The end of our Election Polling What will leave us Brazil 2014?
“The Supreme Court vindicates itself ” ISSN 1726-0485 MAY EDITION 2014
BASIC GOODS
www.rbc.com.pa
Colaboradores en esta edición José Javier Rivera Rafael Fernández Lara Francisco Bustamante Karen Fábrega Giovana Miranda Dayra Castañedas Nadia Chang Mariela de Sanjur CONSEJO EDITORIAL José Javier Rivera
Giovana del C. Miranda
Fotografía - Mariela De Sedas de Sanjur
Diseño y Portada: Virginia Medina
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CONTENT Editorial 6. “THE SUPREME COURT VINDICATES ITSELF” Invited Writer 8. PRICE CONTROL
A PERMANENT SOLUTION TO THE HIGH COST OF BASIC GOODS?
Norms of Interest 11. “CODE OF PRIVATE INTERNATIONAL LAW OF THE REPUBLIC OF PANAMA” 13. PROCEDURE ESTABLISHED BY ANAM GUIDE TO GRANT CERTIFICATION 14. REPEALED LAW REGULATING PRIVATE SECURITY SERVICES Consult, Doctrine y Jurisprudence 15. PRECAUTIONARY MEASURES IN ARBITRATION 20. FULL COURT CRIME AGAINST HONOR 22. THEY ADMIT DEMAND PROMOTED IN FAVOUR OF PACO GÓMEZ NADAL AFTER THREE YEARS
Polítics 23. THE END OF OUR ELECTION POLLING
CONTENT
Panamanian Economy
26. CONSUMER PRICE INDEX 27. MEF DETAILS GOVERNMENT FISCAL BALANCE 28. PANAMA - COMPARATIVE EVOLUTION OF ISR COLLECTION World Economy 29. LOW ECONOMIC GROWTH IN 2014 MAY AFFECT EMPLOYMENT IN LATIN AMERICA AND THE CARIBBEAN
30. JOINT STATEMENT OF FEDERAL CHANCELLOR OF GERMANY, ILO, OECD, WTO, IMF, WORLD BANK
32. FOUR AXES PROPOSED FOR AGRICULTURAL COOPERATION IN AMERICA 34. POPE FRANCISCO ATTEND THE SECOND INTERNATIONAL CONFERENCE ON NUTRITION (CIN2)
World Periscope 35. ELECTIONS IN INDIA Sports Capsule 36. WHAT WILL LEAVE US BRAZIL 2014 Tips for Good Dress 39. PROFILE NADIA CHANG - MEN SUITS, TRENDS 2014 Cultural Capsule 40. y 41. ACTIVITIES FOR THE MONTH OF MAY AND JUNE
“THE SUPREME COURT VINDICATES ITSELF” José Javier Rivera - Abogado jjrivera@rbc.com.pa
D
uring the fateful presidential term that is to just pass away, administration of justice suffered a direct intervention of the Executive Branch, which was reflected not only in its institutional weakness, but in terms of proliferation inhibitory failures, rampant judicial arrears and hegemony of the majority of justices who served these purposes. On several occasions, we met directly clear interventions distributions of cases that were intended to freeze or sequester significant competition issues of the Assembly or the Chambers, in matters of impact as freedom of expression, wetland conservation and our ecological richness, investigating corruption scandals in all economic fields, the executive interference in other matters outside its jurisdiction, including the appointment of the Attorney General’s Office, as well as direct phone calls to magistrates and judges to address their failures.
and respect for the Constitution and the Law. In total counter to this national will, the Supreme Court and in particular its former President, was characterized by arbitrariness in their statements and in most cases a real jam records charge. But nothing is eternal in life, time spent and there glimpses of change in the right direction, motivated by social pressure, which is not only expressed overwhelmingly at the polls, but because only one remaining days for dishonored the presidential chair and out the back door from the point of view of respect for democracy, freedom of expression and protection of public property, which infamously squandered.
Pleased note that in recent pronouncements, the Supreme Court has deemed unconstitutional the gross granted asylum to María del In many cases the citizenship claimed by Gil Pilar Hurtado, who was characterized in CoPonce Building, through the media and social lombia by the persecution of opposition to networks the lack of clear and convincing state- President Uribe and other outrages of which ments to validate the existence of a rule of law 6. Legislación y Economía - Mayo 2014
must accountable in their country of origin In these five years, through various sinecures and therefore cease placid stay on our land. among which is the acquisition of military equipment, unearned salary increases and acquisiIn that same vein, is a laudable Substantiating tions millionaire trappings of combat and the Justice has dared to admit an appeal for cons- arrogance of those police forces, the country was titutional protection against the claim of the heading towards restoring army disguised to enExecutive to reduce the wetlands of the Bay sure impunity and abuses that have implemented of Panama, crime against the country, which the policemen repeatedly against civil society. would involve a civilized country attempt to ecological damage and thus allow the prose- Therefore, it is essential to a citizen’s audit on cution of all members of the Executive Branch the work of the Supreme Court and a perwho participated in the approval of this bill. manent complaint through the proceedings conducted throughout the judiciary, directly It’s also a comforting message content in a re- against arbitrariness and judicial backlog. cent decision of the Plenary which clearly states that the government high officials lack cri- It is neither more nor less than a crusade in which minal action against citizens in cases of libel. we will not rest until the natural balance of powers that characterizes a robust democracy is restored. This weapon was brandished threats repeatedly The Supreme Court must answer its really in emails and through various policy and claims straight acting because “the country looks”. L&E against third parties alleged blatant corruption. Dawn and see. Earrings of processing are related records Donoso wetland, the resolution of the ARAP reducing fines for those who are dedicated to devastate mangroves and other related topics. However this account, we must recognize that by dissenting votes and explanations of votes, both in plenary and in the various rooms, the dissenting minority in our High Court has expressed opposition to decisions and rulings that were unaware of the process, the Constitution and international conventions protecting human rights in our country. A memorable example is title of the judgment of Supreme Court, which overturned an absurd protection to members of the National Police investigated felony receiving preferential treatment not subject to custodial measures freedom but perform administrative tasks in that police force. This privilege only responded to the misuse of power by the Executive and a clear break of our Constitution which states that in Panama there is no army. 7. Legislación y Economía - Mayo 2014
Price Control a permanent solution to the high cost of BASIC GOODS?
A
rticle 284 of the Constitution in force in Panama, authorizes the State to, 1. Regulate bodies through special tariffs, services and prices of items of any kind, especially those staples. In light of this constitutional provision and correctly interpreting a perception of the Panamanian electorate, the president-elect has promised to freeze prices of 22 essential items. How long hasn’t said, or if the price freeze is to present the current or a previous price. The expectation that the price freeze should produce savings of about $ 58 on the estimated current cost of basic goods, makes us think that it is a price reduction and fixation or freezing of these lowered the level. If this is correct, here we go with a natural problem in the markets. As an example: The expectation of higher prices in the case of an action produces an effect contrary to what they used to (in my time as a student), say the texts. Rather than sell the action, because the price is good, investors run to buy more before the price continues to rise, which inevitably pushes prices further upward. One of the ways in which the bubbles are formed. But let’s go back to our subject.
Francisco Bustamante - Abogado rbcweb@rbc.com.pa
discounted the effect of price control at an early stage. That’s what happens when there are increases in nominal wages. Before you start to pay, if employer has market power increases the price of your product. Depending on your controlling supply and demand sensitivity, increase price of their product by the value of increased cost of labor, in full or not. When you can put an effective price control? If we are in a competitive market, ie in which prices accurately reflect production costs, the possibility of demand for alternative assets, and competition between producers and distributors, prices are likely to be the maximum and price controls, may affect the extent expected, while no production in inventory. To the extent that the producer or distributor can’t control the input prices, transportation costs, energy, which haven’t been regulated, inevitably tend to reduce the supply of well-regulated.
And this shortage, ironically, push up prices again. This shortage, and not the cost of production, as Menger said, then becomes the main factor in price formation, resulting from a failure that costs are properly reflected in final price to consumer. In the case of food, and others could follow suit. If Again. In what type of market you can run a price control? some evidence that the prices at which I am selling a In a market where the bidders, by agreement whether certain product to be controlled, frozen, reduced, what expressed or implied, fix final price above competitive the reaction of the trader there? Yes Instead of lowering rates because precisely control the supply. Whether in them so that I don’t freeze, the shopkeeper raises prices the production, import, distribution or final or all or before regulating. Thus, when the regulation comes, and part of the marketing chain. This is the case of Pana8. Legislación y Economía - Mayo 2014
ma, in the perception of many people, myself included. Still, price controls work? They will accept these entrepreneurs used to obtain what is called pure income, ie income derivatives market price, but its power to manipulate prices, government controls them or reduce these tasty perks? We have some examples.
quality, quantity and price to the public? I believe not. The problem is much more complex than a marketing problem, just. If it were, generating measures real competition, would be enough to break the control mechanism of prices of importers and wholesale buyers, retailers and distributors. Measures to introduce competition in the supply chain and food imports The country began a process of years low taxing of are necessary and inevitable. I think there is a clear food imports, with a view to the cost thereof to con- awareness that is so. However, I repeat, is not enough. sumer is reduced. The general impression in the population, is that the cost savings from tariff reduc- Here are some options. In Brazil there are food martions weren’t passed on to consumers becoming, kets are called free trade. On a street in a specific neighagain, in income for those who have market power. borhood, every week spaces for producers offer their products directly, without intermediaries, the market is Thus, unless a consensus is achieved with these distribu- enabled. In my life as a student in Sao Paulo, I used to go tors, importers or buyers to local wholesale food price to these markets. I knew that a certain day in Pinheiros controls may be ineffective. Since they can simply decide in Sao Paulo, could buy cheaper than in supermarkets. up stocks, import more expensive alternatives and flip to price controls or simply not providing the market, crea- In Mexico where I also lived in the Colonia Polanco suting a shortage, which again, drive prices further upward. per fresa, which left my office, I could also buy cheaper food. In Nahuatl called with accent tianguis. Millennials Beforehand, I anticipate that this oligopolistic group popular markets. It is the same spirit that free trade in will not easily cede its control of the market. A suc- Brazil with very low infrastructure costs. And traders cessful control system prices would be the door for move from one neighborhood to another every week. other prices or products are reviewed. As the formation of fuel prices, the mandatory use of ethanol subsidi- In Panama jumbo fairs or exhibitions, which is nothing zing a private company in the style of the sixties, etc. more than the government making trader doesn’t consider operating costs, and subsidized prices was invenLet’s go down in the chain of importers/wholesa- ted. Not one, either, sustainable solution indefinitely. le buyers, to distribution chain to consumer. The How Panama is supplied with food? In a very rough estruth is that the prices charged in supermarkets, are timate I made some years ago, the supply of food in Pasubstantially lower than the prices charged in retail, nama is supplemented by more than 50% of imports of known as super mini stores, convenience stores, etc.. both finished food, as other inputs such as flour, oil, etc. Moreover estimates of the cost of basic basket doesn’t collect this tremendous price distortion in the in- Domestic production each day is less important in the formation provided to the public. And the ACO- final bid, so the greater variety of imported products, DECO prepares price lists of basic goods, taken in such as the relative and absolute decline of the agriculsmall stores or NO mini market, where local pri- tural domestic product. This is an undeniable truth. ces are higher, but the cheapest supermarkets or lo- Increasing local production can be achieved internally cal markets. Thus, there is a large gap between pri- cheaper prices? Not necessarily. Here are some examples. ce the consumer actually pays neighborhood that doesn’t usually go to the supermarket, and their prices. Rice is the staple diet of the Panamanian. About 95% of world production is dedicated for domestic consumption Perhaps these differences in price retailers whe- in producing countries. It then sells the surplus only. Pare you buy most of the low-income population, nama makes sense that depends on rice imports to supply and supermarkets, sales can be achieved. Howe- the staple of Panamanians? Should produce more? How? ver, depends on the enforcement mechanisms It is possible to produce cheaper rice, when 41% of the and sanctions, to be able to achieve some effect. land used to grow rice are pike, without technology and However, these are the appropriate measures to en- low yields and only 13% of land under irrigation have you? sure food security, defined as the availability of food It is efficient industrial processing plant rice, for9. Legislación y Economía - Mayo 2014
med by 22 partners and 117 other mills spread across the country? Or seen from another angle, the population engaged in agricultural activities, 63% are 45 or older, jeopardizing generational replacement? Or, seen from the side of national policies, the SFIC, a tax created to support the financial cost of agricultural credit has been systematically used to finance current government spending or housing subsidy, or to replace funding to the sector that the public sector has not? Or Cold Chain, which should support exports of agricultural production, improving marketing of domestic production, hasn’t been accompanied by a similar effort to extend the export supply, develop access to international markets and integrating the logistics hub to facilitate international marketing? Clearly, achieving price stability and recovery of the agricultural sector requires, (a) improve competition from imports and distribution of food, (b) take advantage of windows offering trade agreements, (c) encourages the development of human resources (d) promote change and technological innovation of national agriculture and livestock, (e) recovering the SFIC, to devote to research funding and market development, etc. The problem is much more complex than a policy of setting consumer prices barely. L&E
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“CODE OF PRIVATE INTERNATIONAL LAW OF THE REPUBLIC OF PANAMA”
T
he Republic of Panama adopted the new Code of Private International Law, which was enacted by Act No.7 May 8, 2014 and published in the Official Gazette No.27530 of May 8, 2014. Overall, this compilation of rules apply where there is no treaty governing a specific subject, and aims to determine the scope of jurisdiction of Panamanian courts, before an international legal relationship or from any cause that Panamanian judge qualifies as fact or legal business of international order that affects or has effects in the Republic of Panama. Worth noting that no legislation of Latin American countries there is a code regulating private international law and whose purpose is to fill a gap in a series of legal institutions in civil, corporate, administrative, banking field and the right to family among others. Similarly, can regulate specific issues such as adoption, division of property, custody, presumption of death of domestic and foreign domiciled in Panama than diplomats from foreign delegation or other body of international character, simple and aggravated homicide , murders, robberies and major conflicts that produce drugs and money laundering. Officials contained in Article 304 are: The President and the Vice President, the Justices of Supreme Court of Ordinary and Special Courts, the Attorney General’s Office and Administration, Judges, Ministers of State, the Comptroller General of the Republic, President of National Assembly, the judges of Electoral Tribunal, Judges of the Court of Auditors, Electoral Attorney General, the Ombudsman, the General Managers, Managers and Heads of Autonomous Bodies, National and Provincial Directors of Police Services, employees or officials operating under the Tax Code. Within the broad regulation of this new code, in family law, as to the institution of marriage is concerned, provides that Panamanians who marry in a foreign country
11. Legislación y Economía - Mayo 2014
Karen Fábrega- Abogada karen.fabrega@rbc.com.pa
legally and even that somehow held contrary laws of the Republic of Panama, the contravention occur in this nation the same civil effects as if it had held in the country. The effects of marital relationship between husband and wife are subject to the law of the matrimonial home, which determines mutual obligations of the regime of custody, separation and dissolution causal event of separation of the couple. Shall also apply with respect to proceedings for divorce or separation, and the rights it derived from respective judgment. Meanwhile, as far as maintenance is concerned, shall be governed by the law of the residence of the minor or failing that, by nationality of father or mother. For its part, states that international contracts are those in which the parties are domiciled in different places, and the contract has a provision or obligation to impose on goods, services or capital and becomes effective in Panama or your cause has perfected in Panama; and other contracts with special character such as international sales, factoring, international loan, transfer of credits, financial leasing, trust, donation, among others; to settle the dispute and the judge shall be governed by the law of economic characterizes international contract, as well as the prescription, which is governed by the law regulating compulsory relationship subject of prescription. Moreover, civil liability is governed by contractual matter and those derived from quasi-contracts. In the area of criminal law, rules of international judicial cooperation, application of criminal law in space and time are unified conflict of laws. Rules concerning International Trade Law are also collected in important issues such as negotiable documents, International Commercial Arbitration and Tax, Bankruptcy International, among others.
However, discrepancies in meeting this new initiative, for example, inclusion within this code rules of Intercountry adoption, under which we have the Law No.61 of August 12, 2008, which regulates widely matter; addition to the International Commercial Arbitration, which is duly regulated by the recent Act No.131 December 31, 2013, which regulates domestic and international arbitration in Panama, and so far, still ongoing arbitrations are heard as Decree Law No.5 of 1999, which in future may bring some discrepancies, as none of the provisions of the new Code of International Private Law indicates amendment or repeal of laws in question. Among the prohibitions referred to in this new law adopts the Code of Private International Law, Article 40 prohibits marriage between same sex and later also not available when applying foreign law is contrary to Panama public policy. We have to note that our Constitution Article 56, Charter states that “the State protects marriage, motherhood and family. The law shall determine matters relating to marital status. “Regarding the law determining the marital status, the Family Code and Juvenile our country, Article 26, states regarding marriage” Marriage is the union voluntarily agreed between a man and a woman, with legal capacity, which come together to make and share a life together.” (emphasis added). In 2013, Panama signed without any reservations Montevideo Consensus on Population and Development, in which “whereas discrimination violence based on sexual orientation and gender identity to places LGBT (lesbian, gay , bisexual and transgender) in position of vulnerability, preventing access to equality and full citizenship, agreed some aspects: a) Develop and strengthen policies and universal care services that are based on the highest standards of human rights, gender equality perspective and generational promoting shared provision between the state, private sector, civil society, families and households, as well as between men and women and to facilitate dialogue and coordination between all parties involved; b) Promote development and strengthening laws and public policies of employment equity to eliminate discrimination and gender asymmetries in access to decent jobs and stay in them, pay and decision making in the workplace, and to recognize the productive value housework and unpaid care; c) Ask the policies adopted and effective preventive measures, criminal, protection and care to contribute to eradication of all forms of violence, including forced sterilization, and stigmatization against women and girls in public and private spaces, particularly violent murders of girls and women by gender, ensuring the effective and universal access to essential services for all victims of trafficking, among others. Under this Convention, we see
12. Legislación y Economía - Mayo 2014
that there is a discrepancy in Panamanian public order. Surely this topic is very controversial and has generated reaction among members of the Association of New Men and Women of Panama, considering that this measure is a violent act of criminalization of LGBT community and discrimination. From my perception, very personal, I disagree with the attempts to legalize such unions on the grounds that go against nature and God’s will, because God created man and woman, with a purpose that is to procreate. This doesn’t mean they can’t come together and live their lives as they see fit or don’t deserve to be respected. Generally speaking, if there is a conflict of laws between a given country and Panama, the Code of Private International Law, in theory solve the problem for Panama, but this legislation is not binding on the other country, thus, this Finally why wouldn’t accept domestic solution that gives our Code of Private International Law, which ultimately, is contrary to the international trend is to eliminate the code and use custom. I think it’s not necessary the Code of Private International Law, perhaps was a compendium of the rules of private international law, solely for the purpose of unifying criteria in international law, since for those who are not experts in this field, it’s a bit complex, which will provide greater security on international legal business. L&E
PROCEDURE ESTABLISHED BY ANAM GUIDE TO GRANT CERTIFICATION
T
Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
he National Environmental Authority issued Resolution AG. 0255 to May 6, 2014, through which the guide procedure of the National Environmental Authority is approved to provide certification to companies interested in obtaining the Industrial Development Certificate (IFC).
4. Certification that the applicant is in the process of evaluation of environmental audit reports and PAMA
5. Overall compliance with environmental regulations.
6. Note National Cleaner Prodution
Center, stating that the company is Within this context, we can men- applying cleaner production, upon tion that to apply for certifica- examination and presentation of tion shall be furnished between evidence.
documents which we list below:
Correspond to the ANAM to issue the technical report on the feasibility of 1. Resolution approving environmental application and issuance of the order impact. is given; however, when the viability of the issue will not declare inform the 2. Resolution management permit for applicant was no basis for request. L&E wastewater discharge surface water body.
3. Resolution approved fitness program and environmental management.
13. Legislaci贸n y Econom铆a - Mayo 2014
REPEALED LAW REGULATING PRIVATE SECURITY SERVICES
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he National Assembly approved the Law 6 of May 2, 2014 repealing Law 56 of 2011 regulating private security services, restores the validity of Executive Orders governing the matter. The rule in comment resets validity of Executive Decree 21 of 31 January 1992 and Executive Decree 22 of January 31, 1992. Law 56 at the time of approval was severely criticized, as it wasn’t responsive to that suitable for his creation, which arises product of a movement pursuing the idea of a law that would regulate a serious and permanent creation, operation and management of the security agencies, however, eventually became “an instrument tailored for companies in the sector to the detriment of citizens.” All this resulted, which on more than one occasion the extended entry into force thereof. Government said at the time that the enactment of that law due to public safety reasons and also to manifest clamor of Panamanian society requesting the national government increased security measures that addressed effectively to imminent growth of violence in our country. L&E
14. Legislación y Economía - Mayo 2014
Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
PRECAUTIONARY MEASURES IN ARBITRATION Dayra Castañedas- Abogada dayra.castanedas@rbc.com.pa
A
rbitration as defined by our new arbitration law is the method of dispute resolution whereby any person with legal capacity to bind referring disputes arisen or may arise with another trial of one or more arbitrators, who decide definitely by award effectively jeopardy. The arbitrator’s decision may be legal or equitable, as has been agreed by parties. For many decades regarding arbitration was considered that the arbitrators lacked the coercive power or power of execution, therefore, they were unable to order and implement precautionary measures. This position has varied over time and positions for and against an arbitral tribunal to order and implement precautionary measures are presented. Some of the countries that consider arbitrators can’t agree on precautionary measures are Italy and Brazil, but many other countries in their legislation and adopt these measures give arbitrators the power to order them. Take the case of English, Swiss law and Peruvian practice allows for precautionary measures. This evolution in the issue of precautionary measures also finds support in the judicial protection to all persons attending a regular process and may seek injunctive relief, a right that should not be denied to those who come to the arbitral justice grants.
The lawyers always work behind the dreams of men. The people put in the hands of our chimeras horizons of freedom and justice. Our business requires us to that reality and illusion is that horizon closer. People want peace and help them to look under the rule of law. (Article published by the death of Adolfo Suarez, former prime minister of Spain). Dr. Luis Martí Mingarro – President of UIBA
brevity and speed, in professional practice and as part of arbitral tribunals, processes we see that last much longer than agreed or established in laws or regulations. This delay occurs for different reasons; in some cases by agreement between the parties, delays beyond control of those involved in the process (lawyers, parties, court, center) whether an arbitrator resigned, or was removed by challenge, attorney for the party was replaced, which fees and expenses aren’t appropriated in order; situations that force to suspend the process and prolong the issuance of the award. This is normal, but delays also occur, since in many cases the losing party feels or senses that the award doesn’t favor you, use every stalling mechanism to hinder the process and avoid enforcement of the award, if necessary . The above practices justify the existence of interim measures and preliminary orders as a means to ensure the results of the process to avoid imminent harm or that the process is illusory. But the injunction seeks not only guaranteed a payment, often sought, that an act is suspended or given a particular object, which not book it, could disappear or be impossible to implement the decision made in the award.
It’s already raised the possibility that a court orders an inWhile the arbitration among its features postulated junction or preliminary order, now implementation ca15. Legislación y Economía - Mayo 2014
pacity is discussed, as in most countries management is zations, arbitration centers and countries evolved on limited to an arbitral tribunal issued a decision and then this issue, among them we can mention the following: ask a judge for execution, is called judicial assistance. The issue to be decided is the ability of arbitrators to enforce the measure; and indeed, we found nothing to prevent it, provided that the law gives this power, the parties to ensure fair treatment, giving each the opportunity to assert their rights and who request that meets the requirements law, specifically look good right or fumus boni iuris, danger in delay or periculum in mora and provision of bail or bond to ensure the damages and costs of its custody or preservation. On the subject Uria Menendez says the lawyer that no one questions, correspond to the monopoly of coercion to state jurisdiction, the executive phase of any provisional measure must be conducted by a judicial body; however, no bar to the declaratory injunctive relief phase is carried out by a referee priori impediment.2 Article 24 of Decree Law 5 of 1999, and stated that the tribunals could, at the request of a party, take provisional or protective measures as deemed appropriate by the assurance of the process object. In CeCAP regulations (Art.28) and CESCON (Art.32), develops regarding precautionary measures pursuant to the provisions of the Judicial Code and the possibility of seeking legal assistance for implementation. Panamanian Constitution in Article 202, elevated to constitutional status of arbitral jurisdiction, the relevant part of EN says “The administration of justice may also be exercised by the arbitral jurisdiction as determined by the Law” We know that a lot of arbitration proceedings have been ordered and implemented precautionary measures successfully, thus guaranteeing the result of the process and effective implementation, however, there have also been cases where the authorities do not address the request of an arbitral tribunal. Recently was approved the new Law of National and International Commercial Arbitration, with the denomination of Act 131 of 2013, including new issues of issues of law relating to interim measures and preliminary orders addressed more broadly and updated to new international currents.
• UNCITRAL
United Nations Commission on International Trade Development, took years to make the necessary deliberations and consultations with governments and groups interested in the issue to reach a recommendation on interim measures. It’s important to note that Article 17 of UNCITRAL Model Law on International Commercial Arbitration, 1985, with amendments adopted in 2006, widely collected regarding interim measures and preliminary orders .
• ICC The Rules of the International Court of Arbitration of the International Chamber of Commerce (“ICC”), also in force since 2012, provides in Article 28 concerning the precautionary and provisional measures. The ability to appoint an emergency arbitrator for cases where the practice of urgent interim or conservatory measures that can’t await the constitution of the arbitral tribunal is required is also introduced in Article 29. Rules of Arbitration also allows before the file is transmitted to Arbitral Tribunal, and in appropriate circumstances even after, parties may apply to any competent judicial authority for interim or conservatory measures. The request that a party makes a judicial authority in order to obtain such measures or implementing similar measures ordered by an arbitral tribunal, the arbitration agreement doesn’t contravene or constitute a waiver thereof, and doesn’t affect the powers of the arbitral tribunal to respect. The application and any provisional measure taken by judicial authority must be notified without delay to Secretariat, which shall inform Arbitral Tribunal.
• PERUVIAN LAW
The new Peruvian Arbitration Act 2008 also provides for possibility that arbitral tribunal adopt precautionary measures. Thus Article 47 reference to the subject is broadly. It also empowers court to execute, upon request of a party, except its precautionary measures, in its sole discretion, deems necesThe challenge was to adapt the NLA (national and insary or desirable to require assistance from police. ternational law) to new currents existing on the subject, taking into account that several international organiIn cases of breach of injunction or judicial enforcement 16. Legislación y Economía - Mayo 2014
when required, the party relying on competent judicial authority, who by mere merit of copies and documents Usually these measures as well as precautionary, are inproving the arbitration and measure ordered, proceed tended to preserve the status quo, avoid loss or damage to execute as resources without admitting or opposition. something, facilitate conduct of arbitration proceedings. A risk in that the court has to make a decision even if backLike NLP provides that any provisional measure is- ground process, and its outcome is not known and might sued by an arbitral tribunal whose place is outside seem that the arbitrator or court has prejudged, so you the country, continue to apply provisions of the Act should be cautious and not noticed send the wrong signal. for denial of awards, recognition and enforcement. In international affairs becomes a complex issue, becau• NEW SPANISH LAW se the laws of each country regulate the issue differently, Spanish Law No.11 of 2011, which amends the 2003 therefore, has sought to standardize and greatly vary the law provides for the possibility that the arbitrator is- position we have regarding the precautionary measures. sued precautionary measures. Section 8, paragraph 4. Some examples of measures that have been requested by • NEW LAW OF COSTA RICA. parties to international arbitration process, commented Arbitration Act No 8937 of 2011 passed in Cos- by Francisco Gonzalez de Cossio cites the following: ta Rica adopted the Model Law of the United Nations regarding the precautionary measures. 1. Deposit accounts in all the parts control until issuance of award or the court. • LAW 131 OF DECEMBER 31, 2013 - PANAMA The New Panamanian Arbitration Law Arti- 2. Ordered to make partial payments of the parties. cle from 33 to 44 contains all regulation of Precautionary Measures and Preliminary Orders. 3. Authorize a party to suspend a subject partial payment to ensure the same by a bank guarantee for same amount. The interim measures and preliminary orders requested in started in January 2014 processes, or even started in 2013 4. Reimburse a party the other the total amount of a lethad been the arbitral tribunal shall be under provisions ter of credit in the event that counterparties to exercise it. of Act 131. Importantly, parties are able to will establish that no precautionary measures in case of a dispute and 5. That a party to refrain from selling products counthat decision must be respected and so provided by law. terparty failing to pay extra for every product sold. What are precautionary measures? Precautionary measures are imposed to ensure that a right may be made effective in the case of proceedings in which existence and legitimacy of such a right is recognized. Precautionary measures don’t imply an acknowledgment regarding the existence of a right process, but taking legal measures to implement the right to be recognized eventually.
6. An order the defendant to deliver original customs declarations on certain goods, to disclose where are goods or abstain.
As Uria Menendez says request for precautionary measures before an arbitral tribunal has a number of disadvantages that need to be considered, for example, procedures for international arbitration is that arbitrator agreed habitual caution after hearing other party, which eliminaFumus bonis iuris or appearance of good law and peri- tes element of surprise, which is essential in any process. culum in mora or in danger/risk over time: To do this, the concurrence of two default conditions are required. This position is justified by the need to ensure that parties If no such possibility to ensure results of the process, comply with principle of contradiction, however, several the right would lose its essence. Although in some laws between it and Spanish national permit order intecases this measure is used as a pressure medium and rim relief without hearing or notice to the other party. in other cases of unjustified way, knowing flexibili- To overcome this disadvantage, in various meetings for ty with which in some cases precautionary measures the modification of UNCITRAL model law, it was consiare enacted, often irreparable damage inflicting on. dered necessary to have an option to precautionary mea17. Legislación y Economía - Mayo 2014
sures and propose as an option that can be as preliminary injunctive relief orders without notice the other party.
Danger test is required in addition to the concurrence of another element, namely that mere notice of application for the injunction itself is a risk that effectiveness of the measure to fail. Are few but relevant, differences between one and another figure:
By Act 131 of December 31, 2013, published in Official Gazette No. 27749-C January 8, 2014, National and International Commercial Arbitration in Panama, which we call (NLA) is regulated. The new Arbitration Law maintains a monistic model, provided that the rules of international law and domestic law form a single legal system, in this sense, national 1. The injunction hearing is filed with counand international commercial arbitration is regulated. terparty, preliminary injunction is ordered and is then communicated to counterparty. It establishes the scope of this Act to arbitrations whose seat is within the Panamanian territory, 2. The validity of injunction is temporary, but it rewhether domestic or international, without preju- mains until it’s revoked, modified or lifted, while dice to the provisions of international treaties or preliminary injunction is within 20 days of validity. agreements to which the Government of Panama is a party or laws that contain special provisions on arbi- 3. For granting of the injunction contained in paratration, in which case the rules of law will also apply. graphs 1, 2 or 3 of Article 33, must comply with provisions of Article 34, therefore, should justify and Among a host of innovative issues presented by new convince the court the danger in delay and that there law, we can mention the interim measures and pre- is a reasonable possibility that the requesting thrive. liminary orders contained in Chapter VI of NLA. 4. Within ten (10) days after filing of the deWhat are Preliminary Orders? mand, having been granted an injunction. Consider it a sub category of an injunction could be distinguished from any other measure for more li- 5. In preliminary orders only have to prove enmited scope, it was just that it did fail the injunction dangering the measure to fail, it is not necesspecifically requested. This danger must be shown so sary to convince court that the claim prosper. that can grant the request for precautionary measures. Common provisions for inteAnother feature is its function, which is limited to or- rim measures and preliminary orders: der a party to the status quo be maintained until the arbitral tribunal has heard arguments of other par- 1. In both cases the court may modify, suspend or revoke, ty has taken a decision on the request for injunction. either by request of a party, or in exceptional circumPreliminary measurements differ from the pre- stances on its own initiative after notice to the parties. cautionary measures in their legal status, under which are subject to time limits, in this case 2. It may require the petitioner to consign an injunction any preliminary order expires in twenty (20) days. bond, while preliminary orders will be required surety, unless deemed unnecessary or inappropriate. Preliminary orders are binding on the parties, but aren’t susceptible to judicial en- 3. In both cases the court may require any party that forcement; doesn’t constitute an award. any material changes known to occur in circumstanThe specific characteristics of preliminary steps are ces which the measure was requested or granted. summarized by noting that merely provided an interim arrangement until the injunction was subject of an 4. The parties will be responsible for costs, inter-parties proceedings, ie, that all parties were heard. as well as damages incurred as such. Both sides without warning one another, may Adittional matters of importanseek an injunction or order a preliminary or- ce on measures and preliminary order. der, arbitral tribunal to order a counterparty not to frustrate the purpose of requested injunction. 18. Legislación y Economía - Mayo 2014
The law deals with all matters relating to recognition and enforcement of interim measures and preliminary orders. This is a new subject, since provides that in the event that arbitral tribunal doesn’t execute the injunction or order, the judicial tribunal which prompted implementation should practice immediately. On the other hand, provides that the party seeking or has obtained recognition or enforcement of an injunction by a judicial authority promptly report to the court of any revocation or modification. Finally we should mention the provisions of Article 44, which gives the courts same jurisdiction to grant interim service of prosecution action, the court may still interesting exercise that competence in accordance with their own procedures and taking into account the features distinctive international arbitration. A term is granted to courts to inform arbitral tribunal or arbitral institution, a term not exceeding ten (10) days from practice of the measure. We should note that NLA produces a substantial change in application of interim measures and preliminary orders, so we must adapt to the change taking into account that we are facing challenge of becoming a center for international arbitration. L&E
19. Legislación y Economía - Mayo 2014
FULL COURT CRIME AGAINST HONOR
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ecently, the Plenum of Supreme Court had the opportunity to rule on constitutionality warning to Article 192 of the Penal Code proposed action in criminal proceedings for offenses against honor established by Maritime Court declared unconstitutional with Juan David Morgan. Considering that were presented several warnings that the phrase be declared unconstitutional “no criminal penalty be imposed”, the Board as provided by law ordered accumulation thereof, if so, the advisor noted that rule violates Articles 17, 19, 20 and 163 paragraph 1 of the Constitution.
Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
granted by civil law, as referred to in the defendant rule. The process attended third parties, who agreed that the phrase that demand is not unconstitutional because State to waive the application of the offense of defamation under certain circumstances, at any time you check out right to honor and dignity of officials said, because Leasehold protection to civilian jurisdiction.
Continue to point interested parties, which under the effort to comply with international standards, Act 14 of 2007 partially decriminalized offenses against hoAmong arguments advanced by the actor, we empha- nor, when complainants are public officials, in order size that believes that the Constitution prohibits esta- to adapt our legislation on freedom of expression. blishment of charters or privileges, or discrimination of any kind whatsoever, by reason of race, birth, disabili- To resolve raised issues, the House considered the ongoing ty, social class, sex, religion or political views and that debate between constitutional censor, prosecutors and the contested phrase directly violates the constitutio- other interested parties, focuses on a kind of confrontanal default rule “doesn’t impose criminal punishment.” tion between law and freedom of expression, not having It adds that the sentence is contrary to the letter and public officials mentioned in Article 304 of the Constispirit of the Constitution, since it doesn’t endorse im- tution the possibility of criminal sphere lead people to punity anywhere nor establishes any discrimination issue a slanderous and insulting opinion against them. of any kind and less against a category of public servants in some cases represent or embody the same Within this context, Authority begins by making reState, all of which allows anyone, by vested interest or ference to international human rights regarding the bad faith, insulting or slandering any of that class of right to privacy and freedom of expression, becaupublic servants and go unpunished by the phrase that se are rules to be ratified by states serve as guides to fosters discrimination not covered by the Constitution. guide the regulation and domestic practice of states. So that when referring to the right to honor and reFor its part, the Office of Administration, said that the sen- putation can be noted that it’s recognized in intertence doesn’t violate the Constitution because although national treaties of universal and regional human it mandates right to protection of honor of individuals, rights as well as freedom of expression is a fundanot states anywhere that such protection is needed mental right which forms part of set of fundamental under concrete under imposition of a penalty against rights recognized in first declarations of revolutiocommission of conduct constituting a crime, as may be nary rights is one of the first achievements of liberal 20. Legislación y Economía - Mayo 2014
constitutionalism enshrined in international treaties.
cause that would violate human dignity by not allowing safeguard his honor being in a state of inequality comAnother point that comes to analyzing at the House, is pared to people without investiture of office they hold. on the concepts of decriminalization and absolute excuse, indicating that latter behavior can be represented Judge considers that all people without distincin various rules of our substantive criminal law, as you tion are covered under the principle of human digpoint out interested parties and the Attorney. Instead nity, which is an inherent, irrevocable and inaliedecriminalization is the mechanism by which conduct nable quality of all human beings. These qualities described in the criminal law as a crime, leaving the le- that must be secured, respected, guaranteed and gal field to be enacted in the context of a different ju- promoted by the state and international legal orrisdiction, civil, commercial or administrative nature. der, but may not be withdrawn to any person by law. So that judgment of plenary which is derived from legislative action containing the de- Concludes the Judge noting that Section 196 violates fendant rule is simply partial decriminalization Constitution, since its content must be specific and of libel and slander, product of legislative year. must exclude the intimate lives of people in public office, to avoid unequal treatment and allow the person They believe that the reason why the House adopts this receiving offenses with his honor, personal life may position, precisely because the Legislature partially de- turn to criminal prosecution and claim responsibility. criminalizing conduct that had previously been classi- We believe successful approaches in plenary, not to defied, in order to adapt legal system with the position has clare invalidity of the contested phrase, especially when taken a lot of countries regarding the decriminalization developing a number of international treaties based arof conduct, especially when the victim is a public official. guments, which in effect once signed and ratified by parties to constitute tools must be respected by countries. They add that authorities, officials and public relevance characters have become aware and voluntarily taxpayers Recall that we are a country of open borders so it should of public observation, relegating to a lower level privacy be a correlation between our legislation and the content and protecting your honor in relation to public activities. of those treaties, especially when it comes to standards They believe that the object of constitutional phrase ac- that relate to human rights, so that the House brings up tion not conducive to any form of impunity, or placed in the Universal Declaration of Human Rights, the Intera situation of helplessness to certain public servants, sin- national Covenant on Civil and Political Rights, Americe the partial decriminalization only refers to one of the can Declaration of Rights and Duties of Man and others. constituent elements of crime, criminality remains , unlawfulness and culpability in it, regardless of impunity only. In this particular case, who activates judicial realm what is a public official falls within exceptions proPlenary Hall concludes by stating that “our criminal jus- vided for in Article 196 of Criminal Code for their tice system just allows the criminal proceedings from condition is exposed to scrutiny of city and as liability crime is discussed, so the fact that criminal pro- wife of Caesar say not only but look it has to be. L&E ceedings begin and end with a decision involving guilt, no more penalty not is an obstacle for you to discuss in that place the offense from liability as long as complaint is activated in a timely manner and requested as is required by law, since it’s not possible for Public Prosecutor to request recognition of civil liability arising from crime. “ Failure commented counted with the dissenting opinion of Judge Harry Diaz, who said that at discretion if rule violates the Constitution, considering that you can’t claim that defendant rule limits the protection and guardianship of privately and staff each of these people, be21. Legislación y Economía - Mayo 2014
THEY ADMIT DEMAND PROMOTED IN FAVOUR OF PACO GÓMEZ NADAL AFTER THREE YEARS
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hird Chamber of Supreme Court by resolution of 2 May 2, 2014, met on appeal the administrative demand full jurisdiction to declare void for illegal No. 5169 Resolution February 27, 2011 issued by the National Immigration Service and ordered arrest of Francisco Gómez Nadal revokes Resolution of September 1, 2011.
Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
So, remaining Judges of the Chamber revoked Resolution of September 1, 2011 and allowed administrative demand full jurisdiction filed against Resolution 5169 of February 27, 2011 issued by National Immigration Service .
We can tell them that the legal action was prompted by arrest of Spanish journalist Paco Gomez Nadal, who was It should be noted that the appeal was filed against arrested during an indigenous protest against mining and decision of September 1, 2011 issued by Judge Subs- being accused by authorities of “instigating and organitantiating ordered not to admit that the lawsuit. zing a group of citizens who are prepared to make proSubstantiating Judge, not admitting the claim that it test” outside the headquarters of the National Assembly. was considered a preparatory act and that it didn’t resolve the merits of the dispute so that didn’t fit After his arrest, journalist welcomes voluntary rethe budgets required for the filing of an applica- patriation and it’s been three years and it’s now tion for full jurisdiction of administrative litigation. up to Supreme Court to pronounce well and was admitted to the application at that time. L&E To resolve dispute the Board estimated that contested act is not of those who are considered preparatory, accessories or procedural acts, as in the administrative act defendant state caused by the determination that the same is adopted, no paves the way for making a decision but ordered an official adoption of a measure that doesn’t support replication, so the lawsuit should be admitted.
22. Legislación y Economía - Mayo 2014
THE END OF OUR
A
Rafael Fernández Lara rbcweb@rbc.com.pa
ELECTION POLLING
s expected, general elections were held on Sunday, May 4, 2014, with a share of 1,886,308 voters, repre- The second position was obtained by government senting 76.8% of persons duly qualified to cast their votes. candidate, José Domingo Arias, supported by government alliance “United for More Changes”, Based on estimated preliminary statistics of Electo- composed for Democratic Change Party and Liberal Tribunal, a total of 2,457,401 Panamanian voters, ral Republican Nationalist Movement (MOLIREa total of 571.093 refrained from going to polls, repre- NA). All the votes for this alliance was 581.828 or senting a turnout of 23.2%, in contrast to 2009 elec- 31.4%. Democratic Change Party won 483.309 votions it was 26% or 574.753 didn’t exercise their right tes or 26.1% and MOLIRENA 98.519 votes or 5.3%. to vote, and in 2004 23.1%, or 462,211 didn’t vote. In the 2009 electoral contest, the Democratic ChanUnless some alleged irregularities reported, we must ge Party managed to get 32.1% or 509.986 votes; recognize that despite the harbinger of some gene- 79,491 in 2004, or 5.3%, and in 1999, his first particiral elections were held in an atmosphere of peace pation in Panamanian politics, got 36,068 or 2.82%. and tranquility. In our view, should be greater recognition to political parties, the real protagonists The third place candidate achieves the Democraof elections, who stood by his nobility to learn to re- tic Revolutionary Party (PRD), Juan Carlos Nacognize results of the vote, which enabled Electoral varro, obtaining a total of 521.842 votes or 28.1%. Tribunal, as an entity authorized and properly prepared to regulate electoral contest, his duty smoothly. In the 2009 elections, the PRD won 553.974 votes or 34.9%; in 2004 scored 649.157 or 43.3% and As is generally known, the result of democra- in 1999 scored 403.646 individual votes or 31.6%. tic event favored candidate Juan Carlos Varela, supported by Alliance “People First”, com- The other presidential candidates, Genaro López from posed BY Panameñista and Popular parties, Party Frente Amplio Democratic (FAD), won 11,127 reached the amount of 724.762 votes, or 39.1% of them. votes, not reaching the minimum number required by the Electoral Act to survive as a party for the next elecThe Panamanian Party scored individually 563.584 tions of 2019, despite having an enrollment of 61.622 votes in these elections or 30.4%; in 2009 obtained adherents. It’s noteworthy that this match, despite being 293.554 votes or 18.5%; in 2004 obtained 162.830 closely related to Sole Union of Construction Workers votes or 10.9%; and in 1999 obtained 367.865 vo- and Similar (SUNTRACS), as perceived by many people, tes or 28.8%. The People’s Party in this elec- and being the country’s largest syndicated with an aption individually obtained 161.178 votes or 8.7%. proximate enrollment of 40,000 members, has obtained 23. Legislación y Economía - Mayo 2014
an insignificant number of votes in these elections. Not a few believe that the hostile, violent and irresponsible attitude that has characterized its leaders, coupled with the recent general strike that paralyzed the construction, including and especially the Panama Canal, downplayed the little sympathy that would have the Panamanian people with the leadership and direction of this union.
Doesn’t escape the memory of Panamanians that pollsters predicted winner of Province of Panama official candidate José Domingo Arias. Regardless of the above, the fact is that number of votes of Electoral Court for the District of Panama were: Juan Carlos Varela - 160,500 votes or 37.33%; Jose Domingo Arias - 151.981 votes or 35.35%; and Juan Carlos The other three independent presidential candidates, as Navarro - 110.718 votes or 25.75%. In the District of expected, had no relevance to the outcome of the vote. San Miguelito, part of the Province of Panama, numObtained between the three a total of 14,643 votes or 0.8% bers of votes were: Jose Domingo Arias - 66,821 votes of the total votes cast in the entire Republic. Juan Jované or 39%; Juan Carlos Varela - 61.401 votes or 35.83%; de Puy scored 10,805 votes, Esteban Rodriguez Avila sco- and Juan Carlos Navarro - 40,381 votes or 23.57%. red 2,240 votes and 1,598 votes scored Gerardo Barroso. Based on these results, it’s clear that the vote in this Importantly, polling results that published during the sector, where they were physically located these comelection campaign, despite being recognized both inter- panies was relatively even between Varela and Arias. nationally and locally, using scientific methods of eva- This brings down your weight -the thesis supported luation, all, without exception, were wrong. Obviously, by quite a few these days- that simulations showed in the future will have to do a deeper work to regain that triumph was evident Juan Carlos Varela befolost credibility, since all but one published results that re elections. However, disclosure of results of thefavored the pro-government candidate, José Domin- se simulations and frequent rumors through social go Arias. This despite that, according to the opinion networks and victimization which was the subject, of many Panamanians, these surveys were employed played an important role, among others, in the vicby television and news media closely linked to op- tory of presidential candidate Juan Carlos Varela. positional candidates, who played an important role with its constant criticism of the government, which As noted above, passion that politics among Panarepresented in part the presidential defeat the ruling. manians, and prophecies of wizards (now out in droves to claim that they knew the outcome of theAs pollsters who put first government candidate, as se elections), it’s important that readers take in foopponent group was wrong government, called “New llowing considerations in reaching own conclusions: Republic” in its call to “vote” of opposition for candidate of the PRD, Juan Carlos Navarro, because his A known Ex-President, based on his extensive political sound judgment, shared by many political analysts experience, predicted electoral triumph would narrow and taking into account fragmentation of opposi- between the PRD candidate and panameñismo, consition, was only organized and structured able to de- dering that government candidate would be a distant feat ruling political party. This group “New Republic” third. Also implied that a lot of public officials named was composed by renowned Panamanian, who in in past administrations PRD vote for presidential canpast clashed with military and PRD far more coura- didate of PRD, Juan Carlos Navarro. These statements ge than most of those who criticized for his politics. were shared by a well-known political analyst, who said It’s also important to refer to the so-called voting “si- that it was likely that 150,000 public employees be inclimulations” among employees of private companies, ned to PRD. Meanwhile, according to political analysts, which were announced by social network, possibly some known leaders didn’t support PRD candidate to counteract the effect they might have the polls fa- because Navarro marked and serious internal party voring the official candidate. The results of these si- differences, a situation that was common knowledge. mulations loosely favored current elected president, Juan Carlos Varela. However, all such votes drills re- PRD presidential candidate obtained 521.842 votes presented an insignificant number of votes out of the or 28.1%. Candidates for deputy national PRD obtaitotal issued nationwide. Most of companies men- ned 535.747 votes or 31.5%, achieving 25 seats in Nationed in simulations had their headquarters within tional Assembly. Candidates for township representhe District of Panama and immediate surroundings. tatives nationwide obtained 577.338 votes or 32.6%. 24. Legislación y Economía - Mayo 2014
Meanwhile, alliance of pro-government candidate José Domingo Arias scored nationally 581.828 votes or 31.4%. All candidates for deputy of ruling alliance won 695.418 votes or 40.9% nationally; obtained 32 seats in the whole Republic. The difference between presidential votes and votes from members of ruling alliance was 113.590 votes or 10.5%. Candidates for township representative and Democratic Change Party nationally MOLIRENA obtained 658.648 votes or 37.3%. The difference between presidential vote and votes for representatives of judges was 76.820 votes. The Panamanian Party, with winner to the Presidency of the Republic, Juan Carlos Varela candidate produced a quite contrary to previous profile. Obtained 724.762 votes or 39.1% presidential in their alliance. Candidates for deputy of opposition alliance won 400.509 votes or 23.5% for a total of only 13 seats. Candidates for representative village of this alliance obtained 428.857 votes or 24.2%.
ted a total surprise for vast majority of political analysts. The President-Elect will have great challenges and responsibilities in future governance, because although it has support of nearly 40% of national electorate there is also 60% of population in opposition or not specifically support it, and also a National Assembly of Representatives with 13 seats from its alliance (12 Panameñistas and one Popular), which will force to negotiate governance with the support of 24 MPs more to reach absolute majority of 36 deputies, of the total of 71 in the Assembly. It will require intelligence and vision beam’s consensus necessary to achieve its projected benefit of the country, for which he was elected. L&E
Some political analysts agreed that ensuring success of presidential candidate for political parties what would be your level of structure, organization and mobilization capacity on day of election. Political parties that are identified with these characteristics, and PRD Democratic Change, were second and third respectively in presidential votes. Similarly, high popularity of the administration of the current President the incumbent candidate wasn’t transferred in the outcome of presidential votes. In view of aforementioned facts and questions made, and having been spoken in favor of the victory of the incumbent candidate for the reasons explained that once conclude that victory of candidate Juan Carlos Varela represen-
31.4% 25. Legislación y Economía - Mayo 2014
39.1%
28.1%
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CONSUMER PRICE INDEX Source: CGRP Contraloría General de la República de Panamá
he Consumer Price Index (CPI) in April com- port 0.6 percent, due to increase in price of gasoline. pared with March 2014, registered an increase of 0.5 percent in both the National Urban to the districts of Pana- In contrast, division of housing, water, electricity and gas ma and San Miguelito and 0.4 percent in the Urban Rest . reflected down 0.1 percent, decline in prices of rental fees. Comparing National Urban CPI in April 2014, with Compared with April 2013, an increase of 3.5 similar in 2013, is following increments: Food and bepercent in the National Urban was presen- verages 5.1 percent; Teaching 4.8 percent; Health 4.1 ted; 3.4 percent in the districts of Panama and percent; Furniture, household equipment and routiSan Miguelito and 3.8 percent in the Urban Rest. ne maintenance of house 3.8 percent; Miscellaneous goods and services 2.9 percent; Leisure, entertainSo far this year, the National Urban CPI ment and culture services 2.7 percent; Transportashowed a cumulative increase of 1.7 percent. tion 1.9 percent; Clothing and footwear 1.7 percent and Housing, water, electricity and gas 0.8 percent. The divisions showed increases above the monthly aveL&E rage in National Urban CPI for April were: Food and beverages 0.9 percent, increase in price of meals outside the home; Health 0.7 percent, caused by increase in price of medical and pharmaceutical products and trans-
26. Legislación y Economía - Mayo 2014
MEF DETAILS GOVERNMENT FISCAL BALANCE
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Source: MEF
he Fiscal Nonfinancial Balance (NFPS) Public Sector of Panama, to March 31, 2014, showed total revenues of 2,298.9 million dollars, representing an increase of 6.0% or 129.7 million of Dollars, compared to the same period 2013, announced the Ministry of Economy and Finance (MEF). The first quarter of 2014, total expenditures were set at 2,861.8 million dollars, denoting an increase of 7.3% or 194.9 million of Dollars, compared to 2013; in that line, the line of capital expenditures totaled 1,186.9 million dollars, showing a variation 100.6 million dollars in public investment or 9.3%, compared to last year.
Payments to projects like the Cinta Costera III, construction of the front line of the Panama Metro and Extension and Improvement of Water Supply System, among others, are included in the capital expenditure line, which runs the national government. About the NFPS deficit, stood at 1.2%, the quarter of 2014, remaining within limits mitted by Fiscal Responsibility Law, was changed, compared to the same period last
first perunyear.
It indicates that Central Government received total revenues in the amount of 1,411.8 million Dollars, denoting About 1,186.9 million dollars in capital expenditu- an increase of 6.4% or 84.5 million of Dollars; within res for the first quarter of 2014, De Lima said the these, the taxes amounted to 1,164.7 million Dollars 10 minister representing 2.5% of Gross Domestic Pro- million Dollars more, 0.9% in the first quarter of 2013. duct (GDP), with a percentage that remained, compared to 2013, when turned on 1,086.3 million do- As for total expenditure of Central Government, to llars, also equal to 2.5% of GDP, but for that period. March 31, 2014, recorded 2,265.1 million Dollars or According to Comptroller General of the Republic, pre- an increase of 3.6%, a variation 78.4 million dollars, liminary GDP in 2013 is 42.648 million Dollas GDP highlighting payments 33.4 million of Dollars in resprojected by MEF for 2014 is 47.459 million of Dollars. pect of the 100 to 70, and 17.4 million dollars in endowment uniforms, and textbooks, among others. L&E In breaking down the Fiscal Balance NFPS said the first quarter of 2014, current savings amounted to 619.2 million Dollars, denoting an increase of 7.3% or 42.4 million of Dollars in relation to 2013. NFPS current savings financed a 52.2 %, capital spending, given the period in question.
Expenses 27. Legislaci贸n y Econom铆a - Mayo 2014
Income
PANAMA - COMPARATIVE EVOLUTION OF ISR COLLECTION
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Source: Alerta de Noticias Triburarias CIAT
he graph shows the ISR (excluding tax. Dividend / supplemental).
Between 2001 and 2005, the segment contributed more natural person the legal segment. This situation was reversed timidly between 2006 and 2008, and forcefully from 2009. L&E
28. Legislaci贸n y Econom铆a - Mayo 2014
LOW ECONOMIC GROWTH IN 2014 MAY AFFECT EMPLOYMENT IN
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LATIN AMERICA AND THE CARIBBEAN
he economic environment in 2014, with an estimated growth rate of 2.7%, is inauspicious for evolution of regional labor market and presents great challenges for labor market policies, indicate the Economic Commission for Latin America and the Caribbean (ECLAC) and the International Work Related Organization (ILO) in a new joint report released today. “Given the modest growth projections for the region in 2014 and current trends in labor force participation, it’s expected a low rate of job creation with which it’s likely that large variations in unemployment rate are not recorded”, say the UN agencies in the latest edition of Situation report work in Latin America and the Caribbean. ECLAC and ILO added that if in some countries lower economic growth becomes a rise in unemployment, it is important that these nations have unemployment insurance and other protective measures to allow them to face this scenario. The new edition of Employment Situation in Latin America and the Caribbean takes account of labor markets during 2013 and highlights that despite the decline in economic dynamics and a slight fall in employment rate, unemployment rate continued to fall between 2012 and 2013, when it was at its lowest level in decades (6.2%). However, “there are doubts about the sustainability of this positive performance in the near future,” report stresses. According to the document, weak economic growth since 2013 and reflected a cooling labor demand. In addition, wage employment grew at lower rates than in previous years, which resulted in a slight drop in the employment rate. A positive aspect is that during 2013 decreased the gap between men and women in terms of participation, employment and unemployment, although there are still important differences that require additional efforts to continue its work for gender equality. Young people were the most affected group by loss of employment dynamics, as their unemployment increased between 2012 and 2013 from 14.0% to 14.3% compared to adults, -whose level of unemployment was 3.2 times loweras a result of a sharp drop in its occupancy rate (which
29. Legislación y Economía - Mayo 2014
Source: CEPAL was higher than reduction of labor force participation). During 2014 countries of region should make efforts to advance the generation of quality employment and specifically in promoting productive employment of young people. The joint ECLAC-ILO report also indicates that in addition to creating jobs in last decade, strengthening social protection and implementation of innovative social programs were important factors for reducing poverty. Among these are conditional transfer programs that benefit 21% of regional population. These programs, giving more liquidity to families, enabling them to make better business decisions regarding their employability in decent and equitable basis and can help create a “virtuous circle” of independent income generation by the poor and vulnerable groups. However, agencies warn that transfer programs must be closely coordinated with comprehensive active labor market policies and social protection systems to prevent the “graduation” or egress of them means loss of rights for families nor informality. L&E
JOINT STATEMENT OF FEDERAL CHANCELLOR OF GERMANY, ILO, OECD, WTO, IMF, WORLD BANK
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lobal economic activity has been greatly strengthened, but is still far from a path of robust and sustainable growth. There are still enormous risks of various kinds. According to IMF forecasts, world economy will grow 3.6 percent in 2014 and 3.9 percent in 2015. The WTO provides a modest recovery in world trade of 4.7 percent in 2014 and a growth rate slightly faster 5.3 percent in 2015. Financial markets, investors and households have regained a degree of confidence. However, high unemployment, a considerable shortfall in production, low investment, growing inequalities and a slowdown in emerging economies continue to affect growth prospects. In most industrialized countries, the debt is still too high, at level of governments, businesses and households. Address the unsatisfactory performance of labor markets in many countries remains a major challenge. Accordingly, governments should continue efforts to ensure growth and pursue fiscal consolidation at an appropriate pace. Should also continue to develop and implement structural reforms. Important measures have been introduced to strengthen stability, competitiveness and public finances in European Monetary 30. LegislaciĂłn y EconomĂa - Mayo 2014
Source: OIT
Union and Member States, but should undertake further efforts in this area. United States has made progress in remediating its budget, but still suffers from high levels of debt, which requires a credible medium-term fiscal plan. Emerging economies, some of which have recently faced significant difficulties should persist in their strategies to ensure a sustainable growth, particularly by improving the ability to adapt to external shocks and accelerate structural reforms and, therefore, reduce poverty. Overall, our common approach to international cooperation on economic policy has mitigated consequences of crisis and has brought new growth prospects. Institutional relationships between governments, international organizations and other stakeholders have been strengthened throughout this process. We welcome ongoing cooperation between the IMF, World Bank Group, ILO, OECD and WTO particularly in the following areas: • Structural measures aimed at stimulating innovation, improving education, strengthening competition, reduce social differences and reforming health systems and labor markets are pending on the agenda of both developed countries and emerging economies. In imple-
menting this type of program reform, strengthen growth potential, new jobs will be generated, fiscal consolidation and support social and economic conditions to encourage a more inclusive growth model will reduce inequalities. In particular, we welcome the efforts they have made and continue to make several euro zone countries to improve their competitiveness and consolidate their budgets. The confidence of investors in countries of euro area has improved. However, additional efforts, particularly in relation to the creation of jobs for youth, structural reforms and growth-friendly consolidation, are essential in all Member States of euro area. • The macroeconomic policies have to go hand in hand with efforts to increase employment, based on Decent Work Agenda and its approach to World Jobs Pact adopted by International Labor Conference in 2009 and in Plan of action for Youth to the OECD Gender Initiative and the OECD. In particular, they should be put in place strategies and immediate action, both nationally and internationally, aimed at reducing youth unemployment conferring absolute political priority. The aim is to create conditions for good and safe working, real prospects and give everyone the opportunity to receive professional training. We welcome resolution adopted at its 101st ILO International Labor Conference in June 2012 urged to take immediate, specific and renewed action to tackle youth unemployment. • Reduce barriers to international trade remains a major challenge to improve economic growth, development and employment worldwide. We are pleased that the WTO Ministerial Conference in December 2013 in Bali has managed to agree a set of major reforms including trade facilitation. We are pleased with the momentum generated to implement a work program for year31. Legislación y Economía - Mayo 2014
end in order to accelerate the Doha Round. While multilateral trade liberalization is still the best way to ensure fair competition, preventing trade distortions and creating new markets worldwide, particularly in developing countries, we also welcome the ongoing efforts to achieve new bilateral and regional free trade can be important to get results at the multilateral level tools. • Climate change and protection of natural resources remain major challenges of our time. But they can also become an opportunity for growth and creating quality jobs. The potential of developing low carbon and green growth should be done through a specific action in developed and developing countries and adoption of measures necessary to strengthen the resistance to effects of climate change. All international organizations are engaged in the fight against climate change and promoting green growth and cooperate to this end in the framework of their mandates. We are working for the UNFCCC negotiations to achieve an ambitious new climate agreement in 2015, which include legally binding commitments and strengthened to limit the increase in global temperature below 2 degrees Celsius action. • The development of a vast post Agenda 2015 offers a unique opportunity to renew our commitment to end extreme poverty by 2030 and to build a sustainable development. The central challenge is to develop a workable agenda for integrating three dimensions of sustainable development: economic, social and environmental. The central objective of post 2015 Agenda for sustainable development should be to improve living conditions of all people in the world and to protect natural resources and ecosystems that are the basis of our survival and future generations . We will support development of this ambitious agenda at United Nations. This will require strong political commitment and a certain action at all levels, from all stakeholders. L&E
FOUR AXES PROPOSED FOR AGRICULTURAL COOPERATION IN AMERICA
T
o increase impact of their actions and respond to demands of agricultural technical assistance to its member countries with measurable and verifiable contributions, the Inter-American Institute for Cooperation on Agriculture (IICA) renewed his scheme work, a model that seeks to live of the great challenges of the twenty-first century agriculture. The implementation of this new form of technical support is contained in the Medium Term Plan (MTP) 2014-2018 Institute, recently approved by the Executive Committee at its annual meeting, held in Costa Rica on 21 and 22 May. The Institute will provide technical cooperation in agricultural sector of its 34 member countries through four flagship projects, externally funded projects, rapid response actions and Technical Cooperation Fund (FonCT) pre-investment projects.
Source: IICA
Moreover, in last two meetings (2011 and 2013), Ministers of Agriculture of the Americas have instructed IICA to promote innovation in the sector and promote integrated water resources management. The Institute will also work to achieve greater involvement of family agriculture value chains. Four instruments, 11 contributions. According to the 2014-2018 PMP, flagship projects vertically integrate all fields of the IICA (hemispheric national) and horizontally all units and offices manner. Have priority in allocation of regular resources of the Institute and will aim to achieve expected strategies IICA member countries results. There will be four flagship projects: competitiveness and sustainability of agricultural chains for food security; inclusion in agriculture and rural areas; recover from crisis and integrated risk management in agriculture; productivity and sustainability of family farming for food security and rural economy. Furthermore, IICA will continue to manage technical cooperation projects financed with external resources, whether from governments, bilateral and multilateral organizations, non-governmental and private sector. These initiatives should contribute to large agricultural processing which aims to achieve in the hemisphere.
These instruments are used to produce 11 types of contributions to drive major changes in agriculture in the hemisphere. These great changes range from increasing governance of food and agricultural systems to adopt a culture of risk prevention, and increasing inter-sector coordination of ministries with interference in rural areas and reduce economic vulnerability of inhabitants. “We hope to increase impact of the Institute’s action on issues that best reflect hemispheric aspiration of a productive, competitive and sustainable agriculture, taking into account objectives With rapid response actions, the Institute will seek of Strategic Plan 2010-2020 doesn’t change,” said to address specific requests for support, emergenDirector General of IICA Victor M. Villalobos. cies or emerging issues and opportunities in political and economic changes in the countries. These actions These challenges are to improve productivity and may be financed with regular or external resources. competitiveness of agricultural sector, enhance con- The fourth tool is the Technical Cooperation Fund tribution of agriculture to the development of te- (FonCT), an existing competitive mechanism will rritories and rural well-being, improve capacity of be strengthened to finance, partly or wholly, preagriculture to mitigate and adapt to climate chan- investment initiatives that generate project propoge and better use of natural resources and enhan- sals to mobilize external resources on strategic obce contribution of agriculture to food security. jectives framed and defined contributions by PMP. 32. Legislación y Economía - Mayo 2014
The 11 contributions focus on the efforts of IICA member countries are: strengthening capacities to establish public policies advanced agricultural, implement innovation processes, ensure the agricultural health and food safety, strengthening entrepreneurship of the chains agricultural and strengthen actors of rural areas to improve their food security and welfare. In addition, to expand capacity for integrated water and sustainable land use management, and to promote adaptation and mitigation of climate change. Will also seek to improve programs food and nutrition security of nations, increase the use of native species, reduce losses of food and raw materials and strengthen participation of countries relevant to agriculture in Americas forums.
A new approach.
To achieve these contributions, Victor M. Villalobos, General Director of IICA, said at the meeting of Executive Committee that a management approach based on results shall be taken, which the Institute PMP 2014-2018 defined as measurable changes achieved through scheduled intervention, in this case within the agricultural sector. The work to reach proposed results will be through networks. “IICA will favor collaborative, interdisciplinary and multi-agency work, through training and joint cooperation networks both within the Institute and its external” explains PMP. “With these settings we want the cooperation model evolves to consolidate achievements and to provide countries with a very solid IICA from a technical point of view from sustainable and financially”, said General Director of the Institute. L&E
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POPE FRANCISCO ATTEND THE SECON INTERNATIONAL CONFERENCE ON NUTRITION (CIN2)
P
Source: FAO
Other heads of state and government dignitaries and religious leaders have also been invited to the CIN2. Among them, UN Secretary General, Ban Ki-moon, Italian President, Giorgio Napolitano, President of Chile, Michelle Bachelet, President of Tanzania, Jakaya The participation of His Holiness in the conferen- Mrisho Kikwete, Prime Minister of Bangladesh, Sheikh ce organized by the FAO and World Health Orga- Hasina, and princess of Asturias, Letizia Ortiz. L&E nization (WHO) was confirmed today by Permanent Observer of the Holy See to the UN agencies based in Rome, Archbishop Luigi Travaglino. ope Francisco added his voice to the fight against hunger and malnutrition participating in the Second International Conference on Nutrition (CIN2) to be held between 19 and 21 November at the FAO headquarters in Rome.
“I welcome the Pope Francisco presence in the CIN2 and commitment to the future we want. A future that starts by ensuring food security and nutrition to all people,” said FAO Director-General José Graziano da Silva. “The human and socioeconomic costs of weights involving hunger and malnutrition are enormous. So we worked together to make this conference a reality”, the Director-General of FAO. CIN2 is a continuation of first such conference, held in 1992. Their aim is to bring together leaders from governments, others responsible for policy formulation and representatives of intergovernmental organizations and civil society to take stock of progress in improving nutrition. The conference also aims to find new ways to promote national and international efforts to improve diets and health. While 842 million people suffer from chronic hunger, the FAO estimated that many more die or suffer most from the adverse effects of inadequate nutrition. Each year, about 7 million children die before their fifth birthday, 162 million children under five don’t have a proper development and at same time, 500 million people are obese. 34. Legislación y Economía - Mayo 2014
A
ELECTIONS IN INDIA
bout 814 million voters were called to attend the polls in view of the general election next Parliament of India. This is considered the longest election in the world, with a duration of 5 weeks. Due to the size and geography of India, which has 28 states, about 1.4 million electronic machines had to be distributed to remote areas, by air, road, sea, and even mules and elephants. This complex process took place from April 7 to May 12 of this, culminating on 16 May with the final vote count. That day was proclaimed the winner Narendra Modi Hindu nationalist. The Bharatiya Janata Party (BJP) defeated by an absolute majority in a historic election to the Congress, led by Gandhi family (Rahul Gandhi), which has ruled India for most of its history Party. In short, voters seeking an end to corruption, ensure better education and direct access to basic services such as electricity and potable water which lack at least 400 million people. This election had 100 million new, additional to the voters five years ago; most of whom are young people looking for changes in the country. At least half of the 1.237 million Indians are under 25 years of age and 100 million new voters, nearly 23 million are between 18 (required to exercise the voting age) and 19 years. Turn of the 23 million voters, 13.5 million are men and 9.5 women. The youth vote was decisive, especially in cities. Namo, as it is known to Naranda Mod i, is a Hindu leader of 63 years, son of a tea vendor, who was born in a low caste family in Vadnagar. He has served as chief minister of Gujarat. It is recognized for its economic management in Gujarat as per their struggle against bureaucracy. Your hood leaned more on the economic aspects of its program and drew back the religious theme. The charismatic Modi attracted mainly to the new generation of Indians born after the economic liberalization in India (1991) for which concern focuses on job opportunities and progress. His political plan focuses on promoting economic growth, fighting inflation and corruption. On the other hand Rahul Gandhi, 43, is heir to the most celebrated political dynasty in India. Grandson of Indra Gandhi, assassinated in 1984, and son of Rajiv Gandhi, died in an attack in 1991 Representative of the Congress Party,
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José Javier Rivera - Abogado jjrivera@rbc.com.pa which after a decade in power came to the election date in a delicate situation.; worn by a poor performance in economic development, a high rate of unemployment, especially for youth, rampant inflation and riddled with corruption. The BJP and the Congress are not the only political forces that have for the governance of the country, but if the only genuine national scope. Since 1989, no party has been able to govern alone and both the BJP and the Congress Party dl have been forced to articulate parliamentary coalition, the National Democratic Alliance (NDA) and United Progressive Alliance (UPA), respectively. Surveys anticipated the triumph of the opposition, the BJP (People’s Party of India). As severe defeat Foaled Congress, whose candidate Rahul Gandhi could not reverse the downward trend of the match and prove he was a candidate during the campaign solvent. India, considered by many as “the world’s largest democracy” faces many unknowns about its future. The political class in recent decades has lost credibility due to structural corruption and questionable business with multinationals, process further inequality increased and that many sectors of the population is condemned to extreme poverty, agendas class policy resting on the regional caste discrimination as well as the variety of conflicts that keep people in the northeast or the Maoist guerrillas against the central government and the Indian state. In Act inauguration as Prime Minister, Modi pointed out “We will write a glorious future pair India” likewise said to work without fear, without hate, and that will do justice for all. L&E
WE WILL BRAZIL 2014
A
few days to the commencement of the festival held every four years we are immersed in the wave of fans more attractive and productive sport in the world, in the opinion of media and skill in the field of sports and likewise in the opinion of economists from around the world that put this activity as one of the most lucrative in assessing the costs and benefits generated directly or indirectly to the community in general. Given the proliferation of media, social networking, television, radio and the internet today is impossible to think of anyone who is not interested to some extent by the development and prior to the appointment and obviously events throughout the tournament to completion with lifting the trophy winner take four years. Each country with opportunities to compete and participate in the live finals every year the momentum and the desire to get his team represent the country in the only comparable sports conclave with summer or winter Olympics World Cup that have category.
Giovana del C. Miranda G. - Abogada giovana.miranda@rbc.com.pa
dium that once built Estadio Centenario was called. At that time and somehow protest, European countries did not attend the call of FIFA to participate as it was by invitation and not qualifying as is done today. 13 countries participated in which included France, Belgium, Yugoslavia, Romania, Argentina, Brazil, Bolivia, Chile, Mexico, Paraguay, Peru, United States and the host country. World champion concludes with Uruguay, who beat Argentina to mark the selection of 4 goals to 2 and that was the product of a comeback after losing 2-0 in the first half. No doubt charrúas to achieve World Cup, held in the best way the centenary of the republic, which shows that FIFA is not wrong to designate the southern country to host the first world. For the second World Cup, held in Italy from 27 May to 10 June 1934, asking for thirty-four participating associations and after sixteen qualifying teams are ranked. And as happened four behind the host country Italy, stands with the cup.
I. BACKGROUND
II. NEWS
It should be remembered that in 1930 performed the first world cup which was held in Uruguay and we wonder why a South American country and not one of the old continent, but it turns out that for this year the centenary meet Uruguay its foundation and had been the Olympic champion football in the years 1924 and 1928, which leaves no doubt, the reason for the deserved distinction. In granting the FIFA headquarters in Uruguay, the host promised to cover travel and accommodation expenses of delegations and build a sta-
This time the XX edition of the FIFA World Cup Brazil 2014, an event which opens on June 12, 2014 and should end on July 13 of this year is celebrated. This is the second time that the sporting event is held in Brazil, after he knew the Soccer World Cup 1950 will be the first time since 1978 that the World Cup takes place in South American soil, this year was held in Argentina and the host country was the overall winner. The choice of Brazil became effective in the year 2007 after the global Joseph Blatter convened by the year
36. Legislación y Economía - Mayo 2014
2004 and that despite the marked initial enthusiasm of various countries to compete for the seat, at the close of the nomination in December 2006, only Brazil and Colombia presented the required documentation. After a few months after Colombia withdrew his candidacy, leaving only Brazil in the call, which on October 30, FIFA announced the permanent seat for Brazil.
increasingly the success of these claims into question. We played at this juncture start to wait for the much awaited party of South Africa from 2010, go step by step after each play to be performed in designated groups and to advance to the knockout stages, quarterfinals, semifinals and the great end it will release the country look to touch the Cup for another four years.
When given effective notice of Brazil to the world tournament, the economy was in a period of marked improvement with upward trend supported by a stable currency. With a new class of consumers out of the middle and lower class, the price of commodities higher on economic future projected with good perspective. In this period a field of oilfield valuable is discovered and so the Sao Paulo Stock Exchange is up 44% in 2007. Meanwhile, two years later Rio de Janeiro is named host the Games 2016 Olympics.
With this just see the reality of each venue, each new building constructed in those done to them some degree of remodeling and we will notice if everything was done properly technically, if it was worth all the billions of resources invested this level because the population impacted internally in Brazil.
PBut this time it’s not all rosy for the headquarters of both tournaments, Brazil to have a 7.5% growth in 2010, the economy is in the fourth year of downturn country, due in part to falling prices raw materials, as set out new consumer class missed growth mostly due to saturation of credit card spending capacity without actual payments. The situation in Brazil is still a country that has won five World Cup Soccer, with an internal league of great renown, with a pool of new players that supply the world football with stars descollan wherever you play, the pass rate this Cup has fallen to 48%, where in 2008 was above 75%, 55% think the Cup will not bring benefits for Brazilians. During the last celebration of the Confederations Cup could appreciate the amount of protests and the degree of belligerence against football showed that, to the extent that aggression buses where players were transported to the stadiums allowed. Do not forget that Brazil even though it has maintained a democratic prosperity in the decades to the present, as all Latin American countries have a folded past corruption, embezzlement of public funds and a certain contempt for the poorest sections of the population, where we can still see the famous favelas where they live in a really questionable overcrowding. The tournament will be done in spite of all these inconsistencies. The government remains committed to the full amount of funds invested in infrastructure to make this Cup Soccer will revert to employment benefits for Brazilians, but 37. Legislación y Economía - Mayo 2014
It’s a tough competition, in which competing skills the best active players of football, who in each selection will show off their skills and great talent, then confirm if the stars also respond to the national team or just the club they belong to. L&E
A gente se ve no Brasil!
F
or over 23 years I worked in one of the most recognized in the field of Fine European Apparel, then can deal with administrative positions and accounting within the same company (I am a CPA by profession with an MBA in Finance), my mentor, former boss and owner of the shop had sensed qualities to develop as a buyer, getting involved and showing me each of the things that were needed to develop such an important and sensitive position as a good buy depending can generate successful sales, were many and countless valuable lessons gave me with dedication and patience, to become the person he was looking for his successor as delicate position. This was developed for many years, combining management and administration of the shop, they were years of hard work, long trips to Europe, knowing and learning more every day about the fashion industry, buying and also in industrial retail. This whole experience helped me to develop base today my own business “Strada Eleganza Boutique”, a shop outside common denominator of the others, as it is very focused on personal and home care (if required by the customer) professional advice to guide customer as best suited to their profession and personality. In our Boutique a very quiet and calm atmosphere that makes customers feel like they are at home stays. Here we market the vast majority brands from Europe, all of excellent quality.
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Profile Nadia Chang rbcweb@rbc.com.pa
Nadia Chang
In this month´s article I will talk about the current trends in men´s suits: 1- BUTTONS, continuing strongly the two buttons, especially considering position of first button a bit higher, keeping same ratio that provides three buttons when the middle button closes.
2-
SILHOUETTES, continues to gain ac-
Note: It´s important to be aware that more than ever, two types of silhouettes, each with its own rationale, own audience, then details are present:
ceptance silhouette with a little speech at the waist and cuff highest opening Side Ven- a- The normal menswear silhouette that although ted sides, reminiscent of English elegance. evolves with touches that usually gives you industry to be in tune with the same trend, provides a 3- FLAPS, the flaps are less wide, and traditio- natural notch that usually serves all gentlemen. nal Notch Lapel, is the most important, but we are seeing Peak Lapel models one and two buttons, also very fashionable stitching or Pic Stitching.
4- SHOULDERS, a little more collected and
less rigidity; are more natural and smooth.
5- OPENINGS, almost totally dominated by open
b- A more modern silhouette, usually aimed at a younger clientele and usually also more athletic. This silhouette can also be the preferred choice for most adult men who keep their slender figure with exercise and good diets. For this silhouette almost 100% pants without pleats and be the general rule is to wear these pants with simple and not bent enough.
to Side Vented sides that combine perfectly with all In our next article we will discuss the of the above, more and more natural body shapes. trends Shirts, Colors, and the necks 2014.
6- COLORS, in addition to the classic black, navy blue and gray, different shades of brown, stripes continue to dominate in terms of patterns; all kinds of stripe in different widths classic and modern with subtle shades of two colors and with some shade. 7- FABRICS KEYWORDS: with advances in te-
chnology, today we have more sophisticated fabrics, lighter, suitable for use all year round and with qualities such as title Super 120’’ S at more affordable costs, as more mills may offer these finished by the help of these new machines and processes, most of them computer-assisted
8- PANTS, the trend for more natural tone sil-
houettes and detailed above, we are seeing a very marked increase in pants without pleats.
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L&E
ACTIVITIES FOR THE MONTH OF MAY Mariela de Sanjur mariela.sanjur@rbc.com.pa
• A 6 Strings presented on Satur- • VIII International Music Festiday 31 May “Afro Party” Cathe- val Alfredo De Saint Malo 2014: held dral-Old Town Square at 4:00 pm this year from 29 May to 8 June at the Ateneo of the City of Knowledge, Ani• Panama BBQ Fest at Equestrian Club ta Villaláz Theatre and the National of Coronado 2014, May 31 in Coronado. Theatre. Dedicated this year to the Panamanian songwriter Fermín Castañedas. • Volcan Verde Integral Food Festival: • Cats the Musical Panama: May 17 in the province of Chiriqui, which was presented from 15 to 18 May focused on sustainable cuisine. The lar- at the Colegio San Agustin Theagest for the 100 years of the canal paella. tre, directed by Edwin Cedeño. • IL Gardellino Baroque Ensemble: The National Association of Concert presented the concert on May 20 at the Ateneo of the City of Knowledge in Clayton.
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ACTIVITIES FOR THE MONTH OF JUNE • Comedy Gossip is not good but • Corpus Christi Festival on 19 entertaining, is presented un- June at the Villa de Los Santos til 15 June at the Teatro Abba. • XI International Guitar Meeting to be held • The National Concert Associa- on Monday 9 National Theatre June 13. tion presents: Wood Wind Quintet University of Northern Colora- • Let’s Dance Salsa and Merengue, do, on Tuesday, June 3 at 8:00 pm at June 14, Figali Convention Center the Ateneo in the City of Knowledge. • Sunday, June 15: Father’s Day. L&E • Life in Color Figali Convention Center on Saturday, June 7.
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Alianzas alrededor del Mundo Mitrani, Caballero, Rosso Alba, Francia, Ojam & Ruiz Moreno-ARGENTINA Guevara & Gutiérrez S. C. Servicios Legales- BOLIVIA Machado Associados Advogados e Consultores- BRASIL DSN Consultants Inc- CANADÁ Lewin & Wills Abogados- COLOMBIA Rivera, Bolívar y Castañedas- PANAMÁ Espinosa & Asociados- CHILE Lawnetworker S.A. Asesores Legales- ECUADOR Peter Byrne & Associates- ESTADOS UNIDOS Machado Associados Advogados e Consultores- ESTADOS UNIDOS Ortiz, Sosa, Ysusi y Cía., S.C.- MËXICO Estudio Rubio Leguia Normand & Asociados- PERU Adsuar Muñiz Goyco Seda & Pérez-Ochoa, P.S.C.- PUERTO RICO Pellerano & Herrera- REPÚBLICA DOMINICANA Alvarado & Asociados- NICARAGUA Torres, Plaz & Araujo- VENEZUELA Facio & Cañas- COSTA RICA