VOUGA ABOGADOS rankeado como Estudio TIER 1 y ACTIVE por IFLR1000

El prestigioso directorio International Financial Law Review (IFLR) publicó la 31ª edición del ranking IFLR1000 en el cual VOUGA ABOGADOS se destaca, una vez más, como firma TIER 1 en el área de “Financial and Corporate” y Active  en “Project Development”. De este modo, VOUGA ABOGADOS se posiciona como uno de los tres únicos estudios jurídicos paraguayos rankeados en todas áreas de análisis de nuestro mercado.

Además, queremos destacar que la nuestra es la firma paraguaya con el mayor número rankings individuales en éste directorio, con un total de 8 abogados rankeados.

Felicitamos a nuestros profesionales por su compromiso con la excelencia y agradecemos a nuestros clientes por la confianza depositada en nosotros.

Para más información sobre el ranking, haga click en el siguiente enlace:

Vouga Abogados – Paraguay – Firm Profile | IFLR1000

Leaving behind the disposable culture and recovering what is reusable

The global production of plastics has skyrocketed in the last 50 years, and especially in the last decades, according to data published by the Greenpeace organization. The publication mentions that in the last ten years we have produced more plastic than in the entire history of mankind. According to a report by the United Nations, it is estimated that around 5 trillion plastic bags are consumed worldwide every year, which is equivalent to almost 10 million bags per minute.

Governments around the world are becoming increasingly aware of the magnitude of plastic pollution. So far, more than 60 countries have enacted official measures and dozens more are working on regulations and strategies to tackle one of the biggest environmental problems of our time, according to a report published by UN Environment. Fortunately, Paraguay is no exception.

Desde el 1° de julio de 2021 se busca implementar la tan esperada, y varias veces postergada, Ley 5414/2015 “de Promoción de la Disminución del Uso de Plástico Polietileno” (la “Ley”), con  su Decreto Reglamentario 5537/2016 (el “Decreto”), que buscan regular el consumo de bolsas de polietileno de un solo uso, entregadas por supermercados, autoservicios, almacenes y comercios en general para el transporte de productos o mercaderías, las cuales deberán ser progresivamente reemplazadas por otras reutilizadas o confeccionadas con materiales biodegradables alternativos no contaminantes y reutilizables.

The enforcement authority is the Ministry of Industry and Commerce (MIC), in coordination with the municipalities.

The Law establishes that the use of single-use polyethylene bags must be gradually replaced by reusable bags or bags made of non-polluting and reusable alternative biodegradable materials within twelve months, in the retail sector in markets, supermarkets and stores with predominance of food and beverage products, and twenty-four months for all other establishments, including wholesale establishments. Subsequently, by Res. 353/2017, a gradual replacement schedule for single-use polyethylene bags was established, ranging from September 1, 2018 to September 1, 2023, establishing that, in September 2019, single-use polyethylene bags should no longer be marketed. This Resolution was then amended by Res. 453/2019 which established a new schedule running from May 1, 2019 to February 1, 2024, establishing that, as of February 1, 2020, single-use polyethylene bags should no longer be marketed.

However, by decree 3920/2020 and then by law 6636/2020, stores in general have been authorized to use polyethylene bags and other "conventional" plastic material while the pandemic emergency law 6524/2020 is in force, in accordance with the exception provided for in art. 9 of the Law, applicable when it is necessary to use polyethylene bags or other conventional plastic material for food safety or sanitary issues.

Recently, by means of CIRCULAR SSECS No. 01/2021 (the “Circular”), the MIC established that as from November 1, 2021 all businesses must have reusable bags (made of virgin material or material with high recycled content) The same Circular also provides for an adjustment and transition process from July 1 to October 31, 2021 so that all companies producing reusable bags can obtain the necessary certification before the INTN in order to meet the demand they will have from businesses.

Another obligation imposed by the Law is that the obligated parties must display at least the following legend on the cash registers: "LET'S TAKE CARE OF THE ENVIRONMENT, REDUCE - REUSE - RECYCLE PLASTIC BAGS. WHEN SHOPPING, TAKE YOUR REUSABLE BAG WITH YOU".

Res. 353/2017 establishes the minimum prices that stores must charge for single-use polyethylene bags used for the transportation of goods in order to encourage consumers to carry their own reusable bags or cardboard boxes or any container to avoid as much as possible the use of plastic bags.

The General Directorate of Internal Commerce of the MIC will be in charge of controlling stores comply with the regulation.

Failure to comply with the Law and its regulations may result in fines from 10 to 500 minimum daily wages, requiring prior administrative proceedings before the General Directorate of Legal Affairs of the MIC.

The law determines that the products regulated by the law must be certified by the National Institute of Technology, Standardization and Metrology (INTN), which will verify that the components and materials used in the manufacture of bags comply with the established criteria of non-polluting alternative biodegradability. So far, by Res. MIC 178/2021, the mandatory certification of reusable polyethylene plastic bags and reusable plastic bags with high recycled content has been established. This certification is carried out in accordance with the Conformity Assessment Regulation (Annex 1 of Resolution 178/2021).

Resolution 353/2017 also creates the Register of Manufacturers and Importers of plastic bags (polyethylene, polypropylene, and other thermoplastics) and biodegradable bags (paper, biodegradable plastic) that will be managed by the General Directorate of Domestic Trade of the MIC. Interested parties must submit the registration applications by completing Annex II (Natural Person) or Annex III (Legal Entity), which are part of said resolution. It also establishes that the National Customs Directorate (DNA) will only grant import permits for plastic bags and biodegradable bags that have a previous import license issued by the MIC, the requirements of which are detailed in the same resolution.

Many call this Law “Antihule” or “Antiplastics”, when, in fact, the law does not prohibit the use of plastics or polyethylene plastic bags in general, but requires that single-use plastic bags are no longer marketed by businesses and determines that those offered and used for the transport of goods are certified by INTN and are thicker to be reusable. In other words, the spirit of the Law is rather that consumers reuse their plastic bags or use biodegradable bags, so that, at least for now, plastic bags will continue to be available at the cash registers of stores, but with an additional cost for the consumer. It is important to point out that this law does not cover garbage bags. We can also say that it is perhaps a first step towards what other countries have achieved: the reduction or even prohibition of the use of plastic bags for the transportation of goods.

The reduction and improvement of the use of plastics is a global trend that is being implemented for several years in many countries around the world, but coincidentally many of them have chosen 2021 as the year of #plasticfree, with numerous campaigns of millions of public and private organizations betting on raising awareness not only governmental, but also of consumers for a world with less plastic. The main campaigns in July are #juliosinplastico, plastic free july - challenge, among others.

In Chile, for example, since July of this year, single-use plastics -such as cutlery, stirrers, straws, plumavit articles, containers and cups, among others- have been prohibited in all prepared food outlets, whether for consumption inside the premises or for delivery. Failure to comply with this rule results in fines for the benefit of the municipality.

Another example is Spain, where, in addition to measures taken years ago such as charging for bags in supermarkets and other businesses, there is now a draft Law on Waste and Contaminated Soil that for the first time limits the use of single-use plastics in certain areas, such as food, and incorporates restrictions on their sale. One of the key measures of this bill is a tax of €0.45 per kilogram on non-reusable plastic packaging. Since July 3, 2021, the introduction of a number of products on the market is prohibited: cotton swabs, allowed only in the sanitary area, cutlery, plates, straws and beverage stirrers, except those with industrial or professional uses.

Mexico City started 2021 with the ban on single-use plastics, therefore, as of January 1, 2021 "the commercialization, distribution and delivery of single-use plastic products is prohibited", according to the published rule. So far, 28 states have approved and published laws related to plastics, and there are 183 bills in Congress to ban, replace or reduce the consumption of plastics in Mexico.

Costa Rica, one of the world's leading examples in this area, has a mission to ban all single-use plastics by 2021. The country's ultimate goal is to become a carbon neutral nation by 2050. Other countries such as the United Kingdom and the Netherlands have also set 2050 as the target to bring their net carbon emissions to zero. Germany, for its part, aims to eliminate the use of coal by 2038 at the latest and, in the meantime, continues to invest in renewable energies.

At the European Union level, an EU directive EU 2019/904 was adopted in Brussels in 2019, which aims to ban the sale of single-use plastic products in all EU member countries. The deadline for member countries to adapt their legislation to this new directive has been set for July 3, 2021. This directive affects products made of plastic that are disposable or disposable. This is the case of: swabs, plastic bags, straws, disposable plates, cups and cutlery, food containers or packaging.

If plastic bag bans are properly planned and enforced, they can effectively counteract one of the causes of excess and misuse of plastics. However, solving the problem at its roots requires changes in the habits of consumers, retailers and manufacturers, and the adoption of sound policies that promote a more circular model of plastics design and production.

In the meantime, all of us as consumers have a key role in the correct application of this new law and as a first step we could join the #JulyWithoutPlastic challenge that is going around the world and that was promoted in Paraguay by @paraguaysinbasura. The World Wide Fund For Nature (WWF) determined that the average use of a plastic bag is 15 minutes while it takes many years to degrade.

Deadline for holding assemblies by telematic means is extended

Por medio del Decreto N° 4946/2021 de 4 de marzo de 2021 se prorroga hasta el 31 de diciembre de 2021, el plazo para la celebración de asambleas y reuniones a distancia de los órganos colegiados de las sociedades anónimas utilizando medios telemáticos. Este Decreto prorroga el plazo original, establecido en el Art. 5 del Decreto 3605/2020, el cual venció el pasado 31 de diciembre de 2020. 

Para mayor información con relación a esta noticia u otros temas societarios, por favor póngase en contacto con Perla Alderete (palderete@vouga.com.py), Walter D. Vera (wvera@vouga.com.py) o Ana B. Vera (abvera@vouga.com.py

Vouga Abogados advises shareholders of Cadena Farmacenter on the sale of majority shareholding to Grupo Cartes

On December 15, 2020, two shareholders of Cadena Farmacenter S.A. transferred part of their shares to Grupo Cartes, after which the latter acquired majority control of the company, owner of one of the leading drugstore chains in the Paraguayan market for almost 4 decades, with more than 100 branches throughout the country and more than 1100 employees. These figures allow us to state that this is one of the most relevant M&A transactions in recent years in Paraguay.

During the negotiation process, the Sellers were constantly advised by the Vouga Abogados team from the very beginning of the negotiations. The process covered all aspects of the transaction, including the due diligence, the preparation, review and negotiation of the different transactional contracts, all of this together with the Alpax Paraguay team, the Sellers' financial advisors.

In accordance with the agreements signed with Grupo Cartes, the Sellers continue to be linked to the Farmacenter S.A. chain, which will allow them to contribute their successful experience, which is key during the transition process. Both groups are confident that the change will strengthen the growth plans of the Farmacenter chain.

If you would like to learn more about our Mergers and Acquisitions practice, please feel free to contact Rodolfo G. Vouga Z. (rgvouga@vouga.com.py), Perla Alderete (palderete@vouga.com.py) or Rodrigo Fernandez (rfernandez@vouga.com.py).

Vouga Abogados advises J.P. Morgan Securities LLC and Santander Investment Securities INC in the framework of the first sustainable bond issue by a Paraguayan issuer

Vouga Abogados acted as special legal counsel in Paraguay for J.P. Morgan Securities LLC and Santander Investment Securities INC, as initial purchasers, in the issuance of senior bonds of Banco Continental S.A.E.C.A., in the international market, in the amount of US$300 million at a rate of 2.750% per annum maturing in 2025.

The issuance was made in the international market under Rule 144A and Regulation S of the U.S. securities laws. This issue is the first international issue of bonds classified as “sustainable” by a Paraguayan issuer.

The firm performed an extensive due diligence on the issuer's operations and reviewed the transaction documentation on matters related to local law.

For more information regarding this transaction or other issues related to Banking & Finance, please contact Carlos Vouga (cvouga@vouga.com.py), Cynthia Fatecha (cfatecha@vouga.com.py) or Georg Birbaumer (gbirbaumer@vouga.com.py) who participated in this transaction.

Rodrigo Fernandez, Partner at Vouga Abogados, participated as a panelist in the Virtual Forum: "Organizational Legal Aspects of New Forms of Work - Revolution 4.0", of the Inter-American Federation of Human Management Associations and the Employment Law A

Rodrigo Fernandez, Partner of Vouga Abogados, participated as a guest speaker in the Virtual Forum: “Organizational Legal Aspects of the New Forms of Work - Revolution 4.0”, organized by the Inter-American Federation of Human Management Associations (FIDAGH) and the Employment Law Alliance (ELA), to present his opinion on Paraguayan labor law in the face of the rapid changes in the labor reality.

The virtual forum took place over three days. Along with Rodrigo, partners from ELA member law firms from other Latin American countries, including Mexico, Dominican Republic, Panama, Colombia, Venezuela, Ecuador, Peru, Brazil, Argentina, Chile, Uruguay, and Bolivia, were also invited.

The speakers presented their perspectives on the progress or stagnation of legislation and legal realities in their respective jurisdictions in terms of remote work modalities, cybersecurity, privacy resulting from remote monitoring schemes of employers, labor harassment under remote modality, application of the disciplinary regime, among others.

Below is the link to access the episode with Rodrigo's participation.

If you wish to know more about our practice in the area of labor law, please contact Perla Alderete (palderete@vouga.com.py), Walter David Vera (wvera@vouga.com.py)  and Rodrigo Fernandez (rfernandez@vouga.com.py).

https://event.on24.com/wcc/r/2692173/85FE899884B02BB1EBE1AAA9AA925568?partnerref=ODAttyShare

Perla Alderete, Partner at Vouga Abogados, participated as a speaker in the Employment Law Alliance's podcast "Asuntos Laborales"

Perla Alderete, Partner of Vouga Abogados, participated as a guest speaker on telework in Paraguay in episode 12 “Revolution 4.0 New Ways of Working - Telework in Argentina, Chile, Paraguay, Brazil, Uruguay and Bolivia”, of the podcast “Labor Issues,” organized by the prestigious Employment Law Alliance (ELA). The speakers provided their comments and perspectives on the impact that the 4.0 revolution is having on organizations, how it has influenced the new ways of working for both employers and employees, and outlined the existing regulations for telework in their respective countries.

In this sense, Perla Alderete referred about the details in the form of implementation of telework in Paraguay through the Law of Health Emergency enacted in the framework of the pandemic of COVID-19 and its regulations, and highlighted the challenges that arose in general to combine the right to privacy of the worker with the power of control of the employer and with respect to computer security in remote work. He also spoke about the modalities of online, offline and mixed teleworking and highlighted the existing flexibility in terms of the length of the working day as long as the maximum number of hours established in the Labor Code is respected.

Also participating in the same episode were professionals from important law firms in other countries who presented the current situation in their respective jurisdictions: Enrique Radmilovich (from Hughes & Hughes, Uruguay), Oscar Aitken (from Carey, Santiago, Chile), Enrique M. Stile (from Marval, O'Farrell & Mairal, Argentina) René Claure Veizaga (from Moreno Baldivieso, Bolivia) and Renato Canizares (from Demarest, Brazil). The moderator was Francisca Corti, also from Carey, Chile.

The “Employment Matters” podcast is an effort by the Employment Law Alliance to be a go-to source for anyone to stay up-to-date on employment issues from legal experts from around the world. Its episodes can be accessed free of charge from its web site https://www.ela.law/spanish-podcasts or on any music streaming platform.

If you wish to know more about our practice in the area of labor law, please contact Perla Alderete (palderete@vouga.com.py), Walter David Vera (wvera@vouga.com.py)  or Rodrigo Fernandez (rfernandez@vouga.com.py).

Vouga Abogados Contributes with TheLegal500's "GC Latin America Survey 2020"

We are proud to have collaborated with the prestigious directory TheLegal500® for the publication of the “GC Latin America Survey 2020”. In this year's edition Vouga Abogados contributes with an article reviewing the most significant legal developments of the last twelve months, as well as with an analysis of the general outlook of Paraguay from a legal, economic and political point of view. It also analyzes the country's prospects for the coming years.

We would like to highlight that Vouga Abogados has been the only Paraguayan firm to have contributed to this renowned publication.

To access the publication, click on the following link: https://www.legal500.com/gc-magazine/interview/overview-paraguay/

Invitation to join the Public Sessions of the ELA Annual Conference 2020 - October 27, 29 and 30

As a Paraguayan member of the prestigious Employment Law Alliance (ELA), Vouga Abogados is pleased to invite all its clients and colleagues to participate free of charge in the series of three Webinars “The New Employer: Charting a Successful Course to the Future” that are part of the ELA 2020 Annual Conference.

The three Webinars are as follows:

  • The Future of Work: Embracing Remote Workplaces - Tuesday, October 27, 2020, at 10:30 am.

This Webinar will discuss the challenges that Home Office (telework) presents to employers, including their responsibilities and other issues such as infrastructure conditions for telecommuting employees, training, cybersecurity, and how to maintain a corporate environment despite the distance.

  • The Future of the Professions in the Age of COVID-19 - Thursday, October 29, 2020, at 10:30 am.

This session will discuss the link between the COVID-19 crisis and the challenge of automation, the five stages companies are expected to go through in order to recover from the pandemic's impact, and finally, advice on how to prepare for future working conditions.

  • The Narcissistic Executive - Friday, October 30, 2020, at 10:30 am.

Here we will talk about the study that shows that the so-called “transformational leaders” (who challenge the status-quo and motivate and inspire their teams to innovate and improve the world) often suffer from a psychiatric pathology known as Narcissistic Personality, and will seek to teach us how not to confuse a narcissist with a transformational leader in the corporate environment, while warning us about the risks of having a narcissistic leader and how to mitigate the negative effects that this entails.

The speakers will be highly regarded lawyers and professionals from the best universities in the UK and the USA.

For more information and to register for the Webinars, please see the following link: https://register.ela.law/