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The president of the Dominican Republic, Luis Abinader, will assume his second term determined to reform the Constitution

The president of the Dominican Republic, Luis Abinader, will assume his second and last term of government next Friday after achieving re-election last May, and he will do so with a view to a constitutional reform, criticized by many, and a fiscal reform, which has been postponed for years.

Just hours before the results of the May elections were known, Abinader, of the Modern Revolutionary Party (PRM, liberal and progressive), announced his intention to change the Constitution, which would be the fourth reform of this century, and everything indicates that he will do so.

Trusting that this “is the last” reform, Abinader, a 57-year-old economist, should not have major inconveniences in bringing this proposal of changes in the Magna Carta to fruition, if it is taken into account that the PRM will mostly control the National Congress from Friday, after rising in the elections with 29 of the 32 senators and 146 of the 190 deputies.

The initiative, which will be presented to Congress coinciding with the investiture, has among its main objectives to prevent changes to the rules of the presidential election (limited to two consecutive terms), consolidate the independence of the Public Ministry (Public Prosecutor’s Office), reduce the number of deputies and unify the holding of elections, according to the proposal presented by Abinader a few days ago to the press.

It is not, he said then, “a conjunctural reform driven by partisan political needs or individual aspirations,” but it is “thought for the benefit of the community” and to consolidate the principles of democracy, transparency and institutionality, as “a shielding of democracy.”

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But, at the same time that the Government and the PRM defend the eventual reform, there is also a growing criticism from the opposition, which considers a change of the Magna Carta to be inopportune.

Among the critics is former president Leonel Fernández, who faced Abinader in the elections and who considers that the best way to protect the Constitution is not to touch it, although he already did it in 2010.

In return, the three-time president of the Dominican Republic, whose party, the People’s Force, is the second formation in the National Congress, proposes that the referendum law be approved, which is contemplated in the 2010 Constitution, but still without legislation in this regard.

The questions have also been joined by prosecutors, who fear that, through the reform, the Superior Council of the Public Ministry will be eliminated, which Abinader denies.

Along with the constitutional change, Abinader also has a tax reform in the sights.

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Dominican Republic – with an average annual growth rate of approximately 5% for decades and which, as reported on Tuesday by the Economic Commission for Latin America and the Caribbean (ECLAC), will lead the growth of the region with 5.2% in 2024 – has had a fiscal reform pending for years, a promise already of Abinader’s campaign for the 2020 elections.

In fact, just two months after assuming power for the first time and in the midst of the COVID-19 pandemic, Abinader presented a plan with new taxes to face the crisis, but ended up withdrawing it due to criticism.

Representatives of the public sector, the private sector and even international organizations understand that the reform is urgent.
According to a recent report by the International Monetary Fund (IMF), fiscal reform can help the Dominican Republic attract more investment.

However, “beyond the much-needed increase in tax revenues,” the comprehensive tax reform “should include the adoption of a tax rule that establishes limits on long-term public debt, which would increase certainty and help safeguard fiscal sustainability,” says the IMF.

Another “critically important” reform, according to the IMF, is to address the failures of the electricity sector, which come from far away and have generated significant losses, which average between 1% and 2% of annual GDP in the last decade.

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Apart from these issues, Abinader will also have to face long-standing social debts in the next four years, along with the deficient health system, labor informality or insecurity.

And at the same time it will have to face the increasingly chaotic traffic, which every year causes between 3,000 and 4,000 deaths, making the country one of the first places in the world in road deaths.

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International

The AP agency sues the Trump Government after being banned for writing Gulf of Mexico

The American press agency Associated Press (AP) announced this Friday that it has sued three members of the Donald Trump Administration after being banned from the Oval Office and the presidential plane Air Force One for not complying with the directive of calling the Gulf of Mexico the Gulf of America.

“The press and all people in the United States have the right to choose their own words and not to be retaliated for it by the Government. The Constitution does not allow the Government to control freedom of expression,” the media maintains.

In its style guide, AP decided to continue calling the Gulf of Mexico “by its original name”, still mentioning the new name chosen by Trump, since it is a body of water that shares a border with Mexico and Cuba.

The White House formally blocked AP’s access to the Oval Office and Air Force One on February 14. “We are very proud of this country and we want it to be the Gulf of America,” Trump said on Tuesday.

The agency’s lawsuit, of 18 pages and filed before a federal court in Washington DC, alleges that they have decided to take this step to claim their right to editorial independence and prevent the Executive from coercing journalists to use only a language approved by it.

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Trump signed the executive order to change the name to Gulf of America on January 20, the first day of his return to power. He later named February 9 as ‘ Gulf of America Day’.

The AP complaint is specifically directed against the president’s chief of staff, Susie Wiles, his number two, Taylor Budowich, and the White House spokeswoman, Karoline Leavitt.

This Thursday, more than thirty US media asked the Government to restore AP’s participation in presidential events and not to take into account “the editorial point of view” when limiting access to the White House.

Among the signatories are the television networks Fox News and Newsmax, with a conservative tinge, in addition to other large newspapers such as The New York Times, The Washington Post, CNN, The Wall Street Journal or The Atlantic.

AP highlighted when reporting on his complaint that this Friday Trump referred to that agency as “radical left-wing lunatics”: It is “a third-rate company with a first name,” he said about it, the main one in the country and founded in 1846.

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International

Buenos Aires advances legislative elections to May 18 and suspends the primaries

The Legislature of the city of Buenos Aires approved this Friday the suspension of the open, simultaneous and mandatory primary elections (PASO), a measure that, according to the deputy head of government, Clara Muzzio, “allows to save 20 billion pesos (about 18,894 million dollars)”, and advanced the legislative elections for May 18.

“The City Legislature suspended the PASO, a measure that saves $20 billion for neighbors,” Muzzio announced on Friday.

For his part, the mayor of the City, Jorge Macri, maintained that the PASO “were an expensive mechanism that only solved the problems of politicians, not of the people.”

The May 18 elections, which were originally scheduled for July, will be held through the Single Electronic Ballot system.

In that instance, the inhabitants of the city of Buenos Aires will elect their local legislators and, in October, they will have to return to the polls to define, together with the rest of the country, the composition of the chambers of Deputies and Senators.

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“The fact that the elections are in May allows each Buenos Aires to decide on their own city, without being tied to national discussions,” said the mayor.

The project was approved in the Buenos Aires legislature with 55 votes in favor, 3 against and one abstention, after an agreement between the main political forces.

The suspension of the primaries in the City of Buenos Aires occurs one day after the Argentine Parliament approved the same measure at the national level.

The original project sent by the national government sought the elimination of the primary system but finally, given the lack of support for that objective, the government chose to promote an initiative that suspends them for this year.

The primary election system was first implemented in Argentina to define the candidates for the 2011 general elections, based on a political reform approved by Parliament at the end of 2009, with the aim of democratizing political representation, transparency and electoral equity.

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According to the PASO system, to be qualified to compete in the general elections, candidates or lists of candidates must achieve at least 1.5% of the total votes in the primaries.

All parties are obliged to participate in the primaries, although they do not necessarily have to present more than one list of candidates to decide which one will lead to the general elections, an option for which the majority of the forces have opted in the last elections.

That is one of the reasons why the system has been questioned, among which are also its costs and the cumbersomeness of the organization.

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International

Trump threatens to impose tariffs on governments that apply digital fees to US companies

The President of the United States, Donald Trump, signed an executive order on Friday that threatens to impose tariffs on foreign governments that apply digital fees to US companies, including Spain, the United Kingdom and France.

The order states that “foreign governments have exercised a growing extraterritorial authority over US companies, particularly in the technology sector,” and directly cites the taxes on digital services that “several business partners” apply since 2019.

According to the text, the Trump Administration will impose tariffs on those governments that use taxes or regulations that are “discriminatory, disproportionate or designed to transfer significant funds or intellectual property from US companies to that government or its chosen domestic entities.”

Trump delegates to the US Trade Representative the possibility of “renewing investigations” on the so-called technology fees of Spain, the United Kingdom, France, Italy, Austria and Turkey, imposed in the first term of the Republican, and if so, “take all appropriate actions”, which would include the imposition of tariffs.

“US companies will no longer sustain failed foreign economies through fines and extortionational taxes,” says the White House document, which provides for a “process” for them to “report” these “disproportionate” measures to the Commercial Representative.

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He also instructs him to investigate together with the Secretaries of the Treasury and Commerce whether in the European Union or the United Kingdom the use of products or services of US companies is “required or encouraged” to “undermine freedom of expression”, political activity or, “otherwise, moderate content”.

It also suggests to the Representative, among other things, to hold “a panel” with its partners of the T-MEC (Canada and Mexico) on the tax on digital services in Canada, and identify ways to achieve a “permanent moratorium on customs duties on electronic transmissions”.

The order does not mention any specific company, but mainly affects large technology companies such as Apple, Google (subsidiary of Alphabet), Meta and Amazon, which have precisely starred in a resounded approach to President Trump since he won the elections in November.

In his first term (2017-2021), Trump ordered to investigate the digital fees to his companies abroad and threatened to apply tariffs to the six countries indicated today; taxes were imposed in the government of his successor, the Democrat Joe Biden, and subsequently suspended.

Trump signed another executive order aimed at restricting access to US technology, especially in the field of artificial intelligence, what he calls “foreign adversaries”, including Cuba, Venezuela, Iran, Russia and China.

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The executive order does not specify in detail what measures will be taken to restrict the access of these “foreign adversaries” to US technology.

Under the label of “foreign adversaries”, the order identifies China, Hong Kong, Macau, Cuba, Iran, North Korea, Russia and the “regime of Venezuelan politician Nicolás Maduro”, according to the text.

Trump justifies his decision with the argument that “economic security is national security” and maintains that the country must protect its sensitive infrastructures and technologies, from artificial intelligence to semiconductors and advances in biotechnology.

The executive order focuses especially on China, pointing out that companies linked to Beijing have used investments in the US to access key technologies and that the Chinese government is taking advantage of US technology to modernize its military apparatus.

Since his return to the White House on January 20, Trump has announced several restrictions on trade with the aim of balancing the trade balance and pressuring countries such as Mexico and Canada to make concessions on immigration and efforts against drug trafficking.

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It has imposed a 10% tariff on China, which is in addition to the rates already applied during its first term (2017-2021).

Trump’s new restrictions come after his predecessor, Joe Biden, took steps to limit exports of semiconductors and artificial intelligence technology to China, which led Beijing to respond with export controls on graphite, a key material for electric vehicle batteries.

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