Author: Poblete Tamargo LLP

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What is Your Company’s Foreign Policy

The improvements of technology in the form of video conferencing, e-commerce and other various methods of communication have significantly lowered the costs of doing business abroad. The benefit of these developments have allowed small to mid-size companies to consider expansion into international markets. The expansion into global commerce was considered something typically reserved for large companies that could afford the cost of international communication. Since technology has lowered these costs, it has become even more important for organizations to familiarize themselves with regional trends and geopolitics. Businesses must become familiar with international affairs, beyond what is reported in the news, in order to achieve an advantage over other companies that are doing business abroad.  

Questions of international relations and geopolitics were once reserved for presidents, prime ministers, and politicians. Now more than ever, small corporations that have an interest in expanding their business to the international market must ask themselves where they stand. The Harvard Business Review published an article by John Chipman in their September issue titled, “Why Your Company Needs A Foreign Policy”. Mr. Chipman, director-general and chief executive of the International Institute for Strategic Studies, challenges executives to assess the current geopolitical climate in their analysis of the prospective market. He explains that CEOs need to develop a policy perspective due to the fact that international trade is an essential part of a nation’s economy.

His challenges not only apply to the leaders of large multinational organizations, but also the small companies who expand business ventures outside of the US. This policy needs to be unique and based on the company’s overall vision and values. When developing an international policy, businesses should focus on the following four factors:

Understanding The Political Climate

Understanding the political climate means more than merely assessing a nation’s attitude towards their government leaders. It also requires taking a look at this from a broader and more specific perspective. A great example of this is found in Latin America. The elections of Lula da Silva in Brazil, Rafael Correa in Ecuador, and Cristina Fernández de Kirchner in Argentina among others in the early 2000’s signified the shift in political ideology in Latin America. These policy changes in most cases made it more difficult for businesses to be established in those regions. The recent election of Mauricio Macri in Argentina in 2015 along with the development of the Pacific Alliance by Chile, Mexico, Peru and Colombia signals a shift by Latin American nations from socialist economies to market economies. These countries are now looking to trade and investment as an important economic policy tool to help their country grow.

This study needs to go deeper than just an overview of the nation. The state and local levels must be examined as well. This analysis would be similar to a corporation looking to expand in the United States. Their focus would be to assess potential states as candidates for setting up a factory or an office. Part of that assessment would be a review of the aforementioned state’s economic statistics and the current economic policy. A recent example of this type of analysis would be comparing the level of support for the EU in England, Scotland, Wales, and Northern Ireland during the Brexit vote. The support for the EU was so strong in Scotland that Scots seriously considered supporting a move of separating from the UK after the Brexit vote. However, talk of leaving the UK was put aside when the EU did not meet with a Scottish delegation in hopes of preventing potential problems that could arise from other EU countries that had previous thoughts of creating their own state such as the province of Catalonia in Spain[3].

The Relationship Between the US and The Nation You Will Do Business In

Corporations need to understand the relationship from both the U.S. perspective and the other country’s perspective. The analysis from the latter’s perspective should have been addressed in the first factor. Recently, with the U.S. taking a more passive approach to pending crises, countries have begun to question the once proactive policies of the United States. This concern regarding the U.S. may be transferred to American corporations as their level of involvement is assessed. Also, businesses need to be aware of any free trade agreements or tax treaties that U.S. and the other nations may be a signatory of. Tariffs and tax rates can either be an obstacle or an incentive when entering a new market.

Be Familiar With Sanctions and Anti-Corruption Laws

The BNP Paribas settlement with U.S. Department of Treasury in the amount of $8.9 billion for violating sanction laws when their clients dealt with Iran, Cuba, and North Korea is an example of the impact of sanctions law[4]. As Mr. Chipman noted in his article, there is a “proliferation of sanction laws.”

Companies should also be aware of anti-corruption laws. Developing countries such as Brazil are beginning to place teeth in their anti-corruption laws. The impeachment of Brazil’s President, Dilma Rousseff can be seen as a reflection of this anti-corruption stance. A major reason why countries such as Brazil and others are putting teeth into their anti-corruption laws is because they recognize that investors are not going to invest their capital in countries that are corrupt and have greater risks of losing capital.

Develop Both Business and Political Relationships

Mr. Chipman described this last element, as the development of relationships as one where there is depth “between the government, the oligarchs, and civil society that needs to be appreciated.” When developing these relationships, a company needs to conduct their due diligence to make sure that the individuals or company are not in included on any of the OFAC or Bureau of Industry and Security lists that prohibit U.S. companies or individuals from doing business with them. 

 

PobleteTamargo can guide your company through this process. This guidance will include providing you with the following: asking you the questions necessary to develop your policy vision that will fit into your overall corporate vision; providing you with political intelligence based on our experience in handling international affairs and relationships with members of the foreign policy establishment; and, advice and counsel regarding sanctions law.

[1] See “An Overview of the Socio-Economic Conditions of Miami-Dade County,” May 2007, http://www.miamidade.gov/planning/library/reports/2007-socio-economic-overview.pdf

[2] See “International Trade & Commerce,” Miami-Dade County Economic Development & International Trade, http://www.miamidade.gov/business/international-trade.asp

[3]See “Brexit: Spain and France Oppose Scotland EU Talks,” BBC News, June 29, 2016, http://www.bbc.com/news/uk-scotland-scotland-politics-36656980

[4]See “Treasury Reaches Largest Ever Sanctions-Related Settlement with BNP Paribas SA for $963 Million,” U.S. Department of Treasury, June 30, 2014, https://www.treasury.gov/press-center/press-releases/Pages/jl2447.aspx

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“Cuba al Día” by Martí News – The Cuban Government’s Emphasis in Centralizing the Economy

On August 18, Martí News discussed the centralization of the economy in Cuba on “Cuba al día” with Thorny Joel, Jason Poblete, Jorge Luis Artiles and Brown Juancé.

The first part of the show features Cary Roque and attorney Jason Poblete as they provide analysis on the Cuban Government’s role in the centralization of the island’s economy. The second half includes Omar Lopez, Jorge Luis Artiles and Cuentapropista Thorny Joel Medrano.

The original broadcast, in Spanish, can be found here.

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Iraq Owes Chaldeans for Stolen Lands

The following editorial written by PobleteTamargo attorney, Mauricio Tamargo, was featured in the September 2016 edition of The Chaldean News. To read the published article, visit The Chaldean News Guest Columns page, found here.

When the United States liberated Iraq over a decade ago, Iraqi-Americans were hopeful that thousands of American Chaldean families would finally see justice for property stolen by Iraq. Corporations, American and foreign, have received restitution through programs designed exclusively for business operations. Sadly, these Americans are still fighting for justice. Now we are asking Congress and the Administration to help.

Being Christians in a Muslim country made it very difficult to live in Iraq. For generations, these families worked hard to succeed despite discrimination and persecution. They hoped justice would finally come with the American liberation of their homeland. Our law firm represents some of these families. As Chaldeans in Iraq, they were a minority, but found strength in their faith and community. Then they became a target of a merciless regime. Iraqi dictator Saddam Hussein destroyed the lives, homes and communities of countless Iraqis. In many cases, victims sought justice in Iraqi courts, but even after American liberation, Iraq’s corrupt legal system remained incapable of administering justice.

On behalf of our clients, we raised this issue with the Iraqi government, ambassadors and other high-ranking officials, but have yet to see any action. Although there is still hope for a negotiated settlement, other steps must be taken. There are still thousands of families dealing with uncompensated property losses. Today, the Iraqi Chaldean community is once again vulnerable to property confiscation and human rights abuses.

Chaldeans are a religious and ethnic minority group in Iraq. For years this minority status did not hinder efforts by our client and many others from becoming prominent members of their community. Once Saddam Hussein took power in 1979, the Iraqi government quickly became the vehicle by which the dictator intensified discrimination against religious minorities. Those who remained in their homes were eventually forced out after suffering political imprisonment and often violent religious persecution.

The property confiscated from our client was converted into a base for military operations. The land was taken over by the United States from the Hussein Regime in 2003. In 2009, the U.S. allegedly transferred control back to Iraq but still maintains a presence at this camp. Located in a commercially thriving area with many civilian homes and businesses, the U.S. incorporated this property into the reconstruction plans for Iraq. A vast amount of confiscated properties met similar fates.

Today there are thousands of American families of Iraqi descent that are still seeking justice. This community has been left broken, by not only institutionalized discrimination by the Iraqi government, but also the gross injustice of being denied closure. Rule of law and protection of property rights are hallmarks of a democratic and free society — values that must be defended.

Iraqi law, U.S. law, and the agreements between our two nations encourages compensation. America has lost thousands of American lives and invested billions in the liberation and reconstruction of Iraq. It is critical to stand up for what is right today or leave future generations vulnerable to even greater repression. The U.S. government has the tools to fight for these freedoms. We are only asking that they defend it.

On behalf of these American citizens, we are requesting that Congress authorize a claims program under the Foreign Claims Settlement Commission at the Department of Justice. As former chairman of the commission, I remain hopeful for a negotiation settlement of these claims and am confident that resolution of this injustice can be found through a claims program, the same as many programs have done in the past. We want to ensure that every possible step is taken to compel Iraq to follow through.

Mauricio Tamargo is an attorney at PobleteTamargo, LLP, in Alexandria, Virginia. He is the former chairman of the Foreign Claims Settlement Commission at the Department of Justice.

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Data Security and Presidential Campaigns (PART II)

The resulting damages have finally caused campaign leaders to directly address the devastating affects of data breaches and how important it is to be proactive. Ms. Donna Brazile, the interim DNC Chair has announced the formation of a Cybersecurity Advisory Board. The board’s goal is to review cybersecurity policies and ensure that data leaks do not happen again.

The announcement of the newly created board, however has met criticism at the seemingly weak attempt at legitimate prevention. Experts in the field were quick to point out a major flaw – Out of four members that make up the DNC board, none of them have a technical background in cybersecurity. One critic of the under qualified panel, Senior Legislative Manager at the DC-based internet policy group Access Now voiced his concern in an article by Vocativ. “Washington D.C. has a history of omitting technologists from conversations about cybersecurity. The threats to cybersecurity continue to grow. It is imperative to have technology experts who understand the reach and ramifications of tools and decisions in the room when policies are being decided upon,” he states.

Although the policies and actions the DNC Advisory Board may implement are unknown, the lack of software and technology experts or experienced cybersecurity professionals is a concerning indication of its’ potential. The issue of cybersecurity is a fluid situation and requires the ability to fully comprehend the evolution of technology and new developments, whether it is a new virus or different breach attempts by bad actors. The lack of experience and background in the implementation of technology, as well as dedication to proactively securing personal data, can create an unrealistic expectation in successfully protecting your company’s information.

At PobleteTamargo we recognize the importance of creating policies that will complement the products you will use to protect your client’s information. For more information on types of prevention and preparation for potential breaches see our Privacy, Data Protection & Security page.

Read more from Part I of Data Security and Presidential Campaigns Here.

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Is Iran Raising The Stakes For Releasing American Hostages?

From The Washington Examiner

August 4, 2016

A Lebanese citizen and permanent US resident, Nizar Zakka has lived in Washington, D.C. for many years. He was arrested in Iran last September while on travel to attend an International Conference and Exhibition on Women in Sustainable Development. Zakka was invited to serve as an event speaker by an Iranian official. During that visit he was arrested in Iran and has been detained in long-term solitary confinement since last September under nonspecific charges.

Jason Poblete, attorney for Zakka, says that his health is deteriorating, especially during the past months, and that he is on a hunger strike to protest his harsh treatment.

“The family is concerned about his well-being and they are asking the US government and anybody who can to please help secure his release,” Poblete told the Washington Examiner.

Zakka was working on a US government grant when he traveled to Iran. Amnesty International reported that Zakka had helped to set up a “regional alliance of information and technology organizations” across over a dozen companies in the Middle East and North Africa region. 

The latest reports that the US had sent Iran $400 million cash payment at the same time that American prisoners were sent home has many, including Poblete, worried that it was essentially a ransom, and that Iran may seek additional concessions before Zakka is released. 

“We hope that our government is not salvaging the [nuclear deal] on the backs and lives of these innocent people, including Mr. Zakka,” Poblete said. 

According to the State Department’s Foreign Affairs Manual, however, the US government has wide discretion in advocating for legal permanent residents. “At times, you will come across arrest cases of individuals who are not US citizens or nationals but who are legal permanent residents with strong ties to the United States,” the manual states. 

“Their arrest may come to your attention from other family members in the United States, other prisoners, congressional offices, or even host government officials who on occasion are not quite clear on the exact status of a US ‘green card’ holder.”

“The department’s general guidance in such cases is: While consular officers do not have the right to demand consular access and visitation for US Lawful Permanent Resident Aliens (LPRs), they may do so on a courtesy basis.”

The complete article in the Washington Examiner can be found here.