economic order Restrictive Measures of Personal Freedom related to Money Laundering, and that rela- that can be decreed, based on: tes to the alleged bribes (sic) or illegal pa- yment made by the company Constructora “...FIRST: It is a public and notorious fact the Odebrecht to people (natural and legal) in series of accusations and accusations of our country, according to social media. corruption on an international level that has been carried out by the company transnatio- SECOND: We don’t know the facts that base nal CONSTRUCTORA ODEBRECHT... the investigation, since despite the fact that our client has been ordered to lead, we ...THIRD: Yesterday, Tuesday, January 24, haven’t been able to access the file, since 2017 circulated in the media and in various the prosecution denied the same, yesterday, social networks that there is a driving order 24 January 2017. against several people including our repre- sented Mr. GUILLERMO SÁEZ LLORENS...... FOURTH: As has been the experience in the criminal jurisdiction, both the driving order ...EIGHTH: There is an imminent danger and provisional detention constitute cons- of issuing a custody order by the Special traints, which in our opinion are constitutio- Prosecutor’s Office despite the fact that it nally forbidden and which is unnecessary did not take any steps to notify it and pro- in this case; Since our representative has ceeded to issue a driving order in a direct prosecuted against him and where he has manner, this being contrary to law, in addi- been ordered precautionary measures other tion to the fact That Mr. GUILLERMO SÁEZ than pre-trial detention and others where LLORENS is not related to the facts that are he is mentioned but has not been charged 34 the subject of the present investigation...” and has always complied with all subpoe- nas that the authority has Communicated

and has faithfully and punctually complied with the precautionary measure that exists SECOND: We are not aware of the facts un- against him, so there is no legal or material derlying the investigating resolution, since reason for imposing a precautionary measu- despite the fact that our client has been or- re of preventive detention and whose threat, dered to lead, we have not been able to ac- in this case, is real. cess the file, since the prosecution denied the same yesterday, 24 January 2017. In this case, the need, as a procedural bud- get, has not been rationalized by the re- ...FOURTH: As experience (sic) shows, both search agent as required by the regulations; the driving order and the provisional de- Since she must prove that other measures tention constitute constraints, which in our are ineffective and my represented has ne- opinion are constitutionally prohibited and ver been cited, as to be considered to evade which is unnecessary in this case; Since my the process. client has been represented and has never ignored any summons. FIFTH: All measures that have characterized the prudential management of the Public In this case, the need, as a procedural bud- Prosecutor’s Office affect material possibi- get, has not been rationalized by the re- lity of our representative to exercise a timely search agent as required by the regulations; and efficient defense as guaranteed by the Since she must prove that other measures law and the National Constitution...” are ineffective and my represented has ne- ver been cited, as to be considered to evade To which the Instruction Agent in his report the process. explained that: FIFTH: All measures that have characterized “1. This Prosecutor’s Office has not ordered the prudential management of the Public to apply precautionary measure of Provisio- Ministry affect the material possibility of our nal Detention, against FEDERICO JOSÉ SUÁ- representative to exercise a defense, without REZ CEDEÑO with personal identification any constraint, as mandated by law and the card No. 8-230-1437. National Constitution...”

2. This Office does not have under its cus- The Anti-Corruption Attorney of the Office of tody FEDERICO JOSÉ SUÁREZ CEDEÑO with the Attorney General of the Nation reported: personal identification card No. 8-230- 1437...” “1. This Public Prosecutor’s Office has not ordered the application of a precautionary C. ANA ISABEL SUARÉZ CEDEÑO measure of Provisional Detention, against ANA ISABEL SUÁREZ CEDEÑO with personal This claim was based on: identification card No. 8-260-54.

“...FIRST: The Special Anti-Corruption 2. This Office doesn’t have under its custody Prosecutor’s Office of the Attorney General’s ANA ISABEL SUÁREZ CEDEÑO with personal Office has initiated an investigation where a identification card No. 8-260-54.” driving order is issued and therefore we must deduce, on January 23, 2017, an investiga- D. FEDERICO JOSÉ SUÁREZ, RICARDO tion, against our company, for the alleged FRANCOLINI AROSEMENA, EVELYN IVETT Commission of an offense against the Eco- VARGAS REYNAGA, RICARDO ALBERTO nomic Order (Money Laundering), as a result MARTINELLI LINARES, LUIS ENRIQUE MAR- of the news arising in the mass media by the TINELLI LINARES, GUILLERMO SÁEZ LLO- alleged bribes (sic) or illegal payment made RENS, ANA ISABEL SUÁREZ CEDEÑO, MARIO by the company Constructora Odebrecht to MARTINELLI and NITZELA BONILLA PÉREZ. 35 persons (natural and legal) in our country.

Preventive habeas Corpus was filed in favor ÑO, MARIO MARTINELLI and NITZELA BONI- of all the defendants linked through proba- LLA PÉREZ. tion order No. 1 of January 23, 2017, inclu- ding Mr. GUILLERMO SÁEZ LLORENS, sta- 3. There is no diligence that may affect the ting the following: corporal freedom of FEDERICO JOSÉ SUÁ- REZ, RICARDO FRANCOLINI AROSEMENA, “...Through this action of Habeas Corpus, EVELYN IVETT VARGAS REYNAGA, RICARDO against the order of conduction and investi- ALBERTO MARTINELLI LINARES, LUIS ENRI- gation imposed by the First Anti-Corruption QUE MARTINELLI, GUILLERMO SÁEZ LLO- Prosecutor, which results in a real and cer- RENS, ANA ISABEL SUÁREZ CEDEÑO, MARIO tain threat against the bodily freedom of the MARTINELLI and NITZELA BONILLA PÉREZ , prenómads... Based on article 2151 of the Judicial Code and its link to the present process. ...In which there are serious deficiencies in the investigation carried out by the public 5. The defendants who have attended the vindicta in which even documentary, tes- investigative statement with their lawyers timonial and expert evidence has not been have been personally notified...” practiced that produce full certainty of guilt, there are only indications within this file, not In spite of all that had been raised, GUILLER- being the same ones Binding evidence of MO SÁEZ LLORENS and the defense attor- alleged corruption offenses, economic cri- neys of RICARDO FRANCOLINI, FEDERICO mes, bribery offenses and money laundering JOSÉ SUÁREZ, ANA ISABLE SUÁREZ, sub- offenses, where due process and the pre- mitted letters of resignation, which were ad- sumption of innocence of those designated mitted as they contemplated all the neces- have not been respected...” sary requirements for such action.

And on this occasion, once the command- For the actions of Habeas Corpus brought by ment of Habeas Corpus was delivered, the EVELYN IVETT VARGAS REYNAGA, RICARDO Training Agent indicated: ALBERTO MARTINELLI LINARES, LUIS ENRI- QUE MARTINELLI, MARIO MARTINELLI and “1. Yes, this Office of the Public Prosecutor NITZELA BONILLA PÉREZ, which were not ordered by means of a written resolution rejected, the Plenum of the Court will resolve dated January 23, 2017, to receive an in- the corresponding. vestigative statement from FEDERICO JOSÉ SUÁREZ, RICARDO FRANCOLINI AROSE- E. RICCARDO FRANCOLINI AROSEMENA MENA, EVELYN IVETT VARGAS REYNAGA, RICARDO ALBERTO MARTINELLI LINARES, The proxy of this, supports the following: LUIS ENRIQUE MARTINELLI, GUILLERMO SÁEZ LLORENS, ANA ISABEL SUÁREZ CE- “...Third: The official defendant in this action DEÑO, MARIO MARTINELLI and NITZELA of guardianship, proceeded to initiate the BONILLA PÉREZ, for the alleged commission criminal investigation dictating measures of of crimes against the Economic Order, spe- apprehension and conduction without foun- cifically Money Laundering. dation any, against several people, including Riccardo Francolini Arosemena. Given the above, the aforementioned resolu- tion also ordered the conduct of FEDERICO Fourth: The official defendant in this ac- JOSÉ SUÁREZ, RICARDO FRANCOLINI ARO- tion of guardianship, proceeded to decree SEMENA, EVELYN IVETT VARGAS REYNAGA, measures that threaten in a real and certain RICARDO ALBERTO MARTINELLI LINARES, way the freedom of RICCARDO FRANCOLINI LUIS ENRIQUE MARTINELLI, GUILLERMO AROSEMENA, 36 SÁEZ LLORENS, ANA ISABEL SUÁREZ CEDE-

Fifth: By means of a resolution dated January For this reason, it was determined that the 23, 2017, the accused prosecutor orders Plenum of the Supreme Court of Justice, is the conduction, among others, of Riccardo competent to hear these Habeas Corpus. Francolini Arosemena. The Plenary continues to point out that it is Sixth: Since this restrictive measure of an unquestionable fact that after the entry freedom violates Article 21 of the National into force of the Code of Criminal Procedu- Constitution, which states that no one may re in the various Judicial Districts, including be detained for more than 24 hours without the First Judicial District, several criminal being placed under orders of the competent proceedings have been initiated and are authority, having passed this term more than being processed with support in the rules Prosecutor has charged him. of the Book Third of the Judicial Code, for events that occurred before the entry into Seventh: In spite of the foregoing, I am aware force of the accusatory criminal system in that the TISIA STERLING, without founda- the various Judicial Districts, but in respect tion, will order the restrictive measure of the of which criminal proceedings were not ini- liberation (sic) to the detriment of RICCAR- tiated before the respective accusatory cri- DO FRANCOLINI, violating all his rights...” minal system entered into force in the res- pective Districts Judiciary. To which the accused official responds: Such a possibility could be justified by clari- “1. This public prosecutor’s office has not fying the principle tempus regit actum provi- ordered a precautionary measure of Provi- ded for in Article 32 of the Civil Code - which sional Detention, against RICCARDO FRAN- the Plenum has repeatedly used in its ju- COLINI AROSEMENA with personal identifi- risprudence to solve problems of transition cation card No. 8-336-255, at this procedural from one procedural system to another or moment. from procedural rules to others - , In order to apply that principle which may derive from 2. This Office does not have under its cus- the guarantee of due process, according to tody RICCARDO FRANCOLINI AROSEMENA which the procedure to be applied to deal with personal identification card No. 8-336- with a fact should be the one that was in for- 255.” ce before the occurrence of that fact - which also the Plenary has used in some Moments But after this his represented also presents in his jurisprudence. Desistance, and the same is admitted be- cause it meets all the necessary require- Consequently, the rules of the Judicial Code ments. must be strictly adhered to on the basis of the immediately preceding principle. ANALYSIS OF THE PLENARY All this as a result of the transition to the The Plenary considers that the Code of Cri- change from one procedural system to the minal Procedure applies to all criminal pro- other, so that the Plenary must comply with ceedings that are to be initiated after having what is stipulated in numeral 7 of article 87 entered into force, irrespective of the date of the Judicial Code, which empowers it to: on which the events occurred, so that Book “Monitor that, Respecting the guarantee of III of the Judicial Code that regulates the due process, administer prompt and com- procedure Criminal law applies to criminal plete justice, for which he will take the mea- proceedings initiated prior to the entry into sures he deems necessary.” One of these force of the Code of Criminal Procedure. measures is to establish a deadline to apply the rules described, in order to ensure that there is certainty and legal certainty, and in 37

this way to administer prompt and complete It can be concluded that “the Code of Cri- justice. minal Procedure applies... to events that occurred before its entry into force, but for Therefore, the authorities of the various Ju- which the processing of criminal procee- dicial Districts must at any time cease to ini- dings has not been initiated”, would apply tiate ex officio and/or receive complaints or from January 1, 2018. complaints to be processed on the basis of the Judicial Code, in order to bring about the Therefore, it is from that date on that the full transition to the system Criminal pro- Courts of Appeals of the respective Judicial ceedings throughout the country. Districts would have competence to know the habeas corpus related to such facts, The Court understands that in certain Ju- being therefore competent for such tasks dicial Districts this transition is ending, so until December 31, 2017 (11: 59 of the night) that, provided that at some point the autho- the Tribunals that were for those causes in rities established to deal with cases of mixed the light of the established in article 2611 of system regulated in the Judicial Code will be the Judicial Code. left with a number of processes that would not justify the existence of all Because of Hence, the plenary is competent to hear the number of cases that could continue to the present actions of habeas corpus, to be be triggered by events occurring before the within the aforementioned period and be- accusatory system entered into force in the cause they are facts that occurred prior to respective Judicial Districts, it is reasonable the entry into force of the Accusatory Cri- to set a deadline to avoid further prosecu- minal System in the First Judicial District, tion based on Rules of the Judicial Code. which have been Processed in this process in accordance with the rules of the Judicial This in order to ensure certainty and legal se- Code. curity, avoiding inconsistencies and acting safely within their respective frameworks of CONCLUSIONS OF THE PLENARY SESSION competence. It provides for the accumulation of different The Court observes that the legislature es- initiatives, since, although they are different tablished time limits for the entry into force beneficiaries, accumulation was executed of the accusatory criminal system from one respecting the criteria sustained, by the Ma- Judicial District to another, and considers gistrates Speakers against the approaches that this method may be useful for purpo- of the actors and as evidenced during the ses that are pursued. Therefore, it sets until process. 11:59 pm on December 31, 2017 as a deadli- ne within which it can be initiated ex officio The Plenary considers that in order for an or file complaints or complaints to be pro- action of Habeas Corpus to prosper, it must cessed with the rules of the Third Book of comply with certain requirements establis- the Judicial Code for events occurred before hed in our Constitution, such as: that there the entry into force of the Code of Criminal is an effective threat against corporal free- Procedure in the respective Judicial Dis- dom, which, by its nature, as a general rule, tricts. must a pre-trial detention order or conduct, which doesn’t exclude the possibility that, As of January 1, 2018, all criminal procee- even in the absence of a mandate of these dings initiated, regardless of the date on types, a situation involving a real or certain which the events occurred, must be proces- threat against the Corporal liberty; And that sed with the rules of the Code of Criminal the detention has not taken place. Procedure. 38 Similarly, the Plenary has indicated that even if a warrant has not been issued against the

beneficiary of the action, both crimes that are punishable by fine days and those that However, the review of the criminal record carry a prison sentence may exist A real reveals that the majority of the accused ap- threat to a person’s ambulatory freedom, peared before the Public Ministry to render yes, before ordering his or her conduct, the their releases and that, as a result, Investi- investigating officer has not issued an order gation Agent terminated the driving order to compel the accused for the purpose of drawn against those appearing. voluntarily committing himself or herself to the proceedings. Thus, as the purpose of driving order is sa- tisfied, the budget that allows the Plenum of This is not a limitation for the Public the Supreme Court of Justice to examine the Prosecutor’s Office to continue its investi- parameters of legality of such a mandate, gation, especially when it is faced with se- such as the real and effective threat against rious criminal figures and the attachment of their bodily freedom, For which reason the the accused is accredited through a proba- actions of Habeas Corpus must be declared tive means that produces legal certainty of non-viable. that act, since it is not reasonable to expect That a person involved in an illegal offense The magistrate concludes by accumulating of a serious nature must first be summoned the actions of Habeas Corpus, admitting the up to three times in order to be able to order abstention presented and declaring non- his or her conduct; However, the Prosecutor viable the Habeas Corpus Actions, which is under an obligation to substantiate why were not subject to withdrawal. he is ordering driving, not the subpoena. Accordingly, it fixes on December 31, 2017 In the present case, the Plenary warned that (until 11:59 pm) as a deadline to be able to the investigating agent expressly denied initiate ex officio or file complaints or com- having issued an arrest warrant against FE- plaints to be processed with the rules of the DERICO JOSÉ SUÁREZ, RICARDO FRANCO- Third Book of the Judicial Code for events LINI AROSEMENA, EVELYN IVETT VARGAS occurring before The entry into force of the REYNAGA, RICARDO ALBERTO MARTINELLI Code of Criminal Procedure in the respective LINARES, LUIS ENRIQUE MARTINELLI, GUI- Judicial Districts. LLERMO SÁEZES LLORENS, ANA ISABEL SUÁREZ CEDEÑO and MARIO MARTINELLI; As of January 1, 2018, all criminal procee- And that lawyers support the fear of depri- dings initiated, regardless of the date on vation of liberty in the fact that driving order which the events occurred, must be pro- has been revoked and in a generalization of cessed with the rules of the Code of Cri- what, in his opinion, has been the handling minal Procedure; And establishes that the of “cautiousness” by the Public Ministry, Superior Courts of Appeals of the Judicial without providing details that contribute to Districts are competent to know the procee- clarify real and palpable elements that can dings of habeas corpus related to facts that reveal that effective threat against corporal are processed in accordance with the Code freedom of some of these imputed ones. of Criminal Procedure, in the terms establis- hed in this resolution. All this leads us to the conclusion that the object of the present Preventive Habeas For all other cases, the authorities establis- Corpus Action has been lost. hed in article 2611 of the Judicial Code are competent to hear a habeas corpus. This is so because the claim on this occasion L&E was to examine the legality or otherwise of a driving order drawn by the Special Anti-Co- rruption Attorney of the Attorney General’s 39 Office.

NOTIFICATION OF JUDGMENT AT BOARD OF CONCILIATION AND LABOR DECISION

David Rodríguez- Legal Assistant [email protected]

VIEWS:

It meets the Plenum of this Corporation The protectionist considers that the de- of Justice of the action of protection of claration of nullity flagrantly violates arti- constitutional guarantees, against the cle 32 of the Political Constitution, since it Auto of 1 of December of 2016, issued by ignores article 10 of Law 7 of 1975, accor- the Superior Labor Court of the First Judi- ding to which the judgment of the Conci- cial District of Panama. liation and Decision Board is notified by edict and departure of its de-allocation is FOUNDATION OF DEMAND: that the term runs to appeal in writing.

The legal representative of Mr. Oscar Eloy He considers that notification was made Castillo, points out that at the time he for- in accordance with the provisions of the mally filed a labor claim for unjustified Labor Code and not the provisions of the dismissal and vested rights owed to the aforementioned special law. It affirms Conciliation and Decision Board in favor that Law 7 of 1975, had to prevail against of his principal. the application of the Labor Code, as re- cognized by the Supreme Court of Justice It indicates that within that process, the through the decisions of the Plenary. Superior Labor Court of the First Judicial District of Panama ruled by means of an CONSTITUTIONAL PROVISIONS WHICH Order dated December 1, 2016, decreing ARE ESTABLISHED VIOLATES: the nullity of all actions based on Auto 203-PJCD-16-2016 of December 16, Au- 1. The proponent argues, as the only gust 2016, which granted the appeal, and norm violated, article 32 of the Political ordered the return of the file to the Con- Constitution. 40 ciliation Board and Decision Number 16.

REPORT OF DEMANDED AUTHORITY: tions. According to its approach, contes- ted court doesn’t know that in the cases The High Court, in application of clean- of the Board of Conciliation and Decision, sing order provided for in article 940 of the notification of the judgment is not ba- the Labor Code, proceeded to examine sed on the Labor Code, but in accordance everything that had been done, finding with the provisions of article 10 of Law 7 that the plaintiff’s legal representative Of 1975, is notified by edict of 48 hours, was personally notified, as well as the de- when it is a posterior oral fault. fendant, of decision of petitioner. Board of Conciliation and Decision No. 16, as sta- In fact, as stated by the plaintiff, in the ted on the reverse of page 92 of the file. recent Judgment of June 19, 2012, this Plenary reiterated the criterion that, in Therefore, in accordance with the provi- cases preceded by the Conciliation and sions of Article 915 of the Labor Code, the Decision Boards, when the decision is appeal should have been filed at the same rendered outside the hearing, the notifi- time of the signature of the personal no- cation Must be made in accordance with tification, which wasn’t done or written in the provisions of Law 7 of February 1975, the three days after the notification, which since “...the special nature of Law No. 7 of also did not occur, considering that the February 25, 1975, has been recognized, letter in question was filed on August 9, which causes this rule to prevail over the 2016, in which the appeal of the so-ca- general rule of the notification provided lled oral decision of the Board is allege- for in the Labor Code.” dly filed when it had already elapsed more than three days, if the oral ruling was con- Therefore, the Plenary doesn’t share the sidered as the date of the resolution of the criterion that underpins the decision of Board. the defendant authority to declare the nullity of what was acted on the basis of We consider that this High Labor Court, in Auto-203-PJCD-16-2016, since, as men- issuing the contested order, has not viola- tioned, there wasn’t application of the ge- ted any constitutional provision and even neral rule established in article 915 of the less of its jurisdiction to hear the appeal Labor Code, but that provided for in the process against the decisions of the Con- third paragraph of article 19 of Law 7 of ciliation and Decision Board. 1975, because it is a decision taken out- side the hearing. CONSIDERATIONS OF THE PLENARY SESSION: RESOLUTIVE PART:

In essence, promoter of the action argues The Supreme Court, Plenum, grants the that the violation to the guarantee of due protection filed by Mr. Vicente Murillo, process originates with the issue of the on behalf of Oscar Eloy Castillo López, Order of December 1, 2016, by means of against the Order of December 1, 2016, which the Superior Labor Court of the issued by the Superior Labor Court of the First Judicial District of Panama declared First Judicial District of Panama. L&E the nullity of everything acted from the Auto-203-PJCD-16-2016 of August 16, 2016.

For the protectionist, such nullity doesn’t 41 conform to the applicable legal regula-

Politics START AND END OF THE COTO CONFLICT

When the Isthmus of Panama became independent from Spain on November 28, 1921, and voluntarily decided to join Gran Colombia, it immediately became part of the future conflicts and discrepancies between the Federal Republic of Central America, which was then belonged to Costa Rica and Gran Colombia, to which Panama was incorporated.

Rafael Fernández Lara - Abogado Independiente [email protected]

rom colonial times, when Spaniards is- Foreign Affairs, and Mr. Pedro Alcántara Her- sued the capitulations that referred to lands rán , Minister Plenipotentiary respectively. discovered and colonized in the new conti- Fnent, they had difficulties and problems in The Valenzuela-Castro Agreement of 1865, the delimitation of their borders and there- signed by Dr. Teodoro Valenzuela for Colom- fore these were never clearly indicated. bia and Dr. José María Castro for Costa Rica.

When the Isthmus of Panama became inde- The Treaty Correoso-Montufar of 1873. pendent from Spain on November 28, 1921, and voluntarily decided to join Gran Colom- The agreements mentioned did not produce bia, it immediately became part of the future a final decision satisfactory to the parties, so conflicts and discrepancies between the Fed- other arbitration agreements were given, such eral Republic of Central America, which was as the Castro-Quijano of 1880 and the Esquiv- then belonged to Costa Rica and Gran Co- el-Holguin in 1896. In this last convention, the lombia, to which Panama was incorporated. arbitration was assigned to the President of France , Francois Felix Faune, who died in 1899, Como consecuencia de lo señalado, se fir- so that this function rested on his successor, maron varios tratados limítrofes, pero President Emile Francois Loubet Nicolet, who desafortunadamente ninguno fue rati- on September 11, 1900 issued the arbitration ficado por las dos partes. Ellos fueron: award in Rambouillet, France, better known as the “Loubet.” Regrettably, this ruling didn’t meet Friendship Agreement of 1840, the expectations of the parties because it didn’t which was annulled in 1882. include categorical signaling of the border line, among other considerations. Also, the Costa The Calvo-Herran Treaty was signed in 1856 Rican government indicated that Panama (Co- between Costa Rica and the Republic of New lombia) was awarded lands that weren’t in dis- 42 Granada (now Colombia), represented by Mr. pute, especially the Sixaola River basin, there- Joaquín Bernardo Calvo Rosales, Minister of fore, this ruling wasn’t accepted by Costa Rica.

established their own provisional limit, not solv- ing their border conflict.

On February 20, 1921, Costa Rican President Ju- lio Acosta García and his cabinet declared “an at- tack on the sovereignty of Costa Rica by the oc- cupation of Panama by the west and north of the border line between the two republics”, Based, at their discretion, on the above-mentioned con- ventions and arbitrations.

As a consequence of this decree, on Febru- In 1905, two years after our independence from ary 21, 1921, in the afternoon, an expedition- Colombia, an attempt was made to sign a trea- ary detachment led by Colonel Héctor Zúñiga ty, known as the Pacheco-De la Guardia Treaty Mora, occupied on behalf of Costa Rica the of March 6, 1905, which was not ratified by town of Pueblo Nuevo de Coto, a hamlet in the Costa Rica because it was considered obsolete District of Alanje, in the Panamanian Prov- and under pressure from banana companies ince of Chiriquí and there hoisted the Tica flag. While the Republic of Panama has ratified it. The action of Costa Rica was understood as Subsequently, Panama, as a sover- an invasion of the territory of the Republic eign and independent state that re- of Panama, and on the night of the day 22, 50 placed Colombia as a neighboring coun- police officers were sent to the vessel “Vera- try of Costa Rica since 1903, signed the guas”, under the command of Captain Tomás Anderson-Porras Convention of 1910, which Armuelles. General Manuel Quintero Vil- in essence didn’t solve the whole problem. larreal, veteran of the War of the Thousand Days, was named as the Supreme Chief of the Then came the White Judgment, issued by Ed- Campaign who was originally from Chiriquí. ward D. White, President of the Supreme Court of Justice of the United States of America, General Quintero was also accompanied by 50 dated September 12, 1914, whose arbitration armed agents. Similarly, on February 22, ap- was chosen by the disputing parties. This rul- proximately 60 police officers from David, capi- ing prompted the Republic of Panama to chal- tal of the Province of Chiriquí, where they first lenge the opinion in full, claiming that Mr. White learned and were the first to organize, under the had exceeded the powers granted to him. authority of Captain Juan B. Grimaldo and offi- cers Solis, Benitez, Rosales , Cañizales and Agu- Thus, in spite of much intention of direct ne- ilar, were transferred by rail to La Concepción, gotiation and of two international arbitrations then to La Pita, Divalá and Progreso, and then between the parties, both governments, ac- went on foot through the mountains to Coto. 43 cording to their interests and points of view,

sovereignty on February 25 and called for mili- The chiricanos also organized the First Com- tary service to all Panamanian citizens whose pany of Volunteers of David, commanded by age ranged from 18 to 40 years of age to form Captain Alfonso Vásquez, old military of the the “Tomás Herrera Battalion”. The next day the War of the Thousand Days. Likewise, a group steamer David went to Coto, with 200 policemen called “The 13 Volunteers of Bugaba”, led by under Inspector Alberto Lamb, accompanied by Colonel Laureano Gazca, left La Concepción. several Panamanian doctors and a Red Cross Additional Boquete and Dolega companies corps under the direction of Dr. Aurelio A. Dutari. were formed, the first command of Captains Eudoro Watson and Esteban Ruíz Ordóñez, and The conflict developed in two places. The the second in command of Captains Manuel del first place was in Pueblo Nuevo de Coto and Rosario Miranda and José Natividad Miranda. the vicinity of Río Coto in the Pacific Sector.

Panama’s army had been suppressed in 1904 On the morning of February 27, 1921, the Pana- for fear of a coup and had long-range fire- manians recovered Coto and the invading tacti- arms because Panamanians had been forced cal forces were taken prisoner. In the confron- to hand them over to North Americans as a tation there were two Panamanian wounded corollary of clashes between Panamanian ci- and two dead and nine wounded Costa Ricans. vilians in the capital and soldiers The Canal Zone. As an interesting fact, the expedition In the afternoon hours of that same day 27 a new from Panama City was supplied with rifles clash occurred with Tica troops at the Sultana that the police used inside the Republic and gas station in the Rio Coto, which arrived to se- with 50 Remington and 60,000 ammunition cure those who had surrendered. Their boat was that President Belisario Porras Barahona had captured and they were submitted by the Pana- hidden in the Presidential Palace during the manians. There were two Panamanian wounded disarmament demanded in 1916 by the Ameri- and four dead and nine wounded Costa Ricans. can soldiers. Also used were some carbines of commercial premises that were dedicated to the sale of arms.

With these events na- tionalism was boost- ed in both Costa Rica and Panama. In San Jose, Costa Rica, a concentration was grouped that arrived until the Consulate of Panama and some protesters eliminated the Shield of Panama. On the morning of March 1, another battle took In Panama, a few days after the Costa Rican place in Coto. The Panamanians captured the expedition to Panamanian territory, Con- Estrella gas station, where one Panamanian was 44 stitutional President Don Belisario Porras wounded and 25 killed, 12 injured and 64 Ticos Barahona called for the defense of national prisoners. On March 2, the motorboat Esperanza session of Coto, following an ultimatum from the the from ultimatum an offollowing Coto, session 1921, 5, pos took September government Tico the On warlike aspect. war In the we the won though even favor Ticos, in of the and Panama against power military and of political its weight the all with north of the nation powerful by the nous contermi Rica, to Costa of territory its section a to grant way,In this was constrained Panama countries. two the between clashes the stop to order in coast, Atlantic to the cruiser mento Sacra the and battleship Pennsylvania to the Chiriquí in Bay Azul Charco the sent Americans the 4, March on of force, measures and poses ma at the diplomatic level. For intimidating pur Pana on pressure a guarantor, putting becomes 1914, White the in was ruled what ognize which rec and Coto from forces its withdraw Panama that Toro del Bocas demanded from and Ticos the to withdraw hostilities, to suppress countries both on calling dispute, the in to mediate cided de US government of the Department State The of controversy. subject was the not territory This clashes. no were there because resistance greater without advanced and took they which of Almirante, Port to moved the pany, soldiers its Com Fruit United Company company United of the support the with and of Guabito lation Toro popu of the del cas coast, Atlantic the on of Bo province remote and distant the invaded Rica Costa soldiers, thousand two proximately ap with 4, March on Coto, to withhold them for sector and knowing that it would be impossible Pacific the in suffered defeats the for revenge In place. took that confrontations three the feat in de acrushing suffered Rica of Costa troops the of Panama, inferiority military the Despite Rica”. by Costa committed of violence acts peated re “the of Nations League of the Council the before denounced 2 Panama March On was captured. also ------democracy comes from other democracies.” democracies.” other from comes democracy for support best the and support needs cy - “Democra out pointed who ZIR BHUTTO, fulfilled. BENA politician Pakistani the liberties, al duty of person and of democracy adefender Of achievement the recognize and it honored who those honor must try triotic loyalty spirit, and discipline. coun Our pa with country our valued and gallantly who heroes were who Panamanians, courageous of those honor in of a monument building the be would fair than more much and Loveless it attacked and our sovereignty. independence when country of their dignity and integrity the ing of safeguard honor historical had who of those love and courage to the tribute paying erations, gen Future the for example an starring homeland, their for lives their to offer ready to proved be who of Coto, soldiers to the veys acknowledgment an 1921 February in con Rica Costa and Panama War Coto of between the conflict military of the Recalling these facts and making this chronicle Panama. in Madrid Dr. Arias and Rica Arnulfo ta Cos in Guardia Caldera of Mr.ments Ángel Rafael theduring governJaén, Fernández Ezequiel Rica, Costa in of Panama Ambassador the and Montero Echandi Alberto Affairs of Foreign Minister Rican May in 1941 signed Panama, and by Costa Rica ta Cos between agreement Treaty boundary ,Aland Treaty,nandez Arias-Calderón as the known also Echardi-Fer the with overcome finally only were problems boundary the subsequently and States, United of the of Justice Court Supreme of the dent Presi White, Edward by Judge issued ruling the to accept was Panama forced mentioned. results the with resolved was completely not situation The trade. banana the in engaged of US companies among other the things, interests included, edly undoubt This of State. Department States United

L&E

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Panamanian

SAVING THE SOCIAL SECURITY FUND

Source: Vicente Feliciano www.rbcweb.com.pa ECONOMY

Panama faces a challenge in terms of the Social Security Fund, but has the resources to take care of it.

s a foreigner, I must be cau- This problem is common in retirement tious when commenting systems worldwide. At present, the Fund on Panamanian issues. On has an actuarial deficit of $ 12 billion the other hand, being a fo- and is estimated to be insolvent by 2025. reigner offers me a different perspectiveA from which to contribute. Like other countries, instead of trying to solve the root cause, Panamanian go- The difficulties faced by the Social Se- vernment could consider how to address curity Fund arise mainly from fact that the issue in such a way as to extend life the participants of Solidarity Fund con- of Fund and reduce the actuarial deficit. tributed less money than they plan to receive in retirement payments. For example, the United States has taken 46 decades to take actions that, without sol-

ving the problem of its pension system, extend the life of the pension system.

At present, United States Social Se- curity will become insolvent in 2028 for payments to the disabled and in 2034 for payments to retirees.

But probably before that happens, they will continue to take steps to extend their lives.

In Panama, the challenge is to trans- fer the burden of the Solidarity Fund deficit to younger generations af- ter 2025 and for less than $ 12 billion.

For this to happen, there are a number of measures that could be implemented. For example:

(1) It is striking that current retire- ment age of women is lower than that of men. This structure is anchored in ma- cho and nineteenth-century visions of a limited role of women in the labor market. The retirement age should be the same, (4) The years of greatest need particularly when it is taken into ac- for retirees are when they are over count that woman has a longer life 75 years old, when drug and care expectancy than man and, therefo- expenses increase considerably. re, will be receiving retirement pen- The younger the retiree, the lower sion for more years than the man. their expenses and, therefore, the greater ability to handle a small cut (2) It could increase the with- in the amount of retirement pay- drawal age of all participants. As ments for the period prior to 75 years. life expectancy has increased, wor- kers are healthier and able to begin Panama faces a challenge in terms their retirement period at an older age. of the Social Security Fund, but United States, with more resour- has the resources to take care of it. ces than Panama, has a retirement age of 66 years and is already legisla- The key is to take action today that will ted and will soon increase to 67 years. lighten the size of the problem to make it manageable for future generations. L&E (3) The contribution of the partici- pants to the system could be stepped up, perhaps at the rate of 1% annually. Even after increasing the contribution per- centage, Solidarity Fund retirees would be receiving much more than they contributed. 47

CONSUMER PRICE INDEX JUNE 2016-17

Source: MEF

he groups that most influenced the Food and non-alcoholic beverages and Tannual percentage change in the National Alcoholic beverages and tobacco both Urban CPI of June 2017 with its similar in with - 0.5%; Transportation with -0.4%; 2016 were: Clothing and Footwear and Communi- cations both with -0.2%; Recreation and Education with 3.6% and Health with 2.5%; culture and Restaurants and hotels both However, group of Food and Non-Alcoho- with -0.1%. lic Beverages that has greatest weight in the CPI, presented a negative variation of The decrease observed in the group Food -0.3%. and non-alcoholic beverages, was due to the decrease registered in five of its ele- The monthly evolution of the National Ur- ven classes. ban CPI to June 2017, compared to De- cember 2016, registered a variation of The classes with the greatest variation 0.3%. were “Fish” with - 2.1% and “Meat” with -1.5%, due to the reduction in the price of The National Urban CPI of June with res- beef, pork and chicken. pect to May 2017, reflected a variation of -0.2%. The drop reflected in the group Alcoholic beverages and tobacco, was due to the The groups that showed decreases in the decrease in three of its four classes. The National Urban CPI of June with respect largest variation was in the “Beer” class 48 to May were: with -1.0%.

In the Transport group, there were de- The Health group showed a rise in five of creases of two of its seven classes, “Air its seven classes. The classes with the Passenger Transport” with -7.7%, due to greatest variation were “Dental services” the decrease in the price of the plane tic- with 1.2%, due to the increase in the pri- ket, and “Fuels and lubricants for perso- ce of the dentistry service; “Medical ser- nal transport equipment” with -0.9% , By vices” and “Hospital services” both with the reduction in the price of fuel for auto- 1.1%. mobiles. The increase presented in the class “Me- The group Garments and footwear pre- dical services” was by the increase in the sented decrease two of its four classes. price of medical consultations. The biggest variation was in the “Shoes and other footwear” class with -1.3%, In the class “Hospital services” was by in- caused by the decrease in the price of crease in the price of hospital expenses. shoes, slippers and men’s slippers and shoes, sneakers and sandals for women. However, the “Pharmaceuticals” class that has the highest weight in the group, The group Communications declined in presented a variation of 0.8%, due to the one of its two classes, “Telephone equip- rise in the price of medicines. ment” with -1.2%, caused by the decrease in price of mobile phones. The increase presented in the Miscella- neous goods and services group was in- The reduction reflected in the group Re- fluenced by the increase in seven of its creation and culture, was by the decrea- ten classes. The class with the greatest se of five of its sixteen classes. The class variation was “Health-related insurance” with the greatest variation was “Equi- with 1.1%. pment for reception, recording and re- production of sounds and images” with When comparing National Urban CPI of -0.9%, due to the decrease in the price of June 2017, with its similar of 2016, fo- TV and DVD player. llowing increases were observed: Edu- cation 3.6%; Health 2.5%; Miscellaneous The drop observed in the Restaurants and goods and services 1.6%; Housing, water, Hotels group was due to the reduction electricity and gas 1.5%; Restaurants and in the price of meals and non-alcoholic hotels 0.9%; Transport 0.8%; Recreation drinks outside the home and meals pre- and culture 0.7%; Furniture, articles for pared to take away. The groups Housing, home and ordinary household mainte- water, electricity and gas; Furniture, nco- nance 0.4%; Clothing and footwear 0.1%. midas prepared to take. The groups Hou- sing, water, electricity and gas; The groups that presented decreases were: Communications -0.8%; Food and Furniture, housewares and for ordinary non-alcoholic beverages and Alcoholic household maintenance and Education beverages and tobacco both -0.3%. L&E remained unchanged.

The groups with positive variations were: : Health with 0.7% and Miscellaneous goods and services with 0.2%. 49

Then, graph with the monthly incidence by group of the National Urban CPI of June 2017

Incidence: corresponds to the contribution of each group with respect to the total variation of the National Urban Index, therefore, the sum of the incidents results in the variation of the index

TABLE 1. INCIDENCE AND PERCENTAGE VARIATION PER MONTH OF THE PRICE INDEX TO THE NATIONAL URBAN CONSUMER, ACCORDING TO AR- TICLES AND SERVICES GROUP: JUNE 2017 BASE 2013 = 100

50

Below, graph with the evolution of the National Urban Total CPI and the most weighted groups, Food and Non-Alcoholic Beverages and Transportation January-June 2017:

51

MAIN ECONOMIC INDICATORS JANUARY - MAY 2016-17

Source: CGRP

1.Transport: pital goods reported negative variation of The cargo transported by 5.6%. the Panama Canal, from January to May 2017, in b. FOB value of goods exports: long tons, registered a The FOB value of goods exports registered variation of 25.9% over a positive variation of 4.5% and the most the same period of 2016. influential items were: shrimp in 8.8%, fish The toll revenues of the and fish fillets (fresh, chilled and frozen) waterway had a variation of 18.7% and the 0.4%, flour and oil Of fish 106.2%, coffee transit of ships By the interoceanic route 265.1%, clothing in 64.3% and meat of catt- increased by 5.4%, in the mentioned period. le in 6.6%. There were negative variations in the following items: petroleum products of The movement of containers (TEU - con- 14.6%, banana 7.2%, melon 52.3%, water- tainer equivalent to 20 feet), rose 12.6% melon 55.1%, pineapple 17.9%, other sea- from January to May this year, compared food 55.9%, unrefined sugar 17.2%, cattle to January to May of the previous year. standing 30.4%, and hides and skins 34.9%. The cargo movement through the Na- tional Port System (SPN) grew 14.7%, of c. Weight of goods exports: which bulk cargo with a variation of 14.5% The weight of exports of goods (net kilos) and containerized cargo was highlighted increased by 11.8%, with an increase in the in 15.3% during the indicated period. following categories: shrimp 0.9%, fish meal and fish 168.8%, coffee 266.2%, clothing 2. Foreign Trade: 74.3% and beef cattle 7.5%. Negative be- a. CIF de las importaa. CIF havior was reported in: petroleum products value of imports of goods: 13.4%, banana 4.5%, melon 35.0%, water- The CIF (Cost, Insurance and melon 42.6%, pineapple 14.9%, fish and fish Freight) value of goods im- fillet (fresh, chilled and frozen) 0.2%, other ports rose by 8.0%, with non- seafood 72.4 %, Unrefined sugar 23.6%, durable consumer goods cattle standing 65.7%, and hides and skins standing at 18.6% and inter- 41.6%. 52 mediate goods at 7.3%. Ca-

5. Financial Intermediation: d. Colon Free Zone: a. National Banking System: The value of commercial movement in the Data not available to date, by the source Colón Free Zone registered an increase of that provides information. 10.3%, with FOB re-exports at 10.4% and

CIF imports at 10.2%. On the other hand, a b. Stock Market Indica- favorable performance in the weight (me- tors: tric tons) of 6.2% was reported, mainly, by The trading volume the increase of the imports in 9.8% and the (balboas) of the stock reexportations in 2.7%. market on the Panama Stock Exchange (BVP) rose by 74.3% and the 3. Internal Trade: number of shares by 121.5%. The primary a. Sale of fuels for natio- market fell by 45.3% as did the secondary nal consumption: market by 0.2% and the repurchase by The sale of fuels for do- 59.1%. The calculated BVP index increased mestic consumption fell by 9.5%. by 1.7%, mainly the con- sumption of bunker C by c. Insurance: 25.2%, 91 octane gasoli- Data not available to date, by the source ne by 5.5% and other fuels by 3.3%; However, that provides information. there was a positive variation of 95 octane gasoline by 15.6%, low sulfur diesel 2.8% d. Loans approved by the Agricultural De- and liquefied gas consumption by 4.5%. velopment Bank: Loans approved by the Agricultural De- b. New registered cars: velopment Bank (BDA) were reduced by The number of new cars registered, which 46.3% and of these, those for agriculture obtained a single vehicle registration, de- in 43.0%, livestock in 45.6%, fishing 72.1% creased by 10.6% and the segments that de- and other items in 47.2%. creased were: regular cars in 17.2%, luxury cars 6.8%, minivans 13.5%, panels 25.2%, 6. Leisure Activities: pick ups 15.7%, buses 29.1% and trucks a. Gross bets: in 3.9%; However, the SUVS (Sports Utility The gross betting re- Vehicle) had a positive variation of 3.1%. port (including paid prizes) of gambling operators registered 4. Building: a positive variation of The value of permits 0.3%, mainly, slot ma- for construction, chines “A” increased by 0.6%, sports bet- additions and repairs ting rooms by 46.5% And the racetrack in registered a positive 18.5%; However, bingo halls were reduced variation of 24.0%, by 17.0% and gaming tables by 12.0%. mainly residential works in 34.7% and non-residential works b. Net betting: in 12.2%. At the regional level, the districts Net bets (excluding prizes) increased that grew were: San Miguelito in 165.3%, by 0.2%, mainly the racetrack by 1.0%, Colón 93.8% and Panama in 25.4%. The- sports betting rooms 53.4% and slot ma- re was a drop in the district of Arraiján of chines “A” by 0.7%; On the contrary, the- 18.2% and those of David, Santiago, Chi- re was a negative variation in the gaming tré, Aguadulce and La Chorrera grouped, in tables of 13.6% and bingo halls by 18.3%. 53 5.9%. Production of gray cement rose 1.4%.

7. Electricity and water: 9. Hotels and entrance of passengers: a. Electricity supply: a. Hotels: Electricity supply registered by the Com- The hotel activity in Panama City reported mercial Measurement an increase in the average daily overnight System (SMEC) showed stays by 23.6% a positive variation of and the number 0.9%, due to the in- of room units by crease of renewable 0.4%; However, energy by 16.0%, with there was a ne- hydropower being gative variation 23.0%, solar 249.8% in the occupancy and self-generation 67.4%. Electri- rate of 0.8% and in city imports decreased by 74.6%. the average of occupied quarters of 0.8%.

b. Destination of the electricity: 10. Public Sector Finance: The destination of the electric ener- a. Current income of the Central Government: gy offered increased by 0.9%, with large From January to May, the Government’s customers standing at 25.0% and ge- current revenue decreased by 0.8%, gi- nerators (plant use) at 51.3%. Invoiced ven the decrease in tax revenues by consumption decreased by 0.1%, mainly 1.7% and of these, indirect taxes by 0.6%, commercial customers by 0.3% and in- mainly the Tax on the Transfer of Per- dustrial customers by 4.6%; On the other sonal Property and Furniture Provision hand, residential clients increased by of Sales Services (ITBMS), fell by 6.6%. 0.4% and other clients (political par- Non-tax revenues increased by 10.4%. ties, non-profit entities, etc.) by 21.7%.

c. Water: 11. Other Related: The billing for drinking water in the Re- a. Registered labor contracts in MITRADEL: public increased by 2.6%, linked to sec- Labor contracts reported in the Repu- tors: commercial 1.9%, residential 2.9% blic1 fell by 4.0%; and Government 1.8%; However, the Mainly those re- industrial rate was reduced by 0.7% ported in Pana- ma City (registe- 8. Manufacturing industries: red at MITRADEL In the manufacturing sector, during the Headquarters) January-May period, there in 7.1%, speci- fi- was growth in slaughter of cally, the indefinite ones in 16.8% and pigs of 0.3%, chicken meat works determined in 7.6%; On the con- production 1.9%, evapora- trary, those defined increased by 1.1%. ted milk, condensed and In turn, there was an increase in the work powdered milk 2.3%, pas- contracts registered in the Rest of re- teurized milk 3.1%, natural gional offices of MITRADEL, by 1.5%, milk Used for the produc- standing out the indefinite ones in 9.7% tion of derived products 3.2% and the pro- and works determined in 2.0%; Howe- duction of alcoholic beverages in 11.8%. ver, those defined were reduced by 0.8%. There were negative variations in produc- L&E tion of tomato derivatives of 11.9%, sugar 5.3%, salt 21.1%, production of soft drinks 7.2% and of alcohol rectified in 3.5%. 54

REGIONAL COOPERATION AGREED TO IMPULSE COPYRIGHT AND RELATED RIGHTS

Source: MICI

he Copyright Offices of Central Ameri- to playing a proactive role in development Tca and the Dominican Republic signed a of activities to raise awareness, promote Cooperation Agreement on Copyright and and respect Copyright and Related Rights. Related Rights, within the framework of the Fifth Ministerial Meeting on Intellec- Signatories of this agreement are: Intellec- tual Property in this region held in Panama. tual Property Registry of Guatemala, National Registry of Costa Rica, Registry of Intellec- The Director of Copyright of the Ministry of tual Property of El Salvador (CNR), Intellec- Commerce and Industries of Panama, explai- tual Property Registry of Nicaragua, General ned that the agreement will allow sharing ex- Property Directorate Intellectual Property periences and knowledge, collaborate in the of Honduras, the National Copyright Office promotion and dissemination of practices to (ONDA) of the Dominican Republic and Ge- ensure better protection, promotion and eco- neral Directorate of Copyright of Panama. nomic enjoyment of these rights, as well How to develop the participation of their creati- It is important to emphasize under the agree- ve industries in the international markets. ment that Parties shall ensure adequate and effective protection of intellectual products He stressed that it seeks to strengthen hu- created or derived from cooperative acti- man resources and institutional capaci- vities undertaken under this Agreement in ties. Improve quality and timeliness of ser- accordance with their national legislation. vices offered by these Copyright Offices, including availability of information, data Within 30 days after the entry into force of this management and provision of consultation. Agreement, the Parties shall designate a focal point in their respective offices, which shall He indicated that it also intends to take ac- be responsible for joint planning of coope- tion to make visible and position the creative ration activities, including other actions. L&E industries in global framework of economic 55 development of the countries; In addition

PANAMA CANAL REAFFIRMS BEFORE IMO ITS COMMITMENT AS GREEN AND EFFICIENT MARITIME ROUTE

s part of the national delegation, the Pana- Ama Canal reaffirmed its commitment to com- bating global warming as one of the seventh sessions of the Maritime Environment Pro- tection Committee (MEPC) of the Interna- tional Maritime Organization (IMO). Green Source: ACP route and efficient for shipping industry.

“Considering IMO’s new strategy, the Pana- ma Canal remains committed to reducing its impact on the environment to combat global saved more than 670 million tons of car- warming, as we have done since the Canal was bon dioxide emissions throughout its history. inaugurated 102 years ago,” said Alexis Rodrí- The Panama Canal, which recently celebrated guez, a protection specialist environmental. the first anniversary of its expansion, further diminishes environmental impact of ships. Held in London, England, MEPC 71 brought together the entire maritime community to In addition to offering the shortest route, more discuss energy efficiency of ships and the than 1,500 neopanamax ships have been tran- reduction of greenhouse gas (GHG) emis- siting new locks over past year, providing sions. This year’s session focused speci- greater cargo capacity on fewer vessels, redu- fically on implementation of Ballast Water cing costs, fuel consumption and emissions. Convention and new strategy for reducing greenhouse gas emissions in maritime sector. In its first 12 months of operation, the ex- panded Canal contributed to a reduction of Members of Panama delegation spoke with more than 17 million tons of carbon dioxi- industry specialists about the impact of ship- de, and in combination with panamax locks, ping industry on the environment. Likewise, was reduced more than 35 million tons, which in the framework of MEPC 71 this representa- is equivalent to 60,000 hectares of forests. tion participated in two working groups. The first, on reduction of emissions of greenhou- The Green Route of the Panama Canal leads a se gases from ships, and the second, on te- series of sustainability initiatives, such as the chnical and operational measures to impro- Green Connection Award and the Environmental ve the energy efficiency of global shipping. Premium Ranking, which reward customers who meet high standards of environmental efficiency. Since its opening in 1914, the strategic geo- graphic location of the Panama Canal has To date, more than 85 vessels have re- allowed ships to shorten distance compa- ceived the Green Connection Award and red to alternative routes, thereby reducing more than 275 vessels qualify for the En- 56 costs and greenhouse gas emissions. It is vironmental Premium Ranking since it estimated that the inter-oceanic route has was implemented in January 2017. L&E

World ECONOMY

IMF’S MANAGING DIRECTOR CHRISTINE LAGARDE URGES TO TAKE MEASURES TO STRENGTHEN WORLD GROWTH AND DEVELOP INCLUSIVE ECONOMIES

Source: International Monetary Fund

he International Monetary Fund (IMF) Mana- including high financial vulnerabilities, Tging Director, Christine Lagarde, issued the low productivity and growing inequality.” following statement at the end of the Group of 20 (G20) Summit in Hamburg, Germany:

“I would like to express my sincere con- gratulations to Chancellor Merkel and the German authorities for their strong lea- dership in the G-20 presidency this year and for the organization of this summit of rulers in the beautiful city of Hamburg.

“In the talks I had with the leaders I highlighted the good news that the global economic re- covery is underway, it is broad-based and is expected to continue next year. At the same time, I warned about complacency and risks,

57

goals and the challenges facing low-inco- “The current growth period should be used me countries. I particularly welcome lea- as an opportunity to carry out the following dership of Germany in launching the Pact measures: strengthening financial sector with Africa, which aims to promote priva- safeguards (by building capital reserves te investment throughout the continent. and securing the balance sheets of com- panies and banks); Address the stagna- Countries participating in first phase of tion of real wages (which can undermine this initiative have already received sup- recovery and generate discontent); And to port from the IMF to help them streng- address the problem of excessive current then their macroeconomic frameworks account imbalances, with the collabora- and institutions, inter alia through in- tion of both surplus and deficit countries. creased support for capacity building.

“According to the Hamburg Ac- “I am pleased that the Hamburg Ac- tion Plan, I emphasized five priorities: tion Plan emphasizes the strengthening of the global financial security network, • Promote trade reform. A crucial aspect which is to be driven by a sound, ac- of this effort must be the reduction of ba- countable and adequately funded IMF. rriers, subsidies and other measures that distort trade. To underpin global trading I am also pleased that the leaders of the system we can reaffirm our commitment G-20 have emphasized the importance of to rules and their proper application, in the IMF continuing to contribute to capa- order to foster competition and at same city-building in the area of combating mo- time establish egalitarian conditions. ney laundering and financing of terrorism.

• Increase investment in productive in- “I would like to express my deep gratitude frastructure. This measure would stimu- to German government for their generous late employment and short-term growth hospitality during their G20 presidency. and productivity in the medium term. • Promote financial inclusion. To support sus- Special thanks also to the city of Hamburg, tainable growth - which will create millions and in particular to men and women who of additional jobs - it is essential to expand relentlessly watched over public safety and access to finance, especially for women. contributed to the success of the meeting, and I wish a speedy recovery to those who were • Invest in human capital. This is a priority injured during the protest in the last days. so that populations are better prepared to “Finally, in my discussions with the G-20 meet challenges of technological change leaders, I pointed out that just as the glo- and economic structures; This is especially bal crisis served to give impetus to effec- important in the context of increasing use tive multilateral action, global economic of automation and artificial intelligence. recovery must be an opportunity we need to continue to collaborate with In order to • Accelerate labor market reforms. This in- address risks and ensure vigorous, sus- cludes expanding the population’s access tainable, balanced and inclusive growth. to the labor market, improving flexibility and reducing informality. A crucial aspect is to In this regard, the IMF looks forward to the close gender gap in women’s participation in opportunity to work closely with the Argen- the labor force, thus helping to foster growth, tine presidency of the G-20 in 2018.” L&E reduce inequality and diversify economies.

58 “I am very pleased with the G-20’s focus on climate change, sustainable development

AGENDA 2030: A DIFFERENT STRATEGY FOR A DIFFERENT TIME

Source: CEPAL

genda 2030 for Sustainable Development and its 17 Sus- In addition, five regional forums on sustai- tainable Development Goals nable development have been established (ODS) were approved two as regional platforms to support the im- years ago by the 193 Mem- plementation, monitoring and review me- berA States of the United Nations as a chanisms of Agenda 2030 and the Addis collective and transformative call for ac- Ababa Agenda for Action. For example, the tion that will change the course of our Forum of Latin American and Caribbean common destiny towards a model more Countries on Sustainable Development equitable and sustainable development. was held for the first time in Mexico City last April and brought together nearly 800 Since then, countries have taken im- participants from government, civil socie- portant steps to start this new path, ty, private sector and other actors to pro- as they are fully aware that this mote peer learning and to share progress agenda requires a paradigm shift. and experiences in implementing the agenda and to strengthen collaboration In Latin America and the Caribbean alo- and coordination among regional actors. ne, at least 16 countries have improved their institutional frameworks to facilita- In addition, in order to effectively moni- te the implementation of Agenda 2030. tor progress made in the implementa- tion of SDOs and support data-based They have also developed frameworks decision-making, countries will have to for multi-stakeholder dialogue to inte- address problems in data collection, di- grate ODS into their national and sub- saggregation and dissemination of sta- national development plans, and their tistics and data. This involves strengthe- fiscal and investment frameworks. ning tapacities of their national statistical systems and the development of data At the global level, 66 countries - one in ecosystems with a comprehensive ap- three Member States of the United Na- proach to global indicator framework. tions - will have submitted their volun- tary national review by July 2017 in the These advances, coupled with unprece- context of the High-Level Political Fo- dented enthusiasm, commitment and po- rum (in case of Latin America and the litical support for implementation of the Caribbean, This figure is equivalent to 2030 Sustainable Development Agenda, 14 of their 33 countries, that is, almost are a source of great optimism among 50% of them). Another 16 countries have those who advocate structural chan- 59 already committed to do so by 2018. ge in development model of our nations.

if we are to achieve our common vi- sion by 2030, we must continue to work together to meet global challenges.

A key challenge in the development finan- ce architecture of Agenda 2030 is to mo- bilize private resources and channel them towards the ODS. Public and private re- sources must be combined to maximize their development impact. The mobiliza- tion of domestic resources is necessary, but not sufficient, to respond effectively to the development needs of countries.

In addition, an enabling external envi- However, global economy has not fu- ronment is essential for the achieve- lly recovered from the financial cri- ment of Agenda 2030. This will require sis of 2008 and growth in both trade a profound change in the means of im- and GDP remains stagnant at much plementation, including in the world tra- lower levels than in recent decades. ding system and in the conditions for the transfer of knowledge and technolo- Despite progress, inequality is increa- gy from developed countries to develo- sing and the increase in refugee and im- ping countries. In addition, such efforts migrant flows in the last two years has must be accompanied by the promotion created tensions in destination countries. of new and innovative instruments and mechanisms to finance development. In Latin America and the Caribbean countries are facing increasing demands We need to maintain the momentum and and increasingly tight budgets. Despite harness the attention that this new Agen- efforts by tax administrations in the re- da has generated so that all countries, both gion, tax evasion remains endemic and developed and developing, and all sectors illicit flows continue to erode the tax base. of society participate and take measures that benefit all, thus ensuring a real and Private flows have also become the Towards sustainable development. L&E main source of financing for developing countries in Latin America and the Ca- ribbean (52% of FDI in the last decade), as well as remittances (accounting for 24% of the total The net private finan- cial flows in the region, more than 10% of GDP in some Central American and Caribbean economies), while more tra- ditional forms such as official develop- ment assistance (ODA) have declined.

In this context, the road to achieving Agenda 2030 and its ODS appears to 60 be full of obstacles. But different ti- mes require different strategies and,

LOS EFECTOS VISIBLES DE LA GUERRA SIRIA PUEDEN SER SOLO LA PUNTA DEL ICEBERG

Source: World Bank

new World Bank report estima- tes that by early 2017, the conflict in Syria had da- Amaged or destroyed about one-third of the homes and nearly half of the country’s health and education cen- ters and had caused ma- jor economic losses. A key conclusion of the report is that collapse of sys- tems that organize both the economy and society, and forced displacement, effect on coupled with erosion of trust that uni- the economy and overall situation of tes people, has had a greater economic Syrian population. To calculate extent impact than destruction of physical in- of damage, satellite images were used, frastructure. The report also concludes which were verified with news publis- that longer the conflict, more persistent hed in traditional and social media, data the impact, which will make recovery from ongoing assessment of damage and reconstruction even more difficult. in Syria and information from organiza- tions associated with presence in field. The six years of conflict in Syria have had devastating effects on its inhabi- “The war in Syria is tearing apart the so- tants, with more than 400 000 estima- cial and economic fabric of the country,” ted casualties and forced removal of said Hafez Ghanem, vice president of the their homes from more than half the Middle East and North Africa Regional population, in what is the largest refu- Office of the World Bank. “The number gee crisis since the Second World War. of victims is devastating, but war is also In the report entitled The Toll of War: destroying institutions and systems ne- The Economic and Social Consequen- cessary for functioning of societies, and ces of the Conflict in Syria, a detailed their repair will be a greater challenge analysis of physical damage caused than the reconstruction of infrastruc- 61 by war is provided, impact of deaths

ture, a challenge that will only increase to As the war continues.”

The report notes that around 538,000 jobs were destroyed each year during first five years of conflict, and that young people, now facing an unemploy- ment rate of 78%, have few options to survive. estimates that the war has caused a Specific attacks on health facilities loss of USD 226 billion in gross do- have significantly disrupted health sys- mestic product (GDP), equivalent to tem: communicable diseases such as four times The value of GDP in 2010. poliomyelitis have resurfaced, and it is estimated that lack of access to medi- Economic models were also used to un- cal care is causing more Syrian deaths ravel multiple effects of the war, to mea- than direct effects of fighting. The da- sure their impacts separately, and to de- mage suffered by schools and the use termine consequences of prolonging the of schools as military installations have conflict. While the rate of economic decli- similarly disrupted the education sys- ne declines over time, its effects are more tem, and fuel shortages have caused persistent and make recovery difficult. electricity supply in major cities to be reduced to two hours per day, Which “Our results show that if war were to affects a whole series of basic services. end this year, economy would recover 41 percent of the difference from pre- “The fact that 9 million Syrians are not conflict level over next four years, and working will have consequences long losses would be 7.6 times pre-con- after the cessation of hostilities,” said flict GDP at Over 20 years, “said Harun Saroj Kumar Jha, World Bank direc- Onder, senior economist at the Bank tor for the Maishreq. “The departure of nearly 5 million refugees, combined World and lead author of the report. with inadequate schooling and malnu- “However, if war goes on for up to a de- trition leading to stunting, will cause a cade, less than a third of this differen- long-term deterioration of the country’s ce will recover in four years after end of most valuable asset, its human capital. the conflict, and the total losses would amount to 13 times the GDP of 2010 In the future, when Syria needs them most, over two decades . We also estimate it will suffer a collective lack of vital skills. “ that between sixth and twentieth year of the conflict, the number of Syrians By comparing the current circum- who flee and cross the border would stances with a projection of how the be doubled in search of security.” L&E 62 country’s development would have been without the conflict, the report

THE IDB LAUNCHES THE E-BOOK “ORANGE ECONOMY: INNOVATIONS YOU DIDN’T KNOW THAT WERE FROM LATIN AMERICA AND THE CARIBBEAN” Source: BID

duction and to insert themselves in the knowledge economy.

Innovations from cultural and creative in- dustries can improve the productivity of traditional sectors such as retail, educa- tion, transport or tourism. In addition, de- n order to give visibility to creative velopment of these industries promotes talents that contribute to econo- formation of new talents necessary to in- mic and social development of the crease competitiveness of the economies region, the Inter-American Develo- of the region in face of advances in tech- pment Bank today presented the e- nologies such as robotics and artificial bookI “Orange Economy: Innovations that intelligence. you didn’t know were from Latin America and the Caribbean.” “Among all selected startups, innovations in which the analogue and digital coexist, For the IDB, Orange economy encompas- indispensable convergence to reinvent ses cultural and creative industries, in entrepreneurship ecosystem and cities disciplines such as architecture, crafts, from integral solutions, inspired by what audiovisual arts, graphic and industrial communities need, the atmosphere that design, fashion, music, digital services surrounds them and revaluation of au- and software. In 2015, it generated reve- tochthonous and cultural heritage, “said nues of US $ 124 billion and employed 1.9 Alejandra Luzardo, IDB’s leading specia- million people in Latin America and the list and one of authors of the e-book. Caribbean. The book gathers many of the experien- The new e-book, which can be down- ces highlighted in different editions of loaded for free at this link, documents 50 Idear Solutions, IDB’s flagship initiative innovative initiatives in cultural and crea- on creativity, innovation and entrepre- tive industries of 12 countries in the re- neurship, which encourages the search gion. for creative solutions to development problems. These case studies demonstrate how creativity works as an engine of innova- Together with Luzardo, the co-authors are tion and a tool to help Latin American and the international consultants Dyanis de Caribbean countries to diversify their pro- Jesús and Michelle Pérez Kenderish.L&E 63

THE INTER-AMERICAN DEVELOPMENT BANK AND GOOGLE COMMIT TO IMPULSE INNOVATION IN EDUCATION

Source: Inter-American Development Bank

he Inter-American Development Bank ves in education, creating spaces for the T(IDB) and Google for Education an- exchange of knowledge on the subject. nounced an alliance to generate inno- vative solutions to improve education “We firmly believe that innovation through in Latin America and the Caribbean. technology in education can have a sig- nificant positive impact, but it has tobe The collaboration focuses on imple- properly and carefully implemented and menting technology-intensive activities supported by partners,” said Rodrigo Pi- through IDB-funded projects, working mentel, Director of Google for Education to implement transformative tools such for Latin America. “That is the main rea- as G Suite for Education and Chrome- son why we believe that this collabo- books, and processes for designing te- ration with the IDB is important. We are chnology-based classroom dynamics. working and looking for projects with The two organizations are also commit- a quantifiable impact on education.” ted to exploring additional opportuni- ties to integrate Google education pro- This joint commitment to education is jects into IDB programs and initiatives. based on an existing collaboration bet- ween the IDB and Google. At this time, “Improving the quality of education throug- Google is one of the four anchor or- hout the region requires us to capture the ganizations involved in the IDB’s Con- potential of technology as a tool to increa- nectAmericas initiative that works to se access and promote commitment of help small and medium-sized busines- teachers and students,” said Emiliana Ve- ses in the region expand globally. L&E gas, Head of the IDB Education Division.

“Collaborating with Google enables the Bank to leverage resources and exper- tise of one of the world’s most advan- ced companies while collaborating with the IDB enables Google to work in com- munities that are difficult to access and impact education on a regional scale.”

In addition to this focus on technology- based learning, Google and the IDB will 64 focus on generating a productive dia- logue on the role of innovation initiati-

THE ILO AND THE WTO PRESENT A STUDY ON COMPETENCES TO PROMOTE INCLUSIVE TRADE

Source: ILO

joint ILO-WTO study, Investing increased productivity and better jobs, in Skills for Inclusive Trade, and to ensure that trade contributes to shows that strengthening basic inclusive development. In a rapidly evol- skills, skills and management ving world of work, it is more important can help countries and The than ever that capacity building responds challengesA of an increasingly competi- to current and emerging needs, impro- tive global economy, by reducing costs ving the performance of current and fu- and improving quality and products. ture workers and enterprises, “said the Director-General of The ILO, Guy Ryder. The authors point out that countries that have reactive skills development systems The need to improve skills exists in de- are able to put their skills at service of com- veloped and developing countries, as mercial activities and thus improve their they seek to adapt and find opportu- competitive position in world economy. nities in global economy undergoing a profound transformation, driven by po- “While trade has helped hundreds of mi- litical changes and forces of trade in- llions of people out of poverty and has tegration and technological progress. been an important tool in service of growth, development and job creation The authors describe the main four have lagged behind. Improving capacity mechanisms through which trade in- of our workers and our managers to res- fluences the relative demand for skills: pond to these changes is clearly the best way to foster more inclusive trade,” said • Trade increases demand for products WTO Director-General Roberto Azevêdo. for which countries have a comparative advantage. In countries with a compara- “It is essential to provide the right skills tive advantage in those sectors that re- to reap the benefits of trade in terms of quire higher qualifications, trade increa- ses demand for skilled workers.

• International trade leads to the expansion of more produc- tive enterprises, which tend to employ more skilled workers.

• As the costs of offshoring de- cline, the less complex phases of 65

production tend to be shifted from high- skilled workers, workers with no trans- income to low-income economies. ferable skills, workers whose learning capacities are limited, and workers • Lower trade prices can act as a ca- whose skills are at risk of becoming ob- talyst for changes in technology pro- solete benefit Less from trade and are duction, including automation, which more vulnerable to technological chan- increases productivity and favors a ge or a trade-related employment crisis. highly skilled labor force in expor- ting and import-competing firms. • Training aimed at workers who are dis- Addressing the need to develop a more placed and/or at risk of being displaced: competitive workforce is a long-term pro- In order to gain access to a new pro- cess, according to the study. In countries fession or a considerably different job, at all stages of development, continuing workers may have to be recalculated, education and training, in universities or either because their original employment in technical and vocational education and has become unnecessary or because training (TVET) institutions, and in-service Change represents a good opportunity. training can help workers and Managers of the companies to face the great changes • Invest in training for employed wor- in the demand of competences provoked, kers: Training of workers at all levels of to varying degrees, by the globalization. training is an integral part of the imple- mentation of effective strategies to stren- The authors noted a number of po- gthen the qualifications needed by the licy approaches that have hel- markets for tradable goods and services. ped countries respond effectively to these challenges and include: • Basic professional skills: Basic pro- fessional qualifications, such as tea- • Policy coherence: Strengthening skills mwork and problem solving, com- and improving national competitive- plement technical skills and are an ness requires a number of policies and essential factor in the employabili- it is essential that they be coherent. ty and performance of the company.

• Social dialogue between govern- • Analysis and anticipation of competency ment and social partners: It is essen- needs: A prospective analysis and antici- tial for skills development systems to pation of competencies that will be required respond to the needs of industry, in- are necessary to foster policy coherence cluding those industries that produ- and social dialogue and to inform deci- ce marketable goods and services. sion-making of all relevant partners. L&E

66 Broad access to education, skills de- velopment and lifelong learning: Low-

FAO DIRECTOR-GENERAL REINFORCES NEW PARTNERSHIPS WITH PANAMA AND CENTRAL AMERICA Source: FAO

uring his visit to Panama, FAO Director- nal component of the Program for the Central Ameri- General José Graziano da Silva signed can Dry Corridor, which FAO is helping to formulate. four cooperation agreements with the country to accelerate eradication of hun- This program seeks to improve protection of ecosys- Dger and established an alliance with the Secreta- tems, environmental services, and the resilience of riat of Central American Social Integration to re- the most vulnerable communities of the Dry Co- duce poverty and Malnutrition in Central America. rridor of Panama to the effects of climate change.

“Panama has expressed a commitment at hig- “It is essential to move from emergency res- hest level to eradicate hunger and meet the goals ponse to comprehensive action that addres- of the 2030 Agenda for Sustainable Develop- ses the structural causes of vulnerability, de- ment,” said FAO Director-General José Grazia- gradation of natural resources, hunger and no da Silva during his meeting with the President poverty in the area,” said the Director-General. of the Republic of Panama, Juan Carlos Varela. Cooperate to share the Panamanian experience Graziano da Silva signed cooperation agreements The agreement signed between FAO and the Mi- with the Ministers of Agriculture, Government, En- nistry of Foreign Affairs of Panama seeks to pro- vironment and Foreign Affairs to address the main mote cooperation with other developing coun- causes of malnutrition in Panama and to share tries in matters of food and nutritional security these experiences with other developing countries. and strengthening of family agriculture within the framework of the Panama Coopera 2030 Plan. “Panama has developed an innovative multisectoral approach to reduce malnutrition rates through the Through triangular cooperation with FAO, Panama implementation of coordinated public policies among is already working with Haiti to promote sustaina- different ministries,” said the Director-General of FAO. ble food production, and in the future we will seek to replicate this experience with other countries. Support for indigenous peoples The President of the Republic of Pana- An alliance to reduce malnutrition in Central America ma and the Director General of FAO agreed The Central American Social Integration Secretariat to work together to promote productive de- (SISCA) and the Director-General of FAO signed a velopment of indigenous regions of Panama. new alliance to reduce malnutrition and rural poverty in Central America. Undernourishment affects more than 60 percent of Panama’s indigenous population. For this reason, The alliance will last for five years and will promo- FAO and the Ministry of Agricultural Development te the exchange and dissemination of technical in- signed a technical assistance agreement today to formation and knowledge management among the implement a program to strengthen food and nutritio- countries that make up the Central American Inte- nal security of indigenous communities and impro- gration System, promoting South-South cooperation ve their productivity and organizational capacities. in strategic areas.

According to the Director General of FAO, the- The agreement will promote intersectoral public po- se actions will give impetus to the implementa- licies and technical cooperation to reduce hunger, tion of the Plan of Integral Development of In- malnutrition and rural poverty in Central American digenous Peoples of Panama, together with countries. the traditional authorities of these peoples. SISCA and FAO will provide training for the design Strengthen Resilience in the Dry Corridor and development of policies, plans and strategies The agreement signed with the Ministry of Environment to address the problems of hunger, malnutrition and will provide technical assistance to design the natio- rural poverty, promoting inclusive systems of social 67 protection from a cross-sectoral perspective. L&E

Environmental CAPSULE

HOW TO ATTRACT FINANCING TO COMBAT DEFORESTATION AND CLIMATE CHANGE IN LATIN AMERICA

Milena Vergara - Assistant [email protected]

n July 11 and 12, a workshop tions (FAO), the United Nations Development on “Financing Strategies for Program (UNDP) and the United Nations Sustainable Forest Manage- Environment Program Environment (UNEP). ment and Reducing Emissions from Deforestation and Fo- Its objective is for developing coun- restO Degradation in Developing Countries tries to reduce emissions and invest (REDD)” was held in Panama City, orga- in low-carbon economic alternatives, nized by The UN-REDD Program, which such as strengthening community fo- brought together experts from 12 coun- rest management capacity or enhancing tries in Latin America to discuss how to the environmental services of forests. increase funding for sustainable forest management that allows forest harves- Deforestation and forest degradation increa- ting without deforestation or degradation. se concentration of greenhouse gases in the atmosphere and contribute to climate chan- The UN-REDD Program is a collaborative ge. Both activities account for approximately initiative to reduce emissions from defores- 17% of all carbon emissions, more than en- tation and forest degradation in developing tire transport sector and only behind energy. countries. The Program was launched in 68 2008 and draws on expertise of the Food and The loss of forested areas also has important Agriculture Organization of the United Na- environmental and social consequences. An

estimated 1.6 billion people worldwide de- During workshop, countries in the region pend on forests for their livelihoods, as well shared their experiences and success sto- as for employment and income generation. ries in financing strategies for sustainable forest management and reduction of emis- UN Program Officer -REDD, Gabriel Labba- sions from deforestation and forest de- te, pointed out that more resources need gradation in developing countries (REDD). to be devoted to fight against deforesta- Representatives from Argentina, Brazil, tion. Investing in sustainable forest ma- Chile, Colombia, Costa Rica, Ecuador, Gua- nagement allows ecosystems to remain temala, Honduras, Mexico, Panama, Pa- healthy and provide essential goods and raguay and Peru participated in the event. services. In addition, it contributes to re- duction of carbon emissions and, the- As human beings, we must become more refore, to fight against climate change. aware of the conservation and sustaina- ble management of forests and forests, Most of funding for the program comes and apply measures of use for sustaina- from public sector, mainly from donor go- ble forest management to reduce dama- vernments and multilateral institutions. ge to the forest and reduce degradation. Between 2009 and 2014, private sector contributed only 10% of funding in 13 coun- Forest fires, environmental impact stu- tries around the world monitoring defores- dies, environmental education, among tation and forest degradation (REDD) In others are factors that we believe still re- charge of tracking the resources that are quire greater awareness and that we committed to this UN program worldwide. must acquire the commitment to streng- then actions to reduce the environmental Mobilizing more resources from private sec- risk we have created with our planet. L&E tor and making investments in sustainable forest management more attractive to pri- vate sector is one of the focus of workshop.

According to Keith Anderson, Forestry and Climate Policy Adviser, Swiss Federal Offi- ce for the Environment, “this workshop res- ponds to a global problem: forests are to- day as never before on the political radar, there are unprecedented levels of funding. However, many developing countries are still expecting more funding, while donor countries, multilateral initiatives and the private sector are hoping to establish sta- ble and attractive investment conditions.”

The multilateral institutions and funds with the highest funding for forests in the region are the Norwegian Interna- tional Initiative for Climate and Forests, REDD Early Movers, the Forest Inves- tment Program, the Amazon Fund, the Fo- rest Carbon Cooperative Fund, UN REDD, The Biocarbon Fund, the Global Environ- ment Facility and the Green Climate Fund. 69

Solène Bélardi Illustrious French internship in Panama PEOPLE

THE ONE WHO HAS ARRIVED: EMMANUEL MACRON

the Executive. From to move away from ow that president in func- then on its political the Government, Em- tion, François Hol- role and its mediati- and that reached its manu- lande, and despite zation became more peak in April 2016, el Ma- his young age, from and more ample. when he founded c r o n the beginning he his own political Nhas shown his ca- drew attention His It was catapulted movement, which pabilities by be- very great charisma by the law known became the political coming President (let’s not forget that as Macron Law, party “En Marcha!”. of the Republic of he was 34), his po- concerning growth, France, the question litical ideas less left activity and equal After several of how he achieved than people his age economic oppor- months of tensions that result is be- and his sociability. tunities) and also with the president coming general. with the industrial and the prime min- Indeed, how a man Thanks to his ex- issues that will have ister about his will- who created his po- tensive panel of re- to face (Alstom, Re- ingness to leave litical movement for lations due to his nault, for example). the government, only a year became policy studies, in he decides to leave President and noth- August of the same However, he en- office at the end ing less than France. year he was ap- countered problems of August. His act pointed Minister of during those two was criticized by In France, Macron Economy, Industry years as a minister, Hollande and Valls was a stranger, al- and Digital Technol- mainly the rejection who saw here a though his politi- ogy by Prime Min- of the Macron 2 law lack of solidarity to- cal career began in ister Manuel Valls. as an inadequacy wards the govern- May 2012, as dep- Some said that his between the ideas of ment. Here begins uty general sec- appointment is the the Government and his electoral cam- 70 retary for 2 years symbol of the so- his own. From that paign, although he of the Office of the cial-liberal turn of moment he began doesn’t say it liter-

ally. He announced his candidacy for the presidential elections in November, and Hurricane Macron continues during the shortly afterwards some personalities of legislative elections because its par- the Socialist Party proposed to him to par- ty obtained 314 seats in the Legisla- ticipate in the primaries of the party, but he tive Assembly in 577, it is equal to say rejected the proposal because he was not that it obtained the absolute majority. considered as a socialist and also because of the divisions in the bosom Of the party. In the opinion of some, it is the begin- ning of a presidential monarchy. In the end During his election campaign, the fact we can see that these elections changed that he worked for 2 years in the Roths- French political landscape a lot with the child bank, was used several times to failure of the traditional parties, Social- accuse him of his financial ties with her ist Party and Republicans, and a flashy to finance his campaign, for example. rise of the alternative parties, In March !, France Insumisa and the National Front. These allegations were never used to begin judicial investigations. His links Therefore, the renewal of the elect is flagrant with the media were also criticized by because many traditional personalities of the many journalists because his cover- government were replaced by others almost age was much longer than other can- all unknown; It was Macron’s wish. Now he has didates such as Jean-Luc Mélenchon to prove his worth to change what he wants of the France Insumisa, hence his alias to change in the functioning of the French “The media candidate” sometimes. system, although he does not really have le- gitimacy for a notable part of the French. L&E. The change during his campaign came when François Fillon, the favorite candidate since a few weeks of the right-wing party The Republicans, is affected by a case of fictitious jobs in the government regard- ing his wife and children. When Fillon goes down in the polls, it is Macron who climbs, although his program is a bit confusing, which will be corrected in March 2017.

After Macron introduced his program, many right wing Socialist politicians held him, which was criticized by his op- ponents who qualify him as the candi- date of the left, a bit like Hollande’s son.

In the first round of the elections on April 23, 2017, he came in first place with 24.01% of the votes and faced Marine Lepen, the candidate of the ultra-right of the Nation- al Front. During the second round, won the elections with 66.10% of the votes, 71 but with a record abstention of 25.44%.

Fashion CAPSULE

UN ESTILO EJECUTIVO PARA LAS MUJERES PROFESIONALES DE HOY Donna Ballestero - Assistant [email protected] Gabriela Melgar - Assistant [email protected]

Based on the premise of this renowned desig- •Clothing ner we can say that, in these times, the perso- nal image is an important aspect in our daily Skirts: It is always advisable to avoid short life, therefore, it is important to know how to garments in case of skirts and dresses, the- dress according to the occasion, in this case, se should be according to the shape of our orienting us to the area Professional, working body, it is suggested that the length of it is in an office is no longer what it used to be. at the limit of the knee, preferably should be worn with stockings, Which will have Today, dress codes have relaxed a "Viste vulgar y to be smooth and without figures or lot, and in office have been found designs. sólo verán el ves- new languages of elegance and Pants: We must take into account style that allow to dress well, tido, viste elegante shape of our body and avoid using without leaving aside fashion and y sólo verán a la them too tight, try to be classic and good taste, as well sobriety that persona" elegant cut, as long as we take into supposes atmosphere of many Coco Chanel. account the following tips: jobs. • Never let the hem of your pants touch However, sometimes we don’t have adequate the floor. This will simply destroy the hem and knowledge of how the professional woman create a risk of tripping. should dress to attend her daily tasks in an office or in the field of business, falling into • The hem of your women’s pants depends on unprofessional dress, which is far from dress size of the heel you wear with them. code. • A general rule of thumb when wearing high Here are some points that should be taken heels with pants is to let the tip of your shoe into consideration when it comes to dressing appear. The back of the hem should be half- 72 in the professional women’s field: heel.

gant they have to be comfortable, otherwise • Don’t let the hem of your pants stand at your we will be dead tired in a few hours. Choose ankle height. This will make you look lower some stilettos that make you feel beautiful and more stuffed. but do not make you suffer at every step

Blouses: In the case of blouses, which are not 3. Pumps: It stands out for its elevated front low cut is a fundamental key, it wouldn’t be platform and for giving a “tip” effect. Because well seen to teach too much. The long sleeve of their design, they tend to be very comfor- shirts are also an ideal complement to a tailor table and can make you gain several centi- suit (bag and trouser set or skirt) and at same meters. time give a touch of elegance.

• Colors • Makeup with discretion • In the labor field we must know how to The makeup has become a fundamental part, choose the color of our clothes, the neu- to complement our look, but we must avoid tral colors are a good option as they are the excess. easy to combine and give greater formali- ty and seriousness, suggesting: Use discreetly and according to your skin • Black: it is the most common color and type. The dark bases look too artificial and, therefore more used, easy to combine and moreover, give more years than you have for adjustable to different skin tones, reflects it, there is nothing good for the formal look of authority. the office. The strong shades do not reflect • Navy blue: a darker blue than normal, easy seriousness and professionalism, therefore to combine and representing quality and they are not suitable for office makeup, in this responsibility. case a palette of shades in nude or beige co- • Gray: this color in all its shades, going lors will be our best allies for daily makeup. from light gray, to gray mouse and ending It is NOT appropriate to wear eye-catching in dark gray, versatile, combinable and re- lipsticks, since it is serious, pastel colors will flecting innovation. be the best complement for a formal finish. • If you prefer the prints in dresses or skirts, try to be discreet, it is always good to avoid extravagant prints and very flashy. • In the heights? • Casual Friday The heels make us look stylish and elegant, but always in sober colors, and avoiding ex- travagant shoes, which we must leave for ex- In today’s offices, it is common for Fridays clusive use of parties and informal meetings. to be a casual day, but casual is not synony- mous with bad dress, which means that you Black shoes are versatile, therefore, shouldn’t only drop one degree in formal. A jeans, a be missing inside our attire for the office. It is matching blouse with a flat would be a good important that you have at least one pair. example of casual Friday.

Of the thousands of options we highlight the- A jacket will always bring that simple yet se three to face any situation: elegant touch you need for your look. Avoid sports shoes, broken or with much decora- 1. Flats: Black flats with non-slip sole are your tion, as well as little formal sandals. L&E best allies for busy day of the office.

2. Stilettos: these are the traditional poin- ted-toe shoes and thin heels. Knowing how 73 to choose them is not easy, as well as ele-

Sport Capsule Ana Sofía Corrales [email protected] Basketball Flag Futbol

ommitting ourselves to the en- -17 vironment and setting corpora- bas- te and personal policies much greener, has become a necessity.

And it’s something that social networks sup- ketballU team, led C by Puerto Ri- port, like #2minutos2bolsas initiative, which consists of spending 2 minutes of your time co- can coach David llecting 2 trash bags, uploading photo or video Rosario, will play Centro Basket Championship as evidence to networks and challenging two Sub17, to be played in Santo Domingo from 26 to 30 July. more friends. To which have been joined private companies, sports equipment, among others. Panama is in Group A with the host, Virgin Islands and Jamaica. This weekend the women’s football team “Car- dinals” joined this initiative challenged by The tournament distributes three seats for the Coach of the national team Diego Cohen and FIBA Sub18 Championship of the Americas. who nominated the current LIFFF champions “Cyclons” and the current world champions, On the other hand, on Friday, July 21, the Interba- the selection Of Female Flag Football. L&E rrial Championship began in the U-23 Men’s and Women’s Open categories in the Reynando Gre- nald gym of Río Abajo, organized by the Panama- nian Federation of Basketball (Fepaba) through the Provincial League of Basketball of Panama.

This tournament will have the participation of 18 teams in the male branch and six in the female. The matches will be held from 7 pm on Tuesday, Thursday and Friday and Saturday from 4:30 pm.

The men’s competition will be divided into two groups: A Pueblo Nuevo, San Miguelito, Colón C-3, Betania, Parque Lefevre, Calidonia, El Chorri- llo, Pedregal and Special Olympics, and B by Juan Díaz, the current champion, Costa del Este, Guna Yala, Ancón, Río Abajo, Parque Lefevre, La Chorre- ra, San Miguelito and El Dorado.

The female is made up of the Rio Abajo, Parque Lefevre, Puerto Armuelles, Betania, Sentinels of 74 Tuira and El Tecal. L&E

Volleyball

National Mini-Volleyball Championship U19 National Championship

n the National Championship he National Under-19 Cham- of Mini-Volleyball, the provin- pionship, organized by the ce of Veraguas was crowned Pan-American Volleyball Fe- champion in the masculine as deration (Fepavol) and the well as the feminine category. Panamanian Sports Institute I (Pandeportes)T won the province of He- The men disputed the final against rrera unbeaten, to the east to overco- the province of Herrera, obtaining me Chiriquí Oriente in three sets with a score of 25-16, 25-22 and 25-16. a marker of 25-19, 25-16 and 26-24.

On the other hand, the women’s Panama Centro occupied the third place, team disputed the final against the after defeating to the province of Colon in Guna Yala Comarca, obtaining a two sets by marker of 25-13 and 25-11. score of 25-22, 25-10 and 25-22. Of this Championship the Herreranos stood Of these meetings stood out out, Christian Flores, who was awarded as as most valuable players Em- the Most Valuable Player and Jose Vás- manuel Pérez and Ekaterina Ureña. quez as the Biggest scorer with 60 points.

Guna Yala’s player Keidy Arias was elec- In this Championship participated the ted the best defense of the Championship. provinces of: Bocas del Toro, Colón, Coclé, L&E Chiriquí Oriente, Chiriquí Occidente, Pa- nama Center, West Panama, the district of San Miguelito and the Guna Yala region.

Fepavol announced that this champions- hip will be preselected to form the national team, which will participate in the Central American Championship of this category in October, whe- re Panama is the host country. L&E

Tour de France 2017

Jonathan Forget [email protected]

hris Froome born in Nairobi, Kenya on May 20, 1985, of 259h 21’06’’ with Sky, has never won a stage, made it Cnaturalized Englishman, with a height of 1.85 m and a clear that Is going for his 5th consecutive title for 2018. weight of 70 kg, has been part of several cycling team. In 2007 he started with Konica Minolta from South Af- For his part, the 26-year-old Frenchman, Barted Ro- rica in 2008 to 2009 with Barloword from South Africa main, finished 3 of the overall standings in 83h 23’15’’. and from 2010 to this year his team is Sky. In 2013 he finished again with the yellow jersey in the Tour de In press release said that he will contin- France. In 2015 he finished again all the stages until ue to progress to win a day yellow jersey. Paris with the yellow shirt and the best mountaineer of the Tour de France; For 2016 he finished all the stages Similarly 30-year-old Rigoberto Urán finished No. 2 in until finishing in Paris also with the yellow shirt, had a the overall standings with 86h 21’49 ‘’, saying he had better watch and for the fourth consecutive time Chris worked hard and did not expect to be on the podium. Froome is crowned again in the Tour de France 2017. The best with 370 points was Michael Matthews an Australian, but the best mountaineer was the French- He has won in the years 2013, 2015, 2016 and 2017 with man Warren Barguil with 169 points and the best suppe a clock of 82h 20’55’’ and also won by team with a time combative was the English Simon Yates that accumu- lated 86h 27’ 09’’. As we know, this Tour began in Dus- seldorf in Germany on July 1, 2017, passed through Belgium to France and through high mountains, the most complicated stage was stage 18 from Brianco to Izoard, which has very steep elevations , Finish- ing the Tour on Sunday, July 23 in Paris.

The last stage was won by Primoz Ro- glic, a 27-year-old Slovenian, who is the first time to win the Tour de France. He said that since he was a kid, he dreamed of winning the Tour.

Work, discipline and te- nacity always reward. L&E II World Games of Indigenous Peoples

t II World Indigenous Peoples Games held from July 1 to 10 in Edmonton Canada, Panama delegation had a goodA participation, achieving a total of 17 medals.

Medals obtained were: 3 in Swimming, 10 in Canoeing, 3 in Athletics and 1 in Throw of Spear. They totaled 7 gold medals, 4 silver and 6 bron- ze medals.

Following is the official list of the winners of Panama:

Gold Medals • Emanuel Ortega 50 y 100 mts - Athletics. • Climbing Dogirama - Swimming. • Brayan Dancer and Daniel Garrido - Canoeing in Couple. • Leonela Mariano and Rufina Mariano - Canoeing in Couple. • Karina Mariano - Individual Canoeing. Boxing • Edgar Valdez - Individual Canoeing. On July 5 at the Fantastic Casino of Albrook Silver Medals Mall, it had an international card that was de- • Liried Lopez and Catherine López - Canoeing in Cou- veloped in the capital with 8 combats, six en- ple. ded by the fast track, among which were • Wilber González - Swimming. provided by: Luis Nica Concepción, Ricardo • Suenakiler Durán - Boating. • Alejandro Fernández - Individual Canoeing. Cientifico Núñez and Bryan La Roca Degracia.

Bronze Medals Former world champion Roberto La Ara- • Alejandro Fernández - Swimming. ña Vásquez won a unanimous six-round vic- • Asiel Abad - Individual Canoeing. tory over Colombian Mauricio Martinez in • Kelineth García and Cecibel González - Canoeing. the 122-pound, 58-56, 59-55 and 58-56. L&E • Olodidinapi González and Eufracio Méndez - Ca- noeing.. • Joel Cedeño - 50 meters. • Atilano Flaco - Throw Shot.

Football athlete Jocabed Solano also received a Medal from the Win Games - 2017 for Culture and Conferen- ce. L&E

Swimming

he Hungarian capital, Budapest, hosts On the other hand, Carolina Cermelli, a Tthe 2017 World Swimming Champion- 16-year-old swimmer, participated in the 100 ships, which runs from Friday 14 to meters backstroke, where she was ranked 44 Sunday 30 July. Where Panama is rep- out of 59 participants with a time of 1 minute resented by Edgar Crespo, Carolina Cer- 5 seconds 50 hundredths. The best of the melli and Alberto and Gabriela Bello in series was Noemi Ruele of Botswana, who the mode of synchronized swimming. recorded a time of 1 minute 2.96 seconds.

The athlete Edgar Crespo finished his par- Cermelli will participate again this Wednes- ticipation in the Munidal, where he par- day July 26 in the 50 meters back. ticipated in the 100 meters chest, being in position 32 of 73 participants. And in In the Synchronized Swim mode Panama the 50 meters chest, where he ranked 32 makes history with a solid participation of out of 81 competitors, recording a time Gabriella Bello and Alberto Pinto, who occu- of 27.93 seconds, while Kevin Cordes, pied the 11th place of the final of the mixed from the United States, who took first duet category with a score of 60, 7667. L&E place, recorded a time of 26. 83 seconds.

XIV Race on Wheelchairs

ith alliance between Pa- Category of Cervical was Gertrudis Ortega of Pa- namanian Sports Institute nama West with 26.43, then Diógenes González (Pandeportes), National Lot- of Los Santos with 28.35 and Josué Castillo of tery of Charity (LNB), Na- Bocas del Toro with 45.59 and Eneida Ovalle of tional Disability Secretariat Panama Centro in first place in female with 49.47. W(Senadis) and Government of Colón took place last Sunday July 23 the XIV Race On Chairs Of In the Lumbar category, Raúl Andrade of Pana- Wheels, “Eric Díaz in Memoriam” in province of ma Centro was the first with a time of 24.49, fo- Colón. In which about 120 competitors took part. llowed by Victoriano Mendoza de Coclé with 28.05 and Juan González del Oeste with 32.17. The organization awarded with trophies and 100, 80 and 60 balboas to occupants of top The Assisted competition of a kilometer, where three positions in the eight categories dispu- the competitor was accompanied by a relative. The ted and an incentive of 20 to the other athletes. Luigi Valdés native took first place, escorted by the chiricanos Roger Caicedo and Kevin Villarreal. First to reach finish line were Luis Espinosa of Pa- nama Centro with time of 21 minutes and 41 se- The category Juvenil corrida in distance of 5 ki- conds in men’s branch in the category of Amputee lometers had as winner Jeremy Jurado de Chi- and Polio and Desireé Aguilar of Panama West riquí with 25.59, followed by Juan De Gracia with 30 minutes 36 seconds in female branch. of Bocas del Toro with 39.21 and Eric Pisario of East Panama with 45.24 and in the feminine Espinosa in the category of Amputees and Polio to the bocatoreña Sissy Castrellón with 32.20 , was seconded by two representatives of Pana- With second place for Evelyn Pineda with 43.02 ma Centro, Arístides Guevara with a record of and Coclesana Mitzuri Abrego with 1: 50.01. 23.43 and Leonel Castro with 29.36 and Agui- lar by Miriam Quintero also of West Pana- And in the Infant test with a distance of 500 me- ma with 52.29 and Doralis Ávila with 57.02 in ters was controlled by Amir Salada de Chiriquí the tour that included Villa del Caribe and the with 01.30, followed by Eloy Pérez and Rode- goal in the 16th Street Park in the Coastal Strip. rick Martínez, both from Coclé with 01.30 and 01.33 respectively and in the female by An- The race of 10 kilometers for Bicicicles had as win- drea González from Panama Centro with 03.23 ners the chiricanos, Félix Ríos with time of 33.11, and Didiana Pinilla of Veraguas with 04.50 L&E followed by Julio Murillo another representative of the Valley of the Moon with 36.10 and the co- clesano Nilo Lopez with 1: 02.03 and in the femi- nine Maria Rivers with 49.20, as sole competitor.

In the 5 kilometers also it was run in the category of Thoráxica, controlled by Panama Center, with the first position for Gabriel Salazar with 24.25, and the other two places for Epifanio Mendieta with 25.27 and Rubén Lansiquot with 31.20 and in feminine also by the capitalina Miriam Cubilla with 44.11, escorted by the “cowgirl” Karian Moncada with 52.41 and the chiricana Maryorie Chen with 55.51. 79 Soccer

Male

n July 19, the Panama team stayed Russia. This effort is already reflected, as Pa- on the road in the 2017 Gold Cup, af- nama rose from 59 to 52 in the FIFA ranking. Oter falling 1-0 to Costa Rica by Aníbal Godoy’s own goal in the 77th minute. The Women’s Football League of Pana- ma, is not far behind and demonstrating Despite the fact that Costa Rican team their talents, Atletico Nacional is leading failed to beat Panamanian goalkeeper the table with 15 points, followed by Cho- Jose Calderón after a match where Pana- rrillo FC with 12 points and occupying a ma dominated the first half and after Ga- third place in the table team El Brujas FC briel Gavilan and Miguel Camargo left for de Veraguas with 9 points and Sporting muscle problems, Ticos went on to play SM in fourth place with 9 points equal. the semi-final with the United States in Arlington, where they were defeated 2 to 0. This Wednesday 26 we have a day where they will face: On the other hand, Jamaica posing • Azuero FC vs UTP at 2:00 pm a simply tactical game waiting for at the Los Milagros stadium. a counterattack, defeated Mexico 1 • FMS Academy vs. The Bruges F.C. At to 0 and passed to the final, which 4:30 pm at the Los Milagros stadium. will dispute with the United States. • Chorrillo FC vs. Sporting SM at 4:00 pm at Luis Ernesto Stadium “Cascarita” Tapia. The Panamanian team must continue to • San Francisco FC vs. SD Atleti- prepare to achieve the dream of passing co Nacional at 4:00 pm at the Agus- the qualifiers for the 2018 World Cup in tin stadium “Musquita Sánchez. L&E

Walk to the top of Baru Volcano

ontinuing with the inclusion campaign Olbenis Atencio completed the challenge in Cwas held on July 1 and 2, the fourth Inclu- 3 hours and 28 minutes for the first place. sion Walk to the top of the Barú Volcano The other two positions were also for Pan- and the second International Walk to the amanians, with the second for the pair of Baru Volcano, more than 200 participants Eduardo Pérez and Vladimir Araúz with were gathered, including 53 visually im- time of 3 hours and 45 minutes and the paired people and Athletes from Colombia, third for Alberto and Gallardo Mena with Venezuela, and Panama, organized by the 4 hours. The Panamanian Ana Raquel Trekking Association of Panama and sup- Gálvez with the guide of Alekine Herre- ported by the Panamanian Sports Institute ra was the first lady to reach the goal with (Pandeportes), the National Disability Sec- a record of 5 hours and 30 minutes. L&E retariat (Senadis), the Ministry of Educa- tion (Meduca), the National System Civil Protection (Sinaproc), the National Border Service (Senafront), students from differ- ent universities, who served as guides to the blind, among others.

In this activity all win- ners were made by completing the 13.5 km climb to the top of the Baru Volcano.

Among the partici- pants we can highlight the multiple Para- lympic gold medalist, Said Gómez, accom- panied by his guide

Guttman # 124 driver took the first place, despi- Athletics te having suffered an accident of one of the cor- ners, followed By Sebastián Arias # 382 and occu- pying the third place the pilot Alexis Donado # 16.

• Low-capacity, the 8 competing riders showed their full potential, however, David Quintero # 600, Ricardo Sánchez # 227 and Luis Alber- to Arango # 721 took first place respectively-

• Moto 3 is the smallest category in this inter- national competition. It was divided in 2, A and B. Being the A, the less experienced pilots, whe- re they were winners: Santiago Alzate # 4 ta- king first, Juan Bosco De La Cruz # 130 in second and Victor Dominguez with # 46 in third place. t the XXVIII Central American Athletics On the other hand, in the B, Carlos Ibáñez # 93 takes Championships, held in Honduras, the the first position, in the second Carlos Castillo # 29 proud Panamanian delegation was vic- and in the third place Daniel Calza with the # 23. torious, with gold medals from: Chamar Chamber, in 800 meters; Andre Ferris, at • Pitbike, making an approximate time of 55 se- 800A and 1,500 meters; Nathalee Aranda, in 100 me- conds per lap, Andrea Bordigon # 19 is in the ters and long jump; Axia Midleton, in bullet and disc; first place, Andrés Osorio # 35 in the second and Matthew Edward, in 100 meters; Kashany Rivers, in in the third position the # 33 Sebastián Ortiz. high jump; Alexander Bowen in high jump: Jamal Bowen in long jump and Jorge Mena in decathlon. L&E In addition, a race scheduled for 15 laps for each race in a 900-meter track, with curves locked and a long straight, in the sum of the sleeves, the first place was for, Juan Bosco De La Cruz # 130, Santia- First Valid of the Triangle of go Alzate # 4 for the second and Andrés Ríos # 104. It is scheduled for August 12 and October 7 other Night Motovelocidad tests of national motor-speed, to promote that ra- ces run on the slopes and not on the streets, ex- he Coronado Karting Center wel- plained De De la Cruz explained by the APM. L&E comed more than 70 national and international drivers for first valid 2017, on July 8, orga- nized by Panamanian MotorT Speed Association (APM), with support of the Panamanian Sports Institute (Pandeportes).

It was divided into the catego- ries of:

• Scooters. Making their debut and demonstrating their skills, the winning drivers were: Daniel Gonzalez # 382 in the first place, second, Juan Gonzalez # 78 and the third Ricardo Sánchez # 227.

• Supermoto B (rookies), walked the tarmac entirely, omitting 30% of the dirt track, Mark

Baseball

Sub-12 Our Sub-12 will play this Friday the World Championship of this category in Taiwan, organized by the World Con- federation of Baseball and Softball. cisco Cárdenas Tejada (West Panama) Panama is part of Group B with and Pedro Muñoz Portugal (Veraguas). South Korea, Germany, Austra- lia, Nicaragua and the United States. In addition, there are gardeners Ro- berto Domínguez Mariña (Los Santos), Luis Durango Otero and Francisco Vi- llamil Serrano (Panama Metro A), Leo- Sub-14 nel González Román (West Panama) The Panamanian Baseball Federa- and José Cedeño González (Veraguas). tion (FEDEBEIS) announced 30 pla- yers that make up National Pre-Qua- In the first base position appears Ro- lification Baseball, Sub 14, which will bert Hendrick Grant (Panama Metro A); compete in Pan American Champion- In the second base, Jorge Rodríguez ship to be held in Chihuahua, Mexi- Caballero (Chiriquí); And third base- co, from August 25 to September 3. man Erick Barría Pitty (Chiriquí) and Mauricio Pierre Álvarez (West Panama). The Technical Corps will be directed by Francisco Gutiérrez, who will have The short courses are Reginald Precia- as assistants Kenny Serracín and Vic- do Araúz (Chiriquí), Gilbert Hall García tor Olmos; In addition to Ángel Rubiel (Colón) and Rodrigo Rodríguez Pinilla Moreno, as pitching coach, and Is- (Panama Metro A); While the receivers rael Delgado, as training coordinator. will be Leonardo Bernal Carrión (Coclé), Julio Miranda Moreno (East Panama), The National Preselection of Baseball of Aldahir Bonilla Vergara (Panama Metro Panama is formed by pitchers Jonathan A) and Edwin Hidalgo Osorio (Veraguas). Mendoza Martinez (Bocas del Toro), Carlos Atencio Castillo and Brad Gonzá- The provincial composition of this Na- lez Solís (Chiriquí), Joaquín Tejada Orte- tional Preselection Sub 14 is of six pla- ga, Carlos González Cossio and Eward yers of Panama Metro A; Five, from Chi- Rodríguez Palacios (Coclé), José Pineda riquí; Four, from Coclé; Four, from West Jaén And Luis Sánchez Mejía (East Pa- Panama; Three, of East Panama; Three, nama), Michael Mendoza Ramírez (Los from Veraguas; Two, from Los Santos; Santos), David Quintero Rudas (Panama And one for each team in Bocas del Metro A), Ryan Burrowes Fuentes (Pana- Toro, Colón and Panama Metro B. L&E ma Metro B), Kenny Pinto Vega and Fran-

Cultural Capsule Mariela de Sanjur [email protected]

THEATER FESTIVALS AND FAIRS

• ABA Theater: Scooby the Detective from July 9 • International Book Fair from August 18 to to September 17. 20 ATLAPA. • Theater La Estacion: Low Therapy from Au- • Panama Expo Gráfica 2017 from 24 to 26 in gust 10 to September 11. ATLAPA. • Domo University of Panama -Curundú: Broad- • Panama City Ink Fest - from August 11 to way Opera Show, 1 and 2 of August. 13 at the Hotel Riu. • Teatro La Plaza: The Dosier from the 26th to • Festipug 2017, August 20 on the Cinta Cos- the 27th of August. tera. • La Plaza Theater: The Theory of Relativity & • Heroes Fest, August 19 in the City of 21 Chump Street: The Musical: August 9-12. Knowledge-Clayton. • Teatro La Plaza: Absolute Magic, August 2nd • The Story Hour, August 6 / Cultural Center and 3rd. of Spain-The House of the Soldier. • La Plaza Theater: The Haunted House, August • Convivienda 2017, August 4 in ATLAPA. 6. • Wine & Beer Festival 2017 Panama, August • El Ángel Theater: Thieves are also honest, 3 and 4, Megapolis Convention Center. from August 5 to September 3. • Central American Percussion Festival, Au- • Teatro El Ángel: Looking for La Maravilla, from gust 26 / Casco Viejo. August 6 to September 10. • Golden Frog Festival-The Anton Valley, • El Ángel Theater: Bed for three from August 1 August 13. to 13. • National Festival of Manito Ocueño, from • Theater In Circulo: Hairspray from the 8 to the August 17 to 20 in Ocú. 27 of August. • ATLAPA: Letras de el Duende August 16th at 8:00 p.m. • CAFÉ 507: Casting August 5 • Teatro La Huaca: Gentlemen prefer crude, August 2 and 3.

MOVIES

• 1 of August: Dunkirk. • August 3: Planet of the Apes: The War. • August 3: Premonition 2:22. • August 17: Hard of Care.r • August 31: A happy family. • August 31: What really matters. 84

VARIOUS ACTIVITIES • Mc Gregor vs. Mayweather on Aug. 26. AND CELEBRATIONS • CONCACAF-Chorrillo FC vs CD Honduras: August 1 Rommel Fernández Stadium. • LXN17 Chair Festival on August 19th at the Eleo- doro Patiño Gymnasium. • August 6 - Atomic bomb in Hiroshima. • August 9 - Attorney’s Day. • August 9 - International Day of Indige- nous Peoples. • August 9 - Atomic bomb in Nagasaki. • August 12 - International Youth Day. • August 15 - Assumption of the Virgin. CONCERTS AND • August 15 - Foundation of Panama la PRESENTATIONS Vieja. • August 15 - Inauguration of the Panama Canal. • Full Moon of Drums: August 5 and 6, in David, • August 19 - International Day of Photo- Boquete and Volcan. • Paradise 507, 11 and 12 of August in Punta Barco. graphy. • Mega Rumba Typical / August 19 / Megapolis • August 24 - Ganesha Chaturthi. Convention Center. • August 28 - Day of the Cattleman. • Russian Circus on Ice from August 1-7 at Metro- • August 28 - St. Augustine. Mall. • August 29 - International Day against • Lior Suchard Master Mentalist, August 9 at the Nuclear Tests. Teatro Aboud Attie Alberto Einstein Institute. • August 30 - Archdiocesan Campaign • Omar Alfano, Among Friends: August 17, Salón ends. Las Perlas. • History of the Isthmus, August 19 at the Ateneo of the City of Knowledge-Clayton. EXPO, SEMINARS AND • Duel of Chefs on the days 7, 8 and 14 of August in CONGRESSES the Hotel Las Americas Golden Tower. • Armando Manzanero in Concert, August 31 in ATLAPA. • XXVI Auction of Excellencies for the benefit of • Duofliano (flute and piano) August 31, Ateneo of the San Felipe Neri Foundation, August 15 at the the City of Knowledge. Marriot Hotel. • Melodies with Di Blasio in favor of Casa Espe- • The Art of Helping, August 5 in House of Love & ranza, August 24, Salón Las Perlas del Club Union. Light. L&E • CSR Week from 21 to 24 August in Sumar. • 2nd. Congress of Primary Health Care from Au- gust 10 to 12 at Hotel Sortis. • XIV Panamanian Congress of Procedural Law August 16 at the Colombo-Panamanian Institute of Procedural Law.

SPORTS

• 18th Family Walk Susie Thayer, August 27 on the Coastal Cinta. • Carrera-Walk in La Dorada Trail, August 13 The Valley of Anton. • XVI Race-Walk Trail of Light, August 20 in the Coastal Cinta. 85 • Race Bac Credomatic Pro Childhood, August 6 Coastal Ribbon.

Alianzas alrededor del Mundo

Mitrani, Caballero, Rosso Alba, Francia, Ojam & Ruiz Moreno-ARGENTINA

Guevara & Gutiérrez S. C. Servicios Legales- BOLIVIA

Machado Associados Advogados e Consultores- BRASIL

DSN Consultants Inc- CANADÁ

Lewin & Wills Abogados- COLOMBIA

Rivera, Bolívar y Castañedas- PANAMÁ

Espinosa & Asociados- CHILE

Lawnetworker S.A. Asesores Legales- ECUADOR

Peter Byrne & Associates- ESTADOS UNIDOS

Machado Associados Advogados e Consultores- ESTADOS UNIDOS

Ortiz, Sosa, Ysusi y Cía., S.C.- MËXICO

Estudio Rubio Leguia Normand & Asociados- PERU

Adsuar Muñiz Goyco Seda & Pérez-Ochoa, P.S.C.- PUERTO RICO

Pellerano & Herrera- REPÚBLICA DOMINICANA

Alvarado & Asociados- NICARAGUA

Torres, Plaz & Araujo- VENEZUELA

Facio & Cañas- COSTA RICA