The aim of the Coalition for the Rule of Law in Global Markets is to:
- Vigorously defend the rule of law, sanctity of contracts, and respect for property rights, including intellectual property, and advocate for the quick resolution of related conflicts.
- Foster an understanding of the varying regional realities related to rule of law, ranging from those that impede business and investment, to those undermining national competitiveness, to those posing an outright threat to democratic institutions.
- Promote the negotiation and implementation of vehicles such as trade agreements for the strengthening of government institutions related to rule of law.
- Highlight, where applicable, provisions in existing and pending trade agreements that improve governmental transparency, combat corruption, protect due process, or otherwise enhance the rule of law.
- Help ensure that the benefits of rule of law and constitutional processes are more broadly shared and understood throughout our societies.
The Rule of Law is among the most crucial factors in a company’s ability to do business profitably in any given market over time.
For a privately-owned company whose continued operations are dependent on a return on investment over time, there are several factors related to the rule of law that will determine its ability to make rational investment and operating decisions, and thereby have a reasonable expectation of returning a profit:
- Transparency – laws and regulations applied to business must be readily accessible and easily understood;
- Predictability – laws and regulations must be applied in a logical and consistent manner;
- Stability – the state’s rationale for the regulation of business must be cohesive over time, establishing an institutional consistency across administrations, and free from arbitrary or retrospective amendment;
- Enforceability/Accountability – investors must be confident that the law will be upheld and applied equally to government as well as private actors;
- Due Process – when disputes inevitably arise, they must be resolved in a fair, transparent, and pre-determined process.
Throughout Latin America and the Caribbean, countries that actively promote and defend the rule of law are fostering an investment climate that supports job creation, economic growth, and shared prosperity for the region’s citizens.
But a number of Latin American countries have taken stances that are seen as inimical to the rule of law and hostile to investment.