The Ministries of Finance and Economy of the new Administration have been considering the possibility of eliminating the mandatory one-year stay restriction on foreign capital brought into Chile either under the Foreign Investment Statute (Decree Law 600) or the Central Bank regulations.
The Income Tax Law, being prepared by the Tax Administration for adoption by Presidential Decree is still being drafted. The modifications are designed to increase tax revenues by expanding the taxable events to include new sources of territorial income (dividends).
Chilean regulators have imposed a 180 day injunction on Coca Cola, blocking the drinks giant from terminating a contract with Embotelladoras Chilenas Unidas SA (ECUSA). The Chilean Competition Bureau has begun a full investigation into Coke’s decision.
The postponement of the concessions for the transport and distribution of gas will allow a higher degree of competition and the presentation of improved bids, according to the president of the special committee for the promotion of private investment in Camisea, Luis Ortigas.
A new partner has joined the energy specialists Lopez Velarde, Heftye Abogados. Educated in Mexico and France, David Jiménez is former legal advisor to the General Counsel of Petróleos Mexicanos (the Mexican state-owned oil company) with regard to international transactions. His practice in Lopez Velarde, Heftye Abogados is focused on energy and infrastructure projects, as well as on mergers and acquisitions and foreign investment general practice.
A Convention entered into by the governments of Ecuador and Peru in relation to reciprocal promotion and protection of investments has been published.
Major changes approved by Congress to the Industrial Property Law became effective throughout Honduras from 28 February 2000.
On 28 February 2000, law 7989 was published in the official gazette, reforming article 156 of the Work Code.
The law was approved on February 24 and published in the Official Newspaper on March 16. It authorises the National Port Company to lease, by public bidding and for a 25-year period, the port facilities of Puerto Cabeza.
Jeffrey Gracer, a specialist in Latin American environmental law, joined the firm on February 22, 2000 as partner in the firm's Latin American Practice Group. Gracer served as special environmental counsel to the Inter-American Investment Corporation. Gracer has lectured widely on Latin American environmental laws and the implications for foreign investors and lenders.