Summary.
The bill proposes to replace Law 70 of 1975 and establishes the Agricultural Marketing Institute (Instituto de Mercadeo Agropecuario) as a public entity with legal personality and its own assets. The Institute would follow Executive Branch (Órgano Ejecutivo) policies through the Ministry of Agricultural Development (Ministerio de Desarrollo Agropecuario) and be subject to oversight by the Office of the Comptroller General of the Republic (Contraloría General de la República). Its stated purpose is to support domestic producers, intermediaries and industrial businesses in connection with food security. Its objectives include improving agricultural marketing systems, implementing the Ministry’s marketing policies, seeking domestic or foreign markets for national production at remunerative prices, and organizing marketing channels.
The Institute would also seek to stabilize domestic supply, balance producer and consumer interests, and make low cost agricultural inputs available to small producers. Imports intended to meet domestic market needs would require market studies showing a shortage. Where imported raw materials require industrial processing, distribution would follow performance requirements concerning purchases of domestic production. To pursue its objectives, the Institute could manage, acquire, dispose of and pledge assets; borrow funds; issue bonds; charge for services; build facilities; and operate agricultural marketing enterprises with private parties and local authorities.
The bill assigns the Institute responsibility for implementing the agricultural marketing policy set by the Ministry of Agricultural Development. It would permit the Institute to import restricted products where the competent bodies have set quotas, the relevant agri food chains have issued a favorable recommendation, and the Cabinet Council (Consejo de Gabinete) has subsequently approved the imports. It also provides for exporting production surpluses, exercising administrative collection powers, and advising producers on imports of agricultural inputs for sale to small and medium sized producers at cost and in controlled quantities.
The proposed organization consists of an Executive Committee (Comité Ejecutivo), a director general and advisory commissions. The Executive Committee would include representatives of the Ministry of Agricultural Development, the Agricultural Development Bank (Banco de Desarrollo Agropecuario), the Agricultural Innovation Institute of Panama (Instituto de Innovación Agropecuaria de Panamá), the Agricultural Insurance Institute (Instituto de Seguro Agropecuario), and agricultural producers. The Consumer Protection and Competition Defense Authority (Autoridad de Protección al Consumidor y Defensa de la Competencia) and the Office of the Comptroller General would participate with speaking rights. The director general would serve as secretary, while Article 6 provides for advisers to participate in deliberations.
The Executive Committee would direct marketing policy implementation, develop a system for purchasing domestic production, and work with the Ministry of Commerce and Industries (Ministerio de Comercio e Industrias) on commercial information for producers abroad. It would review the stores and open market program quarterly, approve budgets, reports and regulations, and authorize acts or contracts exceeding B/. 50,000.00. The Executive Branch would appoint the director general after ratification by the National Assembly (Asamblea Nacional); Article 8 states nationality and experience requirements. The proposal would concern agricultural producers, marketers, industrial businesses and consumers, as well as the public entities named above.
What it proposes.
- Organization and powers of the Agricultural Marketing Institute.
- Marketing, supply and imports of agricultural products.
- Membership and powers of the Executive Committee.
Who it would affect.
- The Agricultural Marketing Institute and its governing bodies.
- Domestic agricultural producers.
- Agricultural intermediaries, marketers and industrial businesses.
- Consumers of agricultural products.
Key points.
- Establishes the Agricultural Marketing Institute as a public entity with legal personality and its own assets, subject to Executive Branch policies and oversight by the Office of the Comptroller General.Art. 1
- Sets marketing and supply objectives and makes certain imports conditional on shortage studies and domestic production purchasing requirements.Art. 2
- Authorizes the Institute to undertake asset and commercial transactions, import restricted products subject to the stated approvals, and advise on agricultural inputs.Art. 3
- Organizes the Institute through an Executive Committee, a director general and advisory commissions.Art. 4
- Specifies the Executive Committee’s membership and the participation of the director general and certain institutional representatives with speaking rights.Arts. 5-6
- Tasks the Executive Committee with directing marketing policy, reviewing stores and open markets quarterly, and authorizing acts or contracts exceeding B/. 50,000.00.Art. 7
- Provides for appointment of the director general by the Executive Branch after National Assembly ratification and states nationality and experience requirements.Art. 8