Subscribe to DeepL Pro to edit this document.

Visit www.DeepL.com/profor more information.

Panama, January x, 2023

Honorable Congressman
CRISPIANO ADAMES
E. S. D.

Honorable Mr. President:

In use of the faculties conferred by the Political Constitution of the Republic of Panama,
and Articles 108 and 109 of the Organic Regulations of the Internal Regime of the National
Assembly, I am honored to present through you, for the consideration of this Legislative
Hemicycle, the present Draft Bill "WHICH MODIFIES, ADDS, AND REPEALS
PROVISIONS OF LAW 9 OF MARCH 1, 2006, the present Draft Bill "AMENDING,
ADDING AND REPEALING PROVISIONS OF LAW 9 OF MARCH 1, 2006, WITH
THE OBJECTIVE OF TOTALLY PROHIBITING THE PRACTICE OF SHARK
S E A R C H I N G T O N AT I O N A L F I S H I N G V E S S E L S I N N AT I O N A L
JURISDICTIONAL WATERS AND IN AREAS BEYOND THE JURISDICTION OF
THE REPUBLIC OF PANAMA" which deserves the following:

EXPLANATORY MEMORANDUM

1. Global Status of Shark and Ray Populations and the Impact of the Practice of Shark
Finning

Sharks and rays in general are top predators in the oceanic food chain and as large predators
they are indispensable for the proper functioning of marine ecosystems, to maintain the
balance and to be able to have healthy seas1 . The decline in population levels of different

species of sharks and rays due to overfishing, illegal, unreported and unregulated
(IUU) fishing, as well as shark finning, can have unforeseeable consequences,
including the collapse of fisheries for other commercially important species2 . Sharks

and rays also help maintain the health of marine habitats, such as seagrass beds (Wirsing et
al. 2007) and coral reefs (Bascompete et al. 2005).

However, a recent 2021 scientific study published in the prestigious journal Nature found
that since 1970, the global abundance of oceanic sharks and rays has declined by 71% due

1 Juan M. Posada et al, Plan de Acción Nacional Para La Conservación y Ordenación de Las Pesquerías de
Tiburones y Rayas En Panamá (PAN-TIBURÓN) (Ministerio de Ambiente, 2017) <h ps://marviva.net/wp-
content/uploads/2021/11/MAR_VI_1.pdf>.
2 Ibid.

tt
 to an 18-fold increase in relative fishing pressure3 . This depletion has increased the risk of

global extinction to the point that three-quarters of the species that make up this
functionally important assemblage are threatened with extinction4 . Scientists therefore

urge the adoption of strict bans and science-based catch limits to prevent population
collapse, avoid disruption of ecological functions and promote species recovery.

Large, accessible international markets for meat and luxury products, such as dried fins,
may contribute to driving overfishing by encouraging the targeted harvest or retention of
high-value species for export5 . If this is common, internationally traded species may be at

increased risk of extinction6 . The species composition of the Hong Kong shark fin market

assessed from 2014 to 2018, yielded that traded species occur disproportionately in
threatened categories (70.9%) and all high value species are threatened7 . It is therefore

clear that the practice of shark finning must be rapidly eradicated globally in order to
reduce one of the most significant pressures on sharks worldwide.

2. What is shark finning and why is it practiced?

In recent decades, shark exploitation has increased rapidly to meet the growing demand for
shark fins from Asian markets (Clarke et al., 2006); between 27 and 73 million sharks are
traded in global shark fin markets each year (Clarke et al., 2006)8 . Shark finning is

nothing more than the gruesome practice of cutting off the fins of a live shark and
throwing the rest of the animal back into the sea, where it suffers a slow and painful
death9 .

Shark fin soup, consumed by Asian communities around the world, is one of the main
drivers of demand for shark fins10 . This nearly $1 billion global industry has contributed to

a shark population decline of up to 70%. In an effort to halt this decline, trade in several
shark species is regulated under the auspices of the Convention on International Trade in

3Nathan Pacoureau et al, 'Half a Century of Global Decline in Oceanic Sharks and Rays' (2021) 589(7843)
Nature 567.
4 Ibid.
5 Diego Cardeñosa et al, 'Species Composi on of the Largest Shark Fin Retail-Market in Mainland
China' (2020) 10(1) Scien c Reports 12914.
6 Ibid.
7 Ibid.
8 Francesco Ferre et al, 'Shark Fin Trade Bans and Sustainable Shark Fisheries' (2020) 13(3) Conserva on
Le ers e12708.
9Mark Carwardine, 'What Is Shark Finning and Why Is It a Problem?', Discover Wildlife <h ps://
www.discoverwildlife.com/animal-facts/ sh/what-is-shark- nning-and-why-is-it-a-problem/>.
10Chris na Pei Pei Choy and Benjamin J Wainwright, 'What Is in Your Shark Fin Soup? Probably an
Endangered Shark Species and a Bit of Mercury' (2022) 12(7) Animals 802 ('What Is in Your Shark Fin Soup?').
tt
ti

tti
ti
fi
fi
ti

fi

tt
ti
 Endangered Species of Wild Fauna and Flora (CITES). Despite this legal framework,
dried fins from trade-regulated sharks are frequently sold in markets and consumed
in shark fin soup. The shark fins found in the soups break down into a fibrous mass of
ceratotrichia, which means that identification of shark species in the soup is impossible by
visual methods.
At the 19th Conference of the Parties to the Convention on International Trade in
Endangered Species of Wild Fauna and Flora (CITES), held in Panama in November 2022,
Panama led several proposals to include a number of shark and ray families in Appendix II
of CITES, due to the enormous decline that these species are suffering worldwide as a
result of overfishing and shark finning. These proposals were approved with a large
consensus of the States Parties to the Convention, bringing approximately 90% of shark
fins on the Asian market under stricter international regulations. However, in order to
achieve the effective implementation of this treaty, and to act in congruence with the
environmental reality of our oceans, it is important to update the norms that regulate this
activity in order to guarantee that the inclusion of these shark species in CITES does not
become a dead letter.

3. Amendments, additions and repeal of articles of Law 9 of March 1, 2006

Although Law 9 of March 1, 2006 was intended to curb the practice of shark finning in
Panama, it should be updated to eliminate and rectify some of the loopholes and provisions
that in one way or another allowed Panamanian fishing vessels to continue finning sharks:
a. Article 1 was modified to include a focus on conservation and regeneration of shark
populations, since the original wording only alluded to the importance of preventing
this practice for the survival of artisanal and industrial fisheries. This previous
approach is clearly not adequate to the critical situation sharks are currently
experiencing, and ignores the ecosystem value they hold and the very important link
between maintaining stable shark populations not only for the subsistence of
fishermen, but also for the maintenance of the health of the oceans in general.
Finally, this article also extends the shark finning prohibition to national flag vessels
fishing in areas beyond national jurisdiction, in order to extend protection beyond
our jurisdictional waters due to the large percentage of Panamanian fishing vessels
operating in international waters. This approach is congruent with the provisions of
UNCLOS and Law 204 of 2021, which establishes that its provisions will be
applicable to Panamanian vessels outside our jurisdictional waters.
b. Two additional definitions were included in Article 2, the carbon cycle, which
sharks help maintain, in order to recognize the important role they play in
maintaining the stability of life on the planet. The definition of fishery observers
was also included, so that ARAP can later develop a program for these inspectors to
verify compliance with the regulations applicable to these species. Likewise, the

 definition of shark fishing was modified to include both commercial and non-
commercial fishing vessels, according to the classification of Law 204 of 2021.
c. Article 4 was modified to include within the prohibition of shark finning all vessels
under national flag operating in our jurisdictional waters as well as in the high seas
or other areas beyond the national jurisdiction of Panama. It is also established that
sharks caught must keep their fins naturally attached to their bodies for better
identification, eliminating the phrase "partially attached", in order to eliminate
language that indirectly facilitates shark finning.
d. Article 5 is repealed, since it allowed artisanal vessels of up to 60 horsepower to fin
sharks as long as the fins corresponded to 5% or less of the weight of the shark meat
landed. This provision is a big loophole that legalized shark finning, and very
difficult to verify and enforce by the competent authorities.
e. Article 6 is modified in order to totally prohibit the entry of shark fins into the
national territory, since it would not be congruent or fair to our national fishermen
to allow the entry of foreign shark fins that could be processed or re-exported to
other countries. In other words, this prohibition also constitutes a direct disincentive
to shark finning by other countries, without interfering in their internal regulations.
f. Article 7 was modified to eliminate the possibility of increasing the shark fishing
effort, since, as science has shown, these species are in a critical decline worldwide,
so authorizing an increase in the fishing effort is incongruent with the situation of
these species, which should be given time and space to recover.
g. Article 9 was modified to update the names of the current competent authorities in
fisheries and marine conservation, ARAP and MiAMBIENTE, respectively, as well
as to include SENAN within the monitoring, control and surveillance system. It also
includes the duty to create a fisheries observer program, in order to independently
and efficiently monitor compliance with the provisions of this Law and thus have
accurate information on the conservation status of shark species.
h. Article 10 was modified to update the authorities currently competent in the matter,
and to include the obligation that the NPOA-BITBURON must always be updated
in a participatory manner and with a precautionary approach.
i. Article 11 was modified with the objective of providing not only awareness-raising
to fishermen, but also technical and continuous support on various topics related to
sustainable fishing.
j. Article 12 was modified so that data on shark catches, among others, would be
included in the National System of Fisheries and Aquaculture Information and
Statistics established by Law 204 of March 18, 2021. Thus, we have an updated and
accessible system that allows decision makers and communities to know the
conservation status of sharks, and thus make informed decisions for their benefit.

 k. Article 13 was modified to eliminate the monetary limit to the sanctions for non-
compliance with the provisions of this Law, and that instead they are determined
according to the environmental criteria of MiAMBIENTE, and that they are
imposed by ARAP. In this way, as established in the Sole Text of the General
Environmental Law, ARAP's fishing plans must be based on MiAMBIENTE's
environmental criteria. Therefore, in this way we ensure that ARAP and
MiAMBIENTE work together in favor of the oceans and a more sustainable fishing.
The limit of 1,000 dollars of fines for artisanal fishermen is maintained, due to their
socioeconomic deficiencies.
l. Finally, article 14 is modified to totally prohibit the sale, commercialization and
processing of shark fins and other derivatives in the national territory, thus filling a
gap that the original wording maintained, which allowed natural or legal persons
domiciled in Panama to carry out these activities. In addition, it is established that
the fines imposed must respond to the seriousness of the damage according to the
environmental criteria of MiAMBIENTE, but imposed by ARAP, and that these
funds will be used in shark conservation projects, and in the creation of technical
and financial support programs for fishermen to guarantee the stable permanence of
sharks and their sustainable use.

In short, this Law seeks to shield and eliminate the loopholes or spaces that the previous
law maintained, facilitating the cruel practice of shark finning both in our jurisdictional
waters and in areas beyond national jurisdiction. This law also seeks to set a precedent at
the regional level that demonstrates a true commitment to the protection of the oceans,
firmly based on the most recent scientific findings and that, in turn, legally reaffirms the
political discourse and treaties that Panama has signed in terms of marine biodiversity. The
time to act is now, if we want to live on a planet with sharks and rays.

H.D. JUAN DIEGO VÁSQUEZ G.

CIRCUIT 8-6

PROPOSED DRAFT LAW No. ____

From___ to_________ of 2023

 "Which amends, adds and repeals provisions of Law 9 of March 1, 2006, with the objective
of totally prohibiting the practice of shark finning by national flag fishing vessels in
national jurisdictional waters and in areas beyond the jurisdiction of the Republic of
Panama."

THE NATIONAL ASSEMBLY

DECREES:

Article 1. Article 1 of Law 9 of March 16, 2006 is amended as follows:

The purpose of this Law is to conserve and increase shark populations, through their
protection and sustainable use to guarantee the following objectives:

1. Regenerate, maintain and enhance the ecosystem health of the ocean.

2. Regenerate and maintain balance in the ocean food chain.
3. Ensure the regeneration and maintenance of healthy shark populations to
promote ecotourism and long-term sustainable fisheries.
4. Ensure the regeneration and permanence of shark populations for their
sustainable use.
5. Maintain the carbon cycle in the ocean under stable conditions.

The provisions of this Law are applicable to any vessel engaged in directed or incidental
shark fishing activities in the jurisdictional waters of the Republic of Panama. In addition,
it shall apply in marine areas beyond the jurisdiction of Panama, to any national or
foreigner on board a Panamanian vessel and to any Panamanian flag vessel engaged
in fishing, fishing related activities or related activities.

Section 4 is amended and sections 8 and 9 are added to Article 2 of Law 9 of March 1, 2006
as follows:
...
4. Shark fishing. Activity of catching shark species, directed or incidental, carried out
by fishing vessels, whether commercial or non-commercial, under the
Panamanian flag, in the jurisdictional waters of the Republic of Panama.
...
8. Carbon cycle. The process in which carbon atoms travel continuously from
the atmosphere to the Earth and then back to the atmosphere. Human
activities have an enormous impact on this cycle. The oceans play a
particularly important role in the carbon cycle. Surface waters exchange gases
with the atmosphere, absorbing and releasing carbon dioxide, oxygen and

 other gases. Phytoplankton living in the ocean convert carbon dioxide into
sugars that feed marine ecosystems. When marine animals die, their bodies
may sink to the depths, where the carbon they contain dissolves back into the
deep water, or a smaller fraction is deposited on the seafloor, where it is
covered with sediment and stored for centuries. These processes can eventually
create deep deposits of carbon or oil.
9. Fishery Observers. Observers are professionally trained biological
technicians who collect first-hand data on what is caught and discarded by
Panamanian fishing vessels. They also monitor interactions with marine
mammals, turtles and seabirds. The high-quality data collected by observers is
used to monitor fisheries, assess fish stocks, set fishing quotas and inform
sustainable fisheries management. Observers also support compliance with
fishing and safety regulations.

Article 3. Article 4 of Law 9 of March 1, 2006 is amended as follows:

The following practices and exploitation of sharks are prohibited to Panamanian

commercial and non-commercial fishing vessels, in accordance with the classification
established in Article 40 of Law 204 of March 28, 2021, as well as to all those vessels
engaged in related activities and activities related to fishing as stipulated in said Law,
in the Republic of Panama and its jurisdictional waters, as well as to Panamanian vessels
operating in marine areas located beyond the jurisdiction of Panama:
1. Shark finning.
2. Keeping on board, transporting or landing shark fins not naturally attached to the
animal's body. Foreign-flagged vessels in continuous transit through the Panama
Canal are exempted from the provisions of this paragraph.
3. Use of marine mammal species and turtles as bait for shark fishing.
The fins should be naturally attached to the shark body, in order to facilitate their
transport and identification by the competent authorities.

Article 4. Article 5 of Law 9 of March 16, 2006 is hereby repealed.

Article 5. Article 6 of Law 9 of March 16, 2006 is amended as follows:

The entry into the national territory of shark fins from abroad is prohibited,
regardless of whether they have been the product of shark finning or not.

Article 6. Article 7 of Law 9 of March 16, 2006 is amended as follows:

Article 7. The total authorized effort for shark catches may not be increased, therefore no
new shark fishing permits or licenses may be issued, nor may the number of authorized
vessels be increased as of the date of entry into force of this Law.

Article 7. Article 9 of Law 9 of March 16, 2006 is amended as follows:

Article 9. The authorities of the Aquatic Resources Authority of Panama and the
members of the National Aero-Naval Service are hereby empowered to board vessels
engaged in shark fishing, directed or incidental, during their fishing operations, as well as
in the respective ports and landing sites, in order to verify compliance with the
provisions related to the catch established herein. In the case of protected areas, the
Ministry of Environment shall be the competent authority to board vessels engaged in
shark fishing, in order to verify compliance with the regulations governing the
protected area in question, as well as compliance with the provisions of this Law.
Likewise, the Aquatic Resources Authority of Panama shall create a program of
independent and qualified fishing observers, so that they may remain on board
Panamanian vessels engaged in directed or incidental shark fishing, and verify and
report compliance with the provisions of this Law and other related fishing and
environmental regulations.
Under no circumstances may the fishing observer be compensated by the owners,
captains or crew of the vessels, nor threatened or intimidated in any way by the crew.
This fisheries observer program shall be regulated by the Aquatic Resources
Authority of Panama, in accordance with the provisions of this Law.

Article 8. Article 10 of Law 9 of March 16, 2006 is amended as follows:

Article 10. The Aquatic Resources Authority of Panama, together with the Ministry of
Environment, universities, the fishing sector and the organized civil society, shall
implement the National Plan of Action for the Conservation and Management of
Shark and Ray Fisheries in Panama, for the sustainable fishing and use of sharks, which
shall be reviewed every four years based on the most recent scientific knowledge, and
always adopting a precautionary approach in the updating of this Plan.

Article 9. Article 11 of Law 9 of March 16, 2006 is amended as follows:

Article 11. The Aquatic Resources Authority of Panama, together with the Ministry of
Environment, shall develop continuous awareness programs, technical support in the
implementation of more selective fishing gear, as well as the importance of
maintaining stable shark populations worldwide for both the environment and the
lifestyles of fishermen, among other topics that promote the conservation,

 regeneration and sustainable use of sharks. This program will be developed through
community meetings, seminars, written material, among other means of dissemination and
training.

Article 10. Article 12 of Law 9 of March 16, 2006 is amended as follows:

Article 12. The Aquatic Resources Authority of Panama shall establish a program aimed at
compiling information and statistics on catches, fishing efforts, landings and trade of
sharks, which shall be carried out according to biological and species identification
parameters. The data from this program shall be included in the National System of
Fisheries and Aquaculture Information and Statistics established by Law 204 of
March 18, 2021.

Article 11. Article 13 of Law 9 of March 16, 2006 is amended as follows:

Article 13. The Panama Water Resources Authority shall sanction violations of the
present Law, based on the technical-scientific criteria of the Directorate of Coasts and
Seas of the Ministry of the Environment as to the scope, gravity and impact of the
violation on environmental matters. The amounts established for the sanctions will
correspond to the seriousness of the environmental or ecosystem damage caused by
the infraction, according to the technical-scientific analysis of the competent
authorities. In the case of artisanal fishing, vessels shall be sanctioned with a fine of up to
one thousand balboas (B/. 1,000), without prejudice to the corresponding criminal liability.

Article 12. Article 14 of Law 9 of March 16, 2006 is amended as follows:

Article 14. The processing and/or commercialization of shark fins and/or products derived
from the proven practice of shark finning shall be prohibited in the national territory for
any natural or juridical, national or international person. Whoever incurs in these actions
will be sanctioned with a fine that will correspond to the seriousness of the
environmental or ecosystem damage caused by the infraction, according to the
technical-scientific analysis of the Directorate of Coasts and Seas of the Ministry of
Environment. These fines shall be used in conservation, rehabilitation and
regeneration projects of the affected species and marine ecosystems, as well as in the
creation of technical and financial support programs for artisanal fishermen and
medium-scale fishermen, in order to promote sustainable fishing practices and also
ensure the national fishing activity in line with the best scientific information
available. These fines will be applied without prejudice to the corresponding criminal
liability.

Article 13. Article 15-A is hereby added to Law 9 of March 16, 2006, as follows:

Article 15-A. This Law amends Article 1, amends number 4 and adds numbers 8 and 9 to
Article 2, amends Article 4, repeals Article 5, amends Articles 6, 7, 9, 10, 11, 12, 13 and 14,
and adds Article 15-A to Law 9 of March 16, 2006.

Article 14. This Law shall become effective as of its promulgation.

BE COMMUNICATED AND COMPLIED WITH,

Proposed for consideration of the National Assembly, today January x, two thousand and
twenty three, by the undersigned Juan Diego Vásquez Gutiérrez, Deputy of the Republic.

H.D. JUAN DIEGO VÁSQUEZ G.

CIRCUIT 8-6