Can Mark Zuckerberg Be the Next President of the United States?

Can Mark Zuckerberg be the next president of the United States?

China, business opportunities for Panama

Trump y Varela a security agenda

Process Martinelli: Principles governing the Extradition on matters ISSN 1726-0485 edición june ´17 june edición 1726-0485 ISSN penal rbc.com.pa Colaboradores en esta edición José Javier Rivera J. Rafael Fernández Lara Consejo Giovana del C. Miranda Garzola Editorial David Rodríguez Joel Rincon Ailen Galván Casilda Quiróz Lisbeth Martéz Milena Vergara Ana Sofía Corrales Mariela de Sanjur

José Javier Rivera J. Giovana del C. Miranda G.

Portada y Diagramación: Virginia Medina

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

@rbc_abogados

RBC Abogados

JUNE 2017

06 Editorial VARELA – TRUMP: A Content SECURITY AGENDA

36. Politics REQUIEM OF SOCIALISM OF 21ST CENTURY

39. Panamanian Economy CONSUMER PRICE INDEX

47. World Economy THE WORLD GROWTH WILL FORTIFY UP TO BE LOCATING IN 2,7 % AND IMPROVE THE PERSPECTIVES

56. Environmental Capsule

57. Ilustrious People PEOPLE’S REPUBLIC OF CHINA

61. Sports Capsule

66. Cultural Capsule Invited Writer

Can Mark Zuckerberg be the next president of the United States? 08 Norms Consult of interest Doctrine & COMMUNITY JUSTICE OF PEACE Jurispru- dence

IN ADMINISTRATIVE PROCESSES OF TRANSIT 18 TERM TO PRESENT THE APPEAL RESOURCE BE- GINS TO RUN FROM TIME 23 NEXT TO NOTIFICATION

Editorial

VARELA-TRUMP: A SECURITY José Javier Rivera - Attorney AGENDA [email protected]

week after reestablishment of soil, but this issue was quickly removed diplomatic relations between China from agenda for political reasons. Aand Panama, with consequent ces- sation of diplomatic relations with President Trump acknowledged the Taiwan, President Varela undertook success of Canal Authority in man- a state visit and a complementary aging waterway particularly after en- tour in the United States of America. largement. And economic issues such as increasing US investment in Pana- Frankly, this meeting was surpris- ma and other issues such as educa- ing because US president has had tion weren’t included in the agenda. a tight schedule in his own country and practically hasn’t visited abroad. President Varela passed a difficult test, but no mention was made during this However, focus of the agenda was talk about China’s approach to our coun- on security issues, especially fight try and possibility that companies from against terrorism, drug trafficking and that country, which are state-owned cooperation between countries to enterprises, participate in issues of im- achieve a reduction in these crimes. portance for Panama, such as the canal expansion project, construction of mega Much was rumored about the possibility ports, reactivation of Colon Free Zone by that United States would raise at this table installing inventory in our country and 6 a request to locate some kind of facility implementation of turnkey projects in equivalent to a military base on patriotic mining, transportation, agriculture, tele- Legislación y Economía June 2017

communications and financial fields. vens, following an expensive process of reviewing changes in legislation and From a business perspective, the meet- policies Exchange of information and ing of President Varela with represen- know their client that have been ex- tatives of multinational companies ecuted by public and private sectors. dedicated to financial activities and the meeting with presidents of the IDB The inclusion of Panama in the list of and the Monetary Fund speak well of jurisdictions of cooperating OECD coun- good health of Panamanian economy. tries should also be reflected in country’s economy, favorable news for the After this visit, it is worth suggesting to establishment of multinational compa- the central government and business nies that comply with the legislation of guilds the organization of commercial branches of multinational companies. tours to the United States and China, re- spectively, to pave the way for return of the trust that has been eroded by black It will dawn and see... lists of The OECD and roles of Panama.

By the way, it is worth mentioning that everything points to the fact that the OECD will finally consider Panama as a cooperating jurisdiction, and therefore remove it from the list of tax ha-

Fotografía: La Estrella de Panamá

Invited Writer

Can Mark Zuckerberg be the next president of the United States?

Fuente: Rodrigo Terrasa www.elmundo.es

he first days of each January, Mark Zuck- Terberg publishes a Facebook post with his What was its purpose for 2017? “My per- purpose for the New Year. In 2009, for exam- sonal challenge is to have visited and met ple, he committed to wearing ties every day people across US by end of year. I have to dress with the gravity that deserved the spent a lot of time in many states, so I will economic crisis. A year later he challenged have to travel about 30 this year to com- himself to learn Mandarin Chinese and then plete this challenge”, he wrote on January 3. to eat only meat from animals that he himself had sacrificed. His image at that time He’s been touring for five months, and there’s was not the best, especially following the Zuckerberg in rodeo in Texas, fishing for premiere of David Fincher’s social network, shrimp like Forrest Gump in Alabama, giving which portrayed the creator of Facebook as milk to a calf in Wisconsin, going to an African a lad and scruffy hooded and unscrupulous. Mass in South Carolina, having lunch with the army in North Carolina and Dining by surprise So, in 2013, he promised to meet a person in Ohio with the Moore, a family of Democratic outside his office every day and write thank- tradition who voted for Trump in November. you notes by hand. Two years ago Zucker- “We met a very cool guy,” Mr. Moore said. berg set himself the goal of reading a book a week and last year, running 365 miles and He’s been touring for five months, and there’s developing an Artificial Intelligence sys- Zuckerberg in rodeo in Texas, fishing for tem for his home that is now called Jar- shrimp like Forrest Gump in Alabama, giving 8 vis and has the voice of Morgan Freeman. milk to a calf in Wisconsin, going to an Af- Legislación y Economía June 2017 Would you have more power? rican Mass in South Carolina, having lunch “Much more. Facebook still does with the army in North Carolina and Dining not have nuclear weapons “ by surprise in Ohio with Moore, a family of Democratic tradition who voted for Trump in November. “We met a very cool guy”. Mr. Moore said.

His trip to deep America, portrayed as a campaign di- ary on a Facebook page, has fueled ru- mors about a possible nomination of Mark Zuckerberg to the US presidency in 2020 or 2024 that he has denied with little success. “I am focused on building our community on Facebook and working on the Chan Zuckerberg Initiative”, he said. Zuckerberg has recently taken steps to im- In 2015 he and his wife created a char- prove his oratory, including Chinese, has met ity to “build a better world” through with heads of state, given a dron to the Pope, which he donated 99% of his $ 45 bil- and last year managed to introduce a clause lion worth of Facebook shares. To man- in his contract that would allow him to have age his foundation he hired (happened?) a position In the public administration with- To which he was head of campaign of out losing control of the company. Would Barack Obama in 2008, David Plouffe. there be political space for a character like him in the US? “It’s hard to say. Zuckerberg “If Zuckerberg has a personal aspiration to is pure Silicon Valley, a technocratic elite on become president of the United States, it is the West Coast”, says Connecticut politi- still to be seen, but it is absolutely clear that cal scientist Roger Senserrich. “He’s got all wants to get into the political arena”, says the money in the world to run a campaign, Juan Verde, an Obama adviser and contribu- but convincing average American that his tor to Ted Kennedy’s campaigns, Bill Clinton, troubles concern him is something else”. Al Gore, John Kerry and Hillary Clinton. “Its strategy is clear interest in having an impact Nick Bilton wrote this year at Vanity Fair: “Un- in the public sphere. He wants to make sure like Trump, who has Twitter troll diplomacy, that, whatever party he rules, he understands Zuckerberg has become an expert on states- that people like him play an important role”. men, meeting with world leaders since he 9 Would he have more power? “Much more... was just 20 years old. He knows where to fo- Facebook still has no nuclear weapons”

cus his energies from a global perspective. “ ple are thirsty for freshness. “ Sillicon Val- The owner of Facebook has never spo- ley has changed the pattern, society has ken expressly against Donald Trump, but changed. “Millennials have another vision. he has criticized from his personal ac- Before the ideal was Wall Street, money, the count those “fearful voices who ask to profession. Today is happiness, responsibil- build walls and distancing people.” Ac- ity, the environment, the passion for what cording to Eric Trump, president’s son, his you do, for what you like ». Yes, we like. father and Zuckerberg are, nevertheless, twin souls, “two enterprising types who be- Zuckerberg knows more about the per- came the epitome of the American dream.” sonal lives of millions of users around the world than any government president, man- “Comparing them is like comparing pears and ages our most intimate secrets. “Only the apples”, Juan Verde ditch. “Trump is mean, vis- Pope can seem to him because he doesn’t ceral, direct and populist. Zuckeberg is cool, need to be president of any country to calculating, technocratic and data-based,” govern souls of believers,” says Santana- adds Senserrich. “Trump lost the millennial Acuña. “Mark is already a powerful ruler.” vote by lot, it’s pure New York City. Zuck- erberg is San Francisco. Different worlds.” Imagine Mark Zuckerberg sitting in the Oval Office of White House, with or with- Perhaps Mark does not want to be a politi- out a hood. Question is: would it have more cian, perhaps only to win the reputation of or less power than on Facebook? “Much a committed businessman, to Bill Gates more” says Roger Senserrich. “Face- or Warren Buffet. In addition, “the titans of book doesn’t have nuclear weapons yet.” industry, and more of a company as big as L&E Facebook, have to have their backs well covered politically”, recalls the political scientist.

Álvaro Santana-Acuña holds a doctorate in Sociology from Harvard, where studied Zuckerberg. According to his analysis, the mere fact that a possible candidacy of the head of Facebook is rumored reveals the growing tension between political and informational power in the era of the future. “It wouldn’t be a new phenomenon either,” he warns. “William Randolph Hearst, whose story tells the movie Citizen Kane, was Mark Zuckerberg of the early twentieth century and in 1904 tried unsuccessfully to become president of the United States.”

Does the Democratic Party have room for Mark? “I don’t know if it will be him, but I am sure that the next Democratic candidate will be a person we don’t know today 10 in the party,” says Juan Verde. “Someone who does not come from the system. Peo- Legislación y Economía June 2017

ADDRESS BY MARK ZUCKERBERG HARVARD UNIVERSITY

Fuente: https://www.facebook.com/ zuck/posts/10154853758606634

resident Faust, Board of Overseers, I ran downstairs, got my dad, and for faculty, alumni, friends, proud parents, some reason, his reaction was to vid- Pmembers of the ad board, and graduates eo me opening the email. That could of the greatest university in the world, have been a really sad video. I swear I’m honored to be with you today be- getting into Harvard is still the thing cause, let’s face it, you accomplished my parents are most proud of me for. something I never could. If I get What about your first lecture at Har- through this speech, it’ll be the first vard? Mine was Computer Science time I actually finish something at Har- 121 with the incredible Harry Lew- vard. Class of 2017, congratulations! is. I was late so I threw on a t-shirt I’m an unlikely speaker, not just be- and didn’t realize until afterwards cause I dropped out, but because we’re it was inside out and backwards technically in the same generation. We with my tag sticking out the front. walked this yard less than a decade apart, studied the same ideas and slept I couldn’t figure out why no one through the same Ec10 lectures. We would talk to me — except one guy, may have taken different paths to get KX Jin, he just went with it. We end- here, especially if you came all the way ed up doing our problem sets to- from the Quad, but today I want to share gether, and now he runs a big part what I’ve learned about our generation of Facebook. And that, Class of 2017, and the world we’re building together. is why you should be nice to people.

Mark Zuckerberg Commencement Ad- But my best memory from Harvard was dress | Harvard Commencement 2017 meeting Priscilla. I had just launched Facebook Founder Mark Zucker- this prank website Facemash, and the berg gave his address at Harvard’s ad board wanted to “see me”. Everyone 366th Commencement on May thought I was going to get kicked out. 25, 2017 at Tercentenary Theatre. My parents came to help me pack. My But first, the last couple of days have friends threw me a going away party. brought back a lot of good memories. As luck would have it, Priscilla was at that party with her friend. We met How many of you remember exactly in line for the bathroom in the Pfoho what you were doing when you got Belltower, and in what must be one of that email telling you that you got into the all time romantic lines, I said: “I’m 11 Harvard? I was playing Civilization and going to get kicked out in three days,

so we need to go on a date quickly.” munity. But today, technology and automation are eliminating many jobs. Actually, any of you grad- Membership in communities is declin- uating can use that line. ing. Many people feel disconnected and depressed, and are trying to fill a void. I didn’t end up getting kicked out — I As I’ve traveled around, I’ve sat with did that to myself. Priscilla and I start- children in juvenile detention and opi- ed dating. And, you know, that mov- oid addicts, who told me their lives ie made it seem like Facemash was could have turned out differently if so important to creating Facebook. they just had something to do, an af- It wasn’t. But without Facemash I ter school program or somewhere wouldn’t have met Priscilla, and she’s to go. I’ve met factory workers who the most important person in my life, know their old jobs aren’t coming so you could say it was the most im- back and are trying to find their place. portant thing I built in my time here. To keep our society moving forward, we have a generational challenge — We’ve all started lifelong friend- to not only create new jobs, but cre- ships here, and some of us even ate a renewed sense of purpose. families. That’s why I’m so grate- ful to this place. Thanks, Harvard. I remember the night I launched Face- Today I want to talk about purpose. book from my little dorm in Kirk- But I’m not here to give you the stan- land House. I went to Noch’s with dard commencement about finding my friend KX. I remember telling him your purpose. We’re millennials. We’ll I was excited to connect the Har- try to do that instinctively. Instead, I’m vard community, but one day some- here to tell you finding your purpose one would connect the whole world. isn’t enough. The challenge for our generation is creating a world where The thing is, it never even occurred to everyone has a sense of purpose. me that someone might be us. We were just college kids. We didn’t know any- One of my favorite stories is when thing about that. There were all these big John F Kennedy visited the NASA technology companies with resources. space center, he saw a janitor carry- I just assumed one of them would do ing a broom and he walked over and it. But this idea was so clear to us — asked what he was doing. The jani- that all people want to connect. So we tor responded: “Mr. President, I’m just kept moving forward, day by day. helping put a man on the moon”. Purpose is that sense that we are part I know a lot of you will have your of something bigger than ourselves, own stories just like this. A change that we are needed, that we have some- in the world that seems so clear thing better ahead to work for. Pur- you’re sure someone else will pose is what creates true happiness. do it. But they won’t. You will. But it’s not enough to have pur- You’re graduating at a time when this pose yourself. You have to cre- is especially important. When our par- ate a sense of purpose for others. 12 ents graduated, purpose reliably came from your job, your church, your com- I found that out the hard way. You Legislación y Economía June 2017 see, my hope was never to build a company, but to make an impact. And as all these people started join- ing us, I just assumed that’s what they cared about too, so I never explained what I hoped we’d build.

A couple years in, some big companies wanted to buy us. I didn’t want to sell. I wanted to see if we could connect more people. We were building the first News Feed, and I thought if we could just launch this, it could change how we learn about the world. Nearly everyone else wanted to sell. Without a sense of higher purpose, automation like self-driving cars this was the startup dream come true. and trucks. But we have the poten- It tore our company apart. After one tial to do so much more together. tense argument, an advisor told me if Every generation has its defining works. I didn’t agree to sell, I would regret the decision for the rest of my life. Rela- More than 300,000 people worked to tionships were so frayed that within put a man on the moon – including that a year or so every single person on janitor. Millions of volunteers immu- the management team was gone. nized children around the world against polio. Millions of more people built the That was my hardest time leading Hoover dam and other great projects. Facebook. I believed in what we were These projects didn’t just provide pur- doing, but I felt alone. And worse, it pose for the people doing those jobs, was my fault. I wondered if I was just they gave our whole country a sense wrong, an imposter, a 22 year-old kid of pride that we could do great things. who had no idea how the world worked. Now it’s our turn to do great things. I Now, years later, I understand that *is* know, you’re probably thinking: I don’t how things work with no sense of higher know how to build a dam, or get a purpose. It’s up to us to create it so we million people involved in anything. can all keep moving forward together. But let me tell you a secret: no one does when they begin. Ideas Today I want to talk about three ways don’t come out fully formed. They to create a world where everyone has only become clear as you work on a sense of purpose: by taking on big them. You just have to get started. meaningful projects together, by redefining equality so everyone has the If I had to understand everything about freedom to pursue purpose, and by connecting people before I began, I building community across the world. never would have started Facebook. First, let’s take on big Movies and pop culture get this all meaningful projects. wrong. The idea of a single eureka mo- Our generation will have to deal with ment is a dangerous lie. It makes us 13 tens of millions of jobs replaced by feel inadequate since we haven’t had

ours. It prevents people with seeds of Let’s do big things, not only to cre- good ideas from getting started. Oh, ate progress, but to create purpose. you know what else movies get wrong So taking on big meaningful projects is about innovation? No one writes math the first thing we can do to create a world formulas on glass. That’s not a thing. where everyone has a sense of purpose. The second is redefining equal- It’s good to be idealistic. But be pre- ity to give everyone the free- pared to be misunderstood. Anyone dom they need to pursue purpose. working on a big vision will get called crazy, even if you end up right. Anyone Many of our parents had stable jobs working on a complex problem will get throughout their careers. Now we’re all blamed for not fully understanding the entrepreneurial, whether we’re starting challenge, even though it’s impossible projects or finding or role. And that’s to know everything upfront. Anyone great. Our culture of entrepreneurship taking initiative will get criticized for is how we create so much progress. moving too fast, because there’s always Now, an entrepreneurial culture thrives someone who wants to slow you down. when it’s easy to try lots of new ideas. Facebook wasn’t the first thing I built. In our society, we often don’t do I also built games, chat systems, study big things because we’re so afraid tools and music players. I’m not alone. of making mistakes that we ignore all the things wrong today if we do JK Rowling got rejected 12 times be- nothing. The reality is, anything we fore publishing Harry Potter. Even Be- do will have issues in the future. But yonce had to make hundreds of songs that can’t keep us from starting. to get Halo. The greatest successes come from having the freedom to fail. So what are we waiting for? It’s time But today, we have a level of wealth in- for our generation-defining pub- equality that hurts everyone. When you lic works. How about stopping cli- don’t have the freedom to take your idea mate change before we destroy the and turn it into a historic enterprise, we planet and getting millions of people all lose. Right now our society is way involved manufacturing and install- over-indexed on rewarding success ing solar panels? How about curing and we don’t do nearly enough to make all diseases and asking volunteers to it easy for everyone to take lots of shots. track their health data and share their genomes? Today we spend 50x more Let’s face it. There is something treating people who are sick than we wrong with our system when I can spend finding cures so people don’t leave here and make billions of dol- get sick in the first place. That makes lars in 10 years while millions of stu- no sense. We can fix this. How about dents can’t afford to pay off their modernizing democracy so every- loans, let alone start a business. one can vote online, and personaliz- Look, I know a lot of entrepreneurs, and ing education so everyone can learn? I don’t know a single person who gave These achievements are within our up on starting a business because they reach. Let’s do them all in a way that might not make enough money. But I 14 gives everyone in our society a role. know lots of people who haven’t pur- sued dreams because they didn’t have Legislación y Economía June 2017 a cushion to fall back on if they failed. most charitable generations in history. In one year, three of four US mil- We all know we don’t succeed just by lennials made a donation and seven having a good idea or working hard. out of ten raised money for charity. We succeed by being lucky too. If I had to support my family growing But it’s not just about money. You can up instead of having time to code, if also give time. I promise you, if you I didn’t know I’d be fine if Facebook take an hour or two a week — that’s didn’t work out, I wouldn’t be stand- all it takes to give someone a hand, ing here today. If we’re honest, we to help them reach their potential. all know how much luck we’ve had. Maybe you think that’s too much time. Every generation expands its defini- I used to. When Priscilla graduated tion of equality. Previous generations from Harvard she became a teacher, fought for the vote and civil rights. and before she’d do education work with me, she told me I needed to teach They had the New Deal and Great So- a class. I complained: “Well, I’m kind ciety. Now it’s our time to define a new of busy. I’m running this company.” social contract for our generation. But she insisted, so I taught a middle We should have a society that mea- school program on entrepreneur- sures progress not just by economic ship at the local Boys and Girls Club. metrics like GDP, but by how many of us have a role we find meaningful. We I taught them lessons on product de- should explore ideas like universal ba- velopment and marketing, and they sic income to give everyone a cush- taught me what it’s like feeling tar- ion to try new things. We’re going to geted for your race and having a fam- change jobs many times, so we need ily member in prison. I shared sto- affordable childcare to get to work and ries from my time in school, and they healthcare that aren’t tied to one com- shared their hope of one day going pany. We’re all going to make mistakes, to college too. For five years now, I’ve so we need a society that focuses less been having dinner with those kids ev- on locking us up or stigmatizing us. ery month. One of them threw me and And as technology keeps changing, Priscilla our first baby shower. And we need to focus more on continu- next year they’re going to college. Ev- ous education throughout our lives. ery one of them. First in their families.

And yes, giving everyone the freedom We can all make time to give some- to pursue purpose isn’t free. Peo- one a hand. Let’s give everyone the ple like me should pay for it. Many of freedom to pursue their purpose — you will do well and you should too. not only because it’s the right thing That’s why Priscilla and I started to do, but because when more peo- the Chan Zuckerberg Initiative and ple can turn their dreams into some- committed our wealth to promoting thing great, we’re all better for it. equal opportunity. These are the val- Purpose doesn’t only come from work. ues of our generation. It was never a question of if we were going to do The third way we can create a this. The only question was when. sense of purpose for everyone is 15 Millennials are already one of the by building community. And when

our generation says “everyone”, down. This is not a battle of nations, we mean everyone in the world. it’s a battle of ideas. There are peo- Quick show of hands: how many of ple in every country for global con- you are from another country? Now, nection and good people against it. how many of you are friends with one of these folks? Now we’re talk- This isn’t going to be decided at the ing. We have grown up connected. UN either. It’s going to happen at the local level, when enough of us feel In a survey asking millennials around a sense of purpose and stability in the world what defines our identity, our own lives that we can open up the most popular answer wasn’t na- and start caring about everyone. The tionality, religion or ethnicity, it was best way to do that is to start build- “citizen of the world”. That’s a big deal. ing local communities right now. Every generation expands the circle of people we consider “one of us”. For us, We all get meaning from our com- it now encompasses the entire world. munities. Whether our communities are houses or sports teams, church- We understand the great arc of human es or music groups, they give us that history bends towards people com- sense we are part of something big- ing together in ever greater numbers ger, that we are not alone; they give us — from tribes to cities to nations — to the strength to expand our horizons. achieve things we couldn’t on our own. That’s why it’s so striking that for de- We get that our greatest opportuni- cades, membership in all kinds of ties are now global — we can be the groups has declined as much as one- generation that ends poverty, that quarter. That’s a lot of people who now ends disease. We get that our great- need to find purpose somewhere else. est challenges need global responses too — no country can fight climate But I know we can rebuild our com- change alone or prevent pandem- munities and start new ones be- ics. Progress now requires com- cause many of you already are. ing together not just as cities or na- I met Agnes Igoye, who’s graduat- tions, but also as a global community. ing today. Where are you, Agnes? She spent her childhood navigating con- But we live in an unstable time. There flict zones in Uganda, and now she are people left behind by globaliza- trains thousands of law enforcement tion across the world. It’s hard to care officers to keep communities safe. about people in other places if we don’t I met Kayla Oakley and Niha Jain, feel good about our lives here at home. graduating today, too. Stand up. There’s pressure to turn inwards. Kayla and Niha started a non-profit that connects people suffer- This is the struggle of our time. The ing from illnesses with people in forces of freedom, openness and their communities willing to help. global community against the forces of authoritarianism, isolationism I met David Razu Aznar, graduat- and nationalism. Forces for the flow ing from the Kennedy School today. 16 of knowledge, trade and immigration David, stand up. He’s a former city against those who would slow them councilor who successfully led the Legislación y Economía June 2017 battle to make Mexico City the first Latin American city to pass marriage It says something about our current equality — even before San Francisco. situation that I can’t even say his name because I don’t want to put him at risk. This is my story too. A student in a But if a high school senior who doesn’t dorm room, connecting one commu- know what the future holds can do his nity at a time, and keeping at it until part to move the world forward, then we one day we connect the whole world. owe it to the world to do our part too. Change starts local. Even global changes start small — with people like us. In Before you walk out those gates one our generation, the struggle of whether last time, as we sit in front of Me- we connect more, whether we achieve morial Church, I am reminded of a our biggest opportunities, comes down prayer, Mi Shebeirach, that I say when- to this — your ability to build commu- ever I face a challenge, that I sing to nities and create a world where every my daughter thinking about her fu- single person has a sense of purpose. ture when I tuck her into bed. It goes: “May the source of strength, who blessed Class of 2017, you are graduat- the ones before us, help us *find the ing into a world that needs pur- courage* to make our lives a blessing.” pose. It’s up to you to create it. Now, you may be think- I hope you find the courage to make ing: can I really do this? your life a blessing. Remember when I told you about that Congratulations, Class of ’17! Good class I taught at the Boys and Girls luck out there. L&E Club? One day after class I was talking to them about college, and one of my top students raised his hand and said he wasn’t sure he could go because he’s undocumented. He didn’t know if they’d let him in.

Last year I took him out to breakfast for his birthday. I wanted to get him a present, so I asked him and he started talking about students he saw struggling and said “You know, I’d really just like a book on social justice.” I was blown away. Here’s a young guy who has every reason to be cyn- ical. He didn’t know if the country he calls home — the only one he’s known — would deny him his dream of going to college. But he wasn’t feeling sorry for himself. He wasn’t even thinking of himself. He has a greater sense of purpose, and he’s 17 going to bring people along with him.

Norms of INTEREST

JUSTICIA Fotografía: www.mingob.com.pa COMUNITARIA DE PAZ

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

aw 41 of May 31, 2017 prolongs entry the first Judicial District and June 18, Linto force of Law 16 of 2016 that regu- 2018 in the rest Of the national territory, lates the community justice of peace with the exception of articles 108,109, and application of methods of conflict 111, 112 and 114 that came into effect resolution in Panama to promote effec- the day after promulgation of Law 16. tive solution of community controver- sies And peaceful coexistence, in order It is important to mention that possibility to guarantee democratic access to jus- of implementing a pilot plan prior to Jan- tice equally, without discrimination of uary 2, 2018, in those corregimientos or race, sex, religion or political ideology. municipalities of the First Judicial District that have necessary conditions for imple- Originally Law 16 came into effect twelve mentation and that the process of training months after its promulgation, but as and Selection provided for in the Law. L&E a consequence of Law 41, it will come 18 into effect from January 2, 2018 for Legislación y Economía June 2017

MEASURES FOR THE IMPORT OF AGRICULTURAL PRODUCTS

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

ith enactment of Law 47 of June 2017, censing Commission will verify with the provisions are established for the im- secretary of the food chain in question, portationW of agricultural products sub- before authorizing importation that this ject to contingencies due to shortages. doesn’t coincide with the pre-harvest period (two months before) or harvest of the Law 47 provides that, in order to guar- item, according to official calendar - es antee national food security, the Cabinet tablished by Institute of Food Insurance. Council shall authorize calls the opening of tariff quotas for shortages that A term no longer than ninety days are necessary to meet national demand. counted from its promulgation has been granted to Executive Body for On the other hand, it is indicated that regulation of the Law in question. the Technical Secretary of the Quota Li- L&E

EXTEND COVERAGE OF PREFERENTIAL INTER- ESTS TO THE AGRICULTURAL SECTOR

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

aw 46 June 16, 2017 amends provi- It’s further established that Lsions of Law 4 of 1994 to allow “pro- maximum amount per produc- ducers and processors of salt of nation cycle per item is B/. 500,000. tional sea” to opt for discounts on L&E the interest rate of loans, which was previously only allowed to persons Natural and legal entities that had 19 the status of agricultural producers.

ORGANIZATION OF FOOD CHAINS

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

aw 49 of June 16, 2017 empowers the It has been arranged that the agri- LMinistry of Agricultural Development for the food chain has the purpose of develop- creation of agrifood chains, which must be ing and executing programs and proj- representative and legitimate, and which ects aimed at its strengthening, for which must involve actors in various areas that they will obtain legal status through the carry out agricultural activity in the country. Ministry of Agricultural Development.

Technical and social relations, from prima- Among the objects of the ag- ry production, conversion and packaging, ri-food chains, are among others: industrial transformation and final transformation and consumption, incorporating 1. Propose specific policies and actions the processes of preproduction, produc- for development of different items or tion, postproduction and commercialization. chains.

Likewise, the Ministry of Agricultural Devel- 2. To promote national and international opment must create the Technical Unit of markets for commercialization of food- Agro-Food Chains, in order to maintain link- stuffs in the agro-food chain. age of public institutions with all the actors of 20 agrifood chains and with private institutions. 3. Establish and implement strategic alliances with public and private orga- Legislación y Economía June 2017

nizations, national and international, in state institutions must be complied with aspects such as technological innova- by these institutions and incorporated into tion, technology transfer, commercial government policies and budgets, as well and environmental. as provision of public information, in order to program and implement actions 4. To recommend conservation of natu- agreed as a public sector commitment. ral resources and environment, as well as their proper management. Lastly, contingent shortages based on transparency and consensus objectives The Technical Unit of the Agrifood Chains of the primary and agroindustrial agricul- shall create the agrifood chain committees by tural products that present a deficit to sup- item as a permanent institutional entity in the ply the national consumption will be those Ministry of Agricultural Development and will recommended by the respective agrifood have among others the following functions: chains, respecting the quantities and dead- lines of entry of products of these calls. 1. Coordinate actions with the higher office L&E of the Ministry of Agriculture Agricultural Development and other public and private estates, as well as with the different chains.

2. To elaborate a proposal of structur- ing of the chains together with all actors.

3. Propose the functions of each agri-food chain, as long as it is necessary to readjust it so that it fulfills the objectives of the present Law.

4. To carry out coordination, follow-up and accompaniment of the technical coordinators of committees of the agrifood chains by item.

5. Manage, along with the chains, human and budgetary resources allo- cated to them and necessary for the effective management of chains for their management and organization.

It establishes the competitiveness agreements that will be mandatory for all actors in the agri-food chain and for state entities and must comply with requirements established in the regulations of this Law.

The competitiveness agreements that link 21

EXTEND PERIOD TO RECOGNIZE BENEFITS OF PROGRAM FOR AGRICULTURAL AND AGRO-INDUSTRIAL PROMOTION

G ovana de C M randa G - Attorney g ovana m randa@rbc com pa

aw 48 of June 16, 2017, modifies article 38 In this context, applicant will be exempt L(transitional) of Law 105 of 2013, in the sense from presenting certifications of the veri- of noting that natural or legal persons who fication companies only for these peri- couldn’t have made effective benefits of Law ods, provided they comply with the rest 82 of 2009 in the period from 1 November 2012 of the established requirements. L&E to 31 December 2013 may formalize their application procedures before the Commission, in order to obtain the benefits of said Law.

MODIFY NORMS ON VIOLENCE AGAINST WOMEN AND OPPORTUNITY EQUITY

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

ollowing enactment of Law 43 of June 6, 2017, Another aspect to be mentioned is that it is indicat- women,F especially those who are victims of some ed that any person who is considered aggrieved form of violence provided for in the Law, will be by publications of a social media that incurs any entitled to receive free, immediate, and free coun- type of violence against women, may claim civil seling, counseling and technical assistance. Spe- responsibility, before the reform was empowered cialized in civil and criminal matters, a right that to the Ministry Of Government for the imposition extends to the guardians or healers of the victim. of a fine on the aggressor in this type of cases.

Likewise, free and expeditious access to jus- With regard to Law 42 on equalization of op- tice for women victims of violence is extended portunities, article 58 is reformed by establish- to tutors or curators, as well as legal techni- ing that lawsuits brought against the promo- cal assistance in civil and criminal matters. tion or approach of the issue of persons with disabilities in Social media or any public place. A numeral 4 is introduced to article 33, in the sense of creating in a period of no more than six months Likewise, free legal assistance in civil and from the entry into force of Law 43, the necessary criminal matters is extended to the healers positions in the Institute of Ombudsman’s Office or guardians of persons with disabilities. L&E to provide legal advice, sponsorship Free legal assistance and legal assistance for filing of civil lawsuit against women, their relatives, guardians 22 or curators, who are victims or affected by any type of violence against women defined in the law. Legislación y Economía June 2017

Consult Doctrine & JURISPRUDENCE

IN ADMINISTRATIVE PROCESSES OF TRANSIT TERM TO PRESENT THE APPEAL RESOURCE BEGINS TO RUN FROM TIME NEXT TO NOTIFICATION

Source: Attorney’s office of the Administración

he Office of the Attorney General to run from the next working hour of the of the Administration had the opportu- one in which it was notified to the person nity to issue the Consultation C-052-17 concerned, and for purposes of computa- Tof June 5, 2017, by which it acquitted tion, only the hours in which the admin- the question posed by Transit and Land istrative unit remains open, that is, of- Transport Authority requesting to in- ficial timetable, are taken into account. terpret the content of article 232 of the Executive Decree No. 640 of December The Attorney Office maintains its criterion 27, 2006, which issues the Vehicle Traf- in the rules of interpretation contained in fic Regulations, in order to determine articles 9 and 10 of Civil Code, since article meaning and scope of the phrase “with- was drafted in a clear and simple manner, in twenty-four (24) business hours after and determines precisely the form and notification”, contained in this Article. term within which to file an appeal, when the person who feels unhappy with deci- In this respect, the Office of the Public sion, doesn’t do so at moment in which Prosecutor is of the opinion that twenty- signs the personal notice process ex- four (24) working hours following noti- pressing the word “appeal”, but afterwards. 23 fication, referred to in article 232, begin

It adds that the article in question uses the aforementioned Law 38 of 2000 states phrase “within”, to refer to the hours that that “All the days and hours that they indi- must elapse between that in which per- cate in administrative processes, will only sonal notification is made, and the one comprise the working days, unless a spe- from which the letter must be filed an- cial rules provides otherwise and so be re- nouncing the appeal, so that Is out of time, corded in The respective resolution “add- if it is presented “outside” the mentioned ing that” The terms of hours will elapse term of the twenty-four working hours. from the next one of the one in which it was notified to the interested person, The Attorney General states that these those of days from the following one to processes are regulated by Cabinet De- the one in which the notification occurred. cree No. 640 of 2006 and that the provi- Working hours, numeral 51 of article 201 of sions contained in Law 38 of July 31, 2000, the same legal excerpt says that they are which regulates the General Administra- “all those included in the official sched- tive Procedure, applies when they occur in ule of the respective administrative unit.” gaps or vacuums when special laws contain gaps on specific cases or matters. The Attorney General concludes, noting that in case of administrative traffic ac- Taking into account that Cabinet De- cident proceedings, twenty-four (24) re- cree No. 640 doesn’t contemplate start- ferred to in Article 222 of Executive No. ing from what moment the twenty-four 640 of 2006, in order to lodge an appeal in (24) working hours from which it es- these kinds of proceedings, run from the tablishes its article232, to which con- hour after notification was made, and for sultation refers, Law 38 should be ap- purposes of computation, it is only tak- plied in a supplementary form Of 2000. en into account for those offices whose dependencies in which they remain

The Authority maintains that article 67 of open, that is, the working schedule. L&E

24 Legislación y Economía June 2017

THIRD ROOM OF THE SUPREME COURT OF JUSTICE DECREES PROVISIONAL SUSPENSION OF A CIRCULAR ISSUED BY THE SUPERINTENDENT OF INSURANCE AND REINSURANCE OF PANAMA, WHICH IS INTENDED TO MODIFY PRIVATE PROCUREMENT METHOD BETWEEN INSURANCE COMPANY AND REINSURANCE COMPANIES

Ailen Galván - Legal Assistant [email protected]

nder the presentation of Judge Abel Au- gusto Zamorano, the Third Administrative OF THE ACT IMPUGNATED Litigation Chamber resolved to temporar- ily suspend effects of Circular No.046 of Circular No.046 of May 26, 2015, issued May 26, 2015, issued by the Superinten- by the Superintendency of Insurance Udency of Insurance and Reinsurance of and Reinsurance, provides the following: Panama within the Application for Inva- “Insurance companies are informed that lidity filed by the Lic. Aris Pérez Gallardo. they are signing surety bonds, that as of January 1, 2016, any new or renewed busi- THE ACTOR POINTS THAT ness must be subscribed under the reinsur- ILLEGALITY CONSISTS IN WHICH: ance method called quota share and with a withholding of not more than thirty per- 1. By means of this circular, the Super- cent ( 30%). Such contracts may not con- intendence imposes, as of January 1, dition the proportional participation of the 2016, the type of contract that must ex- reinsurer to a determined accident result. ist between insurers and their insurers. Those companies that operate the in- 2. Likewise, through the circular that we dustry under non-proportional contracts challenge the superintendency intervenes should try to re-position the risk and man- directly in a private contract, which is exclu- age all relevant procedures so that they sive between the insurer and the reinsurer, are agreed under proportional contracts. by imposing a particular type of contract. In the event that what is indicated in previous 3. This circular restricts private con- paragraph couldn’t be carried out, non-pro- tracting of Panama’s insurers, in the portional (XL) expenses shall be renewed until sense that they assume 30% of their cli- their extinction under the operating method of ents’ risk in the event of an accident, and the year of subscription at the time of renewal. can not transfer it to their reinsurers. We make it clear that XL excess loss contracts 4. This circular obliges insurers to put their must be maintained to cover retention portion risk back into the businesses already start- according to the risk appetite of each assign- ed, so that they have to go from non-pro- or. Likewise, voluntary loans may be used to portional contracts to proportional con- assist in placement of risks, always keeping tracts, that is to say a specific contract. terms and conditions included in the offer.”

5. The attacked act restricts the use of non- CONSIDERATIONS OF THE ROOM proportional contracts and also imposes a term in them, in the sense that they will only The Chamber highlights conditions out- be in force until the time they reach the year lined by the plaintiff regarding imposition 25 of renewal for its extinction, ie only one year that the entity has to conditions for pri-

vate contracting that exists between insur- es, ...are subject to control, prior authoriza- ers and reinsurers, since in communicating tion, supervision, supervision, regulation to general managers of insurance compa- and supervision and the Superintendency nies, changes or modifications to Reinsur- of Insurance and Reinsurance. And that ance contracts, says the actor, which pre- same, article 4 says that: “When an insur- vents free private contracting between the ance company accepts reinsurance, those insurance company and its reinsurer, and operations will be governed by this Law”. at the same time imposes conditions and terms that should contain such contracts. It continues to indicate that the Superin- tendency of Insurance and Reinsurance, in The plaintiff continues to point out that this representation of the State, has among its action violates supervisory and supervisory functions to regulate, regulate, supervise, powers of the Superintendent of Insurance control and supervise the entities and per- and Reinsurance, and that of the superin- sons that carry out insurance operations in tendent, since article 12 of Law 12 of 2012 any of its branches and bonds; Since it is doesn’t establish that such officer has the le- an activity that is considered of public in- gal power to dictate such technical criterion terest (article 1 of Law 12 of April 3, 2012, of the subject of insurance and reinsurance which regulates insurance activity and dic- of Panama, nor less oblige or require insur- tates other provisions); In addition, article ance companies to change their form of con- 12 of this Law, in paragraphs 1 and 22, es- tracting. Restricting use of non-proportional tablishes that among the attributions it is contracts and imposing the term thereof. contemplated that the Superintendent of Insurance and Reinsurance, can regulate Therefore, the Chamber considered the the contracting of the insurer and the rein- adoption of precautionary measure to be surer, to the extent that it affects profit and/ appropriate, and ordered provisional sus- or prejudice of the insured, since its scope of pension of the act, since based on what is application includes “the proper protection stipulated in article 12 of Law 12 of April 3, of the insured and the adequate develop- 2012, which regulates the activity Insurance ment of the insurance market in the country”. and other provisions, competence of the Su- perintendency of Insurance and Reinsurance It considers that this circular is aimed at to issue the contested act is not observed; regulating the hiring, so that the propor- And that neither of the technical functions tional participation of the reinsurer is not conferred by the Law on superintendent conditioned to a certain accident result. of said entity, which has the regulatory authority to issue Circular No. 046 of May 26, Concluding, Saving the Vow, stating that 2015, nor does it require or require insurance the enforcement is not done by decree- companies To change their way of hiring. ing this provisional suspension, from the competence of the Superintendency of In- surance and Reinsurance to issue the con- RESCUE OF VOTE tested act; And the less it is observed that among the technical functions is the regu- For Judge Efrén Tello the support of the latory power to issue Circular No.046 nor Room to access provisional suspension of does it require or require insurance com- the circular issued by the Superintendency panies to change their way of hiring. L&E of Insurance and Reinsurance on the reinsurance contracts of bonds is not clear enough to take this measure, and is that it starts invoking Article 1 of Law 63 of September 19, 1996, “By which reinsurance operations are regulated and those of companies engaged in this activity”, provides that companies or 26 entities whose purpose is to carry out reinsurance operations, in any Of their branch- Legislación y Economía June 2017

THIRD ROOM OF THE ADMINISTRATIVE AND LABOR LITIGATION ADMINISTRATIVE CONTEMPORARY DEMAND OF FULL JURISDICTION, SUBMITTED BY THE LICIDE. NODIER A. POLANCO SAMUDIO, IN NAME AND REPRESENTATION OF ALEXIS TORRES RIOS, TO BE NORWAY, BY ILLEGAL, ADMINISTRATIVE RESOLUTION 317-15 OF AUGUST 17, 2015, ISSUED BY THE BANK OF AGRICULTURAL DEVELOPMENT, ITS ACT CONFIRMATORY AND FOR TO MAKE OTHER DECLARATIONS

David Rodríguez - Legal Assistant [email protected]

MAGISTRADO PONENTE: Cecilio Cedalise Agronomist III through a merit contest. Riquelme. On August 15, 2015, a series of irregulari- ties were sustained, and dismissed official The Licide. NODIER A. POLANCO SAMUDIO, maintained a poor performance and apa- has filed a formal Contentious-Adminis- thetic attitude to the Bank’s requirements. trative Full Jurisdiction claim, in name and representation of ALEXIS TORRES RÍOS, On August 27, 2015, an appeal for recon- against Administrative Resolution 317-15 sideration was filed, which was resolved of August 17, 2015, and its confirmatory act through Administrative Resolution No. 326 issued by the Bank Of Agricultural Devel- of September 1, 2015, and which confirms in opment; And to make further statements. all its parts the original administrative act.

BACKGROUND RULES ESTABLISHED VIOLATES AND CON- CEPT OF THE VIOLATION: Engineer ALEXIS TORRES RIOS worked for the Agricultural Development Bank for five (5) In applicant’s view, the applicant considers that years, starting work in 2010 and dismissed the following provisions have been infringed: in September 2015, he took office in January 2010, in the position of agricultural engineer • Article 34 of Law 38/2000, of July 31. III, in the Branch of Renacimiento, Chiriquí. • Articles 2 and 3 of Law 11/1982, of April 12. • Articles 3 and 4 of Law 59/2005 of 28 Since the end of 2010 Mr. ALEXIS TOR- December. RES RIOS has been suffering from Dia- • Article 8 (literals b, c and f) Law 15/1977, of betes Mellitus II and there is legislation October 28 (by which the American that protects this type of people in rela- Convention on Human Rights is approved). tion to their work environment, both in the • Article 5 of the Civil Code. private sector and in the public sector. • Article 15 of the Civil Code.

As a consequence of Administrative Reso- lution No. 317 of August 17, 2015, the En- REPORT ON THE CONDUCT OF DEMANDED gineer ALEXIS TORRES RÍOS was dis- OFFICIAL: missed, on the basis that the Engineer didn’t enter to occupy position of Engineer Through note G.G No. 020-16, dated 27

January 11, 2016, containing the conduct report of the General Manager of 5. The Supreme Court of Justice has reiterat- the Agricultural Development Bank, ed in several judgments that public servants Mr. RICARDO ALBERTO SOLÍS PONCE. related to Agricultural Sciences acquire stability at the moment they enter the public 1. By means of Administrative Resolution function, through contests, and those who 317-15, dated August 17, 2015, ALEXIS TOR- do not accredit such income, are governed RES RÍOS was dismissed from the position by the principle Of discretionary power. of Agronomist Engineer at the Renacimiento Branch. The resolution was notified on Au- OPINION OF THE OFFICE OF THE gust 20, 2015, and the affected party present- ADMINISTRATION: ed his corresponding recourse for reconsideration; And stating that it was covered by 1. The entry of ALEXIS TORRES RÍOS a special law (Law 22/1961 of 30 January). to the Agricultural Development Bank He also argued that he had been dismissed was done on a discretionary basis. by arbitrarily violating laws 38/2000 and 9/1994, as well as the principle of due pro- 2. Neither does applicant form part of cess. Similarly, the contested act had violated a public career, which guarantees him Decree 265 of September 24, 1968 (approv- work stability, so his post was a posi- ing the Internal Regulations of the National tion of free appointment and removal. Technical Council of Agriculture), which in- dicates the procedure for the dismissal of 3. Neither does it include in the file any doc- professionals in the agricultural sciences. umentation that demonstrates that the disease that says to him to have put it in a condi- 2. In the appeal for reconsideration, Mr. tion that limits its capacity to carry out some ALEXIS TORRES RÍOS indicated that he is activity in the form or within the margin that diabetic and diagnosed for five (5) years; is considered normal in the human being. However, provided no evidence of this condition. Article 3 of the Act lists as chronic 4. The Office of the Attorney General of disease, diabetes mellitus; While article 5 the Administration has indicated with re- stating that the physical or mental condi- spect to the work disability alleged by the tion of persons suffering from these dis- complainant that there is insufficient evi- eases will be issued by an interdisciplinary dence to prove the incapacity for work. commission appointed for that purpose. 5. The Office of the Public Prosecutor 3. When resolving the remedy of reconsid- considers that the actions of the Bank eration by Resolution Administrative Law of Agricultural Development adhered to 326-15 of September 1, 2015, it was indi- the provisions of the Law; And the right cated that none of the documents provided of defense was guaranteed to the actor. as evidence, demonstrates its status as a diabetic, nor does it comply with what is established in article 5 of Law 59/2005. CONSIDERATIONS OF THE ROOM:

4. The reason for the dismissal of It is incumbent on this Third Chamber Mr. ALEXIS TORRES RÍOS was due to examine the charges of violation of 28 to the Discretionary power that has the rules that are considered to be vio- the Agricultural Development Bank. lated within this Contentious-Adminis- Legislación y Economía June 2017

trative Complaint of Full Jurisdiction, in gal, since it violates the prohibition con- order to determine whether the reasons tained in article 3 of Law 59/2005, which adopted by the defendant entity with the Prevents or prohibits public institutions issuance of the administrative act Con- from discriminating against and dismiss- tested whether or not they conform. ing any worker suffering from a chronic illness that causes him or her to be disabled. A. That it be declared Null, By Illegal, Res- olution OIRH No. 317 of August 17, 2015. Under the principle of procedural economy, this Office considers it prudent that after B. That the BANK OF AGRICULTURAL DE- having been recognized and acceded to the VELOPMENT be ordered to repay and make declaration of nullity of the contested Ad- effective the payment, in favor of the Engi- ministrative Act as a result of the analysis neer ALEXIS TORRES, of the salaries and and recognition of the violation of article 3 of other rights acquired and left to receive. Law 59/2005, of 28 December, it is pertinent not to enter into the analysis of the other In the opinion of this Corporation of Jus- rules that are also considered to have been tice, deficient performance and attitude infringed by the plaintiff, for having recog- of apathy that served to the Bank of Agri- nized the illegality of the administrative act. cultural Development to justify dismissal of Mr. ALEXIS TORRES RÍOS is strict- ROOM DECISION: ly coupled to the condition of disabling disease that it suffers. In this sense, the The Third Room of the Supreme Court, complainant has indicated that since year declared the illegality of administra- two thousand and ten (2010), he suffers tive resolution and its confirmato- from the disease called diabetes melli- ry act issued by the General Manager tus type 2, of medium or long evolution. of the Agricultural Development Bank and Accede to order the reinstatement. In matters of evidence, it is pertinent to point out that in judicial file However, he doesn’t agree to the pay- there is a private certification of doc- ment of the wages left to be collected tor’s office Dr. ROLANDO CABALLERO. as a result of the removal of the posi- It should be noted that the judicial file in- tion he held within the public entity. L&E cludes the signature recognition process, by Dr. ROLANDO EDUARDO CABALLERO ARAUZ, internist ---- Endocrinology, where recognizes the signature and seal of the documentation previously transcribed.

In the opinion of the Third Chamber of the Supreme Court of Justice, the plaintiff ALEXIS TORRES RIOS has verified that he suffers from the diabetes mellitus II disease.

For the above reasons this Office is based on the criterion that the administrative act demanded that consists of the removal of 29 the engineer ALEXIS TORRES RÍOS is ille-

THE THIRD ROOM OF THE ADMINISTRATIVE AND LABOR LITI- GATION DECLARES PARTIALLY TRIED THE EXCEPTION OF PRE- SCRIPTION WITHIN THE EXECUTIVE PROCESS BY COACTIVE COBUCTION FOLLOWED BY THE MUNICIPAL TREASURY OF THE MUNICIPALITY OF PANAMA, THROUGH THE EXECUTIVE COURT

Casilda Quiróz - Legal Assistant [email protected]

U nder statement of Judge Cecilio Ceda- EXCEPTIONAL POSITION: lise, the Third Room of the Supreme Court of Justice, partially resolves the limitation El apoderado judicial del contribuyente en su exception within executive process by escrito de excepción de prescripción, funda- coercive collection, followed by Municipal mento la presente solicitud dentro del pro- Treasury of the Municipality of Panama. ceso ejecutivo bajo los siguientes términos.

BACKGROUND: 1- That the First Executing Court of Mu- nicipal Treasury of the Municipality of Within the judicial file, Municipal Trea- Panama issued an Executive Order dated surer of the Municipality of Panama is- PAYMENT OF PAYMENT against the tax- sued a certificate stating that the taxpayer for the sum of B/. 48,627.12. payer owes the Municipal Treasury of the District of Panama the sum of B/. 2- That the taxpayer was personally noti- 48,627.12 in the form of delinquent taxes. fied on March 1, 2016,

The First Executing Court of the Munici- 3- 12 years. pality of Panama opened a process for a coercive collection against the taxpayer 4- That based on provisions of Article 96 as a result of the existing debt, then pro- of Law 106 of October 1973, the obligation ceeded to issue an Executive Order No. is prescribed, and so must be declared. 40-16/JE, from which the Order of Pay- ment by the executive route for the be- 5- Depending on the statement of account nefit of the Municipality of Panama. given to the Taxpayer, it can be seen that the debt is from 2004, and that conse- The taxpayer was notified for conclusi- quently, more than five (5) years have ve conduct of the Order in that date, the elapsed, so that the figure of the prescrip- executor proceeded to request before tion recognized in the Referred to above. the Executing Court the request for co- pies of the file relating to the executive As a result of the aforementioned events, process that is carried out against him. the attorney-in-fact of the plaintiff requests that the Prescription of the obligation be 30 declared Proved, in favor of its represented. Legislación y Economía June 2017

POSITION OF THE EXECUTIVE COURT: With the issuance of the Order of Payment Order in February 2016, it is proceeded to Within the judicial file, there is ex- interrupt the prescription of the obliga- ception reply filed by the First Execu- tion from March 2011 until January 2016. ting Judge of the Municipality of Pa- nama, where stated the following: It requests that the exception of limitation be declared partially pro- The taxpayer was notified for con- ven, as regards municipal taxes from clusive conduct, not persona- March 2004 until February 2011. lly, as indicated by his attorney.

Payment obligation maintained by defen- ROOM DECISION: dant is for taxes due from March 2004 until January 2016, in addition to fines from April The Third Chamber of the Supreme 2013 to April 2015. These facts contradict Court of Justice stated the following: what was indicated by the party executed in the sense that taxes are more than Although it is true, article 1642 of the Ju- twelve (12) years of having been caused. dicial Code states that the executed shall within the term of two (2) days following The executed part is contradicted when the notification of resolution proceed to pay indicating that taxes are of year 2004. or comply with the claim or declare under oath severity whether or not he has assets The debate within the present process for the payment of what is demanded of should focus on determining whether taxes the taxpayer’s action When requesting co- that are more than twelve (12) years have pies of the file in the First Executing Court been imposed or those caused in 2004, in of the Municipality of Panama, resulted in order to comply with the Executed part. the tacit notification or conclusive conduct, which is set forth in Article 1021 of the Ju- POSITION OF THE OFFICE OF THE dicial Code that provides the following. ADMINISTRATION: “Article 1021: If a person to whom notice For its part, the Public Prosecu- of a resolution is to be addressed refers to tor issued the Fiscal Opinion No. a resolution in writing or otherwise mani- 835, maintaining the following: fests himself to be aware of or aware of it The Municipal Treasury of the Municipali- by any written means, or does the mana- ty of Panama having issued the certificate gement in relation to it, Said manifestation of debt and the Executive Car proceeded to or management of the person from the ma- interrupt the term of prescription establis- king, the effects of a personal notification. hed in section C Article 738 of the Tax Code. Observing the above, it has been possible Tax Obligations incurred by the Excepting to obtain that the Executive Order issued by Person, taking into account the statement the Executing Judge of the Municipality of of account for period from March 2004 un- Panama where he proceeded to the release til January 2016, gives a debt due to expi- of a payment order by the executive branch ration of five (5) year limitation period that in favor of the Municipality of Panama 31 regulates Article 96 of Law 106 of 1973. against the taxpayer was notified by Con-

clusive conduct The day when the same procedure is requested a copy of the file.

RESOLUTIVE PART:

The Third Chamber of the Supreme Court of Justice, DECLARES PARTIALLY PRO- HIBITED THE EXCEPTION OF PRESCRIP- TION in the Executive Process by Coercion Collection that is followed by Municipal Treasury of the Municipality of Panama, through the First Executing Court to the taxpayer, March 2004 to February of 2011.

OPINION:

Estimates that a teaching level, of the com- mented judicial decision may highlight the importance of the action of the affected party or its representative in a file, an administrative or judicial level, which for legal technical reasons could be adverse to the interest of The party In the case that does not occupy, the notification of the car contributes by way of the conclusive conduct, when it required the copy of the file, which produced the notification that interrupted the prescription.

Therefore, in procedural matters the lack of an express notification of the party, does not necessarily mean absence of the notification requirement, as demonstrated in this process. L&E

32 Legislación y Economía June 2017

MARTINELLI PROCESS PRINCIPLES THAT REGULATE EXTRADITION IN CRIMINAL MATTERS

Joel Rincon - Legal Assistant [email protected]

nternational judicial cooperation is the becomes capital importance for Panama, Imutual assistance provided by the courts presents valuable for other cases to come. of different countries for effective administration of justice. In this article we Extradition is an instrument of interna- will analyze guiding principles of extradi- tional public law, whereby a State by soli- tion, but, from a criminal law perspective, darity, request or in compliance with uni- and make the difference between types versal treaties or conventions, including of extradition applicable in our country. the same law, hands over to another State a person tried or convicted abroad, when This instrument of international public law in the latter Is resident or refugee in its terri- recent days has had a great impact on the tory. This instrument of international coop- Panamanian society, and is that at this mo- eration aims at combating crime and impu- ment in a US court is resolving the request nity, which has awakened legal conscience made by Panamanian judicial body for a of peoples. (Yezid Viveros Castellanos, Dianny possible extradition of the former president Andrea Orosco Ruíz, Diego Hernán Fernández Güe- of the Republic, Ricardo Martinelli, which cha, Manuel Alejandro Correal Tovar, Genny Milena is something critical for our country, es- Rico Revelo and Adriana Del Pilar Trujillo Carvajal, pecially for all kinds of complaints about General Criminal Law Casuístico, Second Edition, corruption in the past administration, in- Ediciones Doctrina y Ley Ltda, Bogotá 2015, p. 114.). cluding the case of Odebrecht with seri- ous repercussions in our beloved country. Our legal system in Criminal Proce- dure establishes two forms of extra- Panama has a population of less than 4 dition, one passively and one active. million inhabitants, an economic growth that exceeds 6%, which contrasts with the Regarding Passive Extradition, article 517 of enormous deficiencies in education and Act 63 of August 28, 2008, which adopted the health, mainly. Corruption is the main cause Code of Criminal Procedure of Panama, in of poverty in our countries, and Odebrecht the first paragraph establishes the following: proves irrefutable. Then, subject of extra- 33 dition to presumably corrupt politicians,

Article 517: Extradition. The Execu- must be accompanied by the following: tive Body may, by way of reciproc- ity, grant the extradition of persons pros- 1. When the accused had been ecuted or punished by the authorities of sanctioned, a copy of executed judg- another State within the territory of Panama. ment and the elements that prove that it was founded, if they didn’t appear in it. Within the same normative body in Chap- ter III of Title IX, article 545 prescribes. 2. In the case of an accused, a copy of the indictment or preventive detention, as well as Article 545. Active Extradition. The Panama- the evidence on which the decision is based. nian judicial authorities may make a request to a foreign State for the extradition of a 3. A precise relation of the facts constitut- person for the purpose of criminal prosecu- ing the imputed offense, when the documents tion or imposition or enforcement of sen- mentioned in previous numbers don’t appear. tences with respect to an offense over which the Republic of Panama has jurisdiction. 4. The text of the applicable legal provisions, as well as those relating to the prescription of the criminal action and the penalty. The same authorities may also request a foreign State to provisionally arrest a 5. The special data that will al- person pending the filing of an extra- low the identification of the claimed. dition request, or to submit a request for consent after surrender of a per- 6. When necessary, of their cor- son by means of a special rule exception. responding translation into the language of the requested country. The corresponding request will be han- dled through the Ministry of Foreign Af- Es de suma relevancia dependiendo de la fairs at request of the Judge who issued calidad de la persona establecer la com- the trial or sentence, or corresponding petencia del Tribunal que solicitó la ex- officer in charge of the investigation of tradición, en el caso de Panamá existen the process for the offense in question. normas específicas dependiendo de la calidad de la parte, cual Órgano Jurisdiccional In the event that the Panamanian State makes del Estado puede conocer sobre el proceso. an extradition request, in order for it to be appropriate, it must be stated that the offense La solicitud de extradición tiene limitantes, y that motivated the process to condemn the es que la persona no puede ser procesada, ni claim, regardless of the circumstances mod- se le puede aplicar una restricción de libertad ifying the guilt, is punishable by deprivation o extraditarla a un tercer Estado, por algún of liberty, in the moment of infringement. delito cometido antes de la entrega o que no sea el mismo por el cual ha sido extraditada. The request for extradition must contain certain formalities as expressed in article 546 of Una vez realizado la diferencia entre ambos the Panamanian Code of Criminal Procedure. tipos de extradición consagrados en nuestras normas jurídicas en materia procesal penal, pasamos a detallar los principios que intervi- 34 Article 546. Application. With the re- enen en la Extradición desde la óptica penal. quest referred to in the previous article Legislación y Economía June 2017

Principle of legality: our national legal system the death penalty is Extradition as a legal prohibited as established in Article 30 of our mechanism for co- Constitution There is no death penalty, expatria- operation between tion, or confiscation of property. countries must be regulated in the penal Principle of Non Bis In Idem: or procedural code of each nation or in interna- Extradition proceeds when the tional treaties or agreements signed by those facts to which the request is involved or interested in its application, nor can told haven’t been tried in the anyone be convicted or convicted of any extradi- requested State, except for tion. You apply a security measure without a pri- the exceptions inherent in the or trial. In our particular case, the process must domestic law of each coun- be processed in accordance with the rules of the try. Article 32 of the Political Political Constitution of Panama, international Constitution of the Republic treaties and conventions of an international of Panama establishes that character that have been ratified by our country. no one shall be tried, except by competent authority and in accordance with legal procedures, Principle of and not more than once by the same criminal, jurisdiction: administrative, police or disciplinary cause. The extradited person can only be Principle of the dignity of the tried by the com- human person: petent authority Every person subject to at the time of the an extradition process commission of im- must be treated in ac- puted fact which means that the defendant can’t cordance with the prin- be brought to trial by a different court or constitut- ciples of human dignity ed in an exceptional manner for particular case. and fundamental rights enshrined in our Con- stitution, we can observe this principle from the Principle of double Preamble of our Constitution to state that with criminality: Punishable the supreme purpose of strengthening the na- conduct for which a person tion, guaranteeing freedom, ensuring democracy is offered or surrendered in and institutional stability, exalting human dignity, extradition must be crimi- promoting social justice and regional integration, nalized in both the receiving and invoking God’s protection, we decree the Po- country and granting State. litical Constitution of the Republic of Panama.

Principle of commutation Before amendment of numeral 7 of article 40 or prohibition of capital of the Code of Criminal Procedure, recently punishment: This principle amended by article 8 of Law No. 4 of Febru- means that no person sur- ary 17, 2017, jurisdiction of the Criminal Cham- rendered in extradition may ber was able to extend requests for extradition, be sentenced to death. If the but with this Last reform only has competence receiving State consecrates for the processes of Passive Extradition. L&E this punishment within its punitive statute, it must commute it, this prin- 35 ciple is related to double criminality, since in

Rafael Fernández Lara - Idependent Lawyer Politics [email protected] REQUIEM OF SOCIALISM OF 21ST CENTURY

There was some discontent with the Venezuelan political system when Hugo Ra- fael Chávez Frías, young military man turned politician, organized in 1982 clan- destine Bolivarian Revolutionary Movement 200, made up of mid-level officers.

the votes, succeeding Rafael Caldera Ro- ther events, such as the so-called dríguez in the Presidency of the Republic. CARACAZO or SACUDON, in 1989, when armed forces suppressed protests of ci- On July 30, 2000, general elections were Ovilian population and their dire conse- held under the new Magna Carta approved quences that unofficial figures speak of through the Constitutional Referendum of more than 300 people deceased, motivat- December 15, 1999 to change the National ed among other reactions, to lead a failed Constitution of 1961, backed up with 71.78% coup against The Constitutional President of votes counted and through this change Carlos Andres Perez on February 4, 1992, Constitutional right to achieve better con- whose government was characterized by ditions to govern and carry out its revolu- corruption and malaise by hunger in the tion. In those elections Hugo Chávez Frías population. As a result of this unconsti- is elected President for the period Janu- tutional action, Hugo Rafael Chávez Frías ary 10, 2001 to January 10, 2007, achiev- was imprisoned and on May 27, 1994, two ing 59.75% of votes counted this time. years later, he was released by the dismissal granted him by the new elected President On April 11, 2002, an unsuccessful attempt of the Republic, Rafael Caldera Rodríguez. to overthrow the President of the Bolivar- ian Republic of Venezuela, Hugo Chávez, After his release, having increased his pop- came about in the face of deteriorating ularity by his years of imprisonment, the economic situation. At dawn of April 14, coup leader Chávez Frías initiates a dras- 2002, Chavez resumed the presidency sup- tic change of strategy for the accomplish- ported by military followers of his government of its objectives, organized the new ment. Later, Chávez government had to political party denominated Movement face the so-called National Strike or Gen- Fifth Republic, is dedicated to the politi- eral Strike or Petroleum Paro, which lasted cal activity and participates As candidate from December 2002 to February 2003. for the Presidency of the Republic in the elections of December 6, 1998, and win- On August 15, 2004, a presidential refer- 36 ning the electoral victory with 56.20% of endum was held in Venezuela with the aim Legislación y Economía June 2017

of decid- the op- ing wheth- ponent er Hugo Henrique C h á v e z Capriles should re- Ra- main in d o n s k i , the state’s 4 9 .12 % leadership, of the as a result votes of political count- polariza- ed. This tion in the outcome country. The result of referendum, although was questioned by the opposition. questioned by some, benefited Hugo Chávez, who was ratified in his position with 59.1% of After this simple compendium of results votes counted against 40.64% of opposing of the elections and referendum in which votes. That way Hugo Chavez wasn’t revoked. Chavismo has participated and in the last heading and directed by Nicolás Maduro On Sunday, December 3, 2006, presiden- Moros, we observe that all those promises tial elections were held, and President that in the beginning Chavez and his follow- Chavez was re-elected with 62.84% of ers postulated and what they denominated votes cast against 36.90% of his main op- Bolivarian Revolution, sought to be carried ponent, Manuel Antonio Rosales Guerrero. out in a sequence of changes and social programs in order to increase the popula- He regains victory for a fourth term in elec- tion’s access to housing, education, health, tions on October 7, 2012 with 56.07% of food, advances in literacy, improvement of votes counted against 44.31% of his op- the living conditions of Venezuelans, Tak- ponent Henrique Capriles Radonski. Hen- ing advantage of the enormous profitability rique Capriles acknowledged results of sales and oil prices of the moment. Then, and called for respect for the opposition. everything negative began to flourish, the authoritarian regime began the road to dic- President Chávez didn’t take his oath of of- tatorship, noted the obvious inability of his fice for the period 2013-2019, scheduled for team, deterioration of the country’s econ- January 10, 2013, as the Legislative Body omy little by little, inflation, price control, delayed the ceremony to allow him to recov- exorbitant spending of administration, lack er from cancer he suffered. Chavez died in of products on many occasions, expropria- Caracas on March 5, 2013 at the age of 58. tions, terrifying insecurity, clearly reducing limits of freedom of expression and signifi- Upon death of President Hugo Chávez Frías, cant increase of uncontrolled corruption. Nicolás Maduro Moros as Vice President, assumes administrative and economic The Bolivarian Revolution and Socialism of functions during illness of President Chávez, the XXI Century, also called “New Left”, by takes the Head of State three days later, with Hugo Chávez Frías and his followers un- the title of President-in-Charge of Venezuela dertook a failed international policy and until celebration of the elections Which were opposed to the true interests of Venezu- held on April 14, 2013. The result of this vote ela and its people in aligning and advising 37 was: Nicolás Maduro Moros, 50.61% and themselves by an impoverished and histori-

cally tyranny Accustomed to approach oth- As we have seen, all these considerations er nations as Cuba is, in order to maintain of the architect of Socialism of the 21st its government and system in every sense Century have been different and failed in of the word, and other left-leaning govern- every way. Today Venezuela is a country ments of our Latin America, which took on with an impoverished social chaos, with some of the ideas of XXI Century Socialism. an unpopular, anti-democratic government led by a satrap that constantly vio- It also contributed and supported other lates human rights, with the highest infla- Latin American and Caribbean nations with tion in the world, scarcity of medicines creation of UNASUR, the Bolivarian Alli- and food, administrative corruption, Brutal ance for the Peoples of Our America, the repression by the regime against citizens, Bank of the South, through economic aid and a people that claims majority and de- from its oil production that cost the Ven- mands to go to the polls so that the people ezuelan government thousands of millions themselves decide the fate of the country. of dollars a year in unrealized income, in exchange for gaining support for their ideas, Socialism of the twenty-first century was style and proposals related to their Bolivar- a failure, pure demagoguery, the antithesis ian thoughts and the so-called Socialism of of the defense of human rights, the political the XXI Century, among others, in exchange liberties of Venezuelans, enemy of electoral for their votes in the various international exits, characterized by economic problems. organizations and Geopolitical alliances to the detriment of meeting the needs of its Post-Chavism begins to collapse, appeal- people, poverty, discontent stemming from ing to violence as a form of political ac- the lack of staple food and rising inflation. tion, with a disregard for democracy, with an unfavorable international environment After 19 years with political control of Ven- and as always, all this happens when left- ezuela, new socialism, the 21st Century wing governments intend to continue be- Socialism of Hugo Rafael Chávez Frias and yond logical and Don’t go to polls for the his followers and their indirect expansion in country to democratically decide its future. some other Latin American states, based on precise ideas, as he pointed out in “La Mor- All that has happened and continues to al”, in his struggle against the demons that happen in the brother country of Venezu- sowed capitalism:” individualism, selfish- ela, teaches us that sometimes when we ness, hatred, privileges, “being” a weapon make mistakes within democracy and we in the fight against corruption, an evil that don’t reflect and correct them, people, al- is proper to capitalism “; “Participatory and ready tired, are looking for other and dif- proactive democracy” “we must focus every- ferent alternatives that in the long run They thing on the people, the party must be sub- turn out to be worse than those we had. ordinate to the people”; “Equality conjugated For this reason, it is necessary to quote a with freedom, a society of included, of equal quote from a defender of democracy and per- without privileges”; “Cooperativism and as- sonal liberties, the Pakistani politician BENA- sociativism”, launching a test of social pro- ZIR BHUTTO, who said “Democracy needs duction enterprises and community produc- support and the best support for democ- tion units; “Look at the socialist model before racy comes from other democracies.” L&E the tumultuous failure of neoliberalism.” 38 Panamanian T Te ainl ra CI of CPI Urban National The • 2016,ber presented a variation of 0.5%. CPI to May 2017, to compared Decem evolution ofMonthly National the Urban presented a negative variation of -0.1%. CPI, weight the in that has highest the of Non-Alcoholic and Beverages Food 3.5%.with Education However, group the 2016 were: Transportation 1.7%with and CPI ofUrban May 2017 its with similar of of National the change percentage nual

he groups that most influenced an that groups influenced most he - -

ECONOMYINDEX PRICE CONSUMER Source: GCRP due to ofdue increaseticket. plane in price 24.6%,with by of air” passengers port of in one its seven “Transclasses, was group by caused increase port Trans in the increase observed The all 0.1%. with services and goods neous Miscella and culture and Recreation Health, gas, water,and ing, electricity were:April Transport 0.2%;with Hous CPINational of Urban May to compared Groups that showed increase an in the didn’t register any variation. May 2017, to respect with April

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Groups with negative variations were Housing, water, electricity and gas increased the following: Garments and footwear in two of its eight classes, “Services for the -0.3%, Food and non-alcoholic beverag- conservation and repair of housing” with es and Communications, both with -0.1%. 0.7%, due to increase in the price of repair services for housing, and “Others Services Drop reflected in the group Garments and related to housing nep “with 0.3%, due to footwear, was due to the decrease in two of increase in price of the administration fee. its four classes, “Clothing” with -0.3%, mainly due to reduction in the price of sweater In the Health group, one of its seven classes, and girl’s pants, and “Shoes and other foot- “Pharmaceuticals”, increased by 0.2%, due wear” with -0.1%, due to the decrease in price to the increase in the price of medicines. of shoes, slippers and men’s slippers and shoes, sneakers and sandals for women. The increase reflected in group Recreation and culture, was influenced by increase The decrease observed in the group in five of its sixteen classes. The classes Food and non-alcoholic beverages, with greatest variation were “Processing was due to the decrease registered in and information equipment” and “Recre- four of its eleven classes. The classes ation and sports services”, both with 0.3%. with the greatest variation were “Fish” with -2.3% and “Fruits” with -1.4%. Increase that presented the class “Equip- ment of processing and information” The group Communications declined was by the increase in the price of com- one of its two classes, “Telephone puters and printers. The increase regis- equipment” with -0.7%, due to the de- tered in Miscellaneous goods and ser- crease in the price of mobile phones. vices group is due to the increase in two of its ten classes, “Hairdressing salons When comparing the National Urban CPI of and personal care establishments” and May 2017, with its similar of 2016, the fol- “Other appliances, articles and prod- lowing increases were observed: Education ucts for personal care”, both with 0.2%. 3.5%; Health 2.1%; Transport 1.7%; Hous- ing, water, electricity and gas and Miscel- The increase presented in the class “Hair- laneous goods and services both 1.6%; dressing salons and personal care es- Restaurants and hotels 1.1%; Recreation tablishments” was due to the increase and culture 0.8%; Furniture, articles for the in the price of personal care services. home and for ordinary household mainte- In the class “Other appliances, articles nance 0.4%; Clothing and footwear 0.3%; and products for personal care” was by And Alcoholic beverages and tobacco 0.2%. the increase in the price of razor and toothbrush and personal care items. The groups that presented decreas- es were: Communications -2.7%; And Groups Alcoholic beverages and tobacco; Food and non-alcoholic drinks -0.1%. Furniture, articles for home and for ordinary household maintenance; Education and Res- Below, graph with the monthly incidence per taurants and hotels remained unchanged. group of the National Urban CPI of May 2017: 40 Legislación y Economía June 2017

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

TABLE 1. INCIDENCE AND PERCENTAGE VARIATION OF THE PRICE IN- DEX TO THE NATIONAL URBAN CONSUMER, ACCORDING TO ARTICLES AND SERVICES GROUP: MAY 2017 BASE 2013 = 100

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

TABLE 2. EVOLUTION OF PRICE INDEX TO NATIONAL URBAN CONSUMER, ACCORDING TO ARTICLES AND SERVICES GROUP: JANUARY-MAY 2017

42 million balboas in the same period this year. this period same the in balboas million 100.9 to 2016 of months three first in boas 1,282.2creased 7.3 from percent bal million banks in license Investment international in 2016. of quarter first the in Balboas sand 155 the than more percent - thou 200 million 3.7of 160 Balboas, thousand 900 million amount investment the in direct foreign tered three first ofmonths 2017, banks regis license general in that, indicate statistics INEC Office the of Republic. the General of Comptroller the of (INEC) Institute Census and Statistics National the from figures liminary last year, to period pre same according B/.the 1,188.7 the during recorded million 10.7 representing lion, than more percent B/. 2017,1,315.4mil totaled of quarter first F INVESTMENT IN REGION THE RECEIVERS FOREIGN OF PANAMA BIGGEST THE OF oreign direct investment, during the the during investment, direct oreign - - - - - eign investment in the region. region. investment the in eign for direct largest the with country the Panama has been years, In recent last year. period same the in Balboas lion 770.9 the 25.0 than more mil percent 2017; March and January between boas - totaling Bal million 964.0 growth, ment invest to boost major the is which profits, to reinvest their decided companies eign show that for positive numbers These to 2016. March January from Nalboas lion 1.3boas, 949.4 the than more mil percent firstquarter of 2017 totaled 961.7million Bal during companies investment other in Direct Source: GCRP

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PANAMA AND MEXICO SIGN AN AGREEMENT OF COMPETENT TAX AUTHORITIES

Sorce: MEF

anama and Mexico signed in Mexi- Tax Administration Service participated. coP City the agreement of Compe- tent Authorities for the exchange of fi- In representation of Panama signed the nancial information for tax purposes. agreement the Director General of Rev- enue, Publio Cortés, Competent Au- The agreement is the first of Panama’s thority delegated for the matters of ex- competent authorities and will allow next change of tax information; While, on the year to exchange information on financial part of Mexico, Osvaldo A. Santín Quiroz, accounts for 2017. In addition, it will make Chief of the Tax Administration Ser- it possible to implement the commitments vice, Competent Authority of Mexico. that the country acquired in 2016 to adhere to the Standard Common Reporting (CRS). Panama undertakes further negotiations with Spain, Italy, Germany, Japan, Norway, Publio Ricardo Cortés, Director General Canada, the United Kingdom and Switzer- of Revenue of Panama, stressed that the land to sign other agreements of Compe- agreement is given under the Convention tent Authorities, in order to concretise the on Mutual Administrative Assistance in internationally agreed commitment to com- Tax Matters and its Protocol, which both ply with the Common Reporting Standard, countries have ratified following their in- which forms Part of the Public Policy of the ternal constitutional mechanisms. The Government of President Juan Carlos Va- Convention states that the Competent Au- rela to meet the high levels of transparency thorities of both States may agree on the to combat international tax evasion. L&E scope and modalities of the automatic exchange of information.

The negotiations that resulted in signing of the agreement were made in the last weeks and were in charge of a negotiating team of the Ministries of Foreign Af- fairs and Economy and Fi- 44 nance of Panama. On behalf of Mexico, officials from the O

Canal - to tolls check of ships Lique - segment largest user of the expanded ditional incentives to container ship mined thatto it isoffer ad necessary of neopanamax locks,ity it was deter of current utilization productiv and received at these meetings also and After a thorough analysis of comments locks,” said the Canal administrator. jected for demand neopanamax by market segments theand pro rent situation, the challenges faced ter the industry’s understand cur bet to us allowed and profitable very were America Asia, Europe North and meetings with“These customers in America. in Europe, Asia North and representativesclients industry and Canaland executives have met with nal Administrator Jorge Luis Quijano Over past few months, Panama Ca Competitive toservice its customers. oceanic route to continue offering a industry, whichwill allow the inter- formally receive comments from the of the 30-day consultation to period current toll to marking the start structure, modifications proposed the lished Source: ACP OF TOLLSOF MODIFICATION THE IN STRUCTURE OFFERPANAMA OF PUBLISH CANAL n June 1, the Panama Canal pub ------class vessels as container vessels/ class vessels as container toll also reassigns proposal ACP- the standards. withcomply industry This since they ment, have found to been it doesn’t alter the units of measure tolls the of LNG and gas LPG vessels, although modifies also proposal The will not to added be the 25-day period. activities at Panamanian terminals, days that the vessel requires for port gistics conglomerate, additionalthe offered byof the local the services lo more than 25 days. To promote theuse southand transit north is notbetween transit (2) and in the northern the time is Equal to greater or than 70 percent round when:trips, (1) the utilization rate vessels located the Canal on route on applicable to only those neopanamax tainers loaded the return on voyage, offers more attractive rates for con For proposal container ship segment, Panama Canal Mayon 25, 2017. by the Board of Directors of the amendments wereThe approved tainer vessels /loose cargo in bulk. natural gas (LNG), and reallocate con liquefied and (LPG) gas petroleum fied

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bulk loose cargo to the “general cargo” segment. At present, these vessels are part of the “other” segment.

Reassignment will result in more attractive rates for customers in this category, since tolls for general cargo segment are lower. This change is made in response to a request from customers during consultation process and public hearing in 2015, and because container vessels/loose cargo in bulk operate in a similar manner to general cargo. As has been done in the past, ACP takes into account the comments received during the toll consultation processes and makes changes when deemed necessary.

The proposal is available at http://www. pancanal.com/peajes. All interested parties are invited to participate in consultation process as well as at public hearing to be held in Panama City, Re- public of Panama, on July 5, 2017. In accordance with established rules, ACP will consider all correspondence received until 4:15 p.m. M. (Local time), dated July 3, 2017, as well as comments and opin- ions made during the public hearing.

After a careful evaluation and analysis of comments received, and once incorporated relevant changes in the proposal, the Cabinet Council of the Republic of Panama will have to approve the modifications officially. The date of implementation of modifications to toll structure is scheduled for October 1, 2017. L&E

46 T

Growth in the seven major emerging mar seven emerging major the in Growth to 4.1% year, this 2016 in while was it 3.5%. will rebound as awhole economies veloping de markets and emerging in growth level, of international at the improvement context have prices In stabilized. this commodity and tional financingconditions remain favorable, Interna countries. of these partners trading benefit also will 2017, which in 1.9% to ate will acceler economies advanced in growth 2017, of June Prospects Economic Global entitled report to WorldAccording Bank the products. such markets exporting ing - emerg in and economies developing in of growth resumption the enable Will confidence market prices of commodity stabilization and increased trade, and by 2017 manufacturing in rebound as the to 2.7% will strengthen growth economic World

he World Bank forecasts that world that world forecasts Worldhe Bank - - - -

ECONOMYPERSPECTIVES % AND IMPROVE THE BE LOCATING IN 2,7 WILL FORTIFY UP TO WORLDTHE GROWTH in productivity and increased investment increased and productivity in turbulence. financial weakness persistent hand, other the On to lead could mies econo advanced in policies of monetary ofrelated pace normalization risks the or of to relation in market policy- sessment reas a lowsudden level, exceptionally an at is investment. volatility market financial while Also, and confidence weaken could sistent uncertainty regulatory of Per trade. world in rebound preciated implementation The ap the curtail could restrictions new risks. nificant However, sig also presents scenario this as world a whole. the and economies ing the on develop effect and emerging of other growth positive significant a have should activity in recovery This erage. 2018and its avlong-term will exceed to increase is expected ket economies Source: World Bank

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could worsen long-term growth prospects concern is that investment levels remain in emerging markets and developing econ- low. In response, we are modifying our pri- omies, which are key to reducing poverty. orities to favor the financing of projects that can further boost private investment.” “For too long, we have seen how low levels A positive element of the current scenario is of growth prevented progress in the fight recovery of trade growth, which now stands against poverty, so it is encouraging to see at 4% after recording last year, after financial signs that the global economy is gaining crisis, a value of 2.5%. The report emphasizes ground,” said Jim Yong Kim, president of a key area of international trade that shows the World Bank Group. “Given that a frag- weakness: transactions between compa- ile but real recovery has begun, countries nies that aren’t tied together by ownership should take advantage of this time to ad- relationships. In recent years, these types dress institutional and market reforms that of exchanges, carried out through outsourc- will attract private investment and help sus- ing channels, have been reduced much more tain growth in the long term. Countries must sharply than trade within companies. This also continue to invest in their people and reminds us of importance of a strong glob- build resilience to the various challenges al trading network for less integrated com- they face, including climate change, conflict, panies, which represent most companies. forced displacement, hunger and disease.” “After a prolonged slowdown, recent upturn in The report highlights concerns about ris- activity of some of major emerging markets ing indebtedness and deficits in emerging is a welcome change for the growth of their markets and developing economies, which respective regions and for world economy,” increases the likelihood of injury if inter- said Ayhan Kose, director of the Analysis est rates rise sharply or Tighten the terms Group Of the World Bank’s Development Per- of the loans. By the end of 2016, more than spectives. “Now is time for emerging markets half of emerging markets and developing and developing economies to assess their economies showed levels of government vulnerabilities and to consolidate policies that borrowing that exceeded by more than 10 will cushion the adverse effects of crises.” percentage points of GDP those of 2007; In a third of these countries, the fiscal bal- Regional Perspectives: ance worsened by more than 5 percentage points of GDP compared to 2007 figures. East Asia and the Pacific: This region’s growth is projected to decline to 6.2% in “The good news is that trade is recover- 2017 and 6.1% in 2018, as China’s gradual 48 ing,” said Paul Romer, the World Bank’s first slowdown is offset by Other countries in the vice president and chief economist. “The region, driven by the recovery of commod- restores the balance sheets of companies. sheets restores balance the un will recover tourism And fades, as certainty 2018, in 3.9% and policy, fiscal tive of accommoda an tothanks support the Turkey to grow by is expected 3.5% 2017in tivity. Among importers of commodities, roeconomic policy economic ac support mac accommodative and consolidation 2.6% yearthis and year, next as price oil to grow is projected at 2.4%Kazakhstan 2018,in consumption. in by increase an helped at a rate of 1.3 2017in percent 1.4 and percent to grow is expected arecession, two-year after Russia, of region. economies main the in cies regarding internal poli ofand uncertainty the risks of dissipation geopolitical and countries of commodity-exporting recovery sustained 2.5% 2017 in 2.7% and 2018, in by supported to accelerate Asia will generally Central and Latin America and theCaribbean: and Latin America Europe Central and Asia: of private consumption. recovery the and investment public to year due increased next of 3.2% 2017 in to 3.3% accelerate over and Similarly, maintain should Thailand growth private and investment. public in recovery firm as aresult of the at 6.9% next, year this and remain to expected is growth ippines, Phil In the a result of reforms undertaken. as confidence increased and demand ternal improved ex prices, crease commodity in in by backed recovers, aModest activity private and dissipate consolidation fiscal of to 5.2% 2017 in 5.3% and 2018, in as effects 2018. to rebound is also expected Indonesia 5.1% rate, from higher 2017 in 5.2% and %In at willa progress region China, Excluding to 6.5%decline 6.3% year this 2018. and in to is expected China in Growth Thailand. in of growth acceleration the and exporters ity price increases favor exporters of agricultur favor increases exporters price commodity and recession the exit Argentina to toed increase 0.8% by 2017 as Brazil and is expect Caribbean the and America Latin in Growth in Europe Europe in Growth

Growth Growth ------expected to 3.3% be 2017 in expected 3.8% 2018 and in that is of growth promotes acceleration an demand tourist in increase the Caribbean, the yearately this to 1.8% year. next 2% and In moder will accelerate growth In that country, strike. the recover after should production per cop where Chile, to beneficial be to expected are Favorable prices for metals projections policy, to will 2.2% accelerate and year in next. US economic surrounding todue uncertainty of investments to contraction due the mainly to 1.8%, reduced will be Mexico in growth atwill a rateincrease of 2.7% year. this In 2017, rate of 1.8% 2018, in Argentina in growth while by 0.3%Brazil will expand 2017 in a reach and energy. and to According forecasts, al goods ly climate and increased competitiveness climate increased ly and business-friend a more at generating aimed by backed reforms term, medium the steadily in fiscal will but improve year current the during Egypt’s to its growth moderate is expected economy financing. accessing in difficulties of and oil out to run capacity limited country’s to 4.1% reach 2018, in of to weight the due the To a rate of and 4% rebound a moderate before of Iran will slow growth Islamic Republic The to 2018. in 2% accelerate then cuts, duction will ease to 0.6%growth as a result of pro region’s the economy, largest Arabia, In Saudi will increase. prices oil to and moderate pected 2.9% 2018, in are ex tensions as geopolitical to to rebound is expected Growth product. of this economies importing the By rienced expe improvements modest the exceed tries Organization of Petroleum Coun Exporting by set the cutbacks of production countries oil-exporting on impacts adverse the cause to fall to is expected 2.1%growth 2017in be Middle East & North Africa:Middle East &North South Asia: expansion of domestic demand and exports. 2018 in will accelerate to 7.1%, strong reflecting to 6.8%gion’s 2017 in will rebound growth and

Expectations indicate that re that indicate Expectations

The region’sThe

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Excluding India, regional growth is expected to hold around 5.7% and increase to 5.8% as a result of the acceleration of Bhutan, Pakistan and Sri Lanka and the easing in Bangladesh and Nepal. Growth in India is expected to accelerate to 7.2% in 2017 (from 1 April 2017 to 31 March 2018) and to 7.5% in the following year. Pakistan, for its part, will increase its rate of growth to 5.2% in 2017 (from 1 July 2016 to 30 June 2017) and to 5.5% in the following year, as a reflection The expansion of private investment, increase in energy sup- ply and the improvement of security. In Sri Lanka growth is expected to accelerate to 4.7% in 2017 and 5% in 2018 as a result of the implementation of programs of the international financial institutions that support economic reforms and boost private sector.

Africa south of the Sahara: In sub-Saharan Africa, growth is projected to rise to 2.6% in 2017 and 3.2% in 2018, as a result of modest increases in commodity prices and reforms aimed at Addressing macroeconomic imbalances.

Nonetheless, per capita output is expected to contract by 0.1% in 2017 and a modest 0.7% increase by 2018-19. With these indi- ces, growth will be insufficient to meet the poverty reduction targets in the region, particularly if the constraints that impede more vigorous growth persist. South Africa is expected to grow by 0.6 per cent in 2017 and 1.1 per cent by 2018. Nigeria is forecast to move from a recession to 1.2 per cent growth in 2017, which will intensify to 2.4 per cent in 2018. In countries that are not resource- rich, growth rates are expected to remain ro- bust, supported by infrastructure investment, service sector resilience and agricultural production recovery. Ethiopia is projected to expand by 8.3%, Tanzania by 7.2%, Côte d’Ivoire by 6.8% and Senegal by 6.7%. L&E 50 T adoption of a basic content law - that creates creates law - that content of a basic adoption the than - rather policy of a competition nation dissemi and publication the proposes It ment. docu the in section aspecial has Guatemala economies. of small characteristics to the easily adjust don’t models, country by developed mainly tion policies of countries, having inspired been competi that fact the in lies challenge Another others. among fiscal, macroeconomic, nancial, fi policies: economic other with comparison in policy of competition role marginal the and and of economic independence most agencies, of institutional lack The cases; relevant all gate to investi of resources Lack of competition; promotion limited asthe such remedied, been haven’t that restrictions are However, there cartels. of hard practices Easily more detect help could which demarcation or clemency pensated com of figure create to finally and completed is investigation before agreement an reach can ties par where practices of anti-competitive cases for remedies To intermediate eration; introduce op its To for revenues centrations; have higher con To to control power its forcement; expand law en in To exceptions investigations; reduce case their out to carry agencies competition the to instruments greater providing at aimed are proposed or made to laws already Amendments es of competition policy in Central America. concludes the study Panorama and challeng country, each in competition reinforce would and of subregion of markets functioning ing competition policy would contribute to improv American Central of the coordination he Source: ECLAC PLACES ECLAC NEW STUDY REGIONAL AUTHORITY OF COMPETENCE, SHOULD HAVE AMERICA CENTRAL A ------National authorities”, the text concludes. to advice giving processes, judicial and tive tion to reinforcing each other in administra - collaborate to addi in investigations, case and sectoral in power sufficient with thority have au an to least at supportive highly be would it powers, supranational with thority au an to approve possible weren’t it if “Even of that subregion. addresses challenges the ity assessing for opportunity Create an author and agreement cooperation aregional ing tion of national competition policies, creat coordina improving recommends study the countriesAmerican to harmonize their laws, Central of other efforts and case temalan Gua of the particularity the Considering initiatives. these for support social bate and de prevents policy, which competition law and who fear losing privileges and ignorance about agents Economic of some resistance the ing includ country, that in agency of acompetition creation the of a law and passage have hindered factors several unfortunately, law, but, petition of a com enactment establish that mitments com international and has national Guatemala Example, to regulatory body for air transport). power to sectoral regulators on competition (for giving agency, law and/or competition future a against operate can that measures are there agenda competitiveness the in since policies, lic competitiongies policy between and other pub syner to seek recommended is also It budget. adequate of an endowment the and authority the

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THE ILO IS PREPARED TO MEET CHALLENGES GENERATED BY CRISIS, LABOR MIGRATION AND TRANSITION TOWARDS GREENER ECONOMIES

Source: World Bank

he 106th International Labor Conference youth, women and displaced persons. T(ILC) closed after two weeks of delibera- tions on important issues in the world of The Conference also adopted a Resolu- work, including the promotion of peace tion requesting the Director-General of and stability in post-conflict countries, the ILO to play a leading role in strengthe- strengthening governance Labor migra- ning partnerships at the international le- tion and the greening of the economy. vel in order to promote the new standard.

The International Labor Conference (ILC) “The adoption of a new Recommendation adopted a historic new standard, the Em- on employment and decent work for pea- ployment and Decent Work Recommen- ce and resilience is very significant at di- dation for Peace and Resilience, 2017 (No. fferent levels,” ILO Director-General Guy 205), which updates the orientation of a Ryder said in the closing remarks of the ILC. previous ILO Recommendation adopted at 1944 in order to provide answers to con- “It is significant because it unequivoca- temporary crisis situations caused by con- lly demonstrates that the ILO is ready and flicts and catastrophes. It also extends willing to update its standards, making its scope to reconstruction and recovery them sound and relevant. It is significant to include prevention and preparedness. because it is a vital response of the world of work to millions of people, affected by This new standard provides a unique po- crises, disasters and displacements. We licy framework focusing on labor-rela- are not only listening to their voices, we ted measures to prevent and respond to are acting in their favor, and with them.” the devastating effects of conflicts and disasters on economies and societies The Director-General of the ILO also remin- 52 by paying special attention to vulnera- ded ILO delegates of their responsibilities ble population groups, Such as children, Fakim (Mauritius) Gurib- Ameenah leiro Preca (Malta), Co Marie-Louise worldthe of work: in equality der gen promote to havethey taken concrete actions the presented Presidents three day,same the On facecles they world inthe of work. work. to to women enable overcome obsta the toat what work taken stepsand be need futureforhow women to a better shape Worldthe of Work 15 on to June discuss a World held on Summit Conference The Women at work benefits.” produces “Tripartismtransition: in this social the partners and nments govervalue of social between dialogue economy.”a green He emphasized the transition from to a economy polluting that is there no “linear audience ding the for Paris the Agreement”, remin port expressions ofte” “numerous sup and deba praised “fruitful the Ryder Guy involved.” parties all for migration of nefits systems...ce realization enabling of be the of governan construction inthe leadership to and standards, provide real and guidance thattudes are offensive to ILO values and “not to atti on compromise community tion.” international the on called Ryder Guy discourse towards migrants migra and political and gradation of attitudes public de the most often, room for abuses and, “widespread governance deficitsthat leave in relation to migration. labor He referred to ------to Carles, Minister ofto Panama. of Carles, Labor was Conference The chaired by Luis Ernes 187the 106th the attended ILO members CWI. from participants 6,000 unprecedented An internationaltwo standards. labor toded fourrepeal withdraw and also Conference deci The for 2016-2017. budget below the cent in nominal terms is which 2 per million, 2018-2019 for biennium get the of $ 784 adopted bud programrence and the Confe 106th Labor The International territories. Arab kers occupied inthe toattention situation the of wor drawingGeneral’s world’s the report Delegates also discussed Director- the disasters and of labor. child conflicts on 12on was June, dedicated to impact the year,This World Day Against Labor,Child day. Parliament opening on Labor (Uruguay),quez ILO addressedthe Tabaré Váz President, Another and Bidya Devi Bhandari (Nepal).

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EL MUNDO NECESITA ADELANTARSE A LOS IMPACTOS DEVASTADORES DE LA SEQUÍA CON UNA MEJOR PREPARACIÓN

Fuente: FAO

nvesting in preparation and buil- of climate change, drought has emer- Iding resilience among farmers is cri- ged as a challenge that all countries tical to coping with extreme drought will be forced to face again and again. situations, FAO Director-General José Graziano da Silva said today. “The issue is not whether drought will “Safeguarding livelihoods means saving occur or not, but: drought will come, and lives, this is what we are trying to create therefore we must be prepared,” said Mu- resilience,” he said in a speech at the start torwa, stressing the importance of the the- of an international seminar on drought or- me of the seminar “Drought and agricul- ganized by Iran, the Netherlands and FAO. ture - Forecast, plan and prepare : How to prevent drought from becoming famine.” Recalling the 2011 drought in Soma- lia, where more than 250,000 peo- “The World Meteorological Organiza- ple starved to death, Graziano da Sil- tion (WMO) provides scientific guidan- va said: “People die because they are ce and information to strengthen natio- not prepared to cope with the effects of nal services responsible for addressing drought, because their livelihoods are drought risks to agriculture,” said WMO not what they are. Sufficiently resilient “. Secretary General Petteri Taalas. “We encourage countries to take early ac- “For years, strategy has been to res- tion against drought and move towards pond to droughts when they occur, to a more proactive approach,” he added. hurry to provide emergency assistance and keep people alive,” said the FAO At the same time, the President of the official, who admitted that” of cour- International Fund for Agricultural De- se, that is important “But that investing velopment (IFAD), Gilbert F. Houngbo, in preparedness and resilience” is es- emphasized the need to break the cy- sential.” In doing so, it prepares coun- cle of crises, disasters and relief and tries to act quickly before it is too late, called on the international communi- meaning that farmers and rural commu- ty to be proactive and take into account nities are better positioned to cope with not only emergencies Of today, but extreme weather events when they hit. also how to prevent those of tomorrow.

The Minister of Agriculture, Water Re- “That means investing in small farmers to 54 sources and Forestry of Namibia, John help them meet the challenge of produc- Mutorwa explained that in these times tivity, give them access to markets and tions for moving from reactive to improved technologies; Op Ways to farmers with connect transformation; that to achieve drought management how and inshould terms changed be of cusing issues on suchas: what fo sessions subsidiary rious va in - participate communities manitarian policy-making and from hu the scientific, academic, During the seminar today, experts ture rural and development. implications for food security, agricul drought waterand their and scarcity logies practices good and to address isThere a lack of techno knowledge, It’s to better prevent than to cure. droughts African affected 34 countries. ween 2005 and 2016, a total of 84 has taken Bet the worst part. it isAnd Africa,in particular, that veloping world, according to FAO reports. ses are sustained by agriculture in thede of thedrought-related damages los and of pillars. economic More than percent 80 countries, where agriculture remains one cost isThe especially high in developing affectednet by droughts has doubled. 1970s, theearth’s of surface the pla morebecoming frequent. Since the te severe are periods changes, dry lly is pressing. As theplanet’s clima to need rethinkThe droughts globa mic losses of to up US $ 8 billion year. per instabilityalso and but ger lead to econo droughts, which generate not hun only address the many consequences of newed international momentum to Today’s seminar aims to catalyze re toReject response drought. efforts tools to thrive,” and survive said. Houngbo the have importantly, most and, finance ------pare for droughts, among other issues. proactively them help anticipate pre and access that to can products services and and methods small and enhance farmers’ agro-meteorological information, tools both organizations will work to improve partnership, enhanced their Through cieties, ecosystems food and security. “ tentially irreversible threat to Human so agreement says “poses an urgent po and climate and riability which the change, cooperation to respond to climate va that will allow to them their strengthen a memorandum ofsigned understanding At today’s event FAO in Rome, and WMO to EmpowerPartnering Small Farmers. the seminar way the commendations on forward. of theresults on will report makeand re communiqué final A da 2030 for sustainable development. droughtduce management into Agen proactive responses howand to intro

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Milena Vergara - Assistant [email protected] Environmental CAPSULE “NATIONAL DAY

OF THE Chamber of Commerce, Industries and Agri- culture of Panama (CCIAP), National Associa- REFORESTATION” tion of Reforesters and Allied (ANARAP) For conservation for nature (ANCON) and more than fifty agreements of adhesion to the Al- n Tuesday, June 27, 2017, in liance that have been signed with the pub- Official Gazette No. 28309- lic sector, private sector and civil society. B, Executive Decree No. 60 In our country there are problems of of June 26, 2017 was pub- droughts, floods, forest degradation, soil lished, by means of which erosion, and that mostly give due to the the fourth Saturday of the effects of misuse of natural resources. Omonth of June of each year is made official as “National Day Of Reforestation “. The joint effort is expected not only to recover the forests, but also to re- The main purpose of this decree is to raise duce the effects of climate change that awareness and educate about the need to we have been suffering in recent years. reduce the rate of deforestation and forest degradation, to recover forest cover on Last Saturday June 24 was held for the third river banks, natural forests, water recharge consecutive year the National Day of Refor- areas and land with a forest vocation Na- estation, in which were planted more than tional level, as well as to collaborate with 70 thousand tree seedlings on 100 hect- the global fight against climate change. ares nationwide. More than 20,000 volunteers and institutional delegations, non- National Reforestation Day is a program of the governmental organizations, members of Alliance for the Million hectares reforested, the private sector and managers of the Al- a private public agreement that was signed liance for the Million of Reforestated Hect- by the Panamanian State in 2014 and which ares took part in this event, held in more seeks to recover the wooded areas of the than 23 points throughout the country. country, water sources and The Panamanian Country’s commitment to reforestation. biodiversity, through reforestation and aims to reforest one million hectares in 20 years. We expect that more and more enti- This alliance is promoted and managed by ties will be added year after year to join 56 the Ministry of Environment (MI AMBIENTE), this Alliance and thus contribute to a bet- Ministry of Agricultural Development (MIDA), ter management of natural resources. L&E Legislación y Economía June 2017

Ilustrious

Lisbeth Martéz - Assistant PEOPLE [email protected] of Tibet and flow into the Yellow Sea. The PEOPLE’S Yang-tse-Kiang Riv- In fullness or splen- er extends beyond dor is the emperor, REPUBLIC OF the Hoang-Ho River. considered of glori- ous origin and was These rivers have di- CHINA vided China into dif- thought to have re- ferent regions, but ceived his power 中华人民共和国 thanks to these wa- by virtue or by the terways culture has orders of the gods. The People’s Republic of China covers continued to develop. one-twelfth of the world’s length, being Of course, the em- the third largest country on the world’s Social and eco- peror was located land surface, and where there are more nomic organization. in the nobiliary ar- inhabitants (one-sixth). istocracy, the court. - Economical: From the outset, Chi- This aristocracy was The People’s Republic rable thirst for prog- nese organization also composed of of China covers one- ress and creativity. was mainly based on landlords and mili- twelfth of the world’s agriculture, but later tary caudillos (who length, being the Their great techno- industries were cre- established posi- third largest country logical advances, as- ated, for example on the world’s land tronomical, artistic, metallurgy (especially tions in the army). surface, and where architectural, etc., bronze), porcelain and there are more in- made of this culture silk (these products On the third level habitants (one-sixth). one of the greatest made the Chinese and recognized of were the mandarines Chinese civiliza- all the times, gaining good trade, and this (trust officials of the came to extend to the tion was one of the a significant place Empire), which in most influential for in Universal history. Mediterranean world). turn was composed the Asian continent and for the rest of the Importance of -Social: of: governors, judg- world. Originally lo- large rivers. es, police officers, cated near the Yellow The social structure tax collectors and and Blue rivers, it was The major rivers that of Chinese civiliza- supervisors of ag- able to progress rap- cross China are two: idly thanks to its fer- the Hoang-Ho (Yellow tion is characterized ricultural work. The tile soils and favorable River) and Yang-tse- mainly by the exis- mandarines wor- natural landscape, not Kiang (Blue River). tence of a gradation ried about the agri- to mention its admi- Both rivers emerge and its scrupulous re- cultural monitoring 57 from the mountains spect for hierarchies. and the good func-

tioning of the irrigation. Literature and Printing The peasants, who belonged to the majority of the population, were on the fourth level. The vast and varied Chinese literature has These worked the landlords’ fields as tenants. developed from a very old age to the Modern Age in a line of continuity that unites primi- Finally, at the last level, were the slaves (the tive verses, probably written in the eleventh most disadvantaged), were prisoners of war century BC. C., the oldest writing is made and had completely lost their freedom for debts. on wooden or bamboo slats with a punch made with this last material sharpened at one end, which was wet in a colored liquid. Religion and philosophy Later they began to use of hair and to write on silk or paper, known this last one by the Freedom of religion is a constitutional right Chinese in century II d. C., since then art- of every citizen of the Republic of China. ists of the country use same materials. According to the Ministry of Interior, there are more than 11 million religious believ- The first attempts at printing could have been ers in Taiwan area. Together, there are more inspired by inscriptions on stone dating from than 16,000 temples and churches scat- the ninth century AD. C. Thus came the idea tered throughout the region, serving spiri- of printing on paper with blocks of wood, and tual needs of the 21.4 million residents. by the end of the tenth century this method was widely used in the production of books. It Polytheistic and syncretic, in Chinese so- is believed that Pi Sheng invented the mobile ciety dominates Taoism and Buddhism, al- types of cooked clay by the year 1043, but it is though apparently each religion postulates possible that these weren’t made from blocks an independent doctrine, some of them of wood until the fourteenth century. Due to can’t be strictly differentiated. For exam- nature of the Chinese language, represented ple, Matsu, Goddess of the Sea, a folk de- in thousands of pictograms, mobile types ity of Taiwan; And Kuanyin, Buddhist god- weren’t popularized as happened in Europe. dess of Mercy, are sometimes worshiped in the same temple. This reveals the special Architecture character of Chinese religious perspective, which can simultaneously accom- Chinese architecture is characterized by dis- modate seemingly contradictory beliefs. tributing space in rectangular units that are joined to form a whole. The rectangular form As in almost all primitive peoples, first reli- was also used in Greek temples, but the ef- gion of China was the naturalist, that is, the fect was of austerity. The Chinese style, on worship of the unknown and the force that the other hand, combines rectangles of dif- natural phenomena can have on man, but ferent sizes and in different positions ac- the Chinese related the behavior of individ- cording to the importance of the organi- ual to the phenomena of universe. In short, zation of the set. The different levels and they depended on human acts and natural elements are clearly distinguished. The result forces; For example, lightning that burned is an impressive exterior appearance, but a house was a consequence of behavior of at the same time dynamic and mysterious. its residents. The second religion in China 58 was that of Lao-Tse which is that of rea- In traditional Chinese architecture, distribu- son based on rationalist doctrines of Tao. tion of spatial units is governed by the prin- Legislación y Economía June 2017

ciples of balance and symmetry. The axis constitutes the main structure. The second- ary structures are located on both sides of the axis forming the central courtyard and the main rooms. Both the dwellings and the official buildings, temples and palaces conform to this fundamental principle. In the distribution of the interior space the Chi- nese ethical and social values are reflected. Dragon dances are very common in the streets of China during the New Year. The traditional festivals of China Chinese New Year is country’s most fa- Festivals are one of the most important tra- mous tradition. It is celebrated when the ditions in China. Although Chinese now year ends according to the Chinese lu- live in big cities full of skyscrapers, society nar calendar, so it varies from date to year. still maintains a very traditional mentality. Chinese New Year is a traditional family holi- The Chinese live a life dedicated to work day in which all Chinese people return to their and family, so vacations are not among their native villages to celebrate with their closest main goals. Chinese popular festivals are friends. That is why every year occurs in China the only time you can enjoy a real break. the largest migratory movement on the planet.

The annual leave is as follows: During the week of the Chinese New Year, many feasts are celebrated in which the whole family • Western New Year: 1 day of vacation. gathers around a table to chat and celebrate • Chinese New Year: 3 days the entrance of the new year. In these dinners of vacation (usually 2 days more it is a tradition that married people give red that recover working on weekends). envelopes with money (hongbao) to unmar- • Qingming Festival (Day of the Dead): 1 ried people, usually children and young people. day of vacation. • Day of It is also customary to visit the worker: 1 the temples to ask for the day of vacation. family, both for the one who • D r a g o n is on earth and for those who Boat Festival: 1 have already died. The Chi- day of vacation. nese profess great respect • Mid-Au- for their ancestors, as they tumn Festival: 1 believe in life after death. day of vacation. • C h i - After a brief tour of the Peo- nese Na- ple’s Republic of China, in tional holiday: 3 days holiday. order to know a little about its territory, cus- toms, religion and other characteristics about Chinese Tradition for the New Year. our new diplomatic ally, many of them known by all Panamanians since we have many years of living together with the Chinese commu- 59 nity in Panama, which can be said to be one

of the strongest and strongest in our country.

Through its history in the country, the Chi- nese community in Panama has greatly di- versified its economic participation in the national life as: Export Businesses in the Colon Free Zone, Cellular Distributors, Auto Parts, etc. And in the labor market, members of the Chinese community serve the country in professional occupations such as ar- chitects, engineers, doctors and lawyers. For several groups this has been one of the In the Casco Viejo of the city of Panama is best initiatives that has been taken in re- the Chinatown, where originally were all the cent years ensuring sustainable future of the Chinese shops of the country. Today, many country. The measure strengthens the eco- of these businesses have moved to what nomic position, ensures the potential of its is now the New Chinatown in El Dorado. areas of competitiveness and creates a geopolitical balance of view to today’s changes. It is already a tradition in the country, where the Chinese community in Panama organizes China is the second most important a great event every year to receive the arrival user of the Panama Canal after the Unit- of the Chinese New Year, a celebration that ed States. Last fiscal year China trans- unites the Chinese-Panamanian community ported 38 million tons of cargo through in a large family. It is estimated that the event this inter-oceanic route, 18.9% of the total. attracts about 30 thousand visitors a year. New opportunities with China can support We are currently celebrating the establish- both agricultural, financial and maritime sec- ment of relations at ambassadorial level, “actors and national logistics, but it also al- cording to the joint communiqué between lows for more economic independence. the two governments, through a note cir- culated simultaneously in China and Pan- As for China, diplomatic relationship with ama dated June 13 and signed in Beijing. Panama is positive in that it allows it to expand opportunities for internation- The two governments agreed to develop al cooperation that were not possible be- friendly bilateral relations under the principles cause there was no such relationship. of mutual respect for sovereignty and territori- al integrity, mutual non-aggression, non-inter- The success of the new Chinese-Panamanian vention in each other’s internal affairs, equal- relations will depend very much on Panama’s ity, mutual benefit and peaceful coexistence. positioning itself strategically and succeeding in developing policies that avoid making mistakes Our government acknowledged that there is only that have occurred with other countries. L&E one China in the world, that the government of the People’s Republic of China is the only legitimate government that represents all of China and that Taiwan is an inseparable part of China. 60 Bibliography: •Curiosities of Chinese Culture By: Elena Sánchez - Chinese Culture Chinese•The Cat Traditions of Chinese Culture •Panama establishes relations with China. By Eddie Tapiero Legislación y Economía June 2017 Sports Capsule

Ana Sofía Corrales [email protected]

n our day to day many times it to be supported by activities costs us to take time to perform such as that of the last weekend I of June 23, at Sport Day on the other activities, out of routine. However, there are Panamanians Coastal Strip II to commemora- who, within their obligations, te the Olympic Day celebrated are dedicated to leaving the on June 23, 1894, Which began name of Panama large in the Olympic Games of the Modern different disciplines or sports Era, organized by the Olympic or even in the cultural field. Committee of Panama (COP). L&E

In this way we see that sport has been growing, and expanding, in

different disciplines. Therefore, it 61

is essential that sport continue

Track & field

n the South American IMajor Track & Field Cham- pionship held in Paraguay, Panama had an excellent performance, where Pana- manians like: Virjilio Griggs, obtained bronze, in 200 meters flat; Andrea Ferris, 4th. Place in 800 mts; And Yassir Cabrera, 6th in that event, like- Jorge Castelblanco for World Champi- wise Gianna Woodruff, who won a gold onships of Track & Field of London, that medal in the 400 meters with fence, will be held from the 5 to 13 of August. with time of 56.04, qualifying to be part of Panamanian delegation with sprinter Alonso Edward and marathon runner

Figure skating

n the other hand, the excellent presentation of figure skating on Owheels of the Group United Ar- tistic Skating that obtained two gold medals, one silver and one bronze in the sixth Internation- al version ‘Cita de Oderozo’ in Italy, where more than 200 Ath- letes from 10 different countries.

Foto: La Estrella de Panamá

P Peoples Indigenous WorldII of Games P Sports Festival Sports International gun, gun, gymnastics and bowling. modalities of pistol, and shotrifle its in shot”, “The are: disciplines The Colombia. 2018 20, July Barranquilla, in on inaugurated to be Games, Caribbean and American Central XXIII the for also and Colombia Marta, Santa in November 11 on Games Bolivarian XVIII in country the representing and quotas to obtaining a view With Guatemala. in Festival Sports in participating theciplines, International our cultural diversity with dances and and dances with diversity cultural our to FIFAcording the We rules., will show soccer like only conventional ac sport waters and open ofrace resistance, of 100 ofrace speed canotaje, meters, arrow, throw of lance, corporal corporal, of games bow and ofdalities ancestral Since additional to the games in the mo the in to games the additional Since Emberá and Ngobe Buglé Counties. Guna, the from men 34 and women of 31 a delegation with ton Canada, 1to from 10 held be - Edmon in July Games to Peoples World Indigenous II the in will participate anama anama has 32 athletes from three dis three from 32 athletes has anama

- - - - L dresses of our indigenous ethnicities. dresses ofindigenous our Baseball ny to honor players on June 30th. June on players ny to honor Panama organized a ceremo of West of Province Governor The game. error-free and clean a was It fifth. the in second and episode second the in a race noting Metro, Panama to final the in zero to races two defeating 15of Sub after Baseball Championship National of the team winning the became West Panama 24, June ast

Soccer

Male

orge Dely Valdés has called for the sum- José Calderón (Real Cartagena-COL), and mits series to make up the Under-15 Panama Alex Rodriguez (San Francisco FC-USA). Team ahead of the CONCACAF Champion- Jship to be played in August in Florida, United Defenders: Roberto Chen (United Arab), States. More than a hundred boys attended. Roderick Miller (Atlético Nacional-COL), Fi- del Escobar (Sporting Club-POR), Jan Carlos The summoning of these displays is very Vargas (Tauro), Michael Amir Murillo (New important to be able to have a generation- York Red Bulls- USA), Luis Ovalle -Ven), Eric al change, in what is agreed the technical Davis (Dunajská Streda-SVK) and Angel director of our national soccer team, Her- Patrick (Tapachula-MEX Coffee Growers). nan Darío Gomez, since for the Gold Cup to be played in the United States of July 7 Midfielder Miguel Camargo (New York City to 26, has convened young players who USA), Armando Cooper (Toronto-CAN), have been active in clubs of the Panama- Valentín Pimentel (Plaza Amador), Ed- nian Football League (LPF) and most of gar Yoel Bárcenas (Tapachula-MEX Cafe- them currently play for international clubs. taleros), Gabriel Gomez (Atlético Bucar- amanga-COL), Aníbal Godoy San Jose Their first game will be on July 8 against Earthquakes-USA) Josiel Núñez (Plaza the United States at Nissan Stadium. “Al- Amador) and Leslie Heráldez (United Arab). most everyone has already played the tie. We want these players to continue gain- Forward: Gabriel Torres (Lausanne ing experience, said the ‘Bolillo’ Gomez. Sport-SUI), Abdiel Arroyo (Danubio- URU), Ismael Díaz (Porto-POR) and Currently Blas Pérez and Felipe Baloy are Ricardo Clarke (Zamora FC-VEN). some of the players who will not play the Gold Cup and have been signed by the Munici- There are high expectations for this gen- pal of Guatemala in the season 2017-2018. erational relay with a view to the qualifying round for the 2018 World Cup. They The summoned for this Gold Cup are: should take advantage of their time on the court, in the absence of some play- Goalkeepers: Orlando Mosquera (Tauro FC), ers, to demonstrate their full potential.

Flag Football

ince February 18 has been playing the Flag Football Women’s League of Pana- ma (LIFF), Miller Lite Cup 2017, where 22 teams participated, divided in the confer- Sences Atlantic and Pacific, where on June 18 was played the great final. The - Cy clons team of the Pacific conference won the victory with a score of 12-7 against the Rebels of the Atlantic conference, a team that had been unbeaten since the 2016 season. Futsal F laya Peña. and La El Tigre deAta Canto Llano, del CAI of Santa Fe, Rio de Jesus, Santa Elena, A, San Francisco of: Pedernal, Group consists B San Francisco B. de Santa Fé and tijo, San José Revolution,- Mon Peña),(La Primavera, La Soná tatives of CDS Atalaya, RockKids Group Ais composed of represen ticipation of 15 teams including: par with the ispionship held, Province Provincial Futsal Cham 20 players in the Sub 23 category. dates andeach team has asquad of is reactivated,(LFF) where it has 21 Women’sstages, League Soccer

I Female n the province of Veraguas, the inally, many after interrupted - - - - ship, organized by FEPAFUT. 5th National Futsal Champion to represent the province in the winningThe team will chosen be Academia FMS and El Brujas FC. (UTP), Chorrillo FC, FC, Azuero nological University of Panama Tech SM, tional Athletic, Sporting pating: San Francisco FC, SD Na followingThe are clubs partici

L&E

- - - -

Mariela de Sanjur [email protected] Cultural Capsule THEATER Location: ATLAPA Convention Center. • Beauty Wellness Expo Show Panama 2017. Date: June 29 to July 1, 2017. • La Plaza Theater: Rent 12 to 30 July. Location: ATLAPA Convention Center. • Teatro La Plaza: TRIO July 1st. • Expo 15 Quinceañeras Panama 2017. • Theater Station: Dear Dad until July 12. Date: 1 to 2 July 2017. • Theater Aba: Who understands the women, Location: Megapolis Convention Center-Hard until the 30 of July. Rock Hotel. • Aba Theater: Scooby the Detective from July 9 • FIPA-Feria Inmobiliaria Panama 2017. to September 17. • El Ángel Theater: Reunion of ExGraduated until Date: 15 to 16 July 2017. July 2. Location: Hotel Riu. • El Angel Theater: Los Villanos contract until • International Forum on Sustainable Cities July 30. Panama 2017. • El Angel Theater: A night of white lies 18 to 30 Date: 19-21 July 2017. July. Location: Hotel Sheraton Grand Panama. • National Dairy Cattle Fair. Date: July 13 to 16, 2017. Location: - Monagrillo, Herrera. MOVIES • EXPO BODA 2017. Date: July 8 to 9, 2017. • SpiderMan: De regreso a casa Location: Salón Las Totumas-ATLAPA. • Churchill • EXPO MIVI 2017. • Un don excepcional Date: from 6 to 9 July 2017. • Que tacaño Location: ATLAPA. • Transformers: El último caballero • Dos son familia • El planeta de los simios: La Guerra • Si no despierto.

FESTIVALS

• Full Moon of Drums: July 9 in Chitré. • Debutantes Festival. Organized by the Guadalupana Ladies. 1st of July in the South Sea Terrace of the Union Club. • National Pollera Festival (Las Tablas-Los Santos). From July 14 to 23 - Contest of the Pollera “Margarita Lozano Medal”. • 40th National Handicrafts Fair. 26 to 30 July. Atlapa Convention Center. • InterLumi Panama 2017. 66 Date: June 29 to July 1, 2017. 21st 2017. of July The Elections. Association Bar • Upcoming Day. 27:• July Hepatitis World Ecosystem. Mangrove of the Protection Day the for 26: International • July Apostle. 25: Santiago • July Day. 25: Driver’s • July Bolivar. of Simon 24:• July Birth Librada. of Santa Saint Patron of• 20 July: 16:• July girl. the and boy Day of the men. Car del 16: Virgen • July of the Saint Patron 11:• July Day. Population World Ernesto J. Castillero. 11:• July Library National of the Foundation tille (France). Taking of the - Bas 14: of the • July Anniversary Conservation. Day of Soil • 7of July: America. of States Day of United 4: Independence • July Bags. Day Free of Plastic 3: International • July 13 2017 Teatro in Ateneo-Clayton. July Thursday Tanghetto, Panama: Music • World 3 September banks: of piggy o Collection 16. July banks: of piggy o Delivery 2. July 1and July 30, June streets the in o Collect 14. 16 June to from July Phase Solidarity the o Starts of activities; calendar Campaign • Archdiocesan 3ATLAPA. July Dinner, y Vino • Pana si-ATLAPA. 2017, Panama World • Miss Teatro 4, July Anayan 10, 7p.m. July Monday, from on Saber, del Ciudad la de Ateneo the at Foundation, of Knowledge City the and of Panama Pianists of 2017,• Pianotón Association by the presented 9. July until functions entrance), nosaur Di Mall, Albrook (Parking Ice on Circus • Russian EVENTS CONCERTS AND AND FESTIVITIES AND VARIOUS ACTIVITIES

L&E - - -

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