On the Black List of the EU - Again? And now why?
José Alberto “Pepe” Mujica Cordano Talk about good government
Agreements between Panama and China
Panama in its Teachings for first date Business Development in World Cup the Region Ngäbe -Buglé rbc.com.pa ISSN 1726-0485 nov. edition ´17 Colaboradores en esta edición José Javier Rivera J. Rafael Fernández Lara Giovana del C. Consejo Miranda Garzola John C. Cheng C. Editorial Hernán Ruiz y Alfredo Burgos Javier Said Acuña Augusto García Idalia Ballesteros David Rodríguez Ailen Galván Casilda Quiróz Lidia Domínguez Ana Sofía Corrales Mariela de Sanjur Gabriela Melgar José Javier Rivera J. Donna Ballestero Giovana del C. Miranda G.
Portada y Diagramación: Virginia Medina
Fotografía: Mariela De Sedas de Sanjur Rivera, Bolívar y Castañedas
@rbc_abogados
RBC Abogados
NOVEMBER 2017 Editorial 06
PANAMA ON THE BLACK LIST OF THE EU - AGAIN? Content AND NOW WHY?
31. Polítics 64. Fashion PRESIDENTS OF COLOMBIA BORN IN PANAMA 66. Cultural Capsule
35. Panamanian Economy AGREEMENTS SIGNED BETWEEN PEOPLE’S REPUBLIC OF CHINA AND THE REPUBLIC OF PANAMA
48. World Economy CHINA AND ECLAC STIPULATE THEIR COOPERATION TO PROMOTE TRADE AND INVESTMENT WITH LATIN AMERICA AND THE CARIBBEAN
54. Illustrious People JOSÉ ALBERTO “PEPE” MUJICA CORDANO
58. Sports Capsule NAILS, THEIR IN- FLUENCE ON THE APPEARANCE OF 64 WOMEN Invited Writer 09
Nation Building and Autonomy in the Socio-Economic Development of the Indigenous Peoples of Canada: Teachings for Business Development in the Ngäbe-Buglé Region
Norms Consult of interest Doctrine & SPECIALIZED SUPERIOR TECHNICAL INSTITUTE Jurispru- dence
12 AITSA CAN REDUCE PERIODS OF CONCESSION CONTRACTS OF COMMERCIAL SPACES BLOCKS 18 Legislación y Economía November 2017
Editorial
Panama on the BLACK LIST of the Augusto García - Abogado EU - Again? And now [email protected] why?
n December 5, the Ministers of Economy and vestigations, to demand additional documen- Finance of the European Union (EU) adopted a tation for sustenance of fiscal operations. black list of tax havens, including the Republic Oof Panama, classifying it as a non-cooperative The reactions in our country were not long in co- jurisdiction in tax matters. The rest of the adop- ming. The Foreign Ministry of the Republic ex- ted list is made up of American Samoa, Bahra- pressed its rejection of the inclusion of Panama in, Barbados, Grenada, Guam, South Korea, in the aforementioned list, noting that said mea- Macao, Marshall Islands, Mongolia, Namibia, sure “ignores the clear progress of the country Palau, Samoa, Saint Lucia, Trinidad and Toba- in terms of cooperation and fiscal transparen- go, Tunisia and the United Arab Emirates (UAE). cy”, likewise claimed that “The Republic of Pa- nama has adopted international commitments With the inclusion of Panama in aforementio- in record time, and made an unprecedented ned list of non-cooperative countries in tax process to adapt its legal framework. Pana- matters, the EU reserves right to apply sanc- ma today has no outstanding issues regarding tions of different natures as restriction re- international standards of tax cooperation.” garding benefit of European economic funds for development. Likewise, within publication In this sense, various unions and sectors of made by the EU, suggestions are included for civil society also expressed their rejection European tax administrations in relation to of the inclusion of our country in a new list financial operations carried out by their na- of non-cooperative countries in tax matters, tionals in jurisdictions included in said list, emphasizing the numerous adjustments to among which elimination of deductions and domestic legislation and control mechanisms 6 exemptions for companies controlled from and tax auditing that have been introduced in the foreigner, to revert burden of proof in in- recent years with the aim of complying with Legislación y Economía November 2017
the standards of various international or- which have meant not only legislative adjustments, ganizations regarding fiscal transparency. but also of significant changes in administrative structures in charge of exercising and overseeing the Panama’s efforts in matters of In- transparency of financial operations in our country. ternational Fiscal Transparency In this order of ideas, we find that since 2010 Despite the irrefutable advances of our coun- try in terms of compliance with international tax and as a response to the observations received standards, the European Union has resolved to from various international organizations such include Panama again in a list of non-coopera- as the Organization for Economic Cooperation tive countries, arguing on this occasion that our and Development (OECD), our country imple- country has not committed itself clear to amend mented a series of adjustments to our internal or eliminate the preferential regimes contempla- legislation to international transparency stan- ted in our domestic legislation for the year 2018. dards, among which the following stand out: This new inclusion of our country in these discri- minatory lists leads us to question the policies and .Subscription of multiple Agreements to prevent strategies adopted by the Foreign Ministry and the International Double Taxation and Exchange of Ministry of Economy and Finance in front of these Information in Tax matters. Currently, Panama international organizations, which beyond making has negotiated 20 International Double Taxation observations based on objective standards in mat- Agreements, of which 17 are already in force after ters of international fiscal transparency, increasin- they have been signed and ratified. Likewise, 10 gly apply more subjective criteria aimed at tighte- Tax Information Exchange Agreements have been ning their position on our country progressively and negotiated, of which 9 are already in force. indiscriminately increasing their demands regar- ding the demand for increasingly sensitive chan- Incorporation into our internal legislation of rules ges in our legal, economic and financial system. of adaptation to treaties to avoid double interna- tional taxation, including legislation on Transfer The complicit silence of the OECD and FATF Pricing. A proof of what we have pointed out is found in Implementation of a system of immobilization of the recent draft Law that seeks to criminalize tax bearer shares in the Panamanian Legislation. fraud and typify it as a conduct precedent to the crime of money laundering, a legislative initiati- Implementation of Law 23 of April 27, 2015 that ve that suffers from multiple deficiencies in the adopts measures to prevent money laundering, financing of terrorism and financing the prolifera- criminal and tax area, and it has been promoted tion of weapons of mass destruction, and dictates without the due dialogue and consultative pro- other provisions. cess required for a project with such an impact with the sole purpose of satisfying the require- Automatic exchange mechanisms were adopted ments of the Financial Action Task Force (FATF), according to the requirements of the OECD Global as well as the OECD itself, organizations that have Forum. maintained a complicit silence regarding to this inclusion of Panama in the black list of tax havens Adherence to the Convention on Mutual Adminis- by the EU, taking into account that a large part of trative Assistance in Tax Matters, as well as to the the representatives of the countries in the OECD, Inclusive Framework of the Erosion Project of the the FATF and the Council of Ministers of Eco- Taxable Bases and Transfer of Benefits (BEPS). nomy and Finance of the EU, are they are aware of the adaptation policies adopted by our country. The measures listed above are some of the most The foregoing assumes an alarming connotation representative in a long list of adaptations imple- if we take into account that the aforementioned mented by the Republic of Panama with the sole draft of the law classifies as tax fraud, among purpose of complying with the requirements of other conducts, the omission in an income state- international bodies regarding fiscal transparency, ment of taxable income; include false information 7 Legislación y Economía November 2017
in the affidavit; keep accounting books with fal- try until so much is not adopted a much more se information and voluntarily simulate lost the rigid position that requires reciprocity in the omission of payment of taxes, notwithstanding evaluation of these international organizations. evaluation and evaluation of said behaviors to determine existence or not of fraud in the actions In this order of ideas, it is important to point out of taxpayers are reserved for the often subjecti- that the impact of the inclusion of our coun- ve criterion of the Directorate General Income of try in these lists extends its negative effects the MEF, aspect that is extremely dangerous in not only to the financial and service structure attention to the antecedents in which said insti- of our country, but also to the Panama brand tution has been a participant in scandals of abu- at an international level which already It has se of authority to the detriment of the taxpayers. been seriously impacted by the famous inves- tigations published by the International Con- The accumulation of exposed situations throw sortium of Investigative Journalists (ICIJ). us to the conclusion that beyond the firm will demonstrated by our country to establish As you all remember, on April 3, 2016, the ICIJ substantial improvements to our internal sys- published in 109 media outlets and in 76 coun- tem, at no time our diplomatic representati- tries the results of an investigation carried out ves have managed to establish a negotiation through illegally stolen information from a Pa- close to the reciprocity in matters of fiscal namanian law firm, which linked thousands transparency international, in which there has of companies from all over the world that had been significant recognition by none of the- nothing to do with Panama, where Panama- se international organizations regarding our nian companies didn’t represent 30% of the progress, which makes it imperative to apply total. Despite this and that it was a firm, not a changes in the position and strategies of our country, the ICIJ did not hesitate to name the country against the unfounded application of scandal with the name of Panama Papers. these measures discriminatory, by adopting a much stronger and belligerent position, as By way of contrast, on November 5 of this year well as more innovative strategies when facing the ICIJ launches a new scandal, now called the demands of international organizations. Paradise Papers, related to information extrac- ted from the law firm Appleby, with presence Otherwise, we will keep going around in this in many jurisdictions of the Commonwealth of painful vicious circle drawn by the international Nations, a community of nations linked to the organisms in which very strict criteria are applied United Kingdom, but this time why this new for the evaluation of our country and weak and scandal was not called Commonwealth Pa- complacent criteria for jurisdictions with much pers or British Papers?, in a clear example that more permissive systems than ours, which in these international organizations have diffe- some cases they are recognized as elitist juris- rent metrics to measure and measure them- dictions of the stature of Switzerland, Andorra selves. There is no objective equality in the or Liechtenstein and even some jurisdictions evaluation criteria of the different jurisdictions. within the United States, such as Delaware, Ne- vada and Florida, to name a few, which at no time It is necessary for our authorities to reflect on have been subject to discriminatory measures. the strategy they have used, the route traveled - which is a lot - and the results that are so harmful As those imposed on our country, which shows that measures such as these cause our country. that we are faced with subjective criteria that do What was done well and what was not? What has not conform to objective standards of interna- to be modified so that there is an equivalence tional transparency, aimed at undermining the between our efforts and internal results and the position of Panama in the service platform as treatment of respect and reciprocity of those. L&E well as the international financial communi- 8 ty, and that they will continue to hit our coun- Legislación y Economía November 2017
Invited Writer
NATION BUILDING AND AUTONOMY IN THE SOCIO- ECONOMIC DEVELOPMENT OF THE INDIGENOUS PEOPLES OF CANADA: TEACHINGS FOR BUSINESS DEVELOPMENT IN THE NGÄBE-BUGLÉ REGION
Autores: Hernán Ruiz y Alfredo Burgos
he aboriginal groups in Canada are three: le models of institutional governance promo- Metis, First Nations and Eskimos. All share te the adoption of successful business stra- a common denominator similar to that of in- tegies in their territories, without losing their Tdigenous peoples in Latin America; years of cultural identity and indigenous ethnicity. exclusion, stigmatization and poverty. It is however remarkable to find in academic and The Tahltan Nation is located in the northern business literature, that a diverse group of province of British Columbia in Canada and them have paved a path over which they have is inhabited by Aboriginal individuals of Tahl- overcome social adversity and limitations es- tan ethnic group, an ancestral group that has tablished within social paradigms that define occupied such territories centuries before the an individual and his indigenous collective. arrival of Europeans in Canada. Its reserve area is approximately 1.2 times larger than the Re- During the last week of November, a visit public of Panama and 13.5 times the Ngäbe was made to Panama by traditional indige- Bugle Region. Paradoxically, its population is nous authorities of the Canadian Tahltan 70 times smaller than population of the Ngäbe Nation to the Ngäbe-Buglé Region with the Bugle Region. Faced with these demographic purpose of exchanging experiences on how disparities, what at some time, these two indi- 9 these indigenous nations, through their agi- genous groups have shared are conditions of Legislación y Economía November 2017
life, governmental imposition and harsh condi- tions. Also, both groups received legal recog- nition of territorial possession and rights over their districts in close times; the Tahltan in 2002 and the Ngäbe Bugle in 1997; also, both regions have numerous natural resources such as water, mineral tourism and high biodiversity.
They share a similar structure of government (with congresses and cacicazgos) and in ge- neral characteristics that make it possible for bers of Tahltan Nation explained, their com- each one of them to exchange development munities 40 years ago were completely de- experiences. A characteristic that the Tahltan pendent on Federal Government of Canada, Nation doesn’t share with the Ngäbe Bugle po- isolated from civilization, with very limited pulation is that they are skilled businessmen, and limited opportunities for education and proactive investors with an organizational mo- decent work, forcing themselves out of their del that guarantees that a traditional central go- territories to be able to work or educate, very vernment is separated from its business struc- similar to the current conditions of the Ngä- ture and who, according to its own projection, be Buglé people and even with more adverse will become by 2030 in one of the most pros- conditions, if we consider the hardness of the perous and rich indigenous nations in Canada. Canadian winter in that region near the Arctic It is nevertheless notorious, that its leadership to The question that reader could ask himself allow development of various projects in its te- is: And why the difference? Perhaps Nation rritory, such as mining, hydroelectric, transmis- Tahltan inhabits in some extraterrestrial re- sion lines, forestry, hunting and fishing tourism, gion? Not so simple, but it is clear that fun- among others; they were acquiring benefits damental aspects of development of Tahltan for their population both in terms of education Nation have been based primarily on its tra- and training as well as economic payments or ditional governance structure. A stable model royalties for direct use of their natural resour- formed by a Traditional Central Government ces; or by shareholding in negotiated projects. and its implementing economic arm, called the Tahltan Nation Development Corporation It should be noted that when the company TNDC (TNDC) accountable, reliable and united, built was set up as the executing and business arm of for more than 30 years with who have acted Tahltan Nation, it is in charge of negotiating and unified as a Nation in defense, protection and establishing agreements (Aboriginal Business development of its people, and with its own Agreements, ABA’s) or as it is known in Latin self-determination, directing the bases of its America Economic Benefit Agreements (ABE) economic, social and political development. not only to provide any kind of services that are required in its territory and beyond for the pro- This model of government-business deve- jects that are developed, such as food and lod- lopment has led to a prosperous situation in ging, transportation, recruitment and training of Canada through which among its social be- personnel, trade to provide materials, services, nefits for its members dividends and sub- as well as everything related to prior, free and sidies to its population over 65 years, also informed consultation and the environmental enjoying full employment opportunities in and social studies required in compliance with addition to counting, of a high index of edu- federal, provincial and county law; if not also, cation, training and training to access jobs access to large-scale contracts directly related available in its territory and adjacent areas. to the construction of the project in question.
10 In essence, as part of the exchange, mem- Teachings of the Tahltan Nation don’t go Legislación y Economía November 2017
against development and protection and self- Comarca to face with better preparation determination of indigenous peoples, and are and leadership the opportunities and cha- applicable, with their adjustments to local in llenges that the 21st century brings. idiosyncrasy, culture and politics to any abo- riginal group in the world. We believe that the Ngäbe Buglé Region of Panama has the capa- city and potential to address and provide its so- cio-economic development autonomously and that through this visit it could be motivated to promote it based on its natural resources and in accordance with its ethnic, cultural and social.
To achieve this, we consider that:
1. There is no need to reinvent the wheel. Exis- THE AUTHORS: ting weaknesses in the Ngäbe Bugle People • * Hernán Ruiz. Biólogo y Magister con más de at all levels could be strengthened by taking 20 años experiencia trabajando con poblaciones advantage of successful experience of great aborígenes. Actualmente cursa un Programa de variety of indigenous nations in North Ameri- Doctorado en la materia. (hernanruizcastro@ ca that have self-managed and decided upon gmail.com) their own socio-economic development. • ** Alfredo Burgos Ingeniero Industrial y de Minas con más de 30 años involucrado en el sector 2. The Processes of Consultation, Prior, Free privado en áreas indígenas and Informed (CPLI) must continue becau- ([email protected]) L&E se they have allowed a strong empower- ment of the Ngäbe Buglé people which would put it in a favorable situation when negotiating possible investment projects.
3. Explore the possibility of creating a more agile and efficient model as a Traditional Go- vernment, favoring decentralization and au- tonomous regional processes in the Ngäbe Buglé Region with special emphasis on trans- parency, responsibility and accountability.
4. The Ngäbe Buglé population between 17 and 25 years of age needs growth spaces that allow an inclusive and participatory process aimed at planning a future according to the particularities and needs of each region (Nedri, Ño Kribo and Kodri). It is they with their energy and dynamism, ability and determination who can restructure and strive for a better future.
Their determination and as young voters, constitute a driving force that can trans- cend the old and rusty political and parti- san structures to take to the Ngäbe Buglé 11 Legislación y Economía November 2017
Norms of INTEREST
SPECIALIZED
SUPERIOR TECHNICAL Giovana del C. Miranda G. - Attorney INSTITUTE [email protected]
ith approval of Law 71 of Novem- ends and needs of the Panamanian social ber 8, 2017, the Specialized Superior reality, based on the integral knowledge Technical Institute for technical tra- of the natural, social and economic phe- Wining is created, which is made up of nomena and the practical investigation schools, departments, training pro- of these, in order to obtain for the coun- grams, administrative units, extension try the better benefits, with the training units, production and services. exis- of graduates who can respond to the ting or that are established in the futu- needs of the development of the Nation. re and that meet the development needs of both the Institute and the country. Law 71 establishes that the Institute will be autonomous, with legal personali- The Technical Institute will adapt its ty, academic, administrative, economic 12 plans, programs and activities to the and financial autonomy and patrimony Legislación y Economía November 2017
with the right to administer it, will fulfill its functions and will carry out its pur- poses through authorities, selected ac- cording to the norms established and oriented to the recognition of merits.
It is important to indicate that premi- ses, facilities and dependencies of the Institute will enjoy inviolability and will not be and can’t be accessed without the authorization of the educatio- nal manager or by written mandate of competent authorities and for speci- fic purposes and determined by law.
With regard to students, it has been es- tablished that income will be based on the principle of equal opportunities and free access to higher education to which applicants who meet the entry requi- rements and the bylaws are entitled.
The land and all movable or immovable property received by the Ministry of the Presidency will be transferred to the Ins- titute for construction and commissio- ning of the Superior Institute of the East, respecting the validity of agreements, opinions, resolutions, administrative acts and contracts. that have been made.
The creation of the Institute represents an advance in the struggle for criteria- based education to supply the lack of trained Panamanian personnel to deve- lop in specific areas, especially the te- chniques, I hope that it does not remain a dead letter and that it really meets the objectives for which was created. L&E
13 Legislación y Economía November 2017
HEALTHY FOOD FOR STUDENTS
Giovana del C. Miranda G. - Attorney [email protected]
s a preventive measure to prevent increase crimination of people with that condition. Aof sufferings derived from poor diet, Law 75 It will correspond to the Direction of Nutri- of November 15, 2017 was approved, which tion and School Health of the MEDUCA, to establishes measures to promote healthy ea- publish in places of public access of edu- ting and lifestyle in general and middle school cative centers a list of healthy foods to education centers , which will be subject to elaborate the lunch boxes or snacks that control and supervision of Ministry of Edu- students enter the educational centers. cation (MEDUCA), Ministry of Health, (MIN- SA), ACODECO and municipal authorities. On the other hand, MEDUCA will coordina- te with the universities that offer the nutri- Thus we see that the kiosks or cafete- tion career the assignment of students to rias will have three (3) months to com- develop professional practices that con- ply with recommendations derived from tribute to the prevention of overweight evaluation carried out by MEDUCA, who and obesity in schools and the investiga- will verify that all meet the requirements tion of the determinants of poor nutrition. established by the Ministry of Health. This Law in comment is in regula- The MEDUCA, MINSA and Social Security tion and we hope that the regulation Fund will develop in the educational cen- is valid for the next school year. L&E ters the establishment of programs of pre- vention and orientation of the illnesses associated with poor nutrition, which will emphasize a healthy lifestyle and avoid dis-
14 Legislación y Economía November 2017
NON MOTORIZED MOBILITY IS PROMOTED
Giovana del C. Miranda G.- Attorney [email protected]
n order to promote non-motorized mobility, priate conditions, public roads that are built Law 74 of November 13, 2017, on mobility of as of date must include construction of all Icycling in Panama, which establishes norms to elements of road profile, especially roadways, guarantee and favor non-motorized mobility, separators, platforms, green areas and other has been sanctioned, defining it as pedestrian elements that make it up as it is established. bicycle travel or other non-polluting media. On the other hand, it is established on October It establishes the Law that will correspond to 28 of each year as Panamanian cyclist’s day municipalities in coordination with the MOP, and last week of the month of January of each the MIVIOT and Tourism Authority of Pana- year, such as bicycle week, in which municipali- ma, elaborate and adopt sustainable mobili- ties will carry out activities in coordination with ty plans that must be in accordance with Te- Ministry of Health and Panamanian Institute of rritorial Ordinance Plan of the municipality. Sports to promote cycling in the country. L&E
In order to ensure the accessibility of people to mobility networks and transit under appro-
NATIONAL ENTREPRENEURIAL COUNCIL
Giovana del C. Miranda G.- Attorney [email protected]
hrough Executive Decree No.177 of No- It will be integrated by signatories of Na- Tvember 14, 2017, National Entrepreneurship tional Entrepreneurship Pact, who will have Council is created in Panama, which will coor- the right to speak and vote and must de- dinate and monitor implementation of actions signate their representative and alternate. proposed in the framework of the Social Pact, as well as the evaluation and presentation of They will be part of the Council, as ob- Results to society, will support work done at servers and international advisers, sig- tactical and operational level by the Ecosys- natories of the National Pact, the Uni- tem of Entrepreneurship in our country. ted Nations Development Program and the Center for the Promotion of Micro and 15 Small Enterprises in Central America. L&E Legislación y Economía November 2017
SANCTIONS INCREASE
Giovana del C. Miranda G.- Attorney [email protected]
he National Assembly of Deputies, pas- sed Law 70 of October 31, 2017, which Tmodifies Article 421 of Criminal Code, in sense of establishing a prison sentence of 18 to 24 months or its equivalent in days of fines or arrest on weekends for tho- se who by acts of cruelty cause death or seriously injure an animal used as a pet.
Before reform, sanction was from 100 to 200 days fines or community work, that is to say, the sanctions have been tighte- ned up by including prison sentence. L&E
16 Legislación y Economía November 2017
UBER AND SIMILAR TRANSPORT SERVICES ARE REGULATED
Giovana del C. Miranda G.- Attorney [email protected]
n October 31, 2017, Executive Decree No.331 cutive for a maximum period of six (6) months. was approved regulating the luxury transpor- tation service offered through information and Finally, we have that the companies, ow- Ocommunication technologies, which consists ners and drivers will have sixty (60) days of the transportation of land, selective and in- to comply with the new regulation and the dividual passengers, with comfort specifica- breach of the same entails the opening of tions, itineraries and special rates, requested a sanctioning process before the ATTT. and paid through technological platforms. Since we live in society, we must comply with It has been established that drivers must be rules of established coexistence that in a state over 21 years of age, have an E1 type licen- of law, presupposes equality, which is why we se, own the vehicle or be authorized by the considered it necessary to regulate the pro- owner of the vehicle and be registered in the vision of this transport service, called the ICT list of drivers of the technological platform. luxury transport service and that Although there are several applications we identify with Uber. For its part, company that provides informa- tion and communication technologies that users of this system know that it represents a allows contact between users and drivers of solution not only to public transport but also vehicles that provide the service, must main- to lack of spaces to park, since it is easier, tain a list of drivers and vehicles that use the cheaper and more relaxed to travel to our des- service, which must contain the general dri- tination in a safe and comfortable transport, vers and vehicles to take control of them. and that when arriving we don’t have to was- te time and money in the location of a par- It has been established, a joint and se- king lot. In Panama, users of selective trans- veral liability with the owners and drivers port or taxis suffer from abuse of taxi drivers of the vehicles that provide the service to who tend to refuse careers, or in same race the State, to the users and to third parties. they include third parties, which is prohibited by law and constitutes an abuse towards user. On the other hand, we see that during the first six (6) months from the enactment of the Decree That is why the user is highly receptive to the payment may be in cash and the term expi- service of UBER or other local companies 17 red, the measure may be extended by the Exe- that use similar technology platforms. L&E Legislación y Economía November 2017
Consult Doctrine & JURISPRUDENCE
AITSA CAN REDUCE PERIODS OF CONCESSION CONTRACTS OF COMMERCIAL SPACES BLOCKS
Source: Procuraduría de la Administración
ediante Consulta C-094-17 la Procuraduría de concesionados, a fin de que permanezcan ce- la Administración absuelve interrogante plan- rrados el menor tiempo posible y así evitar un teada por el Aeropuerto Internacional De Tocu- perjuicio al erario, la imagen del Aeropuerto In- Mmen, S.A. (AITSA), sobre la posibilidad que si ternacional de Tocumen, la empresa que lo ad- una empresa de capital 100% estatal haga en- ministra y el país; sin embargo, ello tendría que trega de todos los bloques de espacio comer- darse con posterioridad al perfeccionamiento ciales a los que se refiere la Licitación No. 004- del contrato, lo que incluye el refrendo por par- 17 CONCE, a partir del 1 de enero de 2018; y, que te de la Contraloría General de la República. se inicien las operaciones comerciales apenas estén listas las adecuaciones y permisos co- Señala el señor Procurador, que para ta- rrespondientes, aunque sea en un lapso menor les efectos es necesario realizar las correc- al periodo de gracia de noventa días estable- ciones a las cláusulas del Modelo de Con- cido en las bases de la mencionada licitación. trato que son contradictorias entre sí y con las Bases Administrativas de la licitación. Para absolver la interrogante planteada, la Pro- 18 curaduría sostiene que es factible y convenien- Estima la Autoridad, que aun cuando se esta- te reducir los periodos de entrega de los locales blezca un máximo de 90 días para realizar las Legislación y Economía November 2017
adecuaciones, desde que el concesionario reci- be el local hasta que lo entrega para su acepta- ción por parte de AITSA, ello no implica necesa- riamente que tiene que tomarse dicho periodo de tiempo de forma completa para la ejecución de las adecuaciones, es decir que, en caso de que el concesionario termine de adecuar el lo- cal en un tiempo menor, es del criterio que AIT- SA, una vez constatado que se ha cumplido con los presupuestos establecidos en el contrato y el pliego de cargos, permita al concesionario iniciar la etapa de explotación de la concesión.
En lo que respecta al modelo de contrato, indi- ca que el cronograma establece que la entrega de locales se hará de forma escalonada des- de el 1 de enero hasta el 1 de octubre de 2018. Agrega que de acuerdo con las Bases Admi- nistrativas del pliego, que es concordante con la Ley 22 de 27 de junio de 2006 sobre Con- tratación Pública, AITSA se encuentra facul- tada para pactar las cláusulas contractuales que considere necesarias para los fines que persigue la licitación, especialmente si ad- vierte que puede existir una paralización o afectación grave de los servicios públicos a su cargo, a fin de asegurar la inmediata, con- tinua y adecuada prestación de los mismos.
En consecuencia, si es necesario introdu- cir modificaciones al contrato, AITSA po- dría hacerlo de común acuerdo con el con- cesionario de que se trate, o bien, de forma unilateral siempre que esto se realice me- diante un acto debidamente motivado y exis- ta una negociación previa con el concesio- nario, la cual haya resultado infructuosa.
La Procuraduría de la Administración, concluye señalando que el periodo de 90 días dividido en 15 iniciales y 75 finales, no es un periodo de tiempo fijo sino parámetros máximos que los concesionarios deben respetar, pero que pueden acortar si ejecutan la obra confor- me a lo establecido en el pliego y el contrato y ATISA acepta la remodelación realizada. L&E 19 Legislación y Economía November 2017
WHO AFFIRMS THE PROVISION OF A LABOR SERVICE MUST PROVE IT FAIRLY, SO THAT IT DOESN’T ADMIT REASONABLE DOUBT
Judment Speaker: Magistrate Icela Wilson de García David Rodríguez - Legal Assistant [email protected]
SUPERIOR COURT OF LAW OF THE FIRST JU- defendant) regarding the worker’s starting DICIAL DISTRICT date as of day two (2) of November 2009.” Jorge A. Martínez F., legal representative of TViewed the worker at the time of notification of the aforementioned decision, filed an appeal. Panama, October 2, two thousand and seventeen The Board of Conciliation and Decision Num- Fixed the list term, appellant sustained the ber Seventeen (17), by means of sentence No. appeal, while the forensic firm Alfaro, Ferrer & 10-PJCD-17-17 of March 10, 2017, Resolves. Ramírez, legal representative of the company sued, filed a written opposition to the appeal. “FIRST: DECLARES THE UNFAIR DISMISSAL, Once the action has been reviewed, we don’t of worker ROSNER AMOR issued by com- find procedural pretermism or cause of nullity, pany CASH LOGISTICS, S.A. (DUNBAR IN- so we will proceed to resolve the controversy on TERNATIONAL) as it has been recognized the merits, following following considerations: by defendant in his brief of partial search. 1. Mr. Jorge A. Martínez F., in his capa- SECOND: As a consequence of said declara- city as legal representative of Mr. ROSNER tion corresponds to grant requested, RE-INTE- HODYN AMOR BUSTAMANTE, requests that GRATE AND FALLEN DOWN WAGES to worker. the company CASH LOGISTICS, S.A. be con- demned. (DUNBAR INTERNATIONAL) As a THIRD: Declares the worker start date of ROSNER basis for the application, it states that its re- AMOR with the defendant as of November 2, 2009. presentative worked with the defendant com- pany, from January 1, 1988 to July 7, 2016 FOURTH: In virtue of the fact that company canceled the indemnification, previously and 2. That it played role of Value-Hol- abided by provisions of Article 219 of La- der, of the values of clients of the com- bor Code, this Court approves acquiescen- pany. And it accrued as a fixed monthly 20 ce of claim presented by firm ALFARO, FE- salary the amount indicated in the letter. RRER & RAMÍREZ (Judicial Procurators of the After being summoned by defendant’s edict, Legislación y Economía November 2017
hed in the judgment, namely, on November 2, his legal representative granted power to fo- 2009, alleged by the defendant, and not the 1 rensic firm Alfaro, Ferrer & Ramírez, which in January 1988, alleged by the plaintiff. This Su- the act of the public hearing held on January perior Court warns, agreeing with the decision 30, 2017, answered the complaint in writing, of the Court that evidence brought to procee- denying first foundation, and accepting the re- dings by plaintiff doesn’t prove the existence maining two; noting as a reason for his refusal, of an employment relationship with the de- that worker began on November 2, 2009 and fendant before the date of November 2, 2009. ended on July 7, 2016 by letter of dismissal. It is worth pointing out that in face of total or par- In the response to complaint, legal represen- tial refusal of employment relationship, it weighs tative of the defendant also recorded acquies- on who affirms its existence, the burden of proof. cence partially to plaintiff’s claim; noting that Now, as the Supreme Court of Justice has al- his client has accepted that the dismissal of the ready pointed out, in repeated rulings, “Defini- worker was in breach of legal formalities, con- tely, that whoever affirms provision of a servi- sequently, accepts that it is “Unjustified”, and ce must prove it faithfully, in such a way that abides by the provisions of Article 219 of the evidence doesn’t admit reasonable doubt.” Labor Code, since it does not accept the refund However, he doesn’t accept that emplo- In the present case, plaintiff, in order to yment relationship started on January 1, prove existence of the employment re- 1988, as stated in application, but on No- lationship, contributed to the process: vember 2, 2009, so he proceeds to consign a Warranty Certificate for the amount corres- • The dismissal letter ponding to the indemnity, more a 25% sur- • Photocopy of a social security card of the charge on compensation, and fallen wages. worker • Photocopies of documents issued by the After the hearing, the Court A quo proceeded Individual Accounts Department of the Social to resolve the dispute raised, by means of Sen- Security Fund. tence No.10-PJCD-17-17 appealed by legal re- presentative of the plaintiff worker; who, in his Although it is observed that in the Social Securi- brief supporting the appeal, states as essential ty Card that rests on page 47, the amount of 281 reasons for his disagreement, that the Court A installments is recorded, which is equivalent to quo didn’t rule on the obligation to compensa- 23 years and months of services. Even when it te worker for interest that was generated from is considered as a working period with CASH date of dismissal (July 7, 2016) until date of LOGISTICS, S.A., (DUNBAR INTERNATIONAL). the search (January 30, 2017), which is aggra- vated by exoneration of costs; and also, that It also reflects that the worker worked in other amounts given to the worker, are of disadvan- institutions as: tage compared to the real salary that accrued. • National Brewery from 1985 to 1986. • He was in Sub/Professional Risk from De- It also states that continuity of plain- cember 1985 to November 2007. tiff is not recognized since January 1, • He also worked at Classified Invest and Se- 1998, and it is stated in judgment that curity Corp. from 2005 to November 2009. work start date is November 2, 2009. For what bad can then be regarded as such employer’s detail, as irrefutable proof. Contrary to what was expressed by the plain- Analysis tiff as evidence provided: The procedural evidence for the purpose of • Employment contract dated November 2, resolving, beginning with disagreement ex- 2009. pressed regarding the date of commencement With regard to the dissatisfaction of the plain- 21 of the employment relationship, establis- Legislación y Economía November 2017
tiff, refer to the fact that the defendant hasn’t been ordered to pay the interest provided in Article 169.
At the discretion of this Superior Court, the appellant party bears the same rea- son, as established in Article 169 of the La- bor Code, the interest of 1.0% per annum is: “from the moment the obligation is due” The reiterated jurisprudence has held, that it is necessary to recognize interests and surchar- ges from the moment of enforceability of the right, which is different from the date of the exe- cution of the sentencing sentence; and therefo- re with greater reason, the defendant acquies- ces to the claim of the plaintiff, and decides to compensate instead of reinstating the worker.
Decision
The foregoing merits modifying judgment in sense of condemning defendant to pay the in- terest provided in Article 169 of the Labor Code, generated prior to January 30, 2017, at which time the defendant acquiesces to the claim.
Finally, Superior Labor Court of the First Judi- cial District modifies judgment issued by the Board of Conciliation and Decision Number Seventeen (17) only in sense of CONDEM- NING defendant to pay plaintiff an amount in the form of legal interests and confor- med the sentence in everything else. L&E
22 Legislación y Economía November 2017
DANIEL LÓPEZ MIÑANO AND THE COMPANY COSTA ABAJO DEL CARIBE, SA, APPEAL AGAINST THE JUDGMENT OF SEPTEMBER 27, 2012, ISSUED BY THE FIRST SUPERIOR COURT IN THE ORDINARY PROCEEDINGS FILED BY THE COMPANY IBEROMANSUETO, SA, IN WHICH IT IS REQUESTED PAYMENT OF SALE PRICE OF PROPERTY IN THE PROVINCE OF COLÓN
Lidia Domínguez - Asistente Legal [email protected]
nder presentation of Judge Angela Rus- romansueto, S.A., decision that is appealed so, Room I, issues the Resolution of July 10, by the defendant, announcing evidence in 2017, which resolves the appeal filed by Da- second instance. The First Superior Court, Uniel López Miñano and the company Costa fails by Judgment of September 27, 2012, Abajo del Caribe, SA, against the Judgment confirming the judgment of first instance. of September 27 of 2012, issued by the First Superior Court in the ordinary process that follows the company Iberomansueto, SA CRITERIA OF THE ROOM The purpose of this society is to declare that Costa Abajo del Caribe, S.A. and / or The admitted cause is the background Daniel López Miñano, are obligated to pay and consists of the concept of error of the sum of B/. 220,000.00, as payment for law in assessment of evidence. The error the sale price of the farm No. 22,525, lo- consisting of erroneous assessment of cated in the Province of Colón, of which it a series of expert reports that in the opi- owns. The sale was made by Mr. López Mi- nion of the casacionists substantially in- ñano on behalf of Iberomansueto, S.A., to fluenced the dispositive of the resolution the company Costa Abajo del Caribe, S.A. that is censored. Articles 781 and 980 of the Judicial Code are considered infrin- This same farm was acquired by Ibero- ged, and Article 1082 of the Civil Code. mansueto, S.A. through purchase to Mrs. Yolanda Escobar de Jiménez, but the com- The same have to do with the reports ren- pany Iberomansueto, S.A., states that the dered by the experts who show that it was sum proceeds of this sale was not recei- Daniel López, the person who paid the sum ved by them. The 12th Civil Circuit Court, of B/. 220,000.00 for the purchase of the which is aware of this process, proceeds to farm No. 22,525 to Yolanda Escobar, when issue Sentence 104 of November 17, 2011, it was transferred by it to Iberomansueto, 23 acceding to the claim of the company Ibe- S.A. However, the First Superior Court con- Legislación y Economía November 2017
sidered that there was no reciprocal obliga- First Superior Court are not well apprecia- tion to compensate between López Miñano ted and that the appellants are right, since and Iberomansueto, S.A., in order to have the aforementioned evidence, contrary to obligation to pay sale price with respect to that expressed by the second-degree court, contract entered into between Iberoman- they clearly state that Daniel López Miña- sueto, S.A., and Costa Abajo del Caribe, S.A. no or Daniel López Molina, or both, paid or paid Yolanda Escobar the sale price of Farm The reports submitted by the experts re- No.22525, a sum that didn’t come from the flect that the payments made to Mrs. Es- coffers of Iberomansuato, S.A., but from the cobar for the purchase of the farm in favor bank accounts of any of the persons indica- of Iberomansueto, S.A., are made through ted or both, so there was no amount to pay checks from the bank account of Daniel Ló- to Iberomansuato, S.A., quite the contrary, pez Miñano. The assessment of the means having made a payment to the seller, by a of conviction made by the court of second third party, it is clear that a credit would be instance, notes that the study of the file born in In favor of said third party, against confirms that the argument brought at se- the buyer and upon the sale of said third cond instance on the compensation of the party the real estate, duly empowered to do debt it demands, is not presented as an ex- so, would arise reciprocal obligations that ception for not meeting the logical require- would be extinguished by compensation. ments necessary. According to Public Deed No. 21515 of October 5, 2007, Iberoman- The opposing party is of the opinion that sueto, S.A., sold to Costa Abajo del Caribe, compensation is not presented when one S.A., the farm No. 22525 and both the de- of the necessary legal requirements is fendant company and natural person sued, lacking, namely, that each party is the de- has no pending obligations to plaintiff. btor of the other and in the present case, if compensation is given, it would be with It also indicates that Iberomansueto, S.A. respect to López Molina and not of López didn’t receive any money as payment by Miñano, since the appellant has not ex- defendant for the property sold, although plained the reason why Daniel López Mo- third point of the aforementioned Pu- lina and Daniel López Miñano have acted blic Deed states that the sale price will be indiscriminately in two contracts of pro- canceled at the time of signing the Deed. mise and purchase, against the same per- son and with respect to the same good. On the payment, the appellant indicates that he has compensated the debt, in at- The contract supposes fulfillment of the tention to the payment made to Mrs. Yolan- promise of sale signed between Yolanda da Escobar for the same amount specified Escobar Jiménez and Daniel López Moli- in the deed of sale. The expert of the Court, na and the object of the benefits coincide expressed couldn’t obtain information that with those indicated in said contract. Now, could establish that Daniel López Miña- irrespective of the funds, responsibility for no paid in any way, delivered or deposited payments made in the name of Iberoman- the company Iberomansuato, S.A., on the sueto, S.A. Escobar Jiménez for the pur- amount that he said he had received from chase of the good falls on the person of Da- the hands of Costa Abajo del Caribe, S.A. on niel López Miñano. Thus, it turns out to be October 5, 2007. The Chamber considers Daniel López Miñano, the person to whom 24 that the considerations expressed by the the payment made to Yolanda Escobar Ji- Legislación y Economía November 2017
ménez for the purchase of the property 9, 2000 issued by the Supreme Court (In- No.22,525 on behalf of Iberomansueto, SA versiones Casco Antiguo, S.A.) is cited. It must be legally imputed, arising a loan in must be proven, without a doubt, that the favor of López Miñano vs. Iberomansueto, debtor or a third party paid the obligation S.A. Consequently, the Civil Chamber I, de- that is judicially claimed, which has not nies the claim of the plaintiff, after CASAR been proven since not even the payment the Judgment of September 27, 2012, utte- arrangement entered into between the par- red by the First Superior Court and acting ties and which supposed originated the as court of appeal REVOKE Sentence No. payments that are said made, it follows 104 issued by the 12th Civil Circuit Court that they would be made by a third party.
Article 1642 of the Civil Code provides VOTE SALVATION-MAG OYDÉN that the proof of payment rests with the ORTEGA DURÁN person who claims to have done so. For the above, I must state that, in the abs- La decisión adoptada por medio de la cual ence of certainty of the person who made The decision adopted by means of which the corresponding payment for the sale the Judgment of September 27, 2012, was of the Farm No. 22525, we can’t say that issued by the First Superior Court, contrary such payment was made by the Respon- to what was decided by the majority, I con- dent and as a consequence, that the alle- sider it appropriate to NOT CASE the appea- ged compensation of obligations indica- led Resolution, inasmuch as it is conside- ted by Mr. Daniel López Miñano was given. red that the charge of illegality denounced in the Appeal of Cassation presented by In this regard, the lack of evidence that the legal representative of the defendant the charge of illegality denounced through is not founded. The reasons that are based the Appeal of Cassation is founded is have to do with the assessment given by why it is estimated that the Judgment the Ad Quem Court in the Judgment sub- of September 27, 2012 issued by the ject to challenge to the Reports submitted First Superior Court was NOT CASE. L&E by the Accounting Experts, was correct.
It has not been proven through the test that any contractual legal relationship between Mrs. Yolanda Escobar and the company Costa Abajo del Caribe, S.A. is stated as undervalued, nor has it been proven in any way that Mr. Daniel López Miñano, nor the Sociedad Costa Abajo del Caribe, S.A., are creditors of the company Iberomansueto, S.A., for this reason, it is excluded any alle- ged existence of compensation of obliga- tions, which was invoked by the defendant.
Nor has it been fully demonstrated that any payment has been made for an employee. On this subject (compensation and pay- 25 ment for others), the Judgment of August Legislación y Economía November 2017
THE TAX ADMINISTRATIVE COURT CONFIRMS RESOLU- TION AND ITS CONFIRMATORY ACT ISSUED BY THE GEN- ERAL DIRECTORATE OF REVENUES OF THE MINISTRY OF ECONOMY AND FINANCE AND SANCTIONS THE TAXPAY- ER TO PAY A FINE FOR BREACH OF THE OBLIGATION.
Casilda Quiróz - Legal Assistant [email protected]
he lawyer Ricardo Martinez, acting on be- Article 1, where it mentions the formalities half of the taxpayer INVERSIONES CATY, that must be met for the issuance of invoi- supported an appeal against Resolution No. ces and supporting vouchers to document T201-9301 of August 20, 2012, and its confir- all transactions related to transfers, whether matory act by Resolution No. 201-4187 of 26 of personal property or provision of services. November 2014, both issued by the Directo- rate General of Revenues (DGI) of the Minis- RECONSIDERATION RESOURCE: try of Economy and Finance, in which it was resolved to sanction the taxpayer with pa- The legal representative of the taxpayer filed yment of a fine for breach of the obligation a Reconsideration Appeal, against Resolution to invoice according to the formalities es- No. 201-9301 of August 20, 2012, and based tablished by Law 76 of December 22, 1976, it on the following arguments, among others: modified by Law 72 of September 27, 2011. (i) that the taxpayer doesn’t generate the in- come required by the taxpayer; Tax standard, FACTS: since this place only works on Sundays and (ii) that its representative has been violated, in The first instance begins when the Tax Ad- this tax process, principles of legality, impar- ministration, in the exercise of its supervi- tiality and principle of contradictory evidence. sory authority ex officio, carried out an ocu- lar inspection of the establishment with the NON-COMPONENT REASONS: commercial name INVERSIONES CATY, where a series of tax infractions and irregularities The Tax Administration is the entity that must were observed which, in its opinion, impe- guarantee the declaration and collection of de due control by the Supervising Authority. taxes in compliance with the law, however, it is obliged to guarantee due process to the ORIGINAL RESOLUTION: alleged offenders. In this sense reference is made to the act that has served as eviden- In the first instance through Resolution No. ce to give a sanction that doesn’t contain a 201-9301, the firm determined that what version that proves the reasons why the tax- was mentioned in the Inspection Act made payer hasn’t been able to assume the cost on August 8, 2012, left as evidence that the of the required fiscal box, that is, that the taxpayer failed to comply with Article 11 of He himself was not heard by the Tax Judge. 26 Law 76 of December 22. of 1976, modified by Law 72 of September 27, 2011, based on Legislación y Economía November 2017
RESOLUTION RESOLVING RECONSIDERATION ce to assess or practice, the Court gran- RESOURCE: ted the term of five (5) business days from the date of notification to allow the par- When examining the Reconsideration Ap- ties to submit their written arguments. peal, no new elements were found in the file that could give the reason to appellant, it was EXAMINATION OF THE COURT: determined that the taxpayer didn’t have fis- cal equipment; and in accordance with ar- After analyzing procedural evidence, the court ticle 18 of Cabinet Decree No. 109 of May 7, noted that central issue of the file is the de- 1970, it is the duty of the appellant to prove termination of existence or not of a tax or the facts and norms that are favorable to him. tax violation, by virtue of the breach of a for- For all the above, the appealed Resolution mal duty that consisted in establishment was confirmed in all its parts, which deci- didn’t count or didn’t have a Fiscal Team. ded to sanction the taxpayer with a fine. On the other hand, in spite of the fact that in OF THE APPEAL RESOURCE: the process report elaborated by the exa- miner, general data of company, facts and Within appeal against aforementioned Resolu- alleged infringing conduct are detailed; it is tion, arguments stated in the appeal for recon- in the secretarial report that acceptance of sideration were reiterated, adding that taxpa- typical, unlawful and guilty conduct is ad- yer is exempt from the use of fiscal equipment mitted in a tacit manner when admitting its in accordance with provisions of Resolution non-compliance due to ignorance of proce- No. 201-2864 of March 2, 2012, where it was dure, which doesn’t need to be proved, as es- resolved that those taxpayers with income tablished in Article 150 of the General Proce- less than THIRTY-SIX THOUSAND BALBOAS dure Law number 38 of July 31, 2000, which (B/. 36,000.00) per year, would be tempora- states: “The facts affirmed by one party and rily exempted from implementation of these admitted by the contrary don’t require proof.” equipment, while the research that serves as a support for the final exceptions of the same. RESOLUTIVE PART:
Subsequently, the Director General of Revenue THE TAX ADMINISTRATIVE COURT confir- in charge, through his attorney presented a med the appealed Resolution and its confir- written opposition in term, where rejected ar- matory act, dictated by the General Revenue guments used by appellant in his appeal, in- Directorate of the Ministry of Economy and dicating that taxpayer accepts responsibility Finance and sanctions the taxpayer for the for the lack of compliance with the provisions payment of a fine for breach of the obligation contained in Law 76 of December 22, 1976. to invoice with the formalities established by Law N . ° 76 of December 22, 1976, modified Subsequently, and in absence of eviden- by Law No. 72 of September 27, 2011. L&E
27 Legislación y Economía November 2017
THIRD ADMINISTRATIVE CONTENTIOUS ROOM DECLARES NULL AND ILLEGAL A RESOLUTION ISSUED BY THE MINISTRY OF PUBLIC WORKS THAT HATED COLITE PANAMA, S.A. WITH THE PAYMENT OF B/. 50,000.00.
Ailen Galván - Legal Assistant [email protected]
contentious-administrative lawsuit of FROM THE ACTING PART full jurisdiction was filed by the com- pany COLITE PANAMA, S.A., in order to de- The plaintiff estimates that Resolution No. Aclare null, as illegal, Resolution No. 015- 015-12 of January 23, 2012 and the confir- 12 of January 23, 2012, issued by the matory act issued by the Ministry of Public Ministry of Works Public, confirmatory Works is null and void because the literal “o” act, and for other statements to be made. of Article 3 of Law N has been violated. ° 35 of 1978 as well as Law No. 11 of 2006 that mo- This impugned resolution fined the company difies the previous one that reorganizes the COLITE PANAMA, S.A. with B/.50,000.00, for Ministry of Public Works, which refers to the infringing what is regulated by Law N ° 11 competence of said state entity to impose pe- of April 27, 2006, and for keeping their bill- cuniary sanctions on those who fail to com- boards installed in road servitude, after the ply with their own laws or regulations. of the term of ninety (90) days referred to in Re- competence of the Ministry of Public Works. solution of Mere Obedecimiento N ° 002-11 of January 05, 2011. Likewise, through the For what they consider that the company CO- administrative act attacked, it was gran- LITE PANAMÁ, S.A. is not responsible for the ted to the company COLITE PANAMÁ, S.A. a charge that was made by the Ministry of Pu- term of fifteen (15) calendar days to cancel blic Works through the contested acts, sin- fine imposed, and otherwise proceed to co- ce, they consider that the term of ninety (90) llect the same through coercive jurisdiction. days, granted to COLITE PANAMÁ, S.A. by the regulations, to dismantle advertising structu- This act was maintained by the Minister of res, it didn’t pass due to the provisional sus- Public Works through Resolution No. 61 of pension order decreed by the Third Chamber July 5, 2012, where the governmental chan- against Resolution No. 106-08 of December nel was exhausted, so that after this by Re- 12, 2008, issued by the Ministry of Public solution of March 9, 2015, the Third Cham- Works, and the same only began to run once ber decreed the provisional suspension of the suspension ordered by the Chamber cea- Resolution N ° 015-12 of January 23, 2012, sed, with which the company fully complied issued by the Ministry of Public Works, ha- with its legal obligation to dismantle the bill- ving complied with all the budgets that boards within the established regulatory term. must concur so that the provisional sus- pension of the demanded act may proceed. It is also considered violated literal “b” of se- cond article of Resolution N ° AL-002-11 of 28 Legislación y Economía November 2017
January 5, 2011, issued by the Ministry of Pu- Ministry of Public Works previously challen- blic Works; and, numeral 4 of article 52 of the ged by the company COLITE PANAMÁ, S.A. Law N ° 38 of 2000, which orders immediate Company COLITE PANAMÁ, S.A. filed before removal of all those structures and adverti- the Third Chamber, contentious-adminis- sements located within the road and rain ea- trative action of full jurisdiction against Re- sement at the national level, that are without solution No. 106-08 of December 12, 2008, approval of the road for keep them installed. issued by the Ministry of Public Works, which rejected as untimely the feasibility Considering that Third Chamber had suspen- application submitted by company to main- ded the effects of the resolution that had re- tain installed billboards built nationwide. jected the request of COLITE PANAMÁ, S.A., in order to declare viable the maintenance In said contentious administrative procee- of the advertising structures installed by the dings, Third Chamber ordered the provi- company, the term of ninety (90) days to dis- sional suspension of effects of Resolution mantle the billboards started at the moment No. 106-08 of December 12, 2008, by de- when the Judgment of December 30, 2011, cision of June 30, 2009, which was notified which suspended provisional suspension by means of an Edict fixed on day 2. July granted by the Third Chamber, was enforced. 2009. Likewise, through Oficio N ° 1491 of 2009, the Ministry of Public Works was re- And finally considers that numeral 4 of Article quested to submit the respective conduct 52 of Law No. 38 of 2000, which establishes report; however, said entity didn’t sub- the vices of absolute nullity in administrative mit a written document in said process. acts, was violated directly by omission, since the company COLITE PANAMÁ, S.A. opportu- The administrative process of full jurisdic- nely used the term of ninety (90) days that tion in question culminated with the issuan- was granted by the regulation to dismant- ce of the Judgment of December 30, 2011, by le the billboards, with which the defendant which the legality of Resolution No. 106.-08 act incurred in an absolute nullity cause. of December 12, 2008, issued by the Minis- try of Finance, was declared. Public Works. DECISION OF THE ROOM Therefore, it is noted that the basis of the ac- With filing of its application, the company CO- tion filed by the company COLITE PANAMÁ, LITE PANAMÁ, S.A. requested the Chamber to S.A. against defendant entity lies in the exis- suspend the contested administrative act. tence of a precautionary measure previously issued by the Third Chamber of the Supreme The legal representatives of the plaintiff state Court of Justice - by which the administra- that with Resolution No. 015-12 of January tive action of the Ministry of Housing was 23, 2012, the Ministry of Public Works intends suspended, which rejected outright the via- to sanction the company COLITE PANAMÁ, bility request of billboards that maintained S.A. for not complying with the obligation to the company at national level, which is why dismantle the billboards that he kept insta- it wasn’t applicable to Resolution of Mere lled, within ninety (90) days that were granted Obedecimiento No. AL-002-11 of January 5, by the Resolution of Mere Obedecimiento No. 2011, issued by the Ministry of Public Works, AL-002-11 of January 5, 2011, not knowing which obliged dismantling of fences adver- that said The term was to be counted from tising that remained installed, within nine- the execution of the judgment of the Third ty (90) days of its publication in the Official Chamber, which ceased the provisional sus- Gazette N ° 26696-B on January 6, 2011. pension of the effects of a decision of the 29 Legislación y Economía November 2017
Therefore, the Chamber concludes that term of ninety (90) days ran from the execution of the Judgment of December 30, 2011, in this way, it is evidenced that the Administration didn’t apply in due form the content of the Re- solution of Mero Obedecimiento No. AL-002- 11 of January 5, 2011, issued by the Ministry of Public Works, as regards the situation of the company COLITE PANAMÁ, SA, obvia- ting that the Third Chamber had provisiona- lly suspended the Resolution No. 106-08 of December 12, 2008, issued by the Ministry of Public Works, which rejected the application for viability submitted by the company COLI- TE PANAMÁ, SA because it was untimely. to keep installed billboards built at the national level, which is why the company could only be sanctioned for the violation of the Reso- lution of Mero Obedecimiento No. AL-002-11 of January 5, 2011, after the nineties expired ( 90) days referred to by the regulatory stan- dard, as of the execution of the Judgment of December 30, 2011, which declared the lega- lity of Resolution No. 106-08 of December 12, 2008, issued by the Ministry of Public Works.
Reason why it is DECLARED THAT IT IS NULL, BY ILLEGAL, Resolution No. 015-12 of January 23, 2012, issued by the Ministry of Public Works. L&E
30 Legislación y Economía November 2017
Politics Rafael Fernández Lara - Abogado Independiente [email protected]
PRESIDENTS OF COLOMBIA BORN IN PANAMA
For 321 years the Isthmus of Panama was subjected to the Spanish Empire, until we broke bonds when a Panamanian movement emerged on November 10, 1821, led by Segundo Villar- real, which resulted in the independence of the Villa de los Santos, which had support from other towns such as Natá de los Caballeros, Penonomé, Ocú, Parita, precipitating in a decisive way the independence of Panama from Spain.
The definitive independence of Panama from who were President of the Republic of Colombia. LSpain was crowned on November 28, 1821, when Panama immediately joined voluntarily The first of the presidents born in Panama du- to Gran Colombia, which at that time included ring the Colombian period was José De Obaldía the present territories of Colombia, Ecuador y Orejuela, who was born in Santiago, Provin- and Venezuela and was presided over by Simón ce of Veraguas, Viceroyalty of Nueva Granada Bolívar, who he contributed categorically in the on July 19, 1806. He graduated as a lawyer at independence of the isthmus for his ideals and the Central University of Bogotá and Then he authority in the independence campaigns of ventured into political life. He participated in South America, coupled with this the discon- the legislative chamber of Colombia, held the tent of the santeña society, against the abuses position of Governor of the Isthmus of Pana- of Spain, the tax burden of war, political ha- ma in 1845 and was Senator of Veraguas in rassment and stagnation of mercantile business. 1849 where he created the Province of Chiriqui in the From 1830, separations of Ecuador and Ve- same year, through the Law nezuela arose, which led to disintegra- of May 26, 1849, being one tion of Greater Colombia, since both Vene- influential person in Co- zuelans and Ecuadorians wanted greater lombian politics. He stood autonomy within their territories, whi- out for his impressive ora- le Panama remained in Greater Colombia. tory, which made him wor- thy of the nickname “peak From November 28, 1821 to November 3, 1903, of gold”, belonging to the that is, for 82 years and until our independen- Liberal Party of Colombia. ce from Colombia, there were three presidents His liberal ideals led him 31 born in the territory of the Isthmus of Panama to exile in Heredia, Cos- Legislación y Economía November 2017
ta Rica, from 1869 to 1876, where he taught. Pérez Dávila, better known as General Tomás Herrera, remembered and connoted military The renowned politician, Don José Vicente del and liberal neogranadinan politician, who exce- Carmen de Obaldía y Orejuela, who was his full lled in the battlefield. He was born on Decem- name, was appointed Vice President of New ber 21, 1804 in Pana- Granada in 1850 by Congress. He occupies ma, Viceroyalty of New Presidency of Colombia provisionally from Oc- Granada. His parents tober 14, 1851 to January 21, 1852, while José were Juan de Herre- Hilario López was absent during this period, ra y Torres and María when the independence of the slaves and the Francisca Pérez Dávi- end of slavery were declared. After two years, la. He married Ramo- before the overthrow of President José Ma- na Urriola de Herrera. ría Obando, carried out by José María Melo, He had six children: he was Provisional President of the Republic Adela Herrera, Rosau- from August 5, 1854 until January 21, 1855. ra Herrera, Francisco Herrera, Carmen He- As Vice President, Obaldía and Orejuela had rrera, Ezequiel Herrera the opportunity to hold the Presidency of the and Clara Herrera. In Republic on several occasions, occupying it 1821 he began in the on more occasions than Generals Tomás He- military service and rrera and Joaquín Riascos, both of Panama- participated in count- nian origin. During the exercise of power, he less and famous ba- supported the diversity of projects that fa- ttles in Peru, in the vored the Isthmus of Panama, among them Junín, the Ayacucho, which made meritorious the creation of the Federal State of Panama, to be in the Gallery of General Libertadores of which, as President of the Constituent Assem- Peru and Bolivia. He fought in Cauca in the re- bly, approved and signed the fundamental law volution of 1840, in Tunja, in Nemocón, in the of that State, the first to acquire sovereignty battle of Petaquero in Concepción, in the War in the process of the federation in Colombia. of the Supreme and the Colombian Civil War, among others. He was promoted to the rank The liberal leader contracted nuptials with Ana of Captain in 1826, two years later to Lieute- María Gallegos Candanedo, a native of David, nant Colonel and then Coronel in 1830, after Chiriqui, with whom he had four children, one of which he was finally promoted to General. He them José Domingo De Obaldía, who later once was in charge of the headquarters of the Ge- achieved the independence of the Isthmus of neral Staff of Cundinamarca, and was Gene- Panama from the Republic of Colombia in 1903, ral Commander of the Isthmus of Panama. He was elected the second Constitutional Presi- dent of the nascent Republic of Panama in 1908. On November 18, 1840, a Popular Board was established in Panama for the separation of The politician, lawyer and Colombian liberal Panama from the Republic of New Granada, of Panamanian origin died on December 28, under the denomination of Free State of the 1889, being 83 years old, in David, Chiriqui, Isthmus. Tomás Herrera, as its President, ma- Colombia, leaving a descent worthy of collec- naged to get Costa Rica and the United States tive affection. Today there is in David, Chiri- to recognize the new country, but it only las- quí, the old Museum of History and Art José ted 13 months because after months of ne- de Obaldía Orejuela as a legacy to history gotiation, the government of Bogotá convin- and the Founder of the Province of Chiriqui. ced Colonel Tomás Herrera to reintegrate the Isthmus. Despite committing not to retaliate 32 Tomás José Ramón del Carmen de Herrera and against the separatists, the government of Bo- Legislación y Economía November 2017
gotá did not comply and Tomás Herrera was 1833 in La Chorrera, Province of Panama, Repu- banished and erased from the military ranks. blic of New Granada, son of Lieutenant Colonel Joaquín Riascos, highly esteemed by Bolívar, a The impressive career of General Tomás He- native of the Province of Popayán and defen- rrera includes having been Governor of Pa- der of the ideals of liberalism, nama in 1845, after his return to political life. and of the Mrs. Paulina García Later he was Minister of War and Navy, Mi- de Riascos. From very young nister of the Presidency, Governor of the Pro- his life was spent in Cartagena, vince of Cartagena and in 1850 received the then in Santa Marta and Villa de rank of General and member of the National la Ciénaga, dedicating his family Congress. He was elected Senator, occupying to agricultural and commercial the presidency of said corporation and he activities. He contracted ma- had to sign the National Constitution of 1853. rriage with the esteemed lady Concepción Jimeno Munise, General Herrera was the second President cultured lady of the best socie- of the Republic of New Granada born on the ty and of great moral virtues. Isthmus of Panama, occupying that position on April 21, 1854. General Herrera was elec- His first military participation ted appointed to the Presidency of Colombia occurs in the Revolution of 1860; then in the in 1854 when he was a member of Congress. siege of Santa Marta and in the battle of An- Upon the overthrow of President José Ma- tioquia in 1862, where his liberal army suffe- ría Obando, Tomás Herrera declared himself red a defeat in Santo Domingo in front of the in exercise of executive power until August 5, troops of the conservative army led by Ge- 1854, when he transferred the command to neral Braulio Henao; As a result of the defeat the elected Vice President José de Obaldía, suffered, General Riascos was taken prisoner who was also born on the Isthmus of Panama. for eleven months in the prisons of Medellín. He also participated in the defense of the li- The ponderous General Tomás Herrera passed beral cause in the Colombian Civil War in 1860 away very young, at 49 years of age, on Decem- - 1862. General Riascos, whose most noto- ber 5, 1854 in Bogotá, Republic of New Granada, rious virtue was honesty, stood out in politi- to be seriously injured at the corner of the Pam- cal activity having been Deputy and President plona and Bárbula avenues in the Bogota shot of the State of Magdalena on two occasions. where José María Melo was defeated. It is im- He was a Senator and Representative in di- portant to note that on July 15, 1855, the Isth- fferent opportunities, including that of Third mian Convention ordered that one of the State Appointed to the Presidency of the Republic. Departments be named HERRERA in homage to the memory of the illustrious soldier-citizen. On April 29, 1867, the President and General Tomás Cripriano de Mosquera, three times Pre- General Tomás Herrera, a Panamanian and a sident of the Republic of Colombia, dissolved brave soldier, is undoubtedly one of the most the National Congress. General Riascos didn’t important people of the Isthmus in the 19th recognize the decision of Mosquera and was century and one of the founders of our na- elected as Provisional President from May 12 tional identity. In honor of General Herrera, to June 28, 1887. According to the Magna Carta today there is the Plaza Herrera in the Cas- of Río Negro (1863), the Presidents replaced the co Viejo of the capital city, to ennoble this formal appointees and also the Presidents of outstanding and conspicuous Panamanian. the different states, as was the case of Riascos, who at the time was the President of the State General Manuel Joaquín de Santa Isabel Rias- of Magdalena This was an unusual case, be- cos García was a soldier and politician of the cause the First Appointed General Santos Gu- 33 Liberal Party. He was born on November 19, tiérrez replaced General Mosquera while he was Legislación y Economía November 2017
absent and traveling in A Colombian steamer in 1875 at the age of 42 in San Juan del César, British waters, faced with the uncertainty of the defending Rafael Núñez, his political boss. moment, General Riascos assumed command, and General Riascos lasted 47 days, until Ge- By remembering these three distinguished neral Santos Acosta took office with full recog- Panamanians who occupied the Presidency nition of the other powers. of the State, which of the Republic during our voluntary incorpo- made General Riascos resign on June 28, 1867, ration to Colombia, we intend to avoid their respecting the constitutional order. subject of a oversight in order to ensure that we transcend trial for responsibility before the highest Justi- their knowledge to current and future gene- ce Corporation, but the National Congress later rations, expanding our knowledge of history exonerated him of all kinds of responsibility for and the Panamanians who were protagonists. his performance and recognized them as legal. This gives the importance and recognition de- The Panamanian General born in La Cho- served to his vision as politicians, that Panama, rrera appears in the Gallery of the Presi- sooner or later enter to form part of the concert dents of the Republic of Colombia as well as of sovereign nations. During our period as part the two Colombian presidents, Herrera and of Colombia, the three stood out for their manly de Obaldía, born on the Isthmus of Panama. actions during the difficult moments in which they temporarily occupied the Presidency of Finally, General Manuel Joaquin de Santa the Republic. They are worthy examples that Isabel Riascos died in combat on August 8, strengthen our national identity and are a sym- bol of heroism and glory for our country. L&E
Metropolitan Ópera Panamá CENDRÍLLON @metopera507
sábado 28 de abril 2018
11:5 5 a .m .
34 Legislación y Economía November 2017
Panamanian
Source: Contraloría General de la República
ÍNDICE DE PRECIOS AL CONSUMIDOR ECONOMY
he groups that most influenced year-on- year percentage variation of the National • The National Urban CPI for October with TUrban CPI for October 2017 with its 2016 respect to September 2017, reflected a va- similar, were: Education with 3.6%; Trans- riation of -0.2%. portation with 2.5% and Health with 2.4%; However, group of Food and non-alcoholic The groups that showed decreases in the beverages that has highest weight in the National Urban CPI for October with res- CPI, presented a negative variation of -1.3%. pect to September were: Transportation with -0.7%; Food and non-alcoholic beve- The monthly evolution of the National Ur- rages with -0.4%; Furniture, articles for the ban CPI of October 2017, compared to De- home and for the ordinary conservation 35 cember 2016, registered a variation of 0.5%. of the home with -0.3%; Alcoholic beve- Legislación y Economía November 2017
rages and tobacco, Clothing and footwear, fés and similar establishments” with 0.2 %, and Recreation and culture, all with -0.1%. due to the increase in the price of meals and non-alcoholic beverages outside the home. In the Transport group, two of its seven classes showed decreases. The greatest variation was The group Housing, water, electricity and gas in the class “Fuels and lubricants for personal registered an increase in one of its eight classes, transport equipment” with -3.1%, due to the “Gas” with 1.5%, due to the increase in price of decrease in the price of fuel for automobiles. the 100-pound gas tank. In Health group they reflected increase of two of their seven clas- The decrease observed in the group Food and ses, “Other medical products” and “Artifacts non-alcoholic beverages, was due to decrease and therapeutic equipment” both with 0.1%. registered in eight of its eleven classes. Grea- test variation was in the “Oils and fats” classes The increase recorded in the class “Artifacts with -1.0%, due to the reduction in the price of and therapeutic equipment” was the product vegetable oil and “Meat” with -0.9%, mainly of the increase in the price of lenses. Increase due to the decrease in the price of chicken. observed in the group Miscellaneous goods and services was influenced by the increa- Decrease reflected in the group Furniture, ar- se in three of its ten classes. The class with ticles for home and for ordinary conservation the greatest variation was “Other appliances, of the home, was due to decrease in six of its articles and products for personal attention” eleven classes. The class with the greatest va- with 0.3%, due to the increase in the price of riation was “Non-durable goods for the home” personal care articles and beauty articles. with -1.0%, caused by the reduction in the price of cleaning and conservation products. • National Urban CPI for October 2017 with respect to its 2016 similar, reflected a varia- The group Alcoholic beverages and tobac- tion of 0.5%. co registered reduction in two of its four classes. The class with the greatest varia- When comparing the National Urban CPI of tion was “Distilled beverages” with -1.5%. October 2017, with its similar of 2016, the fo- llowing increases were observed: Education The decrease presented in the group 3.6%; Transportation 2.5%; Health 2.4%; Hou- Clothing and footwear, was due to the sing, water, electricity and gas, and Miscella- drop in one of its four classes, “Shoes and neous goods and services both 1.4%; Res- other footwear” with -0.3%, by the reduc- taurants and hotels 0.8% and Recreation and tion in the price of shoes, slippers and san- culture 0.1%. The groups that showed decrea- dals for women . The Communications and ses were: Food and non-alcoholic beverages Education groups remained unchanged. -1.3%; Clothing and footwear, and Communi- cations both -0.8%; Furniture, articles for home Groups with positive variations were: Restau- and for ordinary conservation of home -0.2% rants and hotels with 0.2%; Housing, water, and Alcoholic beverages and tobacco -0.1%. electricity and gas, Health, and Miscella- neous goods and services, all with 0.1% The Next, graph with the monthly incidence by group increase presented in the group Restaurants of the Urban National IPC of October of 2017: and hotels was the result of the increase in one of its two classes, “Restaurants, ca- 36 Legislación y Economía November 2017
Incidence: corresponds to the contribution of each group with respect to the total variation of the National Urban Index, therefore, the sum of the incidents results in the variation of the index.
TABLE 1. INCIDENCE AND MONTHLY PERCENTAGE VARIATION OF THE PRICE INDEX TO THE URBAN NATIONAL CONSUMER, ACCORDING TO THE GROUP OF ARTICLES AND SERVICES: OCTOBER, 2017
37 Legislación y Economía November 2017
AGREEMENTS SIGNED BETWEEN PEOPLE’S REPUBLIC OF CHINA AND THE REPUBLIC OF PANAMA
John C. Cheng C. - Socio de Impuestos Grant Thornton Cheng y Asociados
he visit of President Varela and the dele- promoting Panamanian exports to China. gation to the People’s Republic of China du- Tourism would be boosted with inclu- ring last month of November, concluded with sion of the country as an approved tou- Twhat could be said a positive balance, since rist destination, driven by relaxation of nineteen (19) Agreements and a Joint De- visas for Chinese citizens and an agree- claration were adopted, giving way to a new ment that provides basis for establishing era in the relationship between Panama and direct air routes between both countries. China, and also feel a new diplomatic, eco- nomic, commercial and tourism for Panama. Panama and China, as key players in mari- time and port sector at global level, finali- In economic and commercial matters, a poli- ze an agreement on maritime cooperation, cy has been formalized for the promotion of which grants status of Most Favored Na- investments, financing of development and tion and which will allow further strengthe- infrastructure projects, and the bases and ning registry of ships from Panama. L&E conditions have been laid for facilitating and
MEMORANDUM OF UNDERSTANDING (MOU its acronym in Eng- 1lish) FOR THE PROMOTION OF TRADE AND INVESTMENT Commercial promotion agreement that formalizes a policy of commercial exchange between both countries, facilitating the opening of Panamanian exports to China.
Content: Formalizes bilateral assistance policy to attract investment from China to Pan- ama and facilitates opening of Chinese market for Panamanian exports, making strategic al- liances between Panamanian exporting companies and Chinese entrepreneurs, achieved dur- ing the first trade mission, a reality from Chinese entrepreneurs to Panama. It is expected to generate great sales potential in exportable Panamanian production.panameña exportables.
38 Legislación y Economía November 2017
2 CHINA DEVELOPMENT BANK Panama and the Development Bank of China (China Development Bank) estab- lish a platform for collaboration in economic, commercial and financial matters, which lay the foundations for the financing of large infrastructure projects in Pana- ma and the establishment of a recognized headquarters of this Bank in the country.
Content: The agreement creates a platform for collaboration in economic, commer- cial, productivity, investment and financial matters between China and Panama; establish- ing an effective communication and information exchange mechanism. It also establishes the bases for the promotion and financing of large infrastructure projects of the government of Pan- ama, including highways, bridges, power plants, airports, ports, logistics parks, among others.
Similarly, it lays the foundations for the next establishment of a headquarters of the Develop- ment Bank of China in Panama.
3 MOU OF COOPERATION WITH EXIM BANK Panama promotes investment by Chinese banks in infrastructure projects in the country, and lays the foundations for the establishment of regional offices of Exim Bank in Panama.
Content: Agreement that formalizes cooperation mechanism between Panama and Bank of Imports and Exports of China (Exim Bank), with whom Panama has already handled projects that generated important social and economic benefits in various sectors. Thus, the space for the long-term support of Exim Bank in the financing of national projects in infrastructure, energy and social projects is opened. China will grant aid for 200 billion dollars to Panama.
4 FTA FEASIBILITY MOU Panama and China initiate a FTA.
Content: MOU by which Panama and China initiate a Free Trade Agreement between both countries, recognizing the importance of deepening and boosting trade, and economic opportunities and complementarities that open the doors to a closer commercial and economic relationship.
39 Legislación y Economía November 2017
MOU OF COOPERATION IN PRODUCTIVE 5 CAPABILITY AND INVESTMENT Both countries will encourage investment and strengthening in areas of infrastructure, energy, logistics, agricultural sector, among others.
Content: Framework agreement by which Panama and China will promote production capacity and cooperation in areas of common interest, especially: construction and operation of infras- tructure, service industry, including ship navigation; industrial zones and economic cooperation; manufacturing; agriculture and food processing; among others with an immediate initial amount of 10 billion dollars in these sectors.
For this, both countries make up a Steering Committee led by the Ministry of Economy and Fi- nance (MEF), by the Panamanian side, and the National Development and Reform Commission (NDRC), by the Chinese side.
As part of the Agreement, both countries will encourage companies and other organizations to carry out cooperative actions and projects, mutually agreed upon, through the following moda- lities: direct investment; joint ventures, construction; management and transfer; contracting of projects; equipment supply; joint study; exchange of experiences; technology exchange; techni- cal support; among others.
MOU ON DEVELOPMENT OF SANITARY AND 6 PHYTOSANITARY MEASURES This phytosanitary MOU will allow Panama to adopt measures to make its products suitable for export to the Chinese market.
Content: This is a Memorandum of Understanding between competent authori- ties for facilitation of compliance with phytosanitary measures according to agree- ments signed by both countries within the framework of the World Trade Organization.
7 ETESA AND EXIM BANK Exim Bank will grant financing for the development of electricity transmission projects by sector companies in China dedicated to this sector.
Content: As an export promoter, Exim Bank will grant financing to ETESA for the direct or indi- rect purchase of Chinese products and services for projects of the national energy plan.
40 Legislación y Economía November 2017
8 ETESA Y BANK OF CHINA The Bank of China will grant short and long-term financing facilities for electricity transmission projects through ETESA.
Content: An agreement whereby the Bank of China and ETESA expand their commercial rela- tionship in the interests of financing electric development. In this regard, the Bank of China will support investment projects of the Government of Panama in terms of electricity transmission, and includes the potential granting of long-term facilities to finance the investment plan of ETESA.
9 AGRICULTURAL COOPERATION MOU This agricultural cooperation MOU could contribute to improve agricultural and livestock pro- duction capacity of Panama, necessary for export to Chinese market.
Content: This is an MOU between competent authorities for development of agriculture and live- stock, which leads to the export of agricultural products from Panama to China. It includes tech- nical cooperation and exchanges of experiences on germplasm, food safety of plant and animal origin, sanitary and phytosanitary regulatory system, land use and soil nutrition, irrigation of farm- land and water saving, agricultural environment and climate change, animal nutrition, diagnostic technology in the agricultural sector, protected horticulture, agricultural processing and logistics, and related areas in the form of joint research projects, technical guidance and other activities that can increase the capacity for marketing and application of research and research results.
MOU FOR ECONOMIC, COMMERCIAL AND 10 INVESTMENT COOPERATION A Joint Commission led by the Ministries of Commerce of both countries is established to strengthen and promote bilateral cooperation in the field of economy, trade and investment. A Joint Commission will be established.
Content: For this purpose, both parties have designated as liaison the Ministry of Commerce and Industry of the Republic of Panama and the Ministry of Commerce of the People’s Republic of China. Its main functions will be to review compliance, examine the progress of projects as well as promote and strengthen Economic, Commercial and Investment Cooperation between both parties. 41 Legislación y Economía November 2017
MOU FOR COOPERATION IN ECONOMIC AND 11 COMMERCIAL ZONES Panama and China strengthen special economic zones, prioritizing cooperation in logistics, storage, processing, manufacturing, industries, technology, services, among others. There will be an investment in the Colon Free Zone for more than 3 billion dollars in new infra- structure and one billion in construction of hotels within it.
Content: In order to strengthen economic development and the promotion of industrial de- velopment, and in view of the complementary advantages of both countries, they will establish a framework of economic and commercial cooperation to strengthen the segment of special economic zones, on the basis of mutual benefit. , equality and reciprocity. Priority areas of cooperation may include logistics, storage, processing, manufacturing, indus- tries, high technology, services, among others.
12 APPROVED TOURIST DESTINATION STATUS Panama receives the status of Approved Tourist Destination by China, which should significantly increase the entry to Panama of Chinese tourists, the largest tourism market in the world and with the highest rate of expenditure. It is estimated that only Chinese tourism could leave more than two billion dollars to the Panamanian economy.
Content: Panama acquires the status of Approved Tourist Destination by the People’s Re- public of China, through which group travel by Chinese tourists to Panama is facilitated through designated/authorized travel agencies. This is in addition to the recent implementation of stamped visa system of multiple entries and departures for up to three years for Chinese cit- izens. This would further incentivize Chinese tourists to Panama, being that the People’s Re- public of China is the largest tourist country in the world and ranks among the five countries with the highest tourist spending, according to the World Tourism Organization (UNWTO). China appreciates the tourism of casinos that supposes income by more than 4 billion additional dollars for 2020 in Panama in this tourism sector.
13 AIR TRANSPORTATION AGREEMENT Panama and China signed the establishment of direct air routes. Both na- tions may include up to three destinations in each country, opening the space for the establishment of commercial flights and/or cargo between both countries. 42 Content: Agreement by which both parties are granted traffic rights to open new routes to and from Panama or the People’s Republic of China. Any designated airline may enter into coopera- Legislación y Economía November 2017
tive marketing agreements such as the exchange of codes or blocked spaces, which will in- crease trade between both countries.
China will build a mega cargo airport in Panama City at a cost of 10 billion dollars for giant cargo aircraft of the latest generation, including refrigerated warehouses for agricultural products from Chiriquí.
14 AGREEMENT IN MARITIME COOPERATION Agreement through which Panama receives the status of *Most Favored Nation*, which means that ships with Panamanian registration will receive benefits and priority in ports of the People’s Republic of China.
Content: Grants to Panama the benefits in port tariffs and preferential treat- ment that nowadays receive vessels of international registrations, that will be ap- plied to Panamanian flag ships that arrive at ports in the People’s Republic of Chi- na, which increases the attractiveness of the flag of vessels by the Republic of Panama.
The Agreement also contemplates reciprocal recognition of seafarer titles issued by Panama and China, as well as their temporary disembarkation at the time of touch- ing ports in China and Panama. Likewise, cooperation agreement will serve as a ve- hicle for the exchange of information to improve merchant marinas of each country. China will build some ship construction plants on both coasts of China, as we know it is already building a cruise port at the entrance of the Panama Canal in Amador at a cost of 700 million dollars.
MOU OF COOPERATION IN THE FRAMEWORK OF THE ECONOMIC FRAMEWORK OF SILK ROUTE AND MARITIME 15 INITIATIVE OF SILK ROUTE OF THE 21ST CENTURY Panama adheres to the Chinese initiative of the Silk Route, enhancing its role as “the great con- nection” with the Panama Canal and a possible railroad to the western border.
Contenido: Seeks the exchange and integration of development and planning policies; fa- cilitate connectivity through the construction of infrastructure; promote free trade; financial integration; and the development of people-to-people ties. The initiative includes land routes (the “Strip”) and maritime routes (the “Route”), which is incorporated into the Panama Canal; where China is one of the main users and one of railway transport system that will be built in Panama to Chiriqui. The accession of Panama to the Strip and the Route is aligned with the role played by the country in region and the world as “the great connection” that will be en- 43 hanced by inclusion of the interoceanic route to it, further enhancing maritime trade world. Legislación y Economía November 2017
MEMORANDUM FOR A RAILWAY 16 TRANSPORTATION SYSTEM China will pay for the Panama-David passenger and freight transport system, and initiates stud- ies on the project, which would consist of a last generation train that would arrive from province of Chiriqui to Tocumen Airport and cargo center to be built.
Content: The aim is to establish the conditions between the Republic of Panama and the Peo- ple’s Republic of China on Rail Transport System, one of the priority areas of cooperation between both countries, with the intention of contributing to the geographical and commercial integration. The Agreement allows to take advantage of the extensive experience and technological develop- ment of companies of the People’s Republic of China in rail transport systems that, in turn, provide comparative advantages for the benefit of citizens. The value of this work is 2 billion of dollars.
LEASE AGREEMENT FOR REAL ESTATE 17 AND LAND Content: In view of the principle of reciprocity, parties agreed on the conclusion of an agreement between both governments on the lease of real estate and land for the location of respective diplo- matic missions. Said lease shall be for a period of 70 years, from the entry into force of Agreement. This Agreement lays the foundation for permanent establishment of said diplomatic missions. China delivered real estate leased by a yuen but whose value in dollars totals more than 150 million dollars, embassy in Beijing has 7 floors and more than 3 thousand square meters of construction.
COOPERATION FOR DEVELOPMENT - 18 SEMINAR FOR JOURNALISTS It seeks to strengthen communication on the impact of diplomatic relations between both coun- tries, as well as mutual promotion of countries, their attractions and culture.
Content: More than twenty journalists will benefit from an exchange with authorities and counterparts of the People’s Republic of China.
ECONOMIC AND TECHNICAL COOPERATION 19 AGREEMENT People’s Republic of China grants non-reimbursable cooperation for execution of develop- ment projects framed in the National Cooperation Plan - Panama Coopera for 5 billion dollars.
Content: Non-reimbursable cooperation agreement for an amount of RMB 100 million for the development of human resources, framed in the National Plan for International Cooperation, coordinated by the Ministry of Foreign Affairs. Through agreements, work plans and mixed work 44 commissions, the nature and details of the projects to be developed will be determined. Legislación y Economía November 2017
MONTHLY INDEX OF ECONOMIC ACTIVITY, SEPTEMBER 2017
Source: CGRP
he Monthly Index of Economic Ac- The transport and communications ser- tivity (IMAE) in the Republic, for the vices showed good results, mainly due Taccumulated period of January - to the favorable behavior of the net tons September 2017, grew by 5.58%, com- of the Panama Canal and the move- pared to the same period of 2016. ment of containers measured in TEUs of the National Port System; They also During the period indicated, the catego- provided telecommunications and in- ries of economic activity that showed ternational passenger transport by air. the greatest increase were: transport, storage and telecommunications (inclu- Category of manufacturing industries pre- ding canal, ports and aviation), electrici- sented a positive rate, with growth in ac- ty and water. Other branches that had a tivities such as alcoholic beverages and favorable incidence, but at a lower rate, elaboration of food products, paperma- were the public administration, the ma- king, preparation of non-metallic products nufacturing industry, financial interme- for construction and metal products. diation, private education, legal services and community activities (including ca- On the contrary, manufacture of plastics, sinos and games of luck and chance). textiles and printing, registered negative rates. The agricultural sector registered With a slight growth in the period were a slight growth in some activities such as hotels and restaurants, agricultural ac- raising of chickens and pigs, cultivation of tivities and trade. On the other hand, bananas and the production of natural milk private health and fishing registered for the production of derived products. decrease. The interannual monthly va- riation of September 2017, compared On the contrary, there were negative rates in to the same month in 2016, was 4.44%. the breeding of cattle and in watermelon, me- lon and pineapple crops, mainly for export. One of the most important categories in the economy was the commercial activity, The categories of construction and exploi- which registered a positive variation, mainly tation of mines and quarries presented a due to the increase in wholesale trade, favorable behavior, due to the construc- which is favorably affected by the Panama tion generated by the public sector, co- Pacific Special Economic Area, however, the rresponding to Line 2 of the Metro, urban Retail registers a slight negative variation. renewal in Colón, the resumption of health sector projects, the third bridge over the 45 Legislación y Economía November 2017
Canal, the expansion and improvement of the country’s road network, as well as im- portant private sector projects, mainly the construction of a natural gas power plant and another for mineral processing, in the district of Donoso, province of Colon .
The category of electricity and water regis- tered an increase, benefited by hydraulic generation, also, by the invoiced consump- tion of potable water. At the same time, thermal and wind generation decreased.
The provision of amusement and recreation services (community activities) showed positive results, due to the increase in in- come from gross bets in gambling halls of luck and chance, mainly, horse riding ac- tivities, sports betting rooms, sports halls bingo and slot machines type A; however, there was a decrease in the gaming tables.
Public administration, private educa- tion and financial intermediation (inclu- ding banking and insurance) also grew.
Other service activities that presented a po- sitive behavior were: hotels and restaurants, and private homes with domestic service.
The fishing activity showed negative varia- tion, due to the lower catch of export-orien- ted species, including fish, fillets and other seafood such as crustaceans and molluscs; however, shrimp registered increase. L&E
46 Legislación y Economía November 2017
BUSINESS MEETING
PANAMA-INDIA Ivana Herrera- Attorney [email protected]
n the past of November 1, the Panama-India munications, shipbuilding, aviation and tourism. Business Meeting was held, organized by the India represents a great opportunity for Pana- OChamber of Commerce, Industries and Agricultu- ma and even for the rest of Latin America. At re of Panama (Cciap) and the Embassy of India. the meeting the Prime Minister of India, Suresh Prabhu, expressed his enthusiasm to make Pa- In the meeting were the president of the Cham- nama his ally in the region, with Panama being ber of Commerce, Industries and Agriculture of a logistics hub where it would be the station to Panama, Inocencio Galindo; the President of receive medical equipment and services and the Federation of Exporting Organizations of In- then be sent to others Latin American countries. dia (FIEO), Ganesh Kumar Gupt, Udaya Bhaskar Ravi, Chairman of the Council for the Promo- Within the framework of the celebration of this new tion and Export of Pharmaceutical Products of alliance, Rivera Bolívar and Castañedas is prepa- India, the Ambassador of India Shamma Jain; ring for the challenge that comes with the deve- Indian Trade Minister Suresh Prabhu, Panama- lopment of these new investments to our country nian Minister of Commerce and Industries, Au- through the permanent updating of the evolution gusto Arosemena; and the Head of Promotion of this relationship between our country and In- of Investments and Exports (Proinvex) of the dia. and for its part, the Chamber of Commerce Ministry of Commerce (MICI), Alberto Alemán. of Panama constitutes the liaison par excellence between the private sector of Panama and India. During the activity a Cooperation Agreement was signed between the presidents of the FIEO In Rivera, Bolívar and Castañedas we are pre- and the CCIAP, to promote the development of pared to advise entrepreneurs of our country projects and trade in sectors of mutual inter- and the brother country of India regarding the est such as logistics, storage and shipping. Cooperation Agreement subscribed, as well as Followed by a brief presentation by head to promote business opportunity between both of Investment and Exports Promotion of ends. Our advice in the fiscal, commercial, la- the MICI about opportunities that inves- bor, migratory, intellectual property, health re- tors have in Panama and its advantages. cords, among others, translates into protec- tion and security in your transactions. L&E India is the second most populous country in the world after China, both being conside- red as the emerging Asian economies; with a solid growing economy, the third largest GDP (gross domestic product) in the world accor- ding to the International Monetary Fund (IMF).
India’s economy is based on various sec- tors, including agriculture, crafts, tex- tiles, manufacturing, pharmaceuticals, biotechnology, nanotechnology, telecom- 47 Legislación y Economía November 2017 World
Source: ECLAC
CHINA AND ECLAC STIPULATE THEIR COOPERATION TO PROMOTE TRADE AND INVESTMENT WITH LATIN AMERICA AND THE CARIBBEAN ECONOMY
n the framework of a tour of China, the (ECLAC), who traveled to China on behalf Director of the Division of Productive of Alicia Bárcena, Executive Secretary of Iand Business Development, and Officer the regional organization of the United Na- in Charge of the Division of International tions, met with Deputy Minister FANG Ai- Trade and Integration of ECLAC, Mario Ci- quing of the Ministry of Commerce of the moli, met with authorities of the Govern- Republic. Popular China (known as MO- ment of that country and participated as FCOM, for its acronym in English), which keynote speaker at the International Exhi- was also attended by GU Xueming, Pre- bition of China and Latin America and the sident of the Chinese Academy for Inter- Caribbean (CLAC Expo), one of the largest national Trade and Economic Cooperation business meetings between both areas. (Chinese Academy of International Trade and Economic Cooperation, CAITEC) and 48 The official of the Economic Commis- others high level officials of the Ministry. sion for Latin America and the Caribbean Legislación y Economía November 2017
At the meeting, Cimoli and FANG discussed process suitable for all economies in their the mutual importance of the links between different modes of development,” he said. ECLAC and the Asian country and com- mented on the possibility of holding a mee- In his presentation, Cimoli stressed that this ting of Ministers of Latin America and the year exports of Latin America and the Ca- Caribbean and China at the ECLAC head- ribbean to China are expected to grow 23%, quarters in Santiago. of Chile, to encoura- which more than doubles the total ship- ge greater cooperation on trade and inves- ments to the world in general (10%), as well tment issues between the region and China. as to the same Latin America and the Ca- ribbean region (10%), Asia (17%), the United Meanwhile, at the opening of the CLAC Expo States (9%) and the European Union (6%). held in the city of Zhuhai, Mario Cimoli made He also spoke about the need to strengthen a presentation to an audience of more than multilateralism and move towards stron- 800 government authorities, academics gly integrated development processes. and senior executives from the business world of China and Latin America and the “The integration between the region Caribbean, in which he highlighted the crea- and China must be oriented towards tion of this meeting that allows the products the creation of an inclusive globaliza- of our region to be known in the Asian giant tion and supporting the 2030 Agen- and thus have a window with greater visibi- da and the Sustainable Development lity. “This is a strong proof of China’s poli- Goals of the United Nations,” he said. L&E cy for inclusive globalization and a growth
49 Legislación y Economía November 2017
RESTRICTIONS IMPOSED ON INTERNATIONAL ANKING AFTER THE CRISIS CAN REDUCE GROWTH PERSPECTIVES IN DEVELOPING COUNTRIES
Source: World Bank
World Bank report published today warns generates risks of exporting instability, espe- that growing restrictions imposed after the cially in the case of countries that have defi- A2007-09 crisis on international banks ope- cient regulations and institutions, and those rating in developing countries are hampering risks must be mitigated. But without a compe- growth prospects by limiting the flow of finan- titive banking sector, the poor will not be able cing that companies so badly need. and homes. to access basic financial services, many com- panies will be excluded from the markets and International banking can generate important the developing countries will stop growing “. benefits for development, but it is not a pana- cea and carries risks. The regulatory authori- Bank financing is essential to have a dynamic ties of developing economies should look for private sector, especially to strengthen small ways to maximize the benefits of cross-border and medium enterprises. Developing coun- banking while minimizing the costs involved, tries can maximize the benefits of a stronger according to the Global Financial Development banking system and, at the same time, protect Report 2017/2018: Bankers without Borders. themselves from risks by improving the ex- change of information through credit history The crisis of 2007-09 and consequent econo- records, actively demanding compliance with mic slowdown led to a broad reassessment of contractual and property rights. , and gua- the benefits and costs of international ban- ranteeing the strict supervision of the banks. king, and led to the application of restrictions that put an end to a decade characterized by Resurgence of banks in developing economies the boom in globalized financial services and While the banks of the advanced economies loans. cross-border However, the report points retreated after the crisis, those in developing out that developing countries may need to economies adopted a bold policy and expan- reconsider the value of international banks ded beyond their borders: in effect, they ac- as essential instruments to access global counted for 60% of new banks that entered the credit and achieve faster economic growth, market since the economic slowdown began. even if they must continue to manage risks. As a result, banking relations between deve- “As the aspirations continue to increase world- loping countries and regionalization of inter- wide and the banking sector evolves, there is national banking operations have intensified. a basic question: will finance be an ally or an For example, Ecobank of Africa was incor- enemy in the fight to end poverty?” Declared porated in Togo and currently operates in 33 the president of the World Bank Group, Jim countries of the continent. In addition, it has 50 Yong Kim. “International banking undoubtedly offices in Paris, Beijing, Dubai, Johannesburg Legislación y Economía November 2017
and London, which allows it to attract capital If it proceeds as it should, allowing the entry of from rich countries to invest in all of Africa. foreign banks and expanding the financial ope- ning - within the framework of well-functioning At the same time, total size of assets of the capital markets - can generate systemic bene- world’s largest banks increased by 40%, rai- fits, such as increased financial stability, com- sing concern that regulatory measures adop- petitiveness and resilience to economic shocks. ted since the crisis have failed to address the risk posed by banks that are too large for break. The report also examines both the rewards and the risks of rapidly expanding financial te- Faced with greater uncertainty about bene- chnology that works globally and across bor- fits of openness, many countries have reacted ders through digital products, with examples with distrust to recent expansion of the most ranging from companies such as M-Pesa, the important international banks by restricting platform for Kenya mobile money, up to Len- the operations of foreign banks. Almost 30% ding Club, the private-equity loan company. of developing countries have established res- These technologies can accelerate transactions, trictions on branches of foreign banks. These reduce costs, improve risk management and restrictions are depriving many economies of extend financial services for underserved po- the opportunity to access international credit pulations. However, they also pose risks linked that could benefit businesses and households. to the lack of protection networks, the possible abuse of personal data and electronic fraud. “Opening up to international banking does not guarantee financial development or stability,” “While the developing countries suffered colla- said World Bank Research Director Asli De- teral damage caused by the global financial cri- mirguc-Kunt. “But numerous research studies sis, the benefits of openness are too great to be show how, if adequate policies and institutions ignored,” said Shanta Devarajan, senior director are in place, it can be guaranteed that openness of Development Economics at the World Bank. will lead to greater competitiveness, help miti- gate local economic crises and expand access “To achieve the levels of economic growth that to the scarce capital needed to promote growth”. are needed to end poverty, it is essential to have a competitive and stable financial sector.” L&E
51 Legislación y Economía November 2017
PERCENT OF LATIN AMERICANS ARE IN FAVOR OF ECONOMIC 77% INTEGRATION
Source:IDB
he IDB Inter-American Development Bank países de la región. through its Institute for the Integration of La- tinT America and the Caribbean (INTAL) in part- - 9 out of 10 Latin Americans agree that wor- nership with Latinbarometer presented the re- kers can work freely in any country. sults of the research “The techno-integration of Latin America: Institutions, exponential tra- - 78 percent believe that globalization is an de and equity in the It was about algorithms opportunity for economic growth. “, that each year is done to measure the per- ception of Latin Americans on various topics. - Social inclusion and poverty were identified as the main concerns of Latin Americans in Between July and September 2017, more the development agenda. than 20,000 interviews were conducted with citizens of 18 countries in the region - Nearly 80 percent believe that income in- to find out their opinions regarding econo- equality is unfair in their country. mic and political integration, new techno- logies, social equity, and the environment. - 44 percent believe that society would be better if it were made up of people of the same Among the main findings by subject, include: nationality.
Economic and New technologies and environment: social integration: - 4 out of 5 Latin Ameri- cans believe that science ·77 percent agree and technology are a threat with economic inte- to employment. Artificial gration and 62 percent with political integra- intelligence and robotics tion with other countries in the region. generate marked resistan- ce; only 24 percent trust - 77 percent of Latin Americans are in favor that these technologies of the free exchange of goods and services will create more jobs than they will destroy. with countries in the region. The Mercosur countries show on average greater support for - 88% consider that to move in the current free trade (80 percent).El 77 por ciento está de world it is essential to know how to use the acuerdo con la integración económica y el 62 internet and 77% prioritize universal access 52 por ciento con la integración política con otros to this connectivity, including the develop- Legislación y Economía November 2017
ment of basic infrastructure such as roads.
- However, only 2 out of 10 would be wi- lling to move in a vehicle driven by a ro- bot, or to be surgically treated at a distance.
- Internet users and social networks are the ones that most support regional inte- gration, are more concerned about pro- blems of environment and climate change.
- The environment and climate change are second among concerns of all interviewees.
- 7 out of every ten Latin Americans consider that the problem of climate change must be fa- ced even at the expense of economic growth.
The INTAL-Latinobarómetro alliance was created three years ago as part of the IDB’s Regional Public Goods Program (BPRs). With this publication, INTAL of the Department of Integration and Trade of the IDB, makes a contribution to the cons- truction of a regional agenda that seeks to generate consensus in favor of a sustaina- ble development with equity. L&E
53 Legislación y Economía November 2017
Idalia Ballesteros - Assistant [email protected] Ilustrious PEOPLE ral farm in the area of In total he spent ap- JOSÉ ALBERTO PEPE Rincon del Cerro whe- proximately 15 years MUJICA CORDANO re he lived in a very of his life in prison José Alberto Mujica Cordano, better known modest and where he and during one of by all as Pepe Mujica was born on May 20, was engaged in the armed confronta- 1935 in the neighborhood of La Arena in cultivation of flowers. tions he was woun- Montevideo in a family of Spanish and ded by six bullets. Italian descent Near year 1962 he He attended pri- clubs and in all ca- decided to leave the Mujica was released mary and secondary tegories, his begin- National Party and in 1985 and a few school and public nings in politics were became one of the years later, together high school in the due to an uncle (his founders of the Po- with some leaders of neighborhood whe- mother’s brother) pular Union, during the MLN and other re he was born, then who prompted him same decade he joi- left parties, created started to study Law, to enter the tradi- ned the Tupamaros the Popular Parti- but because of things tional National Par- movement and par- cipation Movement of destiny never fi- ty, where He mana- ticipated in several (MPP) within the nished his career. ged to be secretary guerrilla operations Frente Amplio, where of the youth sector. where he was ap- in 1994 elections he For several years du- prehended on seve- was elected as De- ring his adolescen- In 2005 he married ral occasions, four puty of Montevideo ce Pepe practiced Lucia Topolansky, (4) exactly, he esca- and then in 1999 he cycling, competing after living for many ped twice from the was elected senator. 54 on behalf of several years in a small ru- Montevideo prison of Punta Carretas; Legislación y Economía November 2017
sident, he always did it in second class; It should be noted that he always used his 1987 Volkswagen model valued at $ 1,800; he donated 90% of his salary to social work.
Pepe Mujica or also called during his term “the poorest president in the world” remai- ned constant throughout his term. It has been characterized not only in Uruguay but in the rest of the world by speeches that go beyond what we tend to hear from high-ranking peo- ple. In 2012, in a speech at the Summit on Sustainable Development of Rio + 20, he said: In the 2004 elections, he was the senator with “We don’t come to the planet to develop our- most votes acquired, however, he resigned to selves, only in general. We come to the planet assume the Ministry of Livestock, Agriculture to be happy. Because life is short and it goes and Fisheries as of March 1, 2005, since he away and no good is worth more than life.” was appointed by the then President Tabaré Vásquez; Then on March 3, 2008, he resigned And then in 2013 before the General Assembly his post and returned to his seat in the Senate. of the United Nations (UN) again pronounced on the market and consumer civilization:”... it In December 2008 the Frente Amplio held would seem that we are born only to consu- the Extraordinary Congress “Zelmar Micheli- me and consume and when we can’t, we carry ni” in which it was proclaimed as a candidate with frustration, poverty and self-exclusion.” for the 2009 internal elections; in June 2009 he was elected with 52.02% of the votes as Mujica maintained macroeconomic guide- the sole candidate for the Presidency by the lines outlined by previous administration, Frente Amplio. In the elections held in 2009, these guidelines were what allowed Uruguay one on October 25 and the other on Novem- year after year to increase its gross domestic ber 29, were winners Pepe Mujica as presi- product, as well as increase consumption ca- dent of the Republic and Danilo Astori as vice pacity of Uruguayans. During his government, president, a position he assumed on March an opening to the world was also promoted, 1, 2010 at the Legislative Palace under Oath creating a favorable environment for local received by his own wife, Lucia Topolans- investment and mainly foreign investment. ky, for being the first Senator of the Nation. During his mandate, laws were also passed President Mujica was the first tupamaro to that caused great controversy but in turn succeed in climbing in Parliament and the spoke of the expansion of individual rights General Assembly and the first to beco- and freedoms towards people, as were the me a minister before becoming president. following: in October 2012, the Law that authorizes abortion was approved. of the After assuming the Presidency, Mr. Mujica woman, then in May of 2013 the marriage of instead of moving to live in the presidential people of the same sex is approved and fi- residence of Suarez and Reyes with his wife, nally regularization of consumption, culti- vation and commercialization of marijuana. decided to stay at his residence in Rincon del Bibliografía Wikipedia.com https://www.quien.net/pepe-mujica.php http://www.asamblea.gob.pa/ www.elpais.com. Cerro, which implied improvements in terms of security and communications of housing. At the end of 2013 the British wee- 55 refers. When he had to travel while still pre- kly “The Economist” designated Uru- GS Magazine February 2014
guay as the country of the year for its We can mention that in addition or rather be- particular recipe for human happiness. hind the simple and humble man Pepe also made unpopular decisions that were not liked Uruguay, which has a little over three million by his people, one of them was the authoriza- RUNNING TITLE RUNNING inhabitants, is the least inhabited country in tion to the Finnish paper mill Botnia to increase Latin America and currently has the best le- its annual production by 20% generating new vels of equality and the highest human de- disputes with Argentina who threatened to velopment index. It is also one of the coun- appeal again to the International Court of The tries with the lowest corruption index. To this Hague. There were even those who called it in- day Uruguay is only surpassed by Chile in efficient and coherent, and indicated that Muji- per capita income in Latin America, Uruguay ca jumped from topic to topic without knowing is close to the standard of living of Portugal what was his highest priority. There was talk and is already almost a “developed” country that education was not going well, however, bordering the $ 18,000 per capita income. there are achievements to highlight during its management such as good management The governments of Tabaré Vázquez and of the economy, improvements made to the Pepe Mujica have taken Uruguay to a time of health system and concern for social issues. prosperity that perhaps they had never known before, where poverty was reduced from more President Muiica always maintained an than 30% to just over 10% of the population. open dialogue with the people of his town, When President Muiica began his govern- so he was clear on what his needs were, he ment, he identified as priorities four (4) axes was never an untouchable leader and that to build State policies, with the participation kept him closer to the people of his town. of the traditional opposition parties: educa- tion, security, environment and energy deve- He was always a grateful president with lopment. An innovative and ambitious reform his people and it was clear that he had the of the State was proposed, with a new pu- power because they had decided so for elec- blic administration, based on the New Zea- tions. He always used phrases like “nobo- land model, a country comparable in size. dy is more than anyone”, and in his farewell speech he said: “Dear people, thank you President Muiica was characterized by being a for your hugs, criticism, love and, above all, president totally different from those who used thanks for your deep fellowship every time to see, always looked relaxed and poorly dres- I felt only in the middle of the Presidency...” sed or walk in shorts and flip flops during the hot summer of the River Plate, lined up with his card in the clinics to be attended by a doctor.
56 lers of our country and the entire world. entire the and ru country our the of for lers followed be to example make the him undoubtedly Uruguay, procured that growth economic the and scandals rruption co without government American Latin a of president as trajectory his sense, social His “ classes... between distances the reduce to help that policies in work must they poor,but can’t equalize the differences between rich and about generating jobs for their people... States the things that I like... all the leaders must worry do to time have to happymoney, haveam to I happier not am I change; cultural a is rruption co against battle real “The phrases: minent the Parlatino Assembly some of the most pro We can also mention about his participation in a matter of justice, but of democratic security.” just”. He also mentioned that “inequality is not in resources and at the same time the most un ca declared that “we live in the continent richest During his speech at Parliament.the UP’s American Auditorium, Latin Muji the of Assembly He also participated as a speaker in the Ordinary Caribbean”. the and America Latin in equity pective of democratic development and social “Pers entitled speech keynote the gave and Doctorate from the University of Panama (UP) Causa Honoris the received also He America. Latin in figure social and political a as ments in Grado de Cruz, Guerrero,as an exaltation of his Amador achieve Manuel Order the with decorated was and country our visiting was Mujica Pepe President former days, recent In L&E ------GS Magazine February 2014 57
RUNNING TITLE GS Magazine February 2014 RUNNING TITLE RUNNING
PANAMA IN HIS FIRST WORLD CUP APPOINTMENT
Javier Said Acuña - Attorney [email protected]
n October 10 of this year, before for 4 decades we have gone through a full Rommel Fernandez Stadium, all kinds of emotions, triumphs, Oclassification of Panama was defeats, disappointments, har- materialized, for first time, to a sh eliminations in the hexagonal World Cup, an event organized by phase, among other experiences. FIFA, the summit of world football, which currently attracts the best Qualifying to a World Cup is no 32 soccer teams of the planet. small thing, there are more than 200 National Teams bidding for The road has been long, there have the same goal, either direct qua- been many generations of footba- lification or repechage, which for llers, like Cascarita Tapia, Nivaldo 2018 World Cup Russia knoc- Sports Capsule Acuna, René Mendieta, Rommel ked out the likes of Holland (di- Fernandez, Tátara Guevara, to rect stage) or Italy (in repechage). name a few, national and foreign coaches, sports leaders, fans, cu- Hence, current generation of soc- rrently called “Red Tide” (Marea cer players led by their Captain and Roja), private company that has hero, Román Torres, have achie- 58 invested in national football, which ved a historic milestone in terms egbrod, urnl tee r seve humblest are our there currently from neighborhoods, players of up is made Selection, our of ground breeding The countries. those of each of leagues but the team, national their that support fans only not the and structure better gues, lea- have national good tradition, countries soccer more nearby lower the Other in divisions. as league, professional its in both football, national our to structure more give sport and strengthen best to world, the the in all in by participate who used those be should conjuncture The countries. respective magnitude their this of representing meeting a best to their football bring will few, a name to Ca- vani, Iniesta, Ramos, Sergio Ro Messi, Neymar, as naldo, such planet the pla on best yers the unique, is opportunity The what it is capable of doing in the World Cup. of known billions make and world by the around people watched be will that case show- global this of most the make should Cup is a very short tournament, our country World organization, its of Tunisia.Because and England in Belgium, with along was G, Group Panama 1st. December on took groups place Cup World the for draw The century. a than more of tradition football a with countries from teams face will they re whe 2018 15, July and 14 June between Russia in held be to edition Cup World Cup 21st the of the for classified be and step up sports, Panamanian and football of - - - - show that we are up to the ment FIFA achieved. World In Cup. June 2018, it will be time to A whole Nation is very proud of the achieve enjoy the experience as all, far Aboveas requiresthe it trip allows. how appointment an serenity, poise and temper that is needed for the greatest success, to play with the calm, Team, National the of boys our wish I sia, our been in participation the 2018 World Cup in Rus- has achievement greatest The mat ches to leave play High the name of our country. to out go and personality with play we way, better a in respected are we Selection of level the pla- at and of abroad, export yers the natio- in its league, of leap football level nal the important at years an recent in taken has Panama ways. better in participate can we which dustry that moves large amounts of in money, an plan is football Today better national. football and investments bigger better make and well to company, private as the as Federation, Football namanian Pa the State, the allows legal that framework a surely academies, football better and more facilities, sports more need We Europe. in even leagues and in Panama practice of outside who players of ber num- growing increasingly and important an have also We League. Football manian Pana our to them take and them train ones to youngest the of skills the polishing are that academies or trainers schools, ral GS Magazine L&E February 2014 - - - - - 59
RUNNING TITLE GS Magazine February 2014 RUNNING TITLE RUNNING
Ana Sofía Corrales [email protected]
elling a story of However, as we can positively overcoming, tho- mark the life of an unknown se great experiences person, we can mark it nega- with happy endings, tively, so we have to know how are stimulating... to behave outside and insi- butT in the end, how many be- de our homes, since someo- lieve in these stories? How ne will always be watching us. many actually motivates them? The answer is simple: to many, That is why we support sport so because we are warriors. much, because from the hum- blest corners great athletes have With just getting up every day emerged who are an example and to work for the family, crystalli- an inspiration for many, to emer- ze trips, fight for goals, without ge and fulfill dreams and goals. realizing we inspire someo- ne else. And that’s the beau- And that is the great satis- ty of living, without realizing faction of tomorrow. Fight it we mark lives of strangers. for what we want, because as the great athletes say, su- rrendering is not an option. 60 Legislación y Economía November 2017
Soccer
And we started our sports round for a historic event for Panama- It’s that the yearning to know the groups for 2018 World Cup in Russia ended.
Staying in the following way:
On the other hand, we know the high level of the goal in the final minutes. soccer that England has, without leaving be- hind Belgium, who was one of the favorites in All this preparation has been followed by fans, the 2014 Brazil World Cup, and of the 26 se- journalists and technicians worldwide, where lected 12 play in the English top competition. everyone has seen Panama grow football and feel satisfied with the performance of Pana- The schedule of the matches of Panama in the manian footballers. group phase will be: Proof of this is that Panamanians have been Belgium vs Panama, on Monday June 18 at nominated for the annual awards granted by 10:00 am, at Fisht Stadium, Sochi the Confederation of North, Central America England vs Panama, on Sunday, June 24 at and the Caribbean Football (CONCACAF). 7:00 am, at Nizhny Novgorod Stadium, Nizhny For the 2017 season the Concacaf Awards are Novgorod nominated:
Tunisia vs Panama, on Thursday, June 28 at Categories 1:00 p.m., at Mordovia Arena, Saransk Coach of the Year - Hernán Gómez of the In preparation of Panama for the World Cup, national team and Juan Sergio Guzmán, of the national team fell 2-1 to Iran, but recovered by Árabe Unido de Colón. drawing 1-1 with Wales, where they excelled figures like Jaime Penedo, who could avoid a Goalkeeper - Jaime Penedo of the national penalty goal and Armando Cooper, who scored team and Miguel Lloyd of the United Arab 61 Legislación y Economía November 2017
League.
Best defenses - Román Torres and Felipe Ba- loy of the national team. Strikers - Gabriel Torres of the national team and José Pibe González, of the Árabe Unido de Colón.
Best referees - from Chiriqui John Pitti. Best Goal of the year - Ernesto Sinclair, from the Plaza Amador.
Those in charge of choosing winners of the categories are fans, journalists and captains and technicians of the selections. Winners will be announced next Sunday, December 17.
As fans don’t forget to vote for your favorite by accessing https://awards.concacaf.com/es
Baseball
The little ones of the Sub 12 were con- Baseball of this category, which is played in na- secrated leaders of the Pan-Ameri- tional territory from November 24 to December 3. can Championship of this category, af- ter beating the Dominican Republic 2-1. In this championship are participating Ar- gentina, Brazil, Cuba, Honduras, Puerto Rico, José Murillo III, who coached this selec- Mexico, Dominican Republic, Costa Rica, tion, highlighted the work of the boys, Peru, Colombia, Venezuela and Panama. who were focused on winning the tourna- ment despite the defeat against the Do- At the moment the Panama- minican Republic in a regular round. They nian team is leader of his group. didn’t surrender and they rose with victory. Note that the Panamanian Carlos Lee is among On the other hand, the boys of the U23, are de- the 19 players who are for the first time on 62 monstrating all their potential in the Pre world of the ballots for the Baseball Hall of Fame. L&E Legislación y Economía November 2017
XVLII BOLIVARIAN GAMES
anama was present at the XVIII Bolivarian Games held in San- the gold medal in taekwondo and Donald Au- ta Marta, obtaining 2 gold, gusto Lee, who won two medals in bowling. 7 silver and 19 bronze me- dals for a total of 28 medals. Boxer Atheyna Bylon unfortunately couldn’t complete her participation due to a chest injury, which caused the athlete cann’t P exercise movements to throw a stroke. This indicates that Panama should be better prepared for the next competitions of the Tokyo 2020 cycle, since in comparison with the 2013 She thus left the competition one step away from Bolivarian Games, 6 gold, 6 silver and 22 bron- moving to the finals, taking the bronze medal. ze medals were won for a total of 34 medals. She is currently at rest, to prepare for her We emphasize that Panama will host Cen- Olympic cycle. tral American and Caribbean Games of 2022. Her next commitment will be in the Central Among the outstanding athletes is Colon- American Games in Nicaragua. na Nathalee Aranda, who triumphed in the We wish quick recovery to the promising boxer, long jump, Carolena Carstens, who achieved Atheyna Bylon. L&E
Baseketball
he quintet of Panama is pla- Next match will be on February 23, 2018 ying qualifiers for the China to face Paraguay and a return match with World Cup 2019. However, it Uruguay on the 26th of the same month. hasn’t had a good start sin- The best three of each group advan- ce they have two lost games ce to the second elimination round. Tagainst Uruguay and Argentina. Where Panama is in Group A. L&E 63 Legislación y Economía November 2017 FASHION
Gabriela Melgar/Donna Ballestero [email protected] [email protected]
NAILS, THEIR INFLUENCE ON THE APPEARANCE OF WOMEN
offer you to enjoy some cocktails or wines. urrently, there is no woman who carries her disheveled nails; either with the clas- We must take into account that in field Csic French or a single color, because they of business a professional woman must are visible to all, being these so to speak, always show an elegant and sophisticated our cover letter. Therefore, it is undoubtedly image, that projects security without lea- very important to keep them beautiful and ving aside her comfort. The weather, che- elegant, beyond being a “vanity” as some micals used in home, environmental pollu- people say, it has become a necessity not tion and daily use of our hands tend to dry only for personal care but also for health. and weaken our nails, they can break or we can suffer painful injuries, that is why The hands, unlike the feet, are one of the we must take into account certain care: parts of the body that are most in con- tact for those greetings and activities • Cut and file them regularly. that imply their constant use, this is whe- re you must take into account doing so- • Avoid biting or removing cuticles, with this mething for them and provide them with all you avoid causing damage to base of nail. the necessary care , especially to the nails. • Apply moisturizer on hands and feet, Due to the demand in the service of nails, especially those containing beauty salons have been adapted to demands glycerin which is of their clients, for which they have been special for nail emerging places dedicated exclusively to the care. care of this part of our body, where you will find specialists in the care of this area, known • Don’t eat them, 64 as nail bars -nail bar-, where besides servi- this can cause ces of manicure, pedicure and others, they inflammation in Legislación y Economía November 2017
the skin around nail and cause infections.
• Using rubber gloves when doing household chores, chemicals in detergents and cleaning liquids tend to weaken nails and at same time dry out hands.
• Make manicures and pedicures at least once a week to keep the nails attractive and healthy.
• Use enamels and remover of good quality.
• Cut and file nails that break.
• Eat foods that contain calcium, iodine, zinc and iron.
• Take collagen supplements.
Remember that personal appearance should support the position that is exercised, if it is a position of authority and leadership, image should support capacity, knowled- ge and experience. Within our professional and personal roles we must be aware of an adequate projection. That is why as a fi- nal recommendation we can say that when choosing either a color or a decoration for nails, take into account the place where we work. That election is appropriate for the job.
Renowned French haute-couture designer Coco Chanel once said: “Simplicity is the key to true elegance”, so let’s always try to keep nails, especially the nails, in good con- dition, and avoid very exaggerated designs, rather opt for those elegant, pretty and re- served, especially if what you want to pre- sent is a professional and serious image. L&E
65 GS Magazine February 2014 Mariela de Sanjur [email protected]
RUNNING TITLE RUNNING Cultural Capsule EVENTS, FAIRS THEATER AND FESTIVALS
• Telethon 20-30: December 15 and 16 at AT- • Guild Theater of Ancon: A Two Man Christmas LAPA. Carol, 1, 2, 7, 9, 14, 15 and 16 December. • Mercadito Casco Antiguo, from 1 to 3 Decem- • Theater The Station. The Grinch stole Christ- ber at the Plaza de la Independencia (Plaza mas until December 22. Catedral), from 10:00 a.m. • La Estación Theater: Christmas Posadas, 4, 6, • Cultural Nights - Live El Casco, on Saturday, 18 and 19 December. December 2 from 6:30 p.m. at 10:00 p.m., place: • La Plaza Theater: Monologues of the Vagina, December 4. Plaza Catedral. • La Plaza Theater: Ay Dios Mio, December 5 and 6. • La Plaza Theater: Christmas in the Park on December 10. • La Plaza Theater: Lady Ella, December 12. • La Plaza Theater: The Beatles Mania, on De- cember 15. • El Ángel Theater: Adventures in the Magic Fo- rest, December 3 and 17. • El Ángel Theater: I didn’t receive any money from Odebrecht, from December 7 to 10. • El Ángel Theater: Foolish Christmas prank, from December 14 to 17. • En Circulo Theater: Work of the Virgin of Gua- MUSEUMS dalupe, December 10 and 11. • ABA Theater: A frozen Christmas, from Decem- • BIOMUSEUM: Summer camp from December 19 ber 14 to January 7. to February 2. • Multipurpose Study GECU: The Comedy of the Pot, from December 1 to 7. • International School of Panama: Les Misera- PARADE bles from December 1 to 3.
• Christmas parade will be held on December 10 at Coastal Strip at 1:00 p.m.
66 mas Orchestras and Choirs of Panama. Choirs and mas Orchestras Youth and Christ of Children Network National 2017 of the Christmas Concert • Symphonic p.m. 6:00 23, December Park, Urracá the in Ballet Nutcracker of the • Presentation 21, p.m. December 6:00 Park, Urracá in Concert Salsa • Symphonic a.m. 10:00 20, December to Salsipuedes, ments improve of stage first of the • Inauguration 18, p.m. 6:00 December Park, Ana to Santa improvements of the • Inauguration 4:00 p.m. 16, December 50, Calle in of Guadalupe Church of the front in lots parking the in Francisco of San Corridor Gastronomic of the • Launch Hatillo Building. of the 15, floor ground the on December CO, of UNES City as Creative of Panama • Launch 7:0010, p.m. Viejo, of Panamá Ruins December Loynaz, by Anita Vivo • Flamenco p.m. 6:00 7, December Park, of Urracá • Inauguration p.m. at 6:00 Park Paredes Arias cisco 8 Fran (Costa Rica), José December of San Band Municipal by the Day Concert • Mother’s at 7:30 Diaz p.m. Alcalde of Medal Miraculous Parish 22: o December at 7:30 p.m. 21: Chilibre Cruz, Santa o December La Parish 7:30 p.m. at Abajo 19: Rio in Church o Stone December at 7:30nia p.m. Betha 18: of Angeles, Los Parish o December at 7:30 p.m. Zaíta 15: Villa Parish, Agustín o December San Ave., Lewis 7:30 Samuel on p.m. 13: of Mary Shrine National o December Parish 11:o December a.m. 9:00 Parish Chorrillo Orchestra Symphony National by the Concert • Christmas 47.tude 7, December Lati on Blades, -Rubén • Intimo Way. -Coast Amador 7, December Plaza Bacilos, and Vives • Carlos PRESENTATIONS CONCERTS AND ------• December 31:• December dayyear. last of the Day. Family Holy and Park National Cruces de Camino of the Foundation 30: • December Innocents. 28: Day Holy of the • December Evangelist. and Apostle 27: John, Saint • December Jesus. Lord of the 25 Nativity • December ofFestival Lights. 1: 24 or to January Hanukkah • December 24: Night. Holy • December Park. National lo Portobe of the Foundation 22: • December 21:• December solstice. Winter to Panama. States United the invasion 20; of 27of years the • December Beethoven. 16: Van of Ludwig • December birth 12: of Guadalupe. Lady • December Our 11,• December is created. UNICEF 10 Rights. day of• December Human Day. Mother’s Mary, Virgin the of Conception 8 Immaculate • December 5: Day. Volunteer • December ties. disabili with 3: Day of people • December of Slavery. Abolition Day of the 2: International • December 1:• December AIDSDay. World 1:• December Teacher’s Day. polis Convention Center, December 31st. December Center, Convention polis year, of the Mega end at the • MegaRumba 6:30 p.m. David, Park, 2017: 22, o Friday, December Cervantes 6:30 p.m. Aguadulce, Octubre, de o Tuesday, 19, 2017: December 19 Parque 6:30 p.m. Oeste, Panamá 18, 2017:o Monday, December Chorrera, 6:30 p.m. Panama, 17,o Sunday, December 2017: Park, Urracá AND FESTIVITIES AND VARIOUS ACTIVITIES GS Magazine L&E - February 2014 - - 67
RUNNING TITLE 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