Resumen De Los Logros Deportivos De Panamá Colaboradores En Esta Edición José Javier Rivera J

Resumen de los logros deportivos de Panamá Colaboradores en esta edición José Javier Rivera J. Rafael Fernández Lara Giovana del C. Consejo Miranda Garzola Ivana Herrera Editorial Miguel Del Cid Molina Idalia Ballesteros Milena Vergara David Rodríguez Ailen Galván Casilda Quiróz Lidia Domínguez Ana Sofía Corrales Mariela de Sanjur Gabriela Melgar Donna Ballestero José Javier Rivera J. Giovana del C. Miranda G.

Portada y Diagramación: Virginia Medina

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

@rbc_abogados

RBC Abogados

JANUARY 2018 Editorial 06

THE CHALLENGES Content OF 2018

29. Politics 60. Sports Capsule VICE PRESIDENTS IN CHARGE OF THE EXECUTIVE ORGAN IN OUR REPUBLICAN ERA 65. Fashion 68. Cultural Capsule 37. Panamanian Economy CONSUMER’S PRICE INDEX

44. World Economy ECLAC HIGHLIGHTS THE RELEVANCE AND OPPORTU- NITY TO CLARIFY LINKS BETWEEN CHINA AND LATIN AMERICA AND THE CARIBBEAN

54. Environmental Capsule THE USE OF POLYETHYLENE PLASTIC BAGS IN COM- MERCIAL ESTABLISHMENTS IS PROHIBITED

56. Illustrious People ACTITUD Y BUEN COMPORTAMIENTO FIRST YEAR OF MANAGEMENT OF THE DON- EN LA MESA ALD TRUMP 65 Invited Writer 08 NEW PHENOMENON? ENTREPRENEURS OF THE FUTURE? OR SUBSISTENCE WORKERS?

Norms Consult of interest Doctrine & PROHIBIT USE OF PLASTIC BAGS Jurispru- dence

13 SUMS COLLECTED AS A CONCEPT OF CONTROL, MONITORING, AND AUDIT BY ASEP ARE EXCLUDED FROM PRINCIPLE OF UNIT OF THE FUND 18 Legislación y Economía January 2018

Editorial The challenge of 2018

José Javier Rivera - Attorney [email protected]

uch has been publicized the announ- nal revenues and therefore affects the Mcement about probable growth that our growth of economy within that sector. economy will experience, which ranges between 5.5 and 5.7%, which means that When analyzing growth factors, paradoxi- it would be the highest in Latin America. cally they concentrate on activities that do not have as much impact on job creation. On the other hand, from the point of view of the Panama Canal Authority, the rain- In the same order of ideas it is evident fall that occurred between December last that certain segments of the construction year and January this year, have com- activity present an excessive supply and pensated the deficit that occurred bet- therefore construction projects that have ween September and October 2017, which to do with shopping centers, offices and should allow during dry season that has high-cost housing will not be recurrent. already begun, there are no risks regarding level of lakes that allow the transit of There is already a drop in the demand for lots ships through original locks and new locks. and residences in the beach areas in both Pacific and Atlantic. There has been a signifi- In turn, this increase in ships of great cant decrease in the purchase of passenger 6 depth is having a favorable impact on Ca- vehicles with exception of the SUV models Legislación y Economía January 2018

that are used in particular transportation. that we have, to the European imperialist This fall in the sale of vehicles is 2 digits. attacks entrenched in the OECD, which has strangled us as an economy of corporate, In another order of ideas, the increase in logistic and financial services. So far we minimum wage in a generalized manner, have been mere spectators in this closed above growth of many economic activities circle and we haven’t wielded strategies to in the square, is generating layoffs and re- compare our tax system with that of many duction of hiring. Added to this, restric- European countries and jurisdictions and tions on bank credit and high weight of the therefore we have tamely accepted all the regulations to start productive activities arbitrary impositions of the European Union. are negatively affecting the confidence of consumers and investors, respectively. We haven’t analyzed the scope of this new policy that aims to reduce our com- The absence of collection centers and mercial advantages through a movement peripheral markets close to consumers against so-called BEPS and paradoxi- has as a consequence that purchases are cally we are being advised by those who made precisely in retail establishments have great conflicts of interest because that represent a higher cost and therefo- they simultaneously represent those who re the general perception of consumer is are placing us in those humiliating lists. an increase in the cost of the basic basket, despite extension of the illegal de- Another important challenge of a local na- crees that for more than two years have ture has to do with the application of the forced the entrepreneurs not only to accusatory criminal system of due process, maintain sale prices above cost of pro- presumption of innocence and prohibition ducts, but they have frozen the margins of sharing information from files with means on more than 30 products which affects of communication that have as a generali- free competition and free competition. zed consequence the presumption of guilt. Only timely involvement in all these issues In the international arena, we are facing an will set the right direction for our country. L&E important challenge to fulfill, taking advantage of establishment of full diplomatic and commercial relations with Mainland It will dawn and we will see. China and in particular to sign a balanced free trade agreement that expanded our status as a center for logistics, commercial and agro-industrial operations following the concept of the so-called “silk route”.

The incorporation of airlines from China can be a relief for sectors such as hotels, shopping centers, banks, ports, free zone, special economic zone to generate business between China and its Latin Ameri- can clientele. At the same time, the country has to structure a strategy to face it in 7 a robust way and with strong arguments, Legislación y Economía January 2018

Invited Writer NEW PHENOMENON? ENTREPRENEURS OF THE FUTURE? OR SUBSISTENCE WORKERS?

Miguel Del Cid Molina [email protected]

The debate in Panama on the nature, cause • Is increasing self-employment an encou- and prospects of self-employment has recently raging trend of entrepreneurship? Are these Rintensified, considering preferences of people, workers entrepreneurs born? Or is it mostly the behavior of the economy, labor relations subsistence work? and their future trends. As part of this debate, the phenomenon of informal employment has • Are all informal self-employed workers? Is been integrated in its various forms and both the totality of informal work self-employment? concepts are associated with similar causes. To answer these questions it is useful to briefly Statements and interpretations exposed review some concepts and indicators. In first require a reflection to try to answer some key place, self-employment defines a very speci- questions such as the following: fic situation in the occupation, in which worker exploits his own company, economic activity • The increase in self-employment is a recent or private business, or exercises a profession trend? or trade on his own and has no paid employee in his charge (https://www.contraloria.gob. 8 • Self-employment is mainly a voluntary deci- pa/INEC/archivos/P7841Definiciones.pdf). sion? Legislación y Economía January 2018

That is to say, it is a very concrete category of as contract of work or contribution to so- worker who carries out his economic activity cial security (https://www.contraloria.gob. independently. pa/INEC/archivos/P7841Definiciones.pdf ).

On the other hand, unlike self-employment, Informal employment is a complex analytical informal employment is an analytical cons- construction whose dimension and dynamics truction that is constructed with various cri- depend on criteria adopted for its measurement. teria established by the analyst or adop- And in that sense, it is admitted that there is ted by specialized national or international informal employment in the so-called informal entities (INEC/Panama, ILO, ECLAC, etc.). sector of companies (companies not incorporated in society, whether informal employers or These criteria combine certain conditions of independent workers), as well as in the sector the establishments (size and legal conditions) of formal enterprises and in domestic service. with some characteristics of occupation categories (employer, employee, self-employed An image of informality is presented in the worker, family worker, etc.) and access to la- following scheme: bor and social protection standards such

EIn short, self-employment and informal em- employment (approximately 40% of the to- ployment, although related, are slightly diffe- tal occupation), of which about 195 thousand rent conditions, since the former is a condition are salaried employees and employers of the in the occupation or a specific occupational private sector, 54 thousand are domestic ser- category, while informal employment is a com- vants, about 316 thousand they are self-em- plex and heterogeneous conceptual construc- ployed workers and 19,000 are family workers tion that integrates situations diverse related (INEC, 2016). Therefore, not all self-employed to the characteristics of the productive units workers are informal or all persons with in- or companies and with the legal situation or formal employment are independent workers. with the level of protection of the workers. In the last 20 years (1997-2016) labor force in In Panama there are approximately 584 thou- Panama grew by about 824 thousand workers, sand non-agricultural workers with informal while employed population increased by ap- 9 Legislación y Economía January 2018

proximately 862 thousand people (including all categories). This meant that unemployment was reduced by approximately 38 thousand people between August 1997 and the same month of 2016.

In this period, private salaried employ- a tendency, preference or rational behavior ment increased by about 413 thousand for majority, considering that most adverse new employees and in public sector by 102 working conditions are concentrated in the thousand, that is, the new salaried em- categories of independent workers (lack of ployment was approximately 535 thou- work and social protection, low income, etc.). sand in total (including domestic service). As data confirm, growth of self-employment is The deficit between the growth of labor force not a recent phenomenon; on the contrary, it is and new salaried employment that was genera- a long-term trend and a concrete fact is that ted in the period is obvious. Under normal con- despite the fact that production (GDP) has tri- ditions people aspire to a typical job, stable and pled in those 20 years, salaried employment with secure remuneration, however, before im- doubled and self-employment almost doubled possibility of the economy to generate enough (increased by 95%). With this, their relative jobs, people have no alternative but to create weight in total employment only decreased by their own employment. That is, for most of them 1.6 percentage points, and still represents 32% the exercise of independent work is not a vo- of total employment (including family workers). luntary option, but the only possibility of achieving income to satisfy basic needs. Obviously, These trends reflect the great challenge of the this presumption can’t be confirmed with the style of concentrated and exclusive growth of data available in the INEC Labor Market Survey. the Panamanian economy, which in the long term has not been able to change or significantly This doesn’t negate the possibility that many modernize the structure of the labor market. workers, especially of professional and technical level, prefer to work independently for various reasons; However, this shouldn’t be

10 Legislación y Economía January 2018

On the other hand, informal employment, being an analytical construction with criteria that have varied over time, has shown a tendency to decrease in relative terms. In last 10 years total informal nonfarm employment has decreased by almost 4 percentage points, although in absolute terms it increased. This fall is explained by decrease in percentage of informal employment among formal companies and in domestic service.

That is, there was a positive trend in formalization of employment in private sector. However, relative occupation in the so-called informal sector increased by about one percentage point in the period, reflecting an increase in number of self-employed workers in informal businesses.

NOTA TECNICA N° 9 A LA FUNTRAB, 24 de enero, 2018. Responsable: Miguel Del Cid, Consultor en Política Laboral y Asesor General de la Fundación del Trabajo. Las opiniones expresadas en las notas técnicas son responsabilidad de sus autores y no comprometen a la Junta Directiva de la FUNTRAB OIT, Directrices y Resoluciones de las Conferencias Internacionales de Es- tadísticos del Trabajo (http://www.ilo.org/global/statistics-and-databases/standards-and-guidelines/lang--es/index.htm ) 11 INEC, Panamá, Definiciones y explicaciones de la Encuesta de Mercado Laboral (https://www.contraloria.gob.pa/INEC/archivos/ P7851Definiciones.pdf ) Legislación y Economía January 2018

According to official data from INEC (Au- Behind these trends is the growth style of gust 2016), out of a total of 336 thousand Panamanian economy, characterized as a self-employed workers in non-agricultural concentrating and excluding, that has disad- activities, about 20 thousand (about 6%) vantaged agriculture and manufacturing in- have formal employment and the difference dustry. No doubt there will be other factors of (94%) are in a situation of informal employ- an institutional nature, such as economic and ment, for not contributing to social security. labor regulations that help explain these phe- nomena. However, a more thorough analysis It has been suggested on several occasions is required to corroborate these assumptions. that self-employed workers are entrepreneurs of native businesses, with potential and that The formalization of informal employment de- will set a trend in future work. However, if we pends on possibilities of influencing the fac- use a simple definition of the entrepreneur as tors that determine informality in each of its a determined, audacious person, with talent, components: the informal sector (which in- competence, aptitude, intelligence and ability cludes wage earners and employers of mi- to start a business, we realize that this is not cro-enterprises, and self-employed workers) the case of the vast majority of workers. own and informal or unprotected employment in account registered by the August 2016 INEC Formal companies and in domestic service. survey. 94% of self-employed workers are in low-skilled occupations due to their low le- One of the determining factors is the low pro- vels of schooling; therefore it would be diffi- ductivity in economic units of informal and cult to expect them to become entrepreneurs. formal sector, which prevents them from generating sufficient income to cover the costs Entrepreneurship is only viable with neces- of formality. In other cases, they will weigh sary skills and in presence of public stimulus excessive administrative and other rules, as policies, including renewed education and tra- well as practices and deliberate behaviors to ining. There are also structural restrictions on avoid compliance with the rules of formality. the side of aggregate demand of economy that suggest that a large part of entrepreneurs’ bu- For this reason, comprehensive policies are re- sinesses don’t have viability or sustainability. quired, keeping in mind that the formalization of all informal workers will not be viable in the end. Self-employment will continue to have a growing trend in the future, as has happened Hence the relevance of the eighth sustainable in last two decades because growth dynamics development objective of the United Nations, will continue to be insufficient to occupy entire which states commitment of States to adopt workforce as wage earners. Likewise, the set policies for sustained, inclusive and sustaina- of informal employment in absolute terms will ble growth, full productive employment and de- continue to increase, as a main consequence cent work for all. Likewise, importance of a la- of the growth of the informal sector (where 80 bor policy that promotes harmonious, equitable out of every 100 are self-employed). On the and fair labor relations, based on corporate so- other hand, informal employment in the formal cial responsibility, compliance with the law and sector of companies, although it has decrea- commitment of workers and employers to ethi- sed in absolute terms in the last two decades, cal values that should prevail in the world. from could also increase, mainly due to new sche- work; and in search also for shared producti- mes of labor relations (part-time contracts, vity and competitiveness, as proposed by the for a defined time, subcontracting, outsou- Strategic Vision of the Labor Foundation. L&E rcing, etc.) designed to reduce labor costs.

See: ILO, Recommendation No. 204 on the transition from the informal economy to the formal economy, (http://www. ilo.org/ilc/ILCSessions/104/texts-adopted/WCMS_379098/lang--es/index.htm ) Legislación y Economía January 2018

Norms of INTEREST PROHIBIT USE OF PLASTIC BAGS

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

ast October, the National Assem- 2. Warehouses and wholesalers 24 bly of Deputies approved in third de- months. bate Project of 492 of 2017 by which Lmeasures are adopted to promote use Both periods will begin to count of reusable bags in commercial esta- from enactment of the Law, blishments and that was partially ve- that is, from January 19, 2018. toed by the Executive Body, which is has become a law of the Republic with It is established as an exception that the Law sanction of Law 1 of January 19, 2018. will not be applicable when, for aseptic reasons, bags must be used to contain processed It points out in his article 1 that it is or pre-prepared foods or wet inputs and the forbidden to use polyethylene bags in use of a compatible substitute is not feasible. supermarkets, supermarkets, warehouses or shops in general for the It is at merchants’ option to charge or reuse transport of products or merchandise. the reusable bags, in which case the Con- sumer Protection and Defense of Competi- With the approval of the Law, terms tion Authority will control that they are sold established for adaptation of the at a cost price. The merchants must send following form were extended: at the beginning of each year a report with declared cost of bags to ACODECO. L&E 1. Supermarkets, pharmacies and retailers 18 months. 13 Legislación y Economía January 2018

MEASURES ON CLEANLINESS AND ORNAMENT

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

he Municipal Decree No. 001-2018 of January rity to determine the cases in which private T11, 2018, dictates measures on cleanliness and compactors are required due to their volume. ornament in the district of Panama, by provi- Regarding general prohibitions, it has been ding that any natural or legal person, owner or arranged among others that you can’t throw administrator of a single-family, multifamily or garbage and rubbish of any kind to the street, si- incorporated to the system of horizontal pro- dewalks, parks, squares, ravines, rivers, sewers, perty, as well as any owner or manager of a drainage channels and beaches; place bags commercial, industrial or tourist establishment, or trash cans in green areas, on the sidewalk, must take efficient measures to maintain clean- revitalized sidewalk, street, park or plaza; da- liness in the premises of the house or building mage, destroy or alter green areas, sidewalks and to contribute to the cleanliness of the city. or lanes without the corresponding permits; keep dirty, stained or discolored houses or buil- Similarly, people described in the prece- dings for housing, commerce or industry; co- ding paragraph, have the obligation to clean, llect, stack or abandon plant waste in the green trim, and care for the green areas, sidewalks, area, sidewalk, laces, islets or on the street. laces and sides of the streets located in front and side of their respective buildings. The application of sanctions has been provided to individuals or legal entities that fail to comply Another obligation imposed on them with some of the obligations contained in the is to keep the front and sides of their Decree, with fines ranging from B/. 50.00 to B/. house or building properly painted. 5,000.00 or ten to one hundred days of community work and in case of recidivism, penalty in- The Decree provides that for commercial and creases from B/. 100.00 to B/. 10,000.00 or with similar establishments that generate a high twenty to two hundred days of community work. volume of garbage or waste, they must provide service of private compactors or another Finally, the Decree contemplates the procedure to form of collection and final disposal of the be followed for the surveillance, compliance and 14 solid waste they generate. It will correspond imposition of sanctions for non-compliance. L&E to the Urban and Domiciliary Cleaning Autho- Legislación y Economía January 2018

PRELIMINARY ENTRY TO MODIFICATIONS TO THE GENERAL REGULATION OF AFFILIATION OF THE CSS IS DELAYED

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

he Board of Directors of the Social Security 2017 for a period of 30 days. The amend- Fund (CSS) through Resolution No. 52,373- ment to the Regulation is mainly based on 2018-J.D. of January 18, 2018 resolved to requirements of the Institution for affilia- Textend for the term of 90 calendar days, the tion to foreign personnel system, which has suspension of the application of the modifi- meant that at the time of the implementation cation introduced to the General Regulations of modifications, various associations and of Affiliation and Registration of the Fund. associations, as well as governmental entities, will observe inconsistencies with regard It is worth mentioning that entry into force of to the procedures that are requested before amendment had already been subject to an the National Migration Service and the Mi- earlier suspension, which had been granted nistry of Work and Labor Development. L&E by Resolution 52,300-2017 of December 12,

MODIFY INCENTIVES TO THE TOURISM INDUSTRY

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

aw 91 of December 26, 2017 modifies first Within this context, Law 91 modifies Law 1 of paragraph of Article 6 of Law 80 of 2012 that 1994 on forestry legislation, by introducing establishes fiscal incentives for tourist in- numeral 14 to Article 3 that establishes that Ldustry, establishing that when it comes to it is declared of national interest and subject protected areas with human settlements, the to forestry regime to promote ecological, ru- State will assume the responsibility to re- ral, active and of research in protected areas habilitate rural ecological access roads, in and national parks in the national territory order to facilitate development of tourism. in accordance with current legislation. L&E 15 Legislación y Economía January 2018

PATERNITY LICENSE IS REGULATED

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

s you remember on May 25, 2017, Law ker is on vacation, hospitalized or disabled 27 of May 23, 2017, which created paid pa- and birth of the child occurs, child must in- Aternity leave for workers of private compa- form the company and may use the licen- nies and public servants whose wife or co- se once periods indicated have expired. habiter in conditions of uniqueness and stability, came into force. is in a state of Similarly, it is indicated that enjoyment of 3 bu- pregnancy, 3-day leave that would be gran- siness days will be effective from birth of the ted at the time of birth of the son or daughter. child and it is not at the discretion of worker to take it on a different date. It is important to With the issuance of Executive Decree No. 83 of indicate that Law 27 imposes on worker obli- December 27, 2017 published in the Official Ga- gation to inform the company in advance of zette 28,439 of January 5, 2018, Law 27 is regu- one week of the probable date of delivery. lated and it is established that paternity leave will be granted only once a year and that the worker Finally, it is established that when there is a must declare in the work contract name of his difference between the Collective Labor Con- wife or partner, the company having the obli- ventions, the Internal Regulations, the Collecti- gation to periodically update data of workers. ve Agreements and the Law 27, the one that is most favorable to the worker will be applied. L&E On the other hand, in the event that wor-

APPROVED STRATEGIC PLAN FOR THE PREVENTION AND CONTROL OF NON-TRANSMISSIBLE DISEASES

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

he General Directorate of Public Health issued ses, diabetes mellitus and chronic lung di- Resolution No. 3659 of December 26, 2017, sease, which are the ones that cause the which entered into force on January 20, 2018, highest number of deaths in our country. Tadopting the National Strategic Plan for the Prevention and Comprehensive Control of Non- According to scientific research, it has been Communicable Diseases and its Risk Factors. established that non-communicable diseases are result of conditioning factors and struc- 16 Among the non-transferable diseases, tural determinants of social behavior. L&E there are cancer, cardiovascular disea- Legislación y Economía January 2018

BIOMETRY SYSTEM IS CREATED AT THE MITRADEL

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

y Executive Decree No. 76 of December 26, any application requires that foreigner has 2017, an article is added to Executive De- registered with the Institution, so perhaps the Bcree No. 17 of 1999, which regulates work measure taken by MITRADEL is not entirely permits, in sense of establishing that prior new. However, it would have been more profi- to the start of the work permit process, the table for both institutions to use same regis- foreigner must personally attend the Labor tration system, in such a way that once regis- Migration Department for their affiliation. tered in Migration information is shared with MITRADEL, that is, that there is an automa- The obligation of affiliation also extends tion of information that is more efficient. L&E to requests for extension of work permit. In this regard, we must mention that Natio- nal Immigration Service prior to submitting

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

he Ministry of the Environment issued the Consequently, personnel of the Regional Offi- Resolution No.DM0648-2017 of December 28, ces of Panama East and Darién, as well as 2017 that authorizes realization of the Forestal their fixed forest control posts, will be enabled T for the operation, technical personnel from Operative 2018 to guarantee the fulfillment of legislation in force during harvest season of wood rest of the offices of the Ministry organized in in eastern sector of the province of Panama and their mobile forest control posts, will provide from Darién from January 3 to May 30, 2018. support along the national product route. L&E

17 Legislación y Economía January 2018

Consult Doctrine & JURISPRUDENCE

SUMS COLLECTED AS A CONCEPT OF CONTROL, MONITORING, AND AUDIT BY ASEP ARE EXCLUDED FROM PRINCIPLE OF UNIT OF THE FUND

Source: Office of the Attorney General of the Administration

he Office of the Attorney General of The Attorney General states that the cri- the Administration issued Consultation terion is that the amounts collected as C-001-18 of January 11, 2018, by means a result of the Control, Surveillance and Tof which it absolves the question posed Control Rate by the National Authority by the National Authority of Public Ser- of Public Services are excluded from the vices, in the sense of knowing whether cash unit principle, which implies that the Institution is authorized to transfer to said amounts are not are subject to the the Sole Account. of the National Trea- Treasury Single Account, therefore, this sury,, the bank accounts currently held entity should not deposit them in favor by the National Bank of Panama, whose of the National Treasury so that these funds correspond to collections in favor are included in the general budget of the of the National Treasury and the Con- State, but assets and liabilities produ- trol, Surveillance and Inspection Rate. ced must be administered by the Autho- 18 rity of the Treasury. Public Services in Legislación y Economía January 2018

an own account of the Institution, which from the National Treasury Single Account; will be subject to the Supervision of the likewise, it doesn’t exclude it in a general Comptroller General of the Republic. way from belonging to the Single Fund of the State, an indispensable requisite and To arrive at this criterion, the Authority consigned in the Law for its exclusion. made reference to administrative decen- On the contrary, different is the case of the tralization and that, based on the legal amounts collected as a Control, Survei- norms and doctrine cited, it considers that llance and Inspection Fee by the National although the decentralized entities enjoy Authority of Public Services, since Law 26 administrative, budgetary and financial of 1996 (as amended by Decree Law 10 of autonomy, they are still part of the state 2006) in its article 6, establishes the prohi- organization, reason for which the central bition, with legal rank, in that the amounts entities have certain interference in them. collected for the aforementioned rate are used to cover expenses of other services. Added that although the ASEP is an entity created by law with legal status, own It has been established that the sums assets and the right to administer it, this collected for the control, monitoring and doesn’t imply that it is excluded from the supervision of public services can only control, regulation, control and interven- be used to defray the expenses incurred tion, which by constitutional and legal by the ASEP for the provision of con- mandate corresponds to the Comptroller’s trol, surveillance and oversight of said Office General of the Republic. services; that is, they can not be used to cover expenses of other services. Another of the points addressed was the National Treasury Single Account, which Based on the foregoing, the Attorney aims to create an official bank account, General concludes that amounts co- which concentrates all public revenues llected as a Control, Surveillance and and pays for all obligations, which in- Inspection Fee by the National Authori- cludes Decentralized Institutions and ty of Public Services are excluded from Public Companies. non-financial, in or- the cash unit principle, which implies der to achieve greater efficiency, pro- that said amounts are not subject to fitability, transparency and security the Treasury Single Account, therefore, in the administration of public funds. they must be administered by the Public Services Authority in an account of the On this point, it indicates that the ASEP Institution, subject to the control of the is not listed among institutions excluded Comptroller General of the Republic. L&E

19 Legislación y Economía January 2018

REVIEW RESOURCE AGAINST AUTHORS THAT DECIDES ORAL, ORDINARY AND EXECUTIVE PROCESSES

Lidia Domínguez - Legal Assistant [email protected]

In a Resolution of May 18, 2017, the First Civil confronting the aforementioned rule with Chamber, resolves appeal filed by Mr. Edgar the claim of the appellant, deduces that ENavarro, on behalf of Julio Guillermo Gran- the documents requested by the petitio- da Icaza, against the Resolution of February ner are not subject to such appeal, since 9, 2017, issued by this Dispatch within the they are not subsumed under the provi- Remedy of Review, Autos No. 1552 / 83252- sions of Article 1204 of the Judicial Code. 15 of February 3, 2015 and Auto No. 200 / 83252-15 of February 2, 2016, issued by FUNDAMENT OF THE APPEAL: the 13th Civil Circuit Court, in the Executive Process Simple, presented by Global Bank The appellant, points out in its appeal that Corporation against Julio Granda Icaza. the rule is specific, that the cars that release payment order, decree seizure and those The appeal was rejected outright, as it was that order or approve auctions, are subject to considered that it does not meet the requi- review and that the cars cited here they are rements of a sentence according to arti- immersed in it, but the exceeds it contains a cle 1204 of the C.J. Analyzed the facts, the “condition” so that they can be challenged Chamber observes that the appeal is filed by means of recourse. Numeral 8 of article against the Order No.1552 of September 3, 1205 of the Judicial Code must be invoked. 2015, which admits the executive demand and promises payment order by executive means and Auto No. 200 of February CRITERIA OF THE REST OF THE ROOM: 2 of 2016, which raises to the category of embargo the kidnapping decreed in favor It corresponds to the rest of the magis- of Global Bank. The First Chamber, when trates that make up the Chamber to resol- 20 Legislación y Economía January 2018 ve appeal against Resolution of February 9, 2017. The controversy revolves around whether the writ of payment order and the auto that decrees embargo are suscepti- ble of the Remedy of Review. We proceed to verify the allegations of the appellant regarding the feasibility of the appeal.

To review the legal provisions contained in Article 1204 and also, cite article 1205, especially ordinal 8 of the article, which states that “may also be requested the review of the proceedings that, in ordinary, oral or executive proceedings, exe- cute judgments, free warrant of payment, decree embargo, order or approve auctions”. From the foregoing, it follows that the writs cited by the appellant-appellant are subject to review; as long as they are reported under the numeral that is cited.

But for this invoked cause to prosper it is not enough to make a simple summons, it must be supported why it considers that the cause is viable and the aforementioned facts indicate that in process it is established that the sum owed by Mr. Gran- da Icaza to Global Bank, is less than the amount for which it is claimed and that the same is classified as fraud or fraud when trying to collect money that was never used through a credit card, which was tested by means of Exhibit Diligence.

Based on the foregoing, the rest of the Chamber decides to admit the appeal for review and concludes that the pertinent thing is to revoke the Resolution of Fe- bruary 9, 2017 and order the file to be returned to the substantiating magistra- te, in order to indicate the bail referred to in article 1211 of the Judicial Code. L&E 21 Legislación y Economía January 2018

COMPETITION: TAX ADMINISTRATIVE TRIBUNAL

THE TAX ADMINISTRATIVE TRIBUNAL DENIES THE DOCUMENTARY TEST NO. 1, SUBMITTED WITHIN A RECONSIDERATION REMEDY, FOR BEING SIMPLE COPIES AND NOT ADJUSTING TO THE FORMALITIES REQUIRED BY LAW

DATE: NOVEMBER 14, 2017

Casilda Quiroz - Legal Assistant [email protected]

EEN: in Decree No. 26 of May 15, 1984, related to Mr. Ricardo Martínez, acting as special attor- the Code of Ethics of the Public Accountant. ney for the taxpayer, filed an appeal against Sthe Auto S/N of November 14, 2017, whe- CONSIDERATION OF THE COURT: re documentary evidence No. 1 was denied, while denying designation of a Expert within After analyzing the arguments of the par- expert evidence that was requested together ties, the Court considers the following: with a Reconsideration Appeal filed against As indicated in previous paragraphs the Resolution No. 201-5325 of 24 of 2016. documentary evidence called 1, weren’t accepted because they didn’t comply APPEAL SELF TEST: with the formalities required by the Law.

The Tax Administration didn’t admit documen- The appellant argued that according to Ar- tary evidence No. 1 that consisted of Copy of ticle 1240-A of the Tax Code allows the Re- Invoices of suppliers that support the Other course of Reconsideration to present and Costs and other expenses reported in the point out all the means of evidence recog- Sworn Statement of Period 2015, because the- nized by the General Administrative proce- se tests were simple copies and that they don’t dure, indicating that the Tax Administration comply with required nor the formalities that are established in Article 857 of Judicial Code. simply rejected the evidence presented.

Regarding rejection of the designation of the While it is true that the Judicial Code makes expert, the Court indicated its denial of the re- observation of requirements that priva- quest, since the pre-appointee was the same te documents must meet so that they can one who prepared and endorsed the tax re- be admitted as evidence of a process, it 22 turn for the taxpayer. As an Authorized Public can’t be ignored that the Court also has its Accountant, he must be impartial as stated Legislación y Economía January 2018

own order, consider the legal norms that govern probative material and solemnity that this entails as it is indicated in Article 143 of the Law of General Procedure, referring to the Law No. 38 of the year 2000.

What is appropriate in this regard is that a ruling be issued in order to modify the Evidence Order, which denies documentary evidence described in this Resolution.

RESOLUTIVE PART:

THE TAX ADMINISTRATIVE TRIBUNAL provides: MODIFY the Auto S/N of March 22, 2017, in which the documentary evidence No.1, called copies of vendor invoices, which support the other Costs and Other Expenses reported in the Declaration, was NEGLATED of Income for the period 2015.

OPINION:

I believe that the Tax Administration should accept the evidence in principle and have any doubt about the same give the opportunity to the taxpayer to explain and make their respective corrections, thus avoid that the processes become extensive and expensive, complying with the principle of economy procedural. L&E

23 Legislación y Economía January 2018

Competition: SUPERIOR LABOR COURT OF THE FIRST JUDICIAL DISTRICT

RISK OF NOT HAVING A WORK CONTRACT

Date: 1 of December 2017 David Rodríguez - Legal Assistant [email protected]

EEN: against the company RESTAURANTE Y TABER- NA BUCANEROS (Commercial Reason) and/or The Fourth Labor Court of the First Section, PANAMA FINE DINING CORP., In order to be sen- Sin the Judgment No. 37 of June 12, 2017 re- tenced to pay his client the sum of B/. 22,298.78 solved to CONDEMN the RESTAURANTE Y for seniority bonus, 13th month, vacation. TABERNA BUCANEROS (REASON COMER- CIAL) and/or PANAMA FINE DINING CORP. • As a basis in the lawsuit it is stated that (SOCIAL REASON) to pay ELIÉCER BARSALLO his client worked as a musician, earning PÉREZ, the sum of B/. 23,176.06 for vaca- a salary of B/. 1,800.00 per month from tion, seniority premium and thirteenth month. September 16, 2009 to October 2, 2014 and that he was unjustifiably dismissed. REVIEW • The defendant owes his represented senio- Against this decision, Jorge Jorge Cebama- rity premium, due and proportional vacation, nos Gómez, legal representative of the de- and thirteenth month due and proportional. fendant, rose, which motivated referral of the process to the podiums of this Superiority. Mr. Jorge Jorge Cebamanos Gómez in the defense denied all the facts, noting as rea- Mr. Arcelio A. Mojica Mojica, attorney for sons, that there was no written or verbal work the plaintiff worker, filed a written opposi- contract, since he only provided his profes- tion to the appeal. Revised the action, we sional services as a musician sporadically don’t find Nullity, reason why we will pro- in exchange for a remuneration of B/. 180.00 ceed to resolve the controversy in fund. at the rate of 3 hours, with intervals of 15 minutes per hour, therefore doesn’t comply Mr. Arcelio A. Mojica filed a corrected complaint with the days stipulated in the Labor Code. 24 Legislación y Economía January 2018

OPPOSITION TO RESOURCE: The Fourth Labor Court pointed out that with this statement it is accepted that the plaintiff provi- The plaintiff in his brief opposing the ap- ded the service of musician for the defendant. peal, requested to confirm ruling, noting that in this process is discussed about un- When proving the existence of the employment renounceable work benefits his client de- relationship between the parties and not de- serves, therefore defendant is responsi- monstrating that the defendant has paid the ble for proving that he paid the benefits. vested rights that the applicant is requesting will be recognized by taking as starting dates of It also states that this process is not about the employment relationship on September 16, whether the worker was verbally fired or not, 2009 and the termination on October 2, 2014, but that the company paid for work benefits. based on a monthly salary of B/. 1,980.00.

COURT’S JUDGMENT PRETENTION AND BASIS OF THE APPEAL: Warning that in this process, the defendant didn’t provide any evidence, with the vali- dity and legal effectiveness necessary to The legal representative of the defendant, destroy that presumption, every time, that in the brief supporting the appeal, centers the documents submitted for this purpo- its disagreement with the judgment ap- se, were timely objected by the plaintiff. pealed, in the probative assessment of the Judge, pointing out, among other things: Therefore, neither did the presumption also applicable in favor of the plaintiff worker, con- • That the claims of the claim haven’t been templated in article 69 of the Labor Code, “in fully accredited. the absence of a written contract, presume certain facts or circumstances alleged by the wor- • The only affirmation by both parties and ker that should be included in the said contract. declared by this authority is that Mr. Eliécer Barsallo Pérez provided his eventual services This presumption may be destroyed by evi- as a musician. dence that doesn’t admit reasonable doubt”, which the plaintiff didn’t prove, it is important • There is no evidence that proves neither the to point out that in any work relationship the- verbal dismissal nor the alleged salary of B/. re must be two elements of vital importance, 1,980.00 per month. which are what will allow the judge to determine said Labor liaison, we are referring to the • That in fact it is counted on the dictation in legal subordination and economic dependence, the sentence of August 12, 2016 of this Supe- therefore the Superior Labor Court Confirms rior Court of Work First Judicial District, where the Judgment of the Fourth Labor Court and it indicates that the plaintiff did not demons- increases the costs by 5% of the sentence. L&E trate that there was a verbal dismissal.

25 Legislación y Economía January 2018

Competition: Third Room of the Contentious Administrative

COURT ANNULS RESOLUTION NO. IA-048-2014 OF MARCH 26, ISSUED BY THE NATIONAL ENVIRONMENTAL AUTHORITY (TODAY MINISTRY OF ENVIRONMENT) THAT APPROVES THE ENVIRONMENTAL IMPACT STUDY OF THE QUIJADA DEL DIABLO WIND FARM

Date: 21 August 2017 Ailen Galván - Legal Assistant [email protected]

een: venants to be violated, since contested act omitted to consider criteria that make direct A Claim of Nullity was filed by the firm Mauad reference to areas classified as protected S& Mauad, acting on behalf of ENEL FORTU- and fails to apply the correct categorization NA, S.A, for the declaration of illegality of criteria of the Environmental Impact Study, Resolution No. IA-048-2014 of March 26, it also ignores general principle and objecti- 2014, issued by the National Environmental ve outlined in the Law that oblige it to take Authority, which decides to approve the en- actions to protect the forest resource in fo- vironmental impact study, category II, co- rest resources in the Fortuna Forest Reserve; rresponding to project called QUIJADA DEL considering, in turn, that the shelter of wild DIABLO WIND FARM, whose PROMOTER is fauna and water resources for the Republic the LUZ EÓLICA DE PANAMÁ, S.A company, of Panama is unprotected, since the ANAM with all measures contemplated in the afo- approves an Environmental Impact Study for rementioned study and clarifications, which a project to be established, both in its cons- are integrated and are part of this Resolution. truction phase and in the of operation or exploitation, would negatively affect the Hydro- It should be noted that by Resolution of De- graphic Basin of the Fortuna Hydroelectric. cember 4, 2015, the Third Chamber acceded to request for provisional suspension of effects On the other hand they point out that it viola- of Resolution No. IA-048-2014 of March 26, tes the General Law of the Environment, since 2014, issued by the National Environmental a permit or authorization is granted to esta- Authority (today Ministry of Environment). blish a project in the heart of the Forest Re- serve, causing the consequent environmental damage to the La Fortuna Forest Reserve. NORMS THAT ARE ESTIMATED VULNERATED Adds that it puts community at risk, and even jeopardizes generation of energy to the com- 26 The plaintiffs consider different Decrees, munity and the country, since the existing Environmental Laws and International Co- water resource and, consequently, the For- Legislación y Economía January 2018

tuna Hydroelectric and the Estí hydroelec- impugned act allows the construction of a tric project would be substantially affected. project called “Quijada del Diablo Wind Farm”, which was categorized by the National Envi- Finally, the plaintiff considers that Arti- ronmental Authority , as category II, and as sti- cle 1 of Law 24 of June 7, 1995, the Wildli- pulated in the regulations related to this type fe Law, is violated directly by commission of project, said project must be category III. because of the approval of an Environmen- tal Impact Study, Category II, of a large- In addition to the above, the Chamber empha- scale project. within the Fortune Forest sizes that lands of the Fortuna Forest Reserve Reserve, it ignores the interest and public are part of the National System of Protected domain of wildlife as a natural heritage of Areas, in accordance with Executive Decree 68 Panama and is unaware of its protection of September 21, 1976, as amended by Exe- and conservation, as required by the norm. cutive Decree No. 52 of 5 of June 2003, “Whe- reby the” Fortuna “Forest Reserve is declared ANALYSIS OF THE COURT in the district of Gualaca, district of Boquete in the province of Chiriqui”, This reserve is The Third Administrative Disputes Chamber part of the ecoregion called Humid Forests of considers that Resolution No. IA-048-2014 Talamanca, which is important for diversity; it of March 26, 2014, issued by the National also integrates the Mesoamerican Biological Environmental Authority, is illegal becau- Corridor and the World Biosphere Reserve. se our Political Constitution establishes the “Ecological Regime” in its article 120 which The protection granted to the area is not only indicates that the State will regulate, super- due to its forest and animal wealth, but also vise and timely apply the necessary mea- because the Fortuna hydroelectric power sures to guarantee that the utilization and plant is one of the main sources of electricity exploitation of terrestrial, fluvial and marine in the country and that is why the installation fauna, as well as forests, lands and waters, of a wind farm within the Forest Reserve For- are carried out rationally, in a manner that tuna is not viable from a technical perspective. their predation is avoided and its preserva- tion, renewal and permanence is assured. The Chamber emphasizes that although Exe- cutive Decree number 52 of June 5, 2003 is Like the Rio Declaration on Environment and true, was issued with the purpose of creating Development of 1992, it states: “In order to new wind or solar energy projects within the protect the environment, States must widely Fortuna Forest Reserve, care must be taken apply the criteria or precaution according to that these projects do not imply threat or their capabilities. “When there is danger, se- danger of the occurrence of damage that rious or irreversible damage , the lack of ab- implies the contamination of the environ- solute scientific certainty shouldn’t be used ment, or the destruction of the ecosystems, as a reason to postpone adoption of cost- since the development of these initiatives effective measures to prevent environmental in a “protected forest” area brings with it degradation”; among other national and in- an important felling of trees and the conse- ternational regulations that establish conser- quent uprising of the terrestrial layer, which vation, as well as effective care and exploi- will cause a negative environmental impact. tation of migratory species, biodiversity and the protection of wild areas, among others So the Chamber concludes that the project that require concerted action by all States. called QUIJADA DEL DIABLO WIND FARM, whose PROMOTER is the LUZ EÓLICA DE Therefore, the Chamber considers that the PANAMÁ, S.A. society, is illegal, because the contested act violates the legal system to the project that is intended to develop will cause detriment of the collective interest, since the serious damage to the ecosystem and is de- 27 Legislación y Economía January 2018

trimental to the Forest Reserve Fortuna, since in the case of a protected area, the environmental impact is adverse, despite the fact that these are projects related to the development of non-polluting renewable energies.

OUR OPINION

With regard to wind farms, it is known that they provide a different amount of energy depen- ding on the differences in design, location of the turbines, and the fact that the old turbine designs were less efficient and able to adapt to the changes in direction and wind speed.

Although the environmental impact of wind farms is relatively small compared to other forms of generation, wind turbines produce acoustic and visual pollution, it is known that these impacts are not serious in weighting with the benefits that this type of energy entails.

I believe that the Chamber should have tho- roughly motivated this ruling and consider both the possible effects and the benefits, that if we apply the principle of proportionality we will realize that they entail much more benefits.

In addition to this, we can’t ignore that all these projects have their regulations, and that it is always about preserving the environment, therefore, it should be noted that the mitiga- tion measures stipulated by law have always been greater than the effects caused. L&E

28 Legislación y Economía January 2018

Politics Rafael Fernández Lara - Independent Lawyer [email protected]

VICE PRESIDENTS IN CHARGE OF THE EXECUTIVE ORGAN IN OUR REPUBLICAN ERA

At the beginning of our Republic, and in accordance with our first Constitution of 1904, those now called “Vice-President” were called “Designated”, according to Articles 67, 79 and 80, and three were elected only for a biennium by the National Assembly of Deputies, when exercising this administrative functions.

ater, in the second Magna Carta, of 1941, who was First Appointed Lthe Vice Presidents of the Republic continue (Vice President) of our first being called “Designated”, according to Arti- Constitutional President, Dr. cles 114, 115 and 116 and others, and in ac- Manuel Amador Guerrero cordance with Article 90, Numeral 4 were also (1904-1908). Mr. José Do- elected by the Assembly. National deputies mingo de Obaldía, in his capa- for a biennium, three appointed in their order. city as First Designated (Vice President), was in charge of It is not until in our third National Constitu- the Executive Power when the tion, of 1946, when for first time “Designated” President Amador Guerrero requested a licen- is called “Vice President”. In accordance with se for up to six months to National Assembly, Articles 138, 149, 150, 151 these “... are elec- in accordance with Law number 28 of June ted in same manner and for same term, a First 19, 1907 in his intention to seek rest and re- Vice President and a second Vice President” lief to his physical ailments. José Domingo de only, that is to say for a period of four (4) years. Obaldía was temporarily in charge of Executive Branch from June 24 to December 29, 1907. In the Political Constitution of Panama of 1972, promulgated during the political power Later, José Domingo de Obaldía was the se- of the military and its subsequent reforms, by cond Constitutional President of the Republic the reformatory acts of 1978, by the Consti- and the first elected, on July 2, 1908, by indi- tutional Act of 1983 and Legislative Acts No. rect popular vote for the four-year period 1908- 1 of 1993 and 2 of 1994, and by Legislative 1912. He died in office of President on March 1, Act No. 1 of 2004, which is currently in force. 1910 at 65 years of age due to a heart attack.

The First Appointed (Vice President) who was The National Assembly, exercising its consti- temporarily in charge of the Executive Organ tutional power to elect the Designates (Vice- 29 was Don José Domingo de Obaldía Gallegos, Presidents) to the Presidency of the Republic Legislación y Economía January 2018

for a biennium, had elected Don José Agustín sario. Porras Barahona to sup- Arango (Conservative Party) as First Desig- port him in the following elec- nate and Dr. Carlos Antonio Mendoza (Liberal tions for President in 1912. Party) as Second Designee. Upon the unex- pected death of the titular president José Do- As the end of his biennium mingo de Obaldía having completed one year approached, Dr. Pablo Aro- and five months of exercising the Presidency, semena Alba manifested his his second appointee, corresponded to Dr. Car- aspiration to be a presiden- los Antonio Mendoza to replace him, because tial candidate in the elections the First Appointed, José Agustín Arango had of 1912 and therefore separated from his po- died in turn May 19, 1909, at 68 years of age. sition as President of the Republic in compliance with Article 83 of the National Cons- Dr. Carlos Antonio Mendoza was the Second titution. This is how the Second Designee, Appointed in charge of the Executive Branch, Federico Augusto Boyd López, was entrus- from March 1, 1910 until October 1, 1910, and ted from October 1, 1910, to October 5, 1910. with him, the Liberal Party arrives for the first time to the Presidency of The third appointee, Rodolfo Chiari Robles, the Republic. During his was provisionally assigned from February 2 to short time, seven months, March 6, 1912, since Federico Boyd excused in charge of the Executi- himself not to continue exercising the position. ve, he had a stormy administration due to conflicts Subsequently, for reasons of unconstitu- between his co-religionists tional order, Dr. Pablo Arosemena Alba put and his political enemies, aside his election aspiration and retur- and he wasn’t an attractive ned to the exercise of his duties as presi- figure to the United States of America for his dent of the Nation from March 7 to Octo- opposition to Article 136 of our Constitution of ber 1, 1912, thus ending period 1908 to 1912 1904, that allowed the intervention of the Uni- In summary, in the four-year period 1908- ted States to maintain public order in Panama. 1912 the titular president was replaced temporarily in the exercise of the office by four On October 1, 1910, the National Assembly elec- appointees, that is to say, there were five ted Designates (Vice-Presidents) to the Presi- presidents of the Republic in that period. dency of the Republic for the biennial period from October 1, 1910 to September 30, 1912. On July 15, 1912, Doctor Belisario Porras Barahona was elected President of Pana- Dr. Carlos Mendoza, In spite of having neces- ma, taking office on October 1, 1912. In Sep- sary votes to be elected as First Appointed and tember of that year, the National Assembly of therefore President of the Republic, he had his Deputies elected the Appointed (Vice Presi- name removed from the list of candidates. As dents) who would accompany to Dr. Belisario a result, the Legislative Body elected three De- Porras Barahona, in his order: First Appoin- signees, Dr. Pablo Arosemena Alba, Mr. Federi- ted: Rodolfo Chiari Robles; Second Appoin- co Boyd López and Mr. Rodolfo Chiari Robles. ted: Ramón Maximiliano Valdés; and Third Appointed: Aristides Arjona. During the four- Dr. Pablo Arosemena Alba assumed the Pre- year period from 1912 to 1916, there was no sidency of the Republic in his capacity as appointee in charge of the executive branch. First Appointed, replacing Dr. Carlos Mendo- za on October 5, 1910 under the promise that On October 1, 1916, Dr. Ramón Maximiliano he wouldn’t try to re-elect himself and that he Valdés took office as President of the Repu- 30 would comply with an agreement with Dr. Beli- blic, having won as a single candidate the elec- Legislación y Economía January 2018

tions held on June 14, 1916 for the four-year of 1904 Therefore, then the Executive Power period from 1916 to 1920. However, Dr. Ra- was entrusted to Ernesto Tisdel Lefevre, Third món Maximiliano Valdéz died on June 3, 1918, Designate of the Republic, for the period from during the exerci- January 30 to October 1, 1920, since the Se- se of his presiden- cond Appointed, Pedro A. Díaz, had died months tial term of a heart earlier. On August 2, 1920, the presidential attack, at the age of elections were held with the triumph of Dr. 50 years. The three Belisario Porras Barahona as President of the Designates that Republic for the four-year period 1920-1924. had been appointed and elected by the In 1922 the National Assembly of De- National Assembly puties chose Rodolfo Chiari Robles as First for a period of two Appointed and Generals Antenor Quin- years were: Dr. Ciro zada and Dr. Nicanor de Obarrio as Se- L. Urriola, Ramón cond and Third Appointed respectively. F. Acevedo and Pedro A. Díaz. Thus, the First During the four-year term of Dr. Belisario Appointed Dr. Ciro L. Urriola immediately suc- Porras, 1920-1924, no appointee was tem- ceeded Dr. Ramón M. Valdés as President of porarily in charge of the executive branch. the Republic. Dr. Urriola pretended to be reelec- ted again as First Appointed in order to remain In the electoral elections held on August 3, in power, however he couldn’t achieve it and 1924 was elected President of the Republic his exercise of the Executive Body was limited Mr. Rodolfo Chiari Robles for the four-year to the period from June 4 to October 1, 1918, period corresponding to 1924-1928. In Sept- when the biennium ended. which was named. ember 1924 the Designates to the Presidency were elected for biennium corresponding to On September 11, 1918 the National Assem- 1924-1926, falling on: Mr. Enrique Adolfo Ji- bly of Deputies elected the three Designates ménez, First Appointed; Mr. Carlos Laureano of the biennium 1918-1920 and these were: López, Second Designee; and Enrique Linares First Appointed: Dr. Belisario Porras Baraho- de Obaldía, Third Designated. However, du- na; Second Appointed: Pedro A. Díaz; and ring four years of the government of Rodolfo Third Designee: Ernesto Tisdel Lefevre. At the Chiari Robles, no Designate was temporarily end of the mandate of previous biennium of in charge of the Presidency of the Republic. Dr. Ciro L. Urriola as President of the Repu- blic in Charge, it was incumbent upon him to In the following electoral tournament, held on take charge of the Presidency of the Republic August 5, 1928, the sole candidate Engineer Flo- to newly elected First Appointed, Dr. Belisario rencio Harmodio Arosemena was elected Presi- Porras Barahona, who was in charge of Am- dent of the Republic for the period 1928 to 1932. bassador of Panama in Washington. Meanwhi- le Dr. Porras returned to Panama, presidential On January 2, 1931, the civic-nationalist Acción term was exercised by the Second Appointed, Comunal movement carried out an armed upri- Pedro Antonio Díaz from October 1 to Oc- sing and forced President Florencio Harmodio tober 12, 1918 when Dr. Belisario Porras B. Arosemena to resign. When favoring a pre- took office as Head of the Executive Branch. sidential succession supposedly to maintain In search of his candidacy for the Presidency in constitutional order, it belonged to occupy the the next general election for the period 1920- position of President to the three Designates 1924, Dr. Belisario Porras Barahona is separa- elected by the National Assembly of Deputies ted from the First Judicial Branch of the Nation for biennial period 1930 to 1932: First Appoin- in compliance with a controversial interpreta- ted: Don Tomas Gabriel Duque; Second Appoin- tion of Article 83 of the National Constitution ted: Carlos Laureano López; and Third Designa- 31 ted: Enrique Linares. The first two were rejected Legislación y Economía January 2018

by the rebels and the third rejected the offer. ted Augusto Samuel Boyd, who held the post of Seeking a “constitutional” way out in an im- Ambassador of Panama in Washington, which plausible case, the Supreme Court of Justice allowed Second Appointed Ezequiel Fernández declared the election of those Designates un- Jaén to occupy the position by short days At constitutional and put into effect those pre- the end of the administration period of Presi- viously elected for the biennium 1928-1930, dent Juan Demóstenes Arosemena, President headed by Dr. Ricardo J. Alfaro, First Appoin- Ezequiel Fernández Jaén, Second Designa- ted ; Mr. Carlos L. López and Eduardo Chia- te, took office from December 16 to 18, 1939; ri, Second and Third Designated respectively. and Dr. Augusto Samuel Boyd, First Appoin- ted, from December 18, 1939 until October 1, Alfaro governed the country from January 16, 1940, when the aforementioned period ended. 1931 until October 1, 1932, however, at the time of his appointment as President of the Repu- In the subsequent general elections of June 2, blic Alfaro served as Ambassador of Panama 1940, Dr. Arnulfo Arias Madrid was elected Pre- in Washington and took 14 days to return to sident of the Republic, as the only candidate, Panama. During those 14 days Dr. Harmo- for the four-year period 1940-1944. Dr. Arnulfo dio Arias Madrid held the Presidency of the Arias Madrid was overthrown in a coup d’etat Nation until January 16, when Dr. Alfaro took on May 9, 1941. In this implausible case of our office before the Supreme Court of Justice. political history, his Minister of Government and Justice, Ricardo Adolfo de la Guardia, took pos- On June 5, 1932 general elections were held and session before the Supreme Court of Justice as Dr. Harmodio Arias Madrid was widely favored Head of the Executive Branch for the rest of the by the popular vote to govern the nation during presidential term. This designation was the re- the four-year period 1932-1936. During this sult of which, when overthrowing Dr. Arias, his presidential period, no appointee was provisio- First Appointed, Dr. José Pezet, was impriso- nally in charge of the Presidency of the Republic. ned to avoid his promotion to the presidency.

In the electoral process of June 7, 1936, Dr. The Supreme Court of Justice, when conside- Juan Demóstenes Arosemena was elected Pre- ring Dr. Arias of unknown whereabouts, agreed sident of the Republic. On the other hand, when to call the Second the National Assembly met at its inaugural ses- Appointed, Mr. Er- sion on September 1, 1936, Dr. Augusto Samuel nesto Jaén Guardia, Boyd was elected as First Appointed; Mr. Eze- to take charge of the quiel Fernández Jaén as Second Appointed; Presidency. Upon and Mr. Héctor Valdés taking possession, as Third Designated. Mr. Jaén confirmed his brother-in-law, On December 16, 1939, Ricardo Adolfo de death surprised Presi- la Guardia, as Mi- dent Juan Demóstenes nister of Govern- Arosemena and he was ment and Justice, and immediately procee- replaced by First Appoin- ded to resign from the Presidency, for which

11:5 5 a .m .

32 Legislación y Economía January 2018

reason the Cabinet Council appointed Ricardo year period 1948-1952, came out as President. Adolfo de la Guardia as Chief of the Executive, based on Article 116 of the National Consti- On August 23, 1949, Domingo Díaz Arosemena tution. All this despite the fact that there was died and was replaced by First Vice President a Third Designee, Lic. Aníbal Ríos, who was Dr. Daniel Chanis. Problems with the National responsible for taking office as President. Lic. Police led to his dismissal and he was repla- Ríos was in position of Ambassador of Pana- ced by Second Vice President Don Roberto ma in Peru and was told under threat that he Chiari Remón, who resigned a few days later. wouldn’t be allowed to return to the country. Dr. Daniel Chanis Pinzón was in charge of the Executive Organ interim, from July 28 to No- It is necessary to point out that in the month vember 20, 1949 and Mr. Roberto Francisco of January 1942 the National Assembly didn’t Chiari Remón from November 20 to 24, 1949. choose Designates because of the critical world situation that was experienced (Second Given the uncertainty in the country, the Natio- World War). In such a way that the Minister nal Police ordered a recount of votes of the elec- in Charge of the Presidency stayed in power tions and declared as winner of the elections from October 9, 1941 until June 15, 1945. of 1948 Dr. Arnulfo Arias Madrid, who according On January 4, 1945, after having remained si- to the original count had lent for four years, the National Assembly in the been in second place. population of Chivo-Chivo chose the Appointed to replace the Head of State for the biennium Dr. Arias governed the 1945-1947, choosing Dr. Jeptha Duncan as country from Novem- First Appointed, Miguel Angel Grimaldo and ber 24, 1949 until May Alicbiades Arosemena as Second and Third 9, 1951, when he was Appointed respectively. This choice didn’t have overthrown in a bloo- the support of any important political sector of dy coup d’etat and was the country and therefore wasn’t valid. Given replaced by his First the situation prevailing in the country and after Vice President, Don Al- much pressure, on February 2, 1945 govern- cibíades Arosemena Quinzada, who governed ment of Ricardo Adolfo de la Guardia opted for from October 10 May of 1951 until the end the convocation of a constituent to promulga- of period, October 1, 1952. It is in this period te a new National Constitution to be organized that it happens for the second time in our po- and regulated and carried out on May 6 of 1945. litical history that in a four-year presidential term there were five presidents of the Republic. On June 15, 1945, Don Enrique A. Ji- ménez was elected as Provisio- On May 11, 1952 the presidential elections took nal President until August 7, 1948. place and Colonel José Antonio Remón Cante- From the new Political Constitution of the Re- ra, as his First Vice President José Ramón Gui- public of Panama of 1946, the figure or de- zado Valdés and Second Vice President Ricardo nomination of Appointed and the election of Arias Espinoza, for the period 1952-1956, favo- three, were eliminated and replaced by that red him. On January 2, 1955, President Remón is of a First and Second Vice-President elec- assassinated and the First Vice President, José ted for a period of four years and by vote di- Ramón Guizado, assumes the country’s first rect popular, Article 138 of the Constitution. magistracy. He was in charge of the Presidency temporarily from January 2, 1955 until March In the electoral tournament held on May 9, 1948, 29, 1955, when he was dismissed and unjustly Domingo Díaz Arosemena, Dr. Daniel Chanis involved in the assassination of President Re- as First Vice President and Roberto Francisco món. Mr. Guizado was replaced by the Second 33 Chiari as Second Vice President for the four- Vice President, Ricardo Arias Espinoza, ruling Legislación y Economía January 2018

provisionally from March 29, 1955 until Octo- file to be kept, thus keeping President Robles ber 1, 1956, thus ending the presidential term. in office until the end of his presidential term. The following general elections were held on May 13, 1956, with Don Ernesto de la Guar- In the elections held on May 17, 1968, Dr. Arnul- dia, Jr. as the President, Temístocles Díaz as fo Arias Madrid won the victory, accompanied First Vice President and Don Heraclio Barletta by Mr. Raúl Arango Navarro as First Vice Pre- as Second Vice President, sident and Mr. José Domingo Bazán as Second for the period 1956-1960. Vice President, who were dismissed by a military coup on October 11. of 1968, thus begin- During the four years of ning the long period of dictatorship in the coun- President Ernesto de la try. Before the democratic opening dictated by Guardia’s term, none of his the military by pressure and American condi- Vice Presidents interimly tion for the Canal Agreements of 1977, popu- took over the Presidency. lar elections are held again and on May 6, 1984 the triumph of Dr. Nicolás The next electoral tourna- Ardito Barletta as President ment was held on May 4, of the Republic is recogni- 1960, and was elected as zed. Mr. Eric Arturo Delva- Constitutional President of the Republic Mr. lle as First Vice President Roberto Francisco Chiari; Mr. Sergio González and Dr. Roderick Esquivel Ruiz as First Vice President; and Don José Do- as Second Vice President. minador Bazán as Second Vice President of the Republic for the period 1960 - 1964. During this By virtue of the resignation period the First Vice President of the Republic, of former President Ardito Dr. Sergio González Ruiz held the Presidency of Barletta, Mr. Delvalle assu- the Nation on two occasions: from July 19 to 24 med the Presidency of the Republic during the of 1961 and the second for six days from June period from September 28, 1985 to February 11 to 17, 1962, due to the absence of the owner. 26, 1988. On February 26, both Delvalle as Pre- sident and Dr. Roderick Esquivel as First Vice For his part, also the Second Vice President, President of the Republic they were dismis- José Dominador Bazán was temporarily in sed by the National Assembly, being in charge charge of the Presidency of the Republic, from for the rest of the period as Minister in Char- April 10 to 14, 1962. In this period he was also ge of the Presidency to Mr. Manuel Solís Pal- in charge of the Presidency of the Republic, ma. Dr. Esquivel was in charge of the Executive from the 17th to the 23rd March 1963 Dr. Ber- Branch for 10 days, from May 14 to 24, 1987, nardino González Ruiz, as Minister in Char- when Eric Arturo Delvalle traveled abroad. ge of the Executive Branch in the absence of the President and his two Vice Presidents. On December 20, 1989, the Republic of Pana- ma was invaded by the US Army and the Dic- In the presidential elections of May 10, 1964, tator and Chief of the Defense Force, General Mr. Marco A. Robles Méndez was favored as Noriega, was taken to the United States to an- President and as Vice Presidents were Max swer for drug trafficking Del Valle and Raúl Arango Navarro. Vice Pre- charges, among others. sident Max Del Valle was recognized by the National Assembly as President-in-Charge As a consequence of the of the Republic from April 8 to April 15, 1967, elections held on May 7, when President Marco A. Robles was ousted, 1989, the electoral trium- but later the plenum of the Supreme Court of ph of Guillermo Endara 34 Justice revoked what had been done by the Galimany was recognized. National Assembly of Deputies and ordered the as President, Mr. Ricardo Legislación y Economía January 2018

Arias Calderón as First Vice President and Gui- llermo Ford Boyd as Second Vice President for During the presidential elec- the period 1989-1994. The First Vice President tions held on May 3, 2009, Ri- of the Republic, Ricardo Arias Calderón, presen- cardo Martinelli Berrocal won ted his resignation as Vice President in 1992 the presidential election and before the Assembly National. The Second Vice Mr. Juan Carlos Varela Ro- President, Guillermo Ford Boyd, went on to hold dríguez as President for the the position of First Vice President and was four-year period 2009-2014. provisionally in charge of the Presidency of the The Vice President of the Pre- Republic for 10 days, from June 15 to 25, 1994. sidency was never in charge of the interim period. For these elections by constitutio- In the general elections held nal mandate the figure of Second Vice Pre- on May 8, 1994, Don Ernes- sident of the Republic had been eliminated. to Pérez Balladares won as President of the Republic, The general elections of 2014 in Panama Tomás Gabriel Duque as were held on May 4 and Juan Carlos Va- First Vice President and Feli- rela Rodríguez was elected as President pe Alejandro Virzi as Second and as Vice President Isabel Saint Malo Vice President of Pana- de Alvarado for the period 2014 - 2019. ma for the four-year period 1994-1999. In that period Everything described above shows that a Vice Tomás Gabriel Duque he President of the Republic is a senior official was provisionally in charge of the Presidency elected by the people, who is below the Pre- for 15 days, from January 24, 1998 to February sident in the organizational hierarchy, who 7, 1998, in his capacity as First Vice President. completes the electoral formula accompan- ying the elected president of the country and In the following general elec- whose most important role is to replace to tions in Panama, in 1999, the President in the event of absence, di- Mrs. Mireya Moscoso Ro- sability, death or resignation of the holder. dríguez was elected as Pre- sident of the Republic, Ar- Originally, in accordance with our national turo Vallarino as First Vice constitutions, they were called “Designa- President and Dominador ted” and later called “Vice-Presidents”. Also, Bazán as Second Vice Pre- at the beginning, they held the position for a sident for the period 1999- biennium and in number of three - First, Se- 2004. During this four-year cond and Third. Then its number was re- term, none of the Vice-Pre- duced to two Vice Presidents elected for a sidents took office interim. of the Presidency. period equal to that of the President, and currently only one Vice President of the Republic In the electoral tournament held on is elected for the same time as the President. May 2, 2004, Martin Torrijos Espino was elected President of the Republic The title that the Vice Presidents receive when and Samuel Lewis Navarro and Rubén replacing the titular President has varied with Arosemena as Vice Presidents. Du- the passage of time and has been subject to ring this period, none of the Vice- the constitutional norms prevailing at the time. Presidents was temporarily in char- At the beginning of the republic the title was ge of the Presidency of the Republic. “In charge of the Executive Power”, then “Ca- lled to Exercise the Presidency”, then “In Char- ge of the Presidency of the Republic”, the lat- 35 ter being the one that remains in the present. Legislación y Economía January 2018

As we have seen in this compendium, in most cases the Vice Presidents of the Republic had the opportunity to be in charge of the Executive Branch for a short time, others had the opportunity to end the presidential term as a result of different circumstances.

We also perceive that there were few presidential periods in which no opportunity was given or favorable conditions were presented for some Vice Presidents to assume the high office of President of the Repu- blic, sometimes simply for political selfishness, or for not maintaining a friendly relationship with his superior, the president of the nation.

Some of these presidential periods that are part of our political history with justified reason can be indicated by irregularities in their respective election processes, but regardless of these points, the subject treated serves as guidance and teaching to know who in our national history were elected Vice Presidents and they could take charge of the Executive Organ, a theme that for many is totally unknown. L&E

36 Legislación y Economía January 2018

Panamanian

Source: GCRP

CONSUMER’S PRICE INDEX ECONOMY

he groups that most influenced to November were: Transportation with the year-on-year percentage varia- 0.6%; Miscellaneous goods and services Ttion of the National Urban CPI for De- 0.3%; Food and non-alcoholic beverages, cember 2017 with its 2016 similar, were: Clothing and footwear, Health, all with 0.1%. Education with 3.5%, and Health with 2.3%; However, group of Food and non-alcoholic The increase presented in the Transport group beverages that has highest weight in CPI, was the product of the increase in three of its presented a negative variation of -1.3%. seven classes. The largest variation was in the class “Passenger transport by air” with 24.0%, The National Urban CPI for De- due to the increase in the price of air travel. cember with respect to Novem- ber 2017, reflected a variation of 0.2%. In the group Goods and diverse services reflected increase five of its ten classes. Groups that showed increases in Natio- The class with the greatest variation was nal Urban CPI for December with respect “Health related insurance” with 2.8%, due to 37 Legislación y Economía January 2018

the increase in the price of health insurance. servation of the home, was due to the decrease in four of its eleven classes. The group Food and non-alcoholic beverages recorded an increase in five of their ele- The class with the greatest variation was ven classes. The biggest variation was in “Tools and large equipment” with -2.0%, due to the “Meat” class with 0.3% due to the rise in the decrease in the price of tools for the home. the price of chicken meat. In the group Gar- Group Recreation and culture registe- ments and footwear presented increase red reduction in four of its sixteen clas- one of its four classes, “Clothing” with 0.1%. ses. The class with the greatest variation was “Periódicos” with -6.6%. The increase observed in the Health group was due to the increase registered in three of its se- The decrease presented in the Education ven classes. The greatest variation was in the group was due to the drop in one of its four “Medical services” class with 0.4%, due to the classes, “Teaching not attributable to any increase in the price of medical consultations. level” with -3.0%, due to the reduction in the price of supplementary education course. Groups Housing, water, electricity and gas and Restaurants and hotels remained unchanged. • The National Urban CPI for December 2017 The groups with negative variations were: Com- with respect to its similar 2016, reflected a munications with 0.2%, Alcoholic beverages variation of 0.5%. and tobacco, Furniture, articles for the home and for the ordinary conservation of home, Re- When comparing the National Urban CPI of creation and culture, Education all with -0.1%. December 2017, with its similar of 2016, following increases were observed: Education The Communications group registered 3.5%; Health 2.3%; Miscellaneous goods and low in one of its two classes, “Telepho- services 1.9%; Transportation 1.7%; Housing, ne equipment” with -1.3%, due to the de- water, electricity and gas 1.3%; Recreation crease in the price of mobile phones. and culture and Restaurants and hotels both Decrease observed in the group Al- 0.6%; and Furniture, articles for the home and coholic beverages and tobacco, was for ordinary conservation of home 0.2%. The due to the reduction registered in one groups that showed decreases were: Food of its four classes, “Beer” with -0.1%. and non-alcoholic beverages -1.3%; Commu- nications -0.8%; Clothing and footwear -0.7%; The decrease reflected in group Furnitu- and Alcoholic beverages and tobacco -0.6%. re, articles for home and for ordinary con-

38 Legislación y Economía January 2018

Next, graph with the monthly incidence by group of the Urban National IPC of December of 2017:

TABLE 1. INCIDENCE AND MONTHLY PERCENTAGE VARIATION OF THE PRICE INDEX TO THE URBAN NATIONAL CONSUMER, ACCORDING TO THE GROUP OF ARTICLES AND SERVICES: DECEMBER 2017 BASE 2013 = 100

L & E

39 Legislación y Economía January 2018

GLOBAL CENTER OF EXCELLENCE

Source: MICI

he Ministry of Commerce and development and customer participation, Industries with the aim of ma- also motivating international and regional king Panama the key point companies to establish operations in Pa- of distribution and added va- nama, promoting growth and job creation. lue of multinational companies in America, launched the • Provide education and training in the TGlobal of Excellence - the first in the re- supply chain, serving as a power of knowled- gion - which will be developed jointly with ge and experience regarding the mana- DHL , world leader in the logistics sector. gement of the supply chain LATAM, and provide support in the strategic design ma- The Global Center of Excellence focuses nagement of the supply chain of companies. on fulfilling one of the central objectives of the National Logistics Strategy of Panama • To equip companies seeking to deve- to 2030 approved by the Logistics Cabinet: lop in LATAM, with support and professio- increase international investment in Pa- nal knowledge to reduce delivery times and nama in the logistics and transport sector. improve performance times in the market, supporting the cultivation of potential Its main objective is to assist the largest customers, creating awareness and es- companies in the world to establish distribu- tablishing Panama as an event destination centers and supply chain management tion for world conferences of logistics. L&E in Panama to maximize the value derived and the advantages of our geographic strengths.

The Global Center of Excellence will focus on four main areas:

• Make industry solutions more easily available and accessible to the industry.

• Promote Panama as a gateway to LATAM and 40 strategic logistics center through joint commercial Legislación y Economía January 2018

PANAMA CANAL ALIGNS ITS STRUCTURE TO ITS GROWTH STRATEGY

Source: ACP

he Board of Directors of the the continuation of the Canal’s long- Panama Canal Authority ap- term strategy, once the challenge of suc- proved improvements to its or- cessfully launching the operation of the ganizational structure to align Third Set of Locks has been overcome. it with the objectives established in its strategic plan that The expanded Canal has favorably impacted Twill enable it to achieve the vision of being patterns and global trade routes that open leaders in global connectivity and con- new opportunities for growth and diversifica- tinue as a driver of progress in Panama. tion to the logistics route through Panama. Now it is positioned as a more competitive It has been indicated that new structu- and profitable organization, to continue con- re will maximize the capacities and take tributing to the development of the country. advantage of the Canal’s growth and income opportunities, strengthening its or- This new structure is aimed at increasing ganizational culture of efficiency and revenues, providing value to customers, productivity to ensure the sustainabili- guaranteeing the volume of water, streng- ty of the business for future generations. thening the route through Panama through complementary businesses and ensu- The organizational changes that will be ring the sustainability of the Panama Ca- implemented during fiscal year 2018 are nal through continuous improvement. L&E

41 Legislación y Economía January 2018 PANAMA AND DEPARTURE OF THE BLACK LIST OF EUROPEAN UNION

Ivana Herrera - Attorney [email protected]

ast December 5, the finance ministers of only have to make some adjustments, but we the Council of Economic and Financial Affairs are optimistic that we will be able to achieve it “. Lof the European Union, known as ECOFIN, in- Given this, the Minister of the Presidency, Al- cluded Panama along with 16 other countries varo Aleman, also explained that the EU used in the list of non-cooperative jurisdictions in as a pretext to make this inclusion, that the tax matters or as it is known as “the blacklist”. country had not made a commitment to revi- se its legislation on call centers, adding what For the French Minister of Economy, Brino Le corresponded to Panama to face the situation Maire, countries included in the black list “don’t , take the measures and do what is necessary do enough in the fight against tax evasion”. to safeguard the interests of the country. Panama acted quickly and clarified its posi- At the time Minister of Commerce and Indus- tion to be excluded from the EU blacklist. In- try (MICI), Augusto Arosemena, spoke of the deed, it worked because on January 23, 2018, decision taken by the European Union (EU) and almost a month later, finance ministers of Eu- made reference to the fiscal changes that Pa- ropean Union again agreed that eight coun- nama would be having, he said “we are going tries, including Panama, should be eliminated to make some changes but that always be from the black list of the block of tax havens. maintaining the competitiveness of our country and maintaining our fiscal sovereignty.” The other countries that were excluded from the blacklist are: Barbados, Grenada, the Re- He added that for this inclusion the EU relied public of South Korea, Macao, Mongolia, Tu- on “criticism that they consider that there is nisia and the United Arab Emirates, “following discrimination or additional benefits vis-à- the commitments assumed at the highest po- vis the foreigner. Panama has a territorial tax litical level to remedy the concerns of the EU”, 42 system, only the income produced by Pana- the EU finance ministers said in a statement. manian sources is taxed, we see it in that we Legislación y Economía January 2018

This decision is in line with the recommen- dations made by tax experts of the EU, and is interpreted by many as a sign that there was progress in the process because countries around the world agreed to adopt rules of the European block on fiscal transparency.

The Republic of Panama has been executing a road map, approved within the framework of the High Level Commission for Internatio- nal Financial Services (CANSIF), where the private sector participates, and whose objective is to ensure the country’s competitiveness and compliance with the highest global standards in fiscal and financial matters.

The vice president of the Republic of Pana- ma, Isabel de Saint Malo de Alvarado, pointed out that decision taken by European Union reaffirms the recognition that Pana- ma complies fully with international standards of fiscal and financial transparency.

We must point out that some sectors in Pana- ma were concerned about the commitments made by Panama to be excluded from the blacklist, these were explained by the Deputy Chancellor of the Republic of Panama, Luis Hincapié, to the media, which undertook to review of special fiscal regimes (especially those of Call Center), which had been men- tioned previously in the note sent to the EU.

Currently, Panama as well as 54 other countries belong to the so-called Gray List of the Eu- ropean Union; The gray list are countries with strategic deficiencies, however, they have developed an action plan to overcome them. L&E

43 Legislación y Economía January 2018

World Source: ECLAC

ECLAC HIGHLIGHTS THE RELEVANCE AND OPPORTUNITY TO CLARIFY LINKS BETWEEN CHINA AND LATIN AMERICA AND THE CARIBBEAN ECONOMY

he Economic Commission for Latin Ame- of the environment and the principles of the rica and the Caribbean (ECLAC) reaffirmed 2030 Agenda for Sustainable Development. Tits permanent commitment to strengthening ties between the region and China, in all its Before the authorities, the high official of the dimensions, during the Second Meeting of United Nations presented the document Ex- Ministers of Foreign Affairs of the Common- ploraing new spaces of cooperation between wealth of States Latin American and Ca- Latin America and the Caribbean and China in ribbean (CELAC) and China, in Santiago, Chile. which ECLAC analyzes the joint journey since the first meeting of the ECLAC-China Forum During the meeting, which involved repre- held in 2015 in Beijing , and the evolution of sentatives of 31 countries in the region plus commercial, financial and investment relation- China, Alicia Bárcena, Executive Secretary of ships. The report also compares macroecono- ECLAC, highlighted the strong commitment of mic, environmental, infrastructure, science and the Asian country with the pursuit of econo- technology and social development policies. mic growth focused on shared prosperity, the 44 fight against poverty and inequality, protection The maximum representative of ECLAC re- Legislación y Economía January 2018

called that during the first meeting of the This reinforces the pattern of exchange of raw ECLAC-China Forum, the 2015-2019 Coo- materials for manufactures that has charac- peration Plan was adopted, where the terized trade between the region and China. goal was set to reach a commercial ex- ECLAC highlighted relevance of the Strip change of 500,000 million dollars in 2025. and the Road for Latin America and the Ca- ribbean initiative, in first place, because by “According to our estimates, trade bet- boosting economies of Asia and Europe, ag- ween the region and China multiplied by gregate demand will increase and, therefore, 22 times between 2000 and 2013 and in exports from the region will benefit. region. 2017 reached 266,000 million dollars. This means an advance of 53% with respect to She added that Chinese initiative “offers us goal to 7 years to reach it”, said Bárcena. the unique opportunity to shorten the great territorial distance that separates us through She added that the second goal towards 2025 better air, maritime and especially digi- is to achieve a stock of direct foreign inves- tal connectivity, to strengthen our commer- tment between both parties of 250,000 mi- cial, investment, tourism and cultural ties”. llion dollars and specified that, by 2017, the stock of Chinese direct investments in the The Executive Secretary of ECLAC stres- region reached around 115,000 million do- sed that China has become a leader in digi- llars, which it represents a 46% advance. tal economy and in innovation, with investments that exceed 2% of GDP in research The Executive Secretary of ECLAC poin- and development, especially in applied re- ted out that in financial sphere, China has search, which has allowed it to move quickly provided financing in last decade for ato- towards production and export of goods and tal that exceeds 141,000 million dollars, an services with a high content of knowledge. amount higher than that received by institutions such as the IDB or World Bank. She called on the region to diversify trade and foreign investment flows with China; to take However, in the area of trade, the diversification advantage of China’s technical and financial of the export basket to China is still a pending capabilities to reduce the serious infrastructure issue for the region, warned Alicia Bárcena. deficit in our region; and cooperation on social is- “We export only five basic products in sues to eliminate poverty in all its forms by 2030. 2017 - soybeans, iron ore, copper ore, re- fined copper and oil - representing 70% She also urged China to support Ca- of the total value of shipments,” she said. ribbean countries to obtain concessio- nal loans to restructure their high debt. She added that foreign direct investment from China also shows a strong degree of con- The ECLAC-China Forum aims to promote the centration, both in terms of sectors (with mi- development of the China-Latin America and ning and hydrocarbons accounting for around Caribbean Integral Cooperation Association, 80%) and destination countries (with only characterized by equality, mutual benefit and three countries, Brazil, Peru and Argentina, shared development. It is made up of Chi- receiving 81% of it between 2005 and 2017). na and the 33 member states of ECLAC. L&E

45 Legislación y Economía January 2018

THE WORLD ECONOMY WILL GROW 3.1 PERCENT IN 2018, BUT THE FUTURE GROWTH POTENTIAL GENERATES CONCERN

Source: World Bank

ccording to the World Bank, growth in world “This broad recovery in global growth is en- economy will approach 3.1 percent in 2018 af- couraging, but now is not the time to adopt Ater a better 2017 than expected, given that the complacent attitudes,” said Jim Yong Kim, recovery in investment, manufacturing and president of the World Bank Group. “It is a trade, and developing economies will continue great opportunity to invest in human and phy- exporters of basic products will benefit from sical capital. Policies around the world focus the increase in the prices of these products. their efforts on these key investments, they can increase the productivity of their coun- However, these changes are largely conside- tries, encourage the growth of the workforce red a short-term improvement. In long term, and move closer to the goals of ending extre- the slowdown in potential growth (which re- me poverty and boosting shared prosperity. “ flects the rapidity with which an economy can expand when labor and capital are used at full Download the report om the glo- capacity) puts at risk progress made in living bal economic outlook of January 2018, standards and reduction of poverty throughout It is estimated that 2018 will be the first year, the world, warns the World Bank in its report since financial crisis, in which world eco- Global Economic Prospects of January 2018. nomy will operate close to full capacity. Gi- ven that the growth potential is expected to Growth in advanced economies is expected to decrease, policy makers should look beyond moderate slightly to 2.2 percent in 2018, as cen- the monetary and fiscal instruments used to tral banks gradually eliminate initiatives taken stimulate growth in the short term and analy- after the crisis, and the rebound in investments ze the implementation of initiatives that will will return to normal. In emerging markets and allow it to be boosted in the future. long term. the developing economies as awhole, growth will be consolidated until reaching 4.5 percent The deceleration of potential growth is the in 2018, given that the activity of commodity result of years of little increase in produc- 46 exporting countries will continue to recover. tivity, insufficient investments and aging of Legislación y Economía January 2018

the global workforce. This deceleration is Perspective Analysis Group. “Specifically, it is widespread, and affects a group of econo- imperative to implement reforms to increase mies that represent more than 65 percent of productivity as the pressure on potential growth the world’s gross domestic product (GDP). caused by demographic aging intensifies.”

If we do not try to revitalize potential growth, In the January 2018 report on the global eco- this decline may extend over the next decade nomic outlook, in addition to analyzing the and reduce average world growth by a quar- evolution of the economy at the global and ter of a percentage point and that of emer- regional levels, the potential growth of the six ging markets and developing economies by regions in which the World Bank works, the half a percentage point during that period. lessons learned, is examined in detail. of the collapse of oil prices registered between 2014 “The analysis of the factors that cause the de- and 2016, and the link between the increase in celeration of potential growth highlights the educational level and the skills of the popu- fact that we have the tools to face it,” said lation and the reduction of inequality rates in Shantayanan Devarajan, senior director of emerging markets and developing economies. Development Economics at the World Bank.

“Reforms that promote quality health and REGIONAL REVIEWS: education and improve infrastructure services can significantly boost potential growth, East Asia and the Pacific: particularly in emerging markets and developing economies. However, some of these re- According to forecasts, the region’s growth will forms will find resistance in certain politically decrease from an estimate of 6.4 percent in 2017 powerful groups. That is why it is so impor- to 6.2 percent in 2018. It is considered that Chi- tant to disseminate and present in a transpa- na0s structural slowdown will conunteract the rent way all this information about the bene- modest cyclical upturn in the rest of the region. fits that they will generate for development”. The risks of this scenario changing have be- The picture still presents adverse risks. Thel come more balanced. Higher-than-expected abrupt hardening of international finance growth in the advanced economies could conditions vould truncate the expansion. In in turn generate faster growth in the region. addition, increase in trade restrictions and intensification of geopolitical tensions could un- On the other hand, the increase in geopolitical dermine confidence and damage activity. On tensions, the increase in protectionism throug- the other hand, several important economies hout the world, the unexpectedly steep hardening could register higher than expected growth, of international financing conditions and a more which would further extend global rebound. marked slowdown than expected in the main economies, including China, constitute adverse “In view of the fact that unemployment rates risks that threaten the prospects of the region. are returning to pre-crisis levels and given that the economic outlook is more auspicious in Grouth in China is expected to moderate from both advanced and developing economies, po- 6.8 percent in 2017 to 6.4 percent in 2018, licy makers should analyze new approaches to Also, according to projections, Indonesia sustain the momentum of growth,” said Ayhan will accelerate its growth at a rate of 5.3 per- Kose, director of the World Bank’s Development cent in 2018, while in 2017 it was 5.1 percent. 47 Legislación y Economía January 2018

Europe and Central Asia: Middle East and North Africa:

The region’s growth is expected to slow In this region, growth will grow from 1.8 percent down from the 3.7 percent estimated for in 2017 to 3 percent in 2018. Reforms are ex- 2017 and to fall to 2.9 percent in 2018. pected to gain momentum in the region and fiscal constraints will diminish as affirm oil prices. The eastern part of the region will continue to recover, boosted by economies exporters of basic Also, the increase in tourism will support growth products, but with counterweight of gradual de- of economies that don’t depend on oil exports. celeration in western zone, as a result of a more moderate economic activity in the euro area. However, persistence of geopolitical conflicts and lowering of oil prices could hamper economic The increase in regulatory uncertain- expansion. Inj Saudi Arabia, growth is expected ty and a further drop in oil prices could to reach 1.2 percent in 2018 (an increase from lead to lower than expected growth. 0.3 percent in 2017), and in the Arab Republic of Egypt, up from 4.2 percent of GDP. Last period According to projections, Russia will expand by 1.7 and is located at 4.5 percent in fiscal year 2018. percent in 2018, same rate as estimated for 2017. South Asia: Turkey’s growth rate is expected to be 3.5 percent this year, down from 6.7 percent re- LProjections indicate that the region will grow gistered in the year that has just ended. by 6.9 percent in 2018, while the estimated growth for 2017 is 6.5 percent. Consumption Latin America and the Caribbean: is expected to remain firm, exports will recover and investments will be reactivated as a The region is expected to grow 2 per- result of the implementation of regulatory recent in 2018, which represents an increa- forms and improvements in infrastructure. se from the estimated 0.9 percent for 2017. However, the possible failure of reform efforts, According to forecasts, growth will gather natural disasters or increased global financial momentum as investment and private con- volatility could slow growth. As expected, in sumption are consolidated, particularly in the 2018/19 fiscal year, which begins on April the export economies of basic products. 1, India’s gtowth will be 7.3 percent, while in the fiscal year 2017/18, it was 6.7 percent. However, the intensification of regulatory uncertainty, natural disasters, the increase in Projections indicate that region will grow US trade protectionism or a further deterio- by 6.9 percent in 2018, while the estimated ration in the fiscal conditions of the coun- growth for 2017 is 6.5 percent. Consumption tries themselves could derail the course of is expected to remain firm, exports will re- growth. Brazil’s economic expansion is ex- cover and investments will be reactivated as pected rise from the 1 percent estimated for a result of implementation of regulatory re- 2017 and stand at 2 percent in 2018. Mexi- forms and improvements in infrastructure. co, meanwhile, will grow 2.1 percent this year, while last year it registered 1,9 percent. However, the possible failure of reform efforts, natural disasters or increased global financial volatility could slow growth. As 48 Legislación y Economía January 2018

expected, in 2018/19 financial year, which begins on April 1, Pakistan, for its part, will grow to 5.8 percent in the 2018/19 fiscal year (beginning on July 1), while that in previous year it reached a rate of 5.5 percent.

Sub-Saharan Africa:

Growth in this region will increase from 2.4 percent in 2017 to 3.2 percent in 2018. The possibility of achieving stronger growth will depend on the affirmation of commodity prices and appropriate reforms are implemented.

The possible drop in commodity prices, a greater than expected increase in international interest rates and the absence of appropriate measures to improve the dynamics of indebtedness could hinder economic growth.

According to forecasts, in South Africa the pace of expansion will go from 0.8 percent in 2017 to 1.1 percent in 2018. In Ni- geria, on the other hand, growth will accelerate to 2.5 percent. this year, while in the year that just ended was 1 percent. L&E

49 Legislación y Economía January 2018

IN 2017 UNEMPLOYMENT INCREASED FOR THE THIRD CONSECUTIVE YEAR, BUT WOULD LOWER THE NEXT YEAR

Source: OIT

nemployment in Latin America and the Ca- 13, 1 percent to the third quarter of 2017. Uribbean rose for the third consecutive year and affects more than 26 million people in Another factor is that although this year 2017, according to an ILO report released to- there was a slight rebound in economic day which also highlights that despite this growth after a period of slowdown and worrying reality, there are signs of recovery contraction, this wasn’t strong enough to in labor market and a more positive evo- change the trend of a labor market that lution of indicators is expected next year. “acts with lag when there is recovery” .

“The labor market in region seems to be in a In 2018 instead, when according to recent fo- moment of change of cycle after a period of ge- recasts average economic growth of the region neralized deterioration of labor and social indi- would reach close to 2 percent, “economic re- cators, but improvement will depend on fulfill- bound is expected to be more visible in labor ment of forecasts of greater economic growth”, markets” and unemployment rate down for warned Director of ILO for Latin America and first time after from three years, to 8.1 percent. the Caribbean, José Manuel Salazar-Xirinachs. The report of the ILO says that already at end The annual report Labor Overview of La- of 2017 it has begun to notice an improve- tin America and the Caribbean 2017, pre- ment in employment rate in labor market, sented today at headquarters of ILO Re- which allows us to predict a positive evo- gional Office in Lima, highlights that this lution for next year. But he warns that for year there was a mixed performance of now improvement is “still light and fragile.” main variables linked to the world of work. In the analysis by subregions, the report The average unemployment rate in Latin Ame- highlights that unemployment rose in the rica and the Caribbean rose from 7.9 percent Southern Cone, where the inter-annual varia- in 2016 to 8.4 percent at the end of 2017, an tion to the third quarter went from 10.7 percent increase of 0.5 percentage points. The total to 11.9 percent. In the Andean countries the- number of people seeking a job without suc- re was a moderate reduction from 6.9 to 6.8 cess rose by two million people, to 26.4 million. percent, in Central America and Mexico it fell from 4.5 to 4.0 percent, and in the Caribbean The ILO report says, however, that ave- the reduction was from 7.8 to 7.4 percent. rage was strongly influenced by the situation in Brazil, where close to 40 per- In 2017 unemployment increased in nine of the 50 cent of region’s labor force is located, and 19 countries with data to the third quarter, this where the unemployment rate stood at is also a positive evolution compared to 2016 Legislación y Economía January 2018

when the increase was registered in 13 countries. one in five young people in labor force can’t find a job. It is estimated that this situa- “The main novelty of this 2017 Labor Overview tion affects about 10 million young people. is that, in general, the end of generalized deterioration in labor markets registered in recent Regarding the quality of jobs, the ILO re- years can be seen, and the beginning of which, port says that a weak generation of jobs if the acceleration of the expected growth in has persisted in formal and salaried sec- 2018 materializes, will be the beginning of tor, while growth of self-employment has a new phase of improvement, “said Salazar. been greater, usually associated with lower labor conditions. quality and informality. However, he recalled that unemployment is just the most visible part of functioning of labor In case of jobs by sector, increase of 1.9 markets. “There are other dimensions of emplo- percent in employment in manufactu- yment that should be addressed by countries ring industry, normally associated with of region, such as persistent gender inequality, formal labor conditions, stands out. lack of employment for young people and issues related to the quality of employment that con- In terms of wages, in a context of modera- tribute to perpetuate informality “, He stressed. te growth and especially due to lower infla- tion, in seven of nine countries with availa- For women, good news is that for the first time ble information, real wages in the registered since measurement of Panorama Laboral fe- or formal sector increased between the third male participation in labor market is carried out quarter of 2016 and the third. quarter of 2017. exceeded 50 percent, to settle at 50.2 percent. This means that more than 115 million women The increase was more noticeable in the case of are part of the economically active population. real minimum wages, with an average increase of 4.3 percent in the third quarter of 2017, above the But despite this positive evolution, the gen- 2.3 percent that had been registered a year ago. der gap is persistent. The participation and occupation rates of women are still lower A special topic included in this Labor Over- than those of men by more than 20 percen- view addresses the “Evolution of wages in La- tage points. On the other hand, the unemplo- tin America and the Caribbean 2005-2015”. yment rate of women, of 10.4 percent in the third quarter, is still 1.4 times that of men. The research highlights among other data that during this decade: “Labor markets in the region are still heavily segregated,” said Salazar. • Real wages in Latin America rose 19.8 percent, or 1.8 percent per year On the other hand, average youth unem- • On average, the real minimum wage increa- ployment rate rose from 18.9 percent to sed 42 percent in Latin America 19.5 percent in 2017, which means that • In Latin America, public employees represent

51 Legislación y Economía January 2018

18% of the total wage-earners in 2015, domestic work represents 8% and private employment 74%.

The Labor Overview of Latin America and the Caribbean 2017 warns that future prospects depend on maintaining a more stable international economic environment.

However, Salazar stressed that “although 1.2% or 2% of growth is better than recent growth rates, this ‘new normal’ holds bad news, because those levels of growth are insufficient to reduce poverty quickly, and to satisfy and finance the demands of the middle classes and to have truly transformative impacts on social indicators and labor markets. “

For that “the countries of the region should grow to 5% or 6% and this will only be achieved by addressing gaps of low productivity and lack of development and productive diversification, as well as in education and vocational training and infrastructure.”

“Only in this way can we move towards more sustainable, inclusive and sustainable growth with more and better jobs,” said the ILO Regional Director. L&E

52 Legislación y Economía January 2018

FOOD PRICES DOWN IN DECEMBER, BUT RISE IN THE SET OF 2017

Source: FAO

orld food prices fell in De- cember, as a result of sharp declines in vegetable oils and dairy products, according to the latest food price The FAO sugar price index also declined, mar- index published today by FAO. king a decline of 4.1 percent since Novem- ber due to seasonal factors and expectations W of a large surplus in next year. Sugar prices The index, a measure of the monthly variation of the international prices of a basic food were 11.2 percent lower in 2017, on average, basket, stood at an average of 169.8 points than in 2016, mainly due to an abundant har- in December 2017, which represents a de- vest in Brazil, the world’s leading producer. crease of 3.3 percent compared to November. The FAO cereal price index remained broadly Despite the decline at the end of the year, the stable for the third month in a row, with in- FAO food price index averaged 174.6 points in ternational wheat prices weakening, whi- 2017, 8.2 percent more than in 2016 and rea- le corn and rice prices strengthened. In ched its highest annual average since 2014. 2017, the index was 3.2 percent higher than the previous year, although it was The FAO dairy price index decreased by 9.7 per- still 37 percent lower than its 2011 peak. cent in December, as abundant export supplies The FAO meat price index declined slightly and low demand weighed on the international in December, and the abundant supply de- prices of skimmed milk and whole milk powder, tracted from international beef prices. In as well as those of cheese and butter. Even so, 2017, the sub-index registered an increase the sub-index was 31.5 percent higher in the of 9 percent compared to its 2016 level. L&E whole of 2017 compared to the previous year.

The FAO vegetable oil price index fell 5.6 percent from November, as palm oil prices declined in a context of rising stocks in Malay- sia and Indonesia. That, in turn, hindered the prices of soybean oil. In 2017, this sub-index was 3 percent higher than the previous year. 53

Legislación y Economía January 2018

THE USE OF POLYETHYLENE PLASTIC BAGS IN COMMERCIAL Environmental ESTABLISHMENTS IS PROHIBITED CAPSULE

Milena Vergara [email protected]

y Law No. 1 of January 19, 2018, the Na- Warehouses and wholesalers tional Assembly decreed the prohibition of theB use of polyethylene bags in supermarkets, Twenty-four months counted from the en- supermarkets, warehouses or shops in ge- actment of the Law is until January of 2020. neral to transport products or merchandise. The Authority for Consumer Protection and This Law is not applicable to processed or pre- Defense of Competition will be the entity res- prepared foods or wet inputs that require the ponsible for the application of said Law, as use of polyethylene bags for reasons of asepsis. well as for the inspection of the replacement of polyethylene bags within the indicated period. The aforementioned establishments must pro- gressively replace the polyethylene bags with It will depend on each merchant if he chooses to the reusable bags within the following periods: charge or not reusable bags. In the case of premises that decide to charge them to consumers, the Supermarkets, pharmacies and retailers ASEP must check that they are charged at cost.

Eighteen months counted from the enactment According to Article 8 of Law 1, the inco- of the Law that is until July 2019. me collected as a fine will go to a fund that will create the ASEP and will be allo- 54 cated to recycling and teaching programs Legislación y Economía January 2018

on topics related to polluting materials.

The Ministry of Environment is responsible for developing awareness and awareness cam- paigns, as well as carrying out activities to raise awareness of the advantages of using reusable bags and adding companies not provided for in the Law for the elimination of polyethylene bags.

Plastic bags are made of three main categories such as polyethylene (PE), polyvin- ylidene chloride (PVCD) and polyvinyl chloride (PVC). These materials are resistant to external environmental conditions, humidi- ty and chemical factors, for these reasons we use them frequently in everyday life.

Nos aseguran muchas facilidades, pero al mismo tiempo disponen de unas ca- racterísticas muy negativas para el me- dio ambiente y el calentamiento global.

Many marine animals and reptiles die due to the ingestion of plastic bags that become garbage or that are thrown into the sea, rivers and oceans and that are often confused with their food. They take hundreds of years to degrade, while in the middle of their de- composition process they contaminate the soil not only visually but also chemically.

We must give more promulgation to the topic and educate about the importance of caring for the environment and the damage we are doing daily. With small measures like these that are within our reach and that don’t generate a great effort we can avoid an enormous damage to our mother earth and those who inhabit it.

Using reusable bags is a way to co- llaborate and curb pollution and improve the state of the planet. L&E

55 Legislación y Economía January 2018

Illustrious

PEOPLE Idalia Ballesteros - Assistant [email protected] FIRST YEAR OF MANAGEMENT pute or controversy. two US ships that OF THE DONALD TRUMP Some of these issues were in the Mediterra- have only been dis- nean, these aimed to On January 20, the first year of Donald Trump’s cussed in social net- penetrate the air base term as president of the United States of Amer- ica was fulfilled and during this time various works since President of Shayrat. Additio- events have taken place about his administra- Trump is very much nally, in Afghanistan tion, about some achievements and especially his given to the use of he ordered the launch particular style of governing which is the greatest difference between him and his predecessors. networks to present of a bomb, known his points of view. as the “mother of all that was recently pu- bombs”, which many Notably, 27 experts in blished that Trump In foreign policy specialists indicate psychiatry and men- is a narcissistic, so- As for the foreign po- that he did with the tal health professio- ciopathic, hedonistic, licy of the country, purpose of warning nals have analyzed impulsive, immature Donald Trump since that he doesn’t he- the psychological and incompetent per- he was a presidential sitate to use non- profile and the public son, among others. candidate proposed nuclear bombs with part of the life of the “a peaceful solution” a destructive power North American lea- During the first 365 to the issue of inter- when, In his opi- der and have descri- days of his adminis- ventions in Syria; Ne- nion, it is necessary. bed the president as tration, not a single vertheless; On April 6, the “most dangerous week has passed he ordered the laun- With respect to re- man in the world”; when Trump is not ching of 60 Toma- lations with Cuba, 56 they qualify in a work involved in any dis- hawk missiles from Trump in a press con- Legislación y Economía January 2018

ference staged the “new rules of the game”, was to build a wall that would separate Mexi- in same the White House asks the island ad- co from the United States to prevent the pas- justments in terms of its government, convoca- sage of immigrants to the country, but he did tion of free elections, release of political priso- not take into account that this would affect the ners and respect for human rights, this with the biodiversity of the area. One of the first things intention of avoiding any kind of business with he did during his tenure as president was to de- the Armed Forces of Cuba (FAR) and increase cree a 90-day veto of US territory for citizens of trade with their own accounts. Cuba presented seven different countries, mostly Muslim: Syria, its project to the UN for the lifting of the econo- Iraq, Iran, Libya, Somalia, Sudan and Yemen. mic, financial and commercial blockade in which the United States and Israel voted against. A few months ago, Trump was involved in a racist act when he denounced the NFL player Co- On the other hand, the White House has es- lin Kaepernick and others who knelt during the tablished economic sanctions against Vene- national anthem, in protest because they belie- zuela and has emphasized its willingness to ve that racial injustices are being committed. carry out actions in favor of Venezuelan de- These were his statements: “Wouldn’t you love mocracy, has indicated that the government to see one of the owners of the NFL, when so- is solely responsible for people to be hungry. meone disrespects our flag, say: ‘Get that son of b**** out of the field right now, are you fired’?” With North Korea has maintained its position that represents a nuclear threat, so it However, despite all the above, the now Pre- has said on several occasions that it is wi- sident Trump in a conference before winning lling to destroy the Asian nation if it is for- the elections defined himself as “I am the least ced to defend its country or its allied coun- racist person they have ever met”, and indica- tries. The United States believed that North ted that many Mexicans are his employees. Korea must dismantle its nuclear weapons. HEALTH SYSTEM

RACISM Since he was in his presidential campaign, Do- nald Trump promised the repeal of the Affordable Care Act, better known as “Obamacare” since he considered it a disastrous model, too onerous and had too many regulations, this was rejected by the Congress; However, Trump continued to insist on other ways to dismantle the law, which he achieved through an executive order.

In addition to the foregoing, on October 12, President Trump repealed the federal subsidies to insurers, arguing that there are not enough funds for cost reduction payments with insurance companies, which is equiva- lent to approximately seven billion dollars. President Donald Trump is considered racist because of his policies aimed at immigrants, This action by President Trump brought con- mainly Mexicans and Muslims. One of his main sequences as prosecutors in California, Mas- 57 proposals while still a presidential candidate sachusetts, Kentucky and Connecticut an- GS Magazine February 2014

cently three states (New York, New Jersey and Connecticut) all governed by Democrats, an- nounced that they would be filing a lawsuit to try to stop the tax reform, as they argue that it is RUNNING TITLE RUNNING designed to harm states with Democratic majority and cost their taxpayers billions of dollars.

These states reject the limit imposed by federal authorities on deductions that taxpayers can make from local and state taxes they pay. The main states affected by this reform would be nounced a demand for the government’s New York and neighboring areas or states such decision to suspend subsidies to health in- as California because they are high tax areas surance carriers covered by Obamacare. and therefore citizens will increase their taxes.

Because of this, different Democra- There are critics and specialists on these issues tic leaders of the US Congress have sta- who indicate or come to the conclusion that this ted that the measures established by the new reform will greatly benefit the higher inco- Trump government would greatly affect me sectors, in fact, claim that Trump himself the country’s middle and working class. and his family would be benefiting since they would pay less taxes for the income personal THE TAX REFORM obtained through participations in various companies; but Trump himself has said several On December 22, 2017 before leaving for his times that he will not benefit personally. In fact, Christmas holiday in Florida, President Donald he has assured that it will cost him a fortune. Trump signed what some consider the great legislative triumph of his first year in office, the Both Trump and those who support the re- Fiscal Reform of almost 1.5 billion dollars that form argue that a tax reduction to higher includes important cuts of taxes for companies income sectors will result in higher inves- and workers. The norm contemplates the reduc- tments and therefore greater growth, howe- tion of the tax that the companies pay from 35% ver, the reform also leaves losers, these are to 21%, and to a lesser extent for the workers. middle class families who pay high tax rates and living in the most expensive states. It should be noted that the approval of this reform was 51 votes in favor and 49 against, THE CONTROVERSIAL BOOK none of the Democrats voted in favor of the text that was made behind closed doors Recently the book Fire and Fury was published by the Republican leaders of the Senate. (Inside Trump White House) whose author is Michel Wolf, it relates in general terms the cu- Re- rrent life of President Donald Trump from his presidential campaign until the first months of management, where he does not favor himself at all the image of the now president,

This book is based on material that the author 58 compiled about formal, informal meetings, speeches said by Trump himself, telepho- blished, threeblished, were millioncopies sold. cation. Afteronlythree days since it was pu achieved a scandal andadvanceits publi- ventonly with thisaction but its publication, The samePresidentTrump triedtopre that thebookis who indicatesfulloflies. kers and even with the same Donald Trump; views with closetothem, people wor that theydeduces by are all inter supported metimes a bit strong, however, the author are revealed inthebookFire andFury are so revelationsanecdotes, The andstoriesthat fiction. of work a from taken seem author the his labor relations,told by theseanecdotes wayworking, his collaborators, ofselecting In this one talks about his personality, way of ted withwithin characters the WhiteHouse. conduc 200 interviews calls andabout ne L&E ------GS Magazine February 2014 59

RUNNING TITLE GS Magazine February 2014 RUNNING TITLE RUNNING

Ana Sofía Corrales [email protected]

e don’t know how far we can go, category of under 15s, according we believe that to be better we just to latest ranking of International have to overcome others. Howe- Table Tennis Federation. ver, without realizing the biggest o Ismael Díaz, who is challenge is to overcome oursel- playing in the B team of De- Wves, challenging our limits and portivo La Curaña, of Spain forcing ourselves to be better. o Luis Coco Henríquez, who signed a contract with Poland Each athlete throughout his athletic Sroda Welkopolska, from Poland life has suffered falls and frustra- o Gabriel Torres, who tions, however, perseverance has will play with Huachipato, of led these athletes to strive more and first division of Chilean soccer be better every day. We can see such o Abdiel Arroyo, who will an effort when Panamanians are in- reinforce La Liga Alajuelense ternationally awarded or selected of Costa Rica. Joins compa- to play in foreign teams such as: triot Roberto Chen, who is re- Sports Capsule covering from a knee injury. o Jacobo Vahnish, who occupies To these and among other 60 the 2nd position in the world in Panamanian athletes, it sports, but to all areas of our life. Since challenging ourselves is the most difficult challenge. difficult most the is ourselves to challenging only applies Since not life. our of this areas And all sacrifices. to and but sports, discipline training, of hours many them cost has P the closing will the closingbeonFebruary 17. ball (MLB) sponsored by the Savings Bank, Hit program& Run ofMajorBase League 12 years oldgatheredthe Pitch, tostart Hundreds ofboys9 and andgirlsbetween la nato actualmentelideraPanamá Este. de esteCampeo La tabla posiciones de se sancionar,debe ya que afea el deporte. bargo, actitudantideportiva, al demostrar tantosvalores,tiene Un deportista sinem- so involved oftwogames. with suspension fight, a in ended the FEDEBEIS. He theplayerssanctioned West Panama and tro two playersbetween from Panama Me a crosswordle BaseballChampionship, dayOn the fourth of the National Juveni BASEBALL that we should continue to improve.continue that weshould and Softball Confederation. What tells us Baseball World the by official of theworldranking2017, as made 15 position the anama maintained L&E - - - - GS Magazine February 2014 61

RUNNING TITLE Legislación y Economía January 2018

SOCCER

l fútbol no se detiene, por lo que en 1B y Zona 3 llevan un encuentro, mientras estos momentos la preselección que, la Zona 2 esperan su cuarto partido. nacional Sub 20 se prepara para el Torneo Eliminatorio UNCAF en El Tauro FC se encuentra esperando con an- el estadio Luis Ernesto ‘Cascarita’ sias la Liga de Campeones de la CONCACAF, Tapia,E que se realizará del 16 al 28 de julio. la cual iniciará el próximo 20 de febrero y con- tará con la participación de dieciséis clubes, Mientras que ya se oficializó el partido de pre- los cuales son: Toronto FC (CAN), CS Heredia- paración para el Mundial Rusia 2018 entre Pa- no (CRC), Deportivo Saprissa (CRC), Cibao FC namá y Dinamarca el próximo 22 de marzo. (DOM), Santa Tecla FC (SLV), CD Olimpia (HON), FC Motagua (HON), CD Guadalajara (MEX), Y las ligas continúan… como la Liga Pa- Club América (MEX), Club Tijuana (MEX), Ti- nameña de Fútbol, en la cual va lideran- gres UANL (MEX), Tauro FC (PAN), Colora- do el Árabe Unido con 9 puntos, quien do Rapids (USA), FC Dallas (USA), New York lleva su tercera victoria consecutiva. Red Bulls (USA) y Seattle Sounders FC (USA).

Por otro lado, la Copa Rommel Fernández, La Por lo que en el mes de febrero viene car- Barriada FC de la provincia de Coclé, está te- gado con encuentros explosivos. , los días niendo un pase perfecto en la Zona 2, per- 2, 3, 4, 7, 8, 16, 17, 18, 20, 21, 24 y 25. maneciendo invictos. La Zona 1A, Zona

62 Legislación y Economía January 2018

BASKETBALL

he Professional Basketball League second day and if necessary a third one will be (LPB) is in its final rounds, where played. These juices are developed in the gym- the Caballos de Coclé leads the ta- nasium of the Santa María la Antigua University. ble, followed by the Correcaminos de Colón and occupying the third In the same way the National Team is preparing and fourth place, the Panthers of for their next matches, on February 23 against CostaT del Este and the University students, who Paraguay and 26 against Uruguay, looking to they will see the faces in the semifinal round pass the tie for the 2019 China World Cup. L&E that will be the best of three matches with a II PARACENTROAMERICAN GAMES

anama has a confirmed dele- ges. We wish you luck to close these Pa- gation of 54 athletes in the II ra-American Games Managua 2018. L&E Paracentroamerican Games, which are based in Nicaragua.

There will be participation in sixP sports: athletics, powerlifting, swimming, golbol, wheelchair basketball and bocha. A total of 250 athletes with disabilities from Costa Rica, El Salvador, Guatemala, Hon- duras, Nicaragua and Panama participa- te in these Paracentroamericam Games.

The Panamanians are making an exce- llent participation leading the general me- dal table with a total of 31 medals, of which 16 were gold, 15 silver and 5 bronze. They excelled in disciplines such as swimming, where 7 gold medals were won and in athletics with golden medals, with athletes with intellectual and visual disabilities.

These guys are an example of perseverance and have overcome great challen- 63 Legislación y Economía January 2018

CYCLING

The Panamanian Cycling Federation and the League of executives of the province of Panama (LEAPP) share their calendar of activities. L&E

64 Legislación y Economía January 2018 FASHION

Gabriela Melgar/Donna Ballestero [email protected] [email protected]

ATTITUDE AND GOOD BEHAVIOR IN THE TABLE

he protocol as well as being the set of rules tones, creams, cakes or ivory, of formality that govern diplomatic and official in festivities of Christmas acts and ceremonies, is also based on the set of nature, for example, may be in Trules of courtesy that are followed in social rela- typical colors of these festivi- tions and that have been established by custom. ties.

On the other hand, etiquette, is defined as the • Napkins preferably white, set of rules and formalities that are observed in which can be placed on the certain official and solemn public events. With plate, to the right or to the this, we understand that both complement each left of it and should be avoi- other, teaching us those rules and parameters ded to place it inside the cup. that we must follow to maintain a good behavior in relation to social relations and formal acts. They can be folded in a rectangular or At some point in our lives, whether professional triangular shape. or personal, we have to attend or preside over a formal event, among which we can mention din- • Generally the most ners, weddings or protocol events and we may not basic tableware has have the knowledge of how to behave properly. flat plates, deep plates and plates The protocol and label on the table start from of bread and des- the moment they are assembled, it is necessary sert. Other dishes have a greater number of to be clear on which side each utensil goes, how elements and are used in very few formal many will be used, the types of glasses, etc.., as occasions. Basic thing is well as distribution of diners and the behavior to place on the table a flat that must be had at the time of eating, it is not plate with a deep one in necessary to take into account the following: the center and in upper left 65 • The tablecloth should usually be in white corner plate for bread. Legislación y Economía January 2018

first necessity. If needed, offer the appropriate • The cutlery should be placed about 2 cen- excuses. timeters from the plate, the forks are placed on the left and the knives and spoons • Avoid the use of mobiles or any other electro- on the right, the pie fork and the dessert nic system on the table. spoon is placed on the top of the plate. • Don’t put your hand on the plate or cup, if we • The glassware, that is don’t want to be served more quantity of any to say the glasses to use food or drink. depends on the wine to be served and this also • Speak with a moderate tone of voice. relates to a great extent to the food because de- • Avoid chewing ice that remains in glass after pending on what will finishing the drink or while drinking it, this, be- be eaten, the wine (s) sides being detrimental to dental health, is an to be taken is defined. act of rudeness at the table, sound and gestu- The water cup is placed in the upper right part. res produced by person Many times, without this being noticed, they can create discomfort while distracting others. Having said that, we will There are also those events of less formali- now talk about ty where buffet style is common, food is ser- some guidelines ved and served on one or several tables and to follow and is characterized as a self-service meal, whe- our behavior at re the diner serves its own food and controls the table: the amount What you want from them, however, is not synonymous with filling the pla- • As a basic rule ladies should sit first espe- te of food or serving in an orderly manner. cially if they are ladies; in this case remove the chair to facilitate its entry. To act correctly, consider these • It is allowed to support the forearms, if we aspects: support the elbows it would be only when there is no food on the plates or if there is a cover • If the tables are attached to the wall, it in the hand. starts from the left side to the right.

• Don’t talk with your mouth full, always wait to • If they are in the center of lounge in form finish snack or finish drinking. of an island, it starts from right to left until completing the round, a simple way • If we are talking, the cutlery is left on the pla- to guide us is the place where the plates te to have hands free. and cutlery are located, these indicate the beginning of the buffet. • Eat without making some kind of noise, the same at the time of drinking. Don’t sip the • Identify where we will sit, it is not right to drink. serve the food first and then walk between the tables looking for a seat. • The food shouldn’t leave our plate, only to go to the mouth. • Use the cover placed in each meal, it is not in good taste to use it and when it is a 66 • Don’t leave the table except for reasons of meal it can affect the flavor of other foods. Legislación y Economía January 2018

• Being moderate with the amount of food to be served, we must remember that, if we want more, we can repeat.

• If you are going to repeat the meal, you should take a new plate and cutlery.

Around a basic need, such as eating, rotate family, work and social gatherings. But, the current rhythm of life has turned this essen- tial part of our life into something too routine. We often doubt the importance of good man- ners and business etiquette in business world, even considering it as superficial. however, this idea is very far from all reality, since lack of them, can cause both the loss of good friends and productive businesses. In addition, to put at risk our image as a person and professional, along with that of organization or company for which you work or own. L&E

67 GS Magazine February 2014

RUNNING TITLE RUNNING Cultural Capsule

FESTIVALS AND Mariela de Sanjur CONCERTS [email protected]

• Antique Music Festival Panama: from January 31 Evening in Santiago. to February 5 in Panama Viejo and Casco Antiguo. • Festival of the Poor Cinema (Panalandia): from o January 31: Convent of the Nuns of the Concep- February 27 to March 3, its main headquarters will tion-Panama Viejo / Musica Alchemica-Spain be the former Cinema Arte cinema room, in the El o 1 February: Auditorium of the Canal-Casco Anti- Hatillo building. guo Museum / Delirivm-Spain • Boquete Jazz & Blue Festival: from February 22nd o February 2: Lobby Canal Museum-Casco Anti- to 27th in Boquete, Chiriquí. guo / Amarillis-France • The BBQ Fest: February 4 at the Terraces of the o 3 February: Vestibule of the Canal-Casco Anti- Hotel Panama guo Museum / Tembembe-Mexico • Festival of Comets and Panderos (Aprochipa): o February 4: Plaza Catedral-Casco Antiguo / Aca- February 25 in Panama Pacifico from 11:00 a.m. at demia Barroca-Panamá-free event 6:00 p.m. . o February 5: Francisco Arias Paredes-Calidonia • The Recreative Cycle of Panama: every Sunday Park / Barroca Academy-Panama from 6:00 a.m. at 12:00 m in La Cinta Costera, 450 • Menú Panamá-Summer Wine Festival: el 2 y 3 de free bicycles. Remember that the use of a helmet febrero en la compañía de Jesús en el Casco Viejo. is mandatory and you should not use headphones. • Menú Panamá-After Party: el 2 y 3 de febrero en Las Clementinas en el Casco Viejo. • II Campeonato Nacional de Barista: 1 y 2 de febrero en el American Trade Hotel. THEATER • Musicalion del 27 de febrero al 4 de marzo del 2018 en el Parque Omar, evento gratuito. o Martes, 27 de febrero: Cats el musical a las 7:00 • El Ángel Theater: The Adventures of the Wonder p.m. Woman until February 18. o Miércoles, 28 de febrero: noche de danza con • El Ángel Theater: That Man is from Two until Más que Amor a las 7:00 p.m. February 4. o Jueves, 1 de marzo: Encantados a las 7:00 p.m. • La Estación Theater: Peter Pan and the Pirayes Island until February 4. o Viernes, 2 de marzo: DJ’s en Ilusions a las 7:00 • La Estación Theater: GLOI Comedy Week, on Fe- p.m. bruary 2 and 4. o Sábado, 3 de marzo: Yoga & Chill Out a las 7:00 • Aba Theater: Secrets of Women until February 4. a.m. • La Plaza Theater: Confessions of women from 30 o Domingo, 4 de marzo: Concierto de cierre con to 25 February. Panamá Sinfónica, donde sonarán grandes éxitos • La Plaza Theater: La Buena, La Mala and La Fea de la salsa, típico, rock, y género urbano de Pan- from February 16 to 25. amá a las 7:00 p.m. • La Plaza Theater: Pegados, the musical. From • Astrocamping: at the Astronomical Observatory February 15 to March 7 located in Penonomé, Coclé from February 2 to 4, • Circulo Theater: Flamenco Throughout Time on for information www.oap.utp.ac.pa February 2. • Full Moon of Drums: Saturday, February 3 at Mar- • Circulo Theater: Rock of Ages from February 2nd 68 to 19th. ket Plaza, La Chorrera and February 17 Tambores • Ciudad del Saber Theater: Panama The Musical Atlapa. 3in to 28 March February from • Expocomer: Convention Center. 10 11, and February Fair: • Afro-Antillana ATLAPA 4. to March 28 • Tonosí Valley February Fair, from Santos Los 16 to 18. February from Fair,• Chitra Calobre 4. March 23to February from Soná in • Fair of Veraguas 4. 1to February from of Veraguas Province Fe, Santa of District the in Veraguas: Fede • Fair of Santa 4. February Candelaria-Bugabá-until • Fair of La 4. February until Chorrera: la de • Feria Convention Center. Megapolis the at 4February 3and 2, Fair: • Baby o Feb ofMan. 22:TheHeart o Feb 15:TheDarkest Hours. o Feb 8:FiftyShadesReleased. o Feb 1:TheAdventures ofPaddington 2. • Premieres intheaters: ra LaBohémeinHD • TheateroftheMiraflores Locks:February24ope ra LÉlisirD’Amore inHD • TheateroftheMiraflores Locks:February10ope from February 1toMarch 4. MOVIES IMPORTANT FAIRS - - nians andpermanentresidents. 4,freePanama• Biomuseum:February entry workshop February 17from 9:00a.m.to12:00m.free o Workshop inthepatio ofmyhouse:Saturday, children over 4years old,donation$5.00 turday, February 3from 9:00a.m.to12:00m.for o Workshop Let’s withHands: Sa paintaStory • Interoceanic MuseumofthePanama Canal: (Law No. 29 of No. 29 May 12,(Law 1998) 25: (1925) Day Revolution of Dule • February Justice 20: Day World of Social • February 16: Year New Chinese • February hood cancer 15:child against • February Day fight of the 14: Wednesday Ash • February friendship 14: Valentine’s• February Day, day of love and 13: Day Radio World • February (1929) Torrijos 13:Omar of General Birth • February Day World • 11 Sick of the February: 11:• February of Lourdes Lady Our gist 10: Technolo Day Medical of the • February country 10 to the 13:• February throughout Carnivals Day Dentist’s • 9February: eraman Day cam and 6: Photographer’s • February Day Cancer World Against • 4February: Day Wetlands World • 2February: 2: Day Candelaria of the • February FECHAS VARIAS EXHIBITIONS AND MUSEUMS L&E GS Magazine - - - - - February 2014 69

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

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Torres, Plaz & Araujo- VENEZUELA

Facio & Cañas- COSTA RICA