{"id":24333,"date":"2018-10-09T14:26:07","date_gmt":"2018-10-09T19:26:07","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=24333"},"modified":"2018-10-09T14:26:07","modified_gmt":"2018-10-09T19:26:07","slug":"fragile-legal-certainty","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/fragile-legal-certainty\/","title":{"rendered":"Fragile Legal Certainty"},"content":{"rendered":"<p><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2018\/10\/scales-of-injustice.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-24334\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2018\/10\/scales-of-injustice.jpg\" alt=\"\" width=\"620\" height=\"796\" srcset=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2018\/10\/scales-of-injustice.jpg 620w, https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2018\/10\/scales-of-injustice-234x300.jpg 234w\" sizes=\"auto, (max-width: 620px) 100vw, 620px\" \/><\/a><\/p>\n<p>Adverse court decisions against companies, social and political conflicts and fiscal issues are some of the factors that are impeding the development of productive projects in Central American countries.<\/p>\n<p>One of the latest court decisions affecting companies with investments in the region was that of Minera Petaquilla, in <a class=\"hlink\" title=\"Panama\" href=\"https:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22Panama%22\">Panama<\/a>. The contract that this company had signed with the Panamanian State was declared unconstitutional last week.<\/p>\n<p>The decision of Panama&#8217;s Supreme Court occurred nine years after the legal dispute began, following the Centro de Incidencia Ambiental (CIAM) filed an appeal of unconstitutionality against the contract granting a 20-year concession to exploit and commercialize gold, copper and other <a class=\"hlink\" title=\"mineral resources\" href=\"https:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22mineral+resources%22\">mineral resources<\/a> from the Cerro Petaquilla.<\/p>\n<p>See &#8220;<a href=\"https:\/\/centralamericadata.com\/en\/article\/home\/Fallo_judicial_en_contra_de_minera\" target=\"_blank\" rel=\"noopener noreferrer\"><u>Court decision against mining company<\/u><\/a><u><\/u>&#8221;<\/p>\n<p>In this regard, the C\u00e1mara de Comercio, Industrias y Agricultura de Panam\u00e1 (CCIAP), considers that beyond the reasons that support it, the declaration of unconstitutionality of a <a class=\"hlink\" title=\"mining\" href=\"https:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22mining%22\">mining<\/a> concession contract, almost 10 years after requesting the measure, is worrying due to what it projects on legal certainty in the country.<\/p>\n<p>Another case is in <a class=\"hlink\" title=\"Guatemala\" href=\"https:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22Guatemala%22\">Guatemala<\/a>, where 16 <a class=\"hlink\" title=\"hydroelectric \" href=\"https:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22hydroelectric+%22\">hydroelectric<\/a> projects are suspended mostly due to issues of social conflict, which together represent an investment of approximately $1.5 billion. In addition, <a class=\"hlink\" title=\"Minera San Rafael S.A.\" href=\"https:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22Minera+San+Rafael+S.A.%22\">Minera San Rafael<\/a> has not operated for more than a year as a result of multiple delays in local court decisions, and is now waiting for a community consultation to restart its operations.<\/p>\n<p>See &#8220;<u><a href=\"https:\/\/centralamericadata.com\/en\/article\/home\/Inversiones_energticas_en_el_limbo\" target=\"_blank\" rel=\"noopener noreferrer\">Energy: Investments in Limbo<\/a><\/u>&#8221; and &#8220;<u><a href=\"https:\/\/centralamericadata.com\/en\/article\/home\/Menos_incertidumbre_jurdica_por_ahora\" target=\"_blank\" rel=\"noopener noreferrer\">Less legal uncertainty, by now<\/a><\/u>&#8221;<\/p>\n<p>In <a class=\"hlink\" title=\"Nicaragua\" href=\"https:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22Nicaragua%22\">Nicaragua<\/a>, after a social and political crisis that persists to date started last April, entrepreneurs have reported that several farms in different regions of the country have been taken over by criminal groups.<\/p>\n<p>Also see &#8220;<a href=\"https:\/\/centralamericadata.com\/en\/article\/home\/Nicaragua_Invaden_tierras_productivas\" target=\"_blank\" rel=\"noopener noreferrer\"><u>Nicaragua: Productive Land Invaded<\/u><\/a><u><\/u>&#8221;<\/p>\n<p>From the statement of CCIAP of Panama:<\/p>\n<p><strong>(Panama, September 28th, 2018).\u00a0<\/strong>Regardless of the reasons on which it is based, the declaration of unconstitutionality of a mining concession contract, almost 10 years after requesting the measure, is concerned for the C\u00e1mara de Comercio, Industrias y Agricultura de Panam\u00e1 (CCIAP) because of what it projects on legal certainty in the country.<\/p>\n<p>Our ability to attract employment-generating investments depends on legal certainty, which is why we must strengthen and consolidate it, rather than subject it to dangerous risks, and the Supreme Court must be the guarantor of this.<\/p>\n<p>&#8220;In particular, the decision created unnecessary uncertainty for the largest foreign direct <a class=\"hlink\" title=\"investor\" href=\"https:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22investor%22\">investor<\/a> in the country&#8217;s history,&#8221; said Jorge Juan de la Guardia, head of CCIAP.<\/p>\n<p>To take just a few important numbers into account, Minera Panam\u00e1, and its Cobre Panam\u00e1 project, employs more than 12,600 people, contributing US$120 million annually in worker-employer dues to the Social Security Funds; and has <a class=\"hlink\" title=\"investment\" href=\"https:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22investment%22\">invested<\/a> about US$1.1 billion in acquisitions from local suppliers.<\/p>\n<p>He also said, &#8220;It is worrying that the decision on the process in question has lasted almost a decade, which confirms our intention to continue encouraging the changes we promote in the administration of justice, through constitutional reforms with two consecutive national assemblies. Such reforms are becoming more and more necessary.&#8221;<\/p>\n<p class=\"link_source\">\n<p>&nbsp;<\/p>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f16536-o1\" lang=\"\" dir=\"ltr\" data-wpcf7-id=\"16536\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/blog\/wp-json\/wp\/v2\/posts\/24333#wpcf7-f16536-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"16536\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.6\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f16536-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<p><B><I>Sign Up 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court decisions against companies, social and political conflicts and fiscal issues are some of the factors that<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[10,12,247,241,39,248,34,33,62,42,219,11,249,243,7,246,244,44],"class_list":["post-24333","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective","tag-bocas-del-toro","tag-boquete","tag-boquete-boca-chica-real-estate","tag-boquete-real-estate","tag-buenaventura","tag-casco","tag-casco-antiguo","tag-casco-viejo","tag-coffee-in-panama","tag-estate-homes-in-panama","tag-move-to-panama","tag-offshore-real-estate","tag-panama-offshore-real-estate","tag-panama-papers","tag-panama-real-estate","tag-relocate-to-panama","tag-rum-in-panama","tag-travel-to-panama"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin 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