In Nicaragua, following the arrests of political and business leaders, uncertainty has increased after local authorities arrested Luis Alberto Rivas Anduray, Executive President of Banpro.
In the last weeks Cristiana Chamorro, Arturo Cruz, Felix Maradiaga Blandon and Juan Sebastian Chamorro have been arrested, these people were presidential pre-candidates and are accused of multiple crimes.
With regard to the discussion of an initiative which aims to modify the Trademark Law in Nicaragua, the business sector believes that relevant changes are being considered in the area of legal security, as far as the protection of trade names is concerned.
Regarding the subject, the National Assembly reported that on February 27, "... the consultation process for the initiatives to reform the Trademark Law and the Patent Law was successfully concluded, with the participation of economic and academic agents directly linked to the subject, who provided important contributions."
Reducing trade barriers and procedures, increasing legal security and improving productive infrastructure are part of the changes required by the business sector for the region's economic development.
In Guatemala, the 12th Ibero-American Business Meeting is held, in which the private sector presents proposals to face the current challenges and generate opportunities for the countries of the region.
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.
One of the latest court decisions affecting companies with investments in the region was that of Minera Petaquilla, in Panama. The contract that this company had signed with the Panamanian State was declared unconstitutional last week.
A new law passed by the Assembly compiles all regulations concerning foreign and local investment in real estate, in order to provide legal certainty to investors.
From a statement from the National Assembly of Nicaragua:
The National Assembly has unanimously adopted in its entirety, this March 9, the Law on Nicaraguan Legal Digest of Property Matters, which will guarantee legal certainty to Nicaraguans and foreigners wishing to invest in the country, said Deputy Edwin Castro, Vice President of the Commission of Justice and Legal Affairs.
The bill submitted by the Executive aims to increase legal certainty and transparency of processes through improved tender mechanisms.
The Executive presented a bill for public and private investment classified as urgent, only days after the US Congress passed a law whichputs conditions on loans from international institutionsto the government of Daniel Ortega.
The efforts made by the Ortega administration to attract more foreign investment were noted, but warnings were also give regarding deficiencies in the rule of law and an extensive executive control.
The report"Investment Climate Statements for 2016"prepared by the US State Department details the efforts made by Nicaragua to attract foreign investment by providing tax incentives to productive sectors such as mining and tourism, but also points out some elements that could affect the investment climate in the country, such as weak government institutions, deficiencies of law and an all-embracing control on the part of the executive branch.
The Mexican businessman has highlighted the harmony between government and businesses, confidence and existing physical and legal security in the country.
From a statement issued by the Superior Council of Private Enterprise:
Carlos Slim outlines conditions for investments in Nicaragua
The Mexican businessman Carlos Slim participated on Thursday September 10 in a conversation with Nicaraguan businessmen united under in the Superior Council of Private Enterprise (COSEP).
If Central America does not strengthen the institutions that ensure a stable legal framework and full respect for contracts, foreign investment will not come and national investment will go to other countries, no matter how many incentives and tax exemptions are offered.
EDITORIAL
The frequent displays of discontent for the Salvadoran Executive Branch in respect to rulings issued by the Constitutional Court and the inaction of the Panamanian government over blockades by a group of people are holding not only over the hydroelectric project Barro Blanco, but also the main access roads, are appalling signals sent from the region to the world, casting doubt on those companies who consider the region to be a potential investment destination.
Employers in the region are complaining about a lack of long-term development policies, and are asking for Government transparency, effectiveness and legal certainty, so that they can continue investing in the region.
During a meeting between businessmen and government called 'Expanding opportunities: promoting the private sector and job creation', entrepreneurs from different sectors shared their concerns and views on the investment climate in the region.
Potential investments in land next to a route that has still not been defined will not be realized until there is certainty about what will happen to those properties.
From a statement issued by the Nicaraguan Foundation for Economic and Social Development:
If built, the Interoceanic Canal would have impacts on the national economy which are difficult to pin down because of the magnitude of the project and the limited information available.
The Coastal Act passed four years ago encouraged tourism and real estate development in the Pacific.
Businessmen claim that the legal certainty provided by the legislation has resulted in more tourism and real estate projects in coastal areas, but there are still a lack of incentives for investment in projects in the Caribbean.
Adiak Barahona, CEO of Gran Pacifica Resort, told Laprensa.com.ni that "the Coastal Act eliminated uncertainty for landowners near the beach and encouraged the building of homes measuring more than 300 square meters."
The money that the State of Costa Rica will lose in the dispute over the failed concession of the Crucitas mine will come from taxpayer's pockets.
Editorial
During the 20 year period of the soap opera that is Crucitas gold mine, none of the individuals who are involved in one way or another have suffered any financial loss and many, on the contrary, have seen an increase in their income and their bank accounts.
They are also asking for policies that encourage the creation of new businesses and credit facilities, especially for young people.
During the XXIV Summit of Ibero-American Business Organizations which took place this week in Panama, employers from the region concluded that clear rules are needed to ensure legal certainty and thereby further advance the economic development of the countries.
U.S. investors could get involved in the project but asked for transparency in its management and legal certainty for contracts.
According to Walter Bastian, deputy assistant secretary of the U.S. Department of Commerce, the topic of the canal is "fascinating" and the Government will follow up to see if there is interest from U.S. investors being involved in the work.