Exclusion of Retaliation Measures

By means of Cabinet Decree No. 11 of March 31st, 2020, the Republic of Panama exempts from the application of the retaliation measures imposed against the Republic of Ecuador, specifically to the companies Inmobiliaria Don Antonio, S.A., Rey Holdings, S.A. and their end beneficiaries from the Republic of Ecuador.

Law 48 of 2016, which subrogates Law 58 of 2002, establishes retaliation measures in the event of foreign discriminatory restrictions against the Republic of Panama. In this same legal exception, article 10 mentions that such measures may be excepted in case national public interest may be affected.

Let us remember that retaliation, in international law, are those lawful but harmful measures that a country takes against another, as a consequence of previous measures committed against it by the other country.

Furthermore, given the current circumstances of our country, the Cabinet Council by Resolution No. 11 of March 13th, 2020 declared a State of National Emergency as a consequence of the effects of the coronavirus and the imminence of the occurrence of new damages.

This exception was established due to the request of the companies mentioned above to be taken into consideration for the presentation of quotations required by Panamanian Government for the purchase of food and basic necessities on the occasion of the declared State of National Emergency, as a consequence of infectious disease CoViD-19.