Argentina wins WTO appeal in case targeting Panama tax practices

[forest444]

Source: Reuters

The World Trade Organization's appellate body on Thursday threw out a complaint from Panama about Argentina's efforts to combat alleged tax evasion and avoidance.

The case brought by Panama, now under global scrutiny because of a huge leak of secretive offshore accounts data from Panama-based law firm Mossack Fonseca, was the first WTO dispute over steps taken against "harmful tax practices".

Panama accused Argentina of discriminating against suppliers of financial services based in "countries not cooperating for tax purposes", and it won a partial victory in a ruling last September.

Panama claimed in 2012 that Argentina discriminated against countries that did not exchange information with Argentine authorities for the purposes of fiscal transparency. Argentina countered that its measures were in line with recommendations by the OECD and the Financial Action Task Force, which combats money laundering and terrorist financing.

The appeal ruling found Argentina's measures did not break WTO rules; but it did not go so far as to say Argentina was definitely within WTO rules, either. Instead, it decided there had been insufficient analysis of Panama's original complaint, leaving the way open for similar disputes in future.

The Appellate Body did rule that countries could restrict trade with tax havens for "prudential" reasons or to comply with national laws, as long as they did so in a consistent and non-arbitrary manner.

Read more: http://www.reuters.com/article/us-argentina-panama-wto-idUSKCN0XB2D4

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I should note that Argentina's policies targeting offshore tax evasion were enacted during the center-left administration of President Cristina Fernández de Kirchner. Like Bernie Sanders and many other progressives, she saw Panama Papers coming years before the scandal broke.

The current president, Mauricio Macri, is a GOP clone that opposed these measures at the time, and as mayor even attempted to make Buenos Aires into an offshore tax haven in direct contravention of federal laws.

Macri is one of only five current world leaders implicated in the Panama Paper scandal.

[NCjack]

1. Here is Argentina going after Panama beginning in 2012. But, it appears that the US DoS had

no interest in looking for violations of the US-Panama Trade Treaty.

[forest444]

3. Well said. It's good to know at least one presidential candidate knew better.

And in fact called Panama out when it could have made the most difference: during debate over the U.S.-Panama "trade" deal.

[Judi Lynn]

2. Great learning the previous President was far-sighted enough to do this.

It clearly shows the difference between a President who thinks of the people, and the law, and a fascist who thinks of the 1% first, and himself.

[forest444]

4. And now we know why Macri was so adamantly opposed to such regulations.

[pampango]

5. I did not realize that the WTO had jurisdiction over "harmful tax practices". Good for Argentina.

Other countries should follow Argentina's lead. Imagine if Panama lost multiple cases in the WTO based on its financial secrecy laws. It would have to change.

[forest444]

6. Certainly something to strive for. We could start by rescinding the US/Panama "trade" deal.

Which, as you know, was crafted, drafted, and passed for the sole purpose of facilitating money laundering activities between the U.S. and Panama (Trump, it's said, has been one of its chief beneficiaries through real estate developments that basically serve as laundromats).

Of course, that leaves out the biggest recipient of US tax evasion and laundering proceeds: the Cayman Islands. When Panama Papers broke last week, Ramón Fonseca Mora (founding partner at Mossack Fonseca) pointed to Paul Singer as the likely culprit behind this leak because Singer's Caymans-based NML already launders billions and stands to benefit most from any such business Panamanian banks lose.

Here's more on that rivalry (long article, in rough Google translation; but the salient points are there): https://translate.google.com/translate?hl=en&sl=es&u=http://www.pagina12.com.ar/diario/elpais/1-296636-2016-04-10.html&prev=search