Summary.
The bill establishes a profit margin applicable to companies acting as intermediaries, manufacturers, importers and distributors that sell agricultural inputs and products in the Republic of Panama. Its stated purpose concerns goods used by farmers to produce food in the country. The proposal’s scope follows both the sale of those goods and their use in food production. It covers the listed companies according to their roles in the supply chain and the agricultural products they sell for that purpose.
For those companies, the bill sets a maximum profit margin of ten percent (10%) per unit in all cases. The measure would apply for eighteen (18) months, counted from promulgation of the proposed law. The article establishing the margin connects it to the aim of having the State guarantee the country’s food security. The ceiling is expressed on a per-unit basis and applies to the intermediaries, manufacturers, importers and distributors covered by the bill throughout the stated period.
Before the measure’s period of validity ends, the Ministry of Agricultural Development (Ministerio de Desarrollo Agropecuario) and the Ministry of Commerce (Ministerio de Comercio) would review the established margin. Their review would assess the measure’s suitability and its effects on domestic production. The bill links that assessment to the possibility of extending the measure. The review would therefore take place before the maximum-margin period concludes and would address both the suitability of the measure and its effects on production within the country.
The bill defines the agricultural inputs and products within its scope as all those used by domestic producers to produce food of any kind. Its definition refers to animal and plant production, as well as fruits and grains. This provision ties the products subject to the margin to their use by domestic producers in food production and encompasses the food categories named in the text. The definition supplies the product scope for the proposed limit on the companies’ profit margin.
The Executive Branch (Órgano Ejecutivo) would issue implementing regulations through the Ministry of Agricultural Development together with the Ministry of Commerce within a period not exceeding thirty calendar days from promulgation. The bill provides that the proposed law would take effect upon promulgation. Its provisions concern the sale of agricultural inputs and the activities of farmers and domestic producers, intermediaries, manufacturers, importers and distributors in the Republic of Panama. The public bodies assigned roles in reviewing or implementing the measure are the Ministry of Agricultural Development, the Ministry of Commerce and the Executive Branch.
What it proposes.
- Maximum per-unit profit margin on sales of agricultural inputs.
- Duration and review of the measure.
- Definition of covered products and implementing regulations.
Who it would affect.
- Companies acting as intermediaries for agricultural inputs and products.
- Manufacturers, importers and distributors selling those goods.
- Farmers and domestic producers using those products to produce food.
Key points.
- The bill establishes a profit margin for companies selling agricultural inputs and products used by farmers to produce food in the Republic of Panama.Art. 1
- The maximum margin would be ten percent (10%) per unit for eighteen (18) months from promulgation.Art. 2
- The Ministry of Agricultural Development and the Ministry of Commerce would review the measure before its term ends to assess its effects on domestic production and its possible extension.Art. 3
- Covered inputs and products are those used by domestic producers to produce food of any kind, including animal and plant production, fruits and grains.Art. 4
- The Executive Branch would issue implementing regulations through both ministries within a period not exceeding thirty calendar days from promulgation.Art. 5
- The proposed law would take effect upon promulgation.Art. 6