It's the law

Latin Trade, June, 2003 by Oscar Diaz

Crime

The International Criminal Police Organization, also known as Interpol, issued a "Red Notice" for the arrest of former Peruvian President Alberto Fujimori after receiving additional evidence, it said, linking Fujimori to a paramilitary death squad at the beginning of the 1990s. Interpol is also seeking the former president on charges of misusing at least US$15 million in public funds. Japan, where Fujimori now resides, has so far refused to extradite the ex-president on grounds that he is a Japanese citizen.

GAS

Colombia's State Council will review a contract between state-owned oil company Ecopetrol and Texas Petroleum Co., a ChevronTexaco subsidiary, to determine whether the government will forfeit as much as US$100 million in royalties from the Catalinas natural gas project. The council is expected to decide by June whether the contract should be renegotiated.

RETAIL

Mexico's Federal Competition Commission (CFC) offered to close an investigation on the competitive practices of Walmex, the Mexican unit of Wal-Mart, on the condition that the retailer adopt a new code of conduct with its suppliers the commission says will ensure fair competition. THe CFC investigated the Mexican retailer to determine whether it used its dominant market position to get lower prices from suppliers but was unable to find sufficient evidence that Walmex violated competition laws.

TELECOMMUNICATIONS

Intel, a Panamanian fixed-line carrier, filed a lawsuit to dissolve a contract it signed with U.K. telecommunications company Cable & Wireless. The British company acquired a 49% stake in Intel, as well as a 20-year administration contract, when Panama privatized a portion of the company in 1997. The carrier claims the contract is not in force since it was never published in the official register; Cable &Wireless says the contract was signed as part of a public auction process.

TRADE

The World Trade Organization (WTO) ruled against the United States in a preliminary decision regarding steel tariffs imposed by President Bush in 2002. The case, presented by the European Union, argued that the United States was illegally protecting its steel industry by placing a three-year, 30% tariff on steel imports. The WTO decided the move violated international trade laws, however, the U.S. administration plans to appeal the decision.

SOURCE: National Law Center for Inter-American Free Trade (natlaw@natlaw.com); Translegal, LLC (translegal@earthlink.net), LATIN TRADE