LATAM: Foreign Investors Survey 2017
To each country its attractiveness
All the lawyers surveyed find attractiveness in their respective countries, whether it be economic, labor, fiscal, political, energetic, geographical and even touristic or culinary! In addition, all governments tend to encourage foreign investment, especially in recent years, although some do not support their claims with a regulatory and political environment favorable to investment, as we will see.
Countries such as Argentina, Chile, Costa Rica, Guatemala, Paraguay, Peru, Dominican Republic and Uruguay point out that their countries are living in a favorable political and economic situation with a strengthened democratic system, and a government that encourages investment and the rules of trade and deter corruption.
The political changes in Argentina at the end of 2015 with the appointment of Mauricio Macri have meant a drastic change for the country. In this regard, Carlos María Tombeur, Partner of Severgnini Robiola Grinberg & Tombeur, comments that in Argentina the exchange market has been liberated, the sovereign default has been solved, inflation and the fiscal deficit have been reduced, and public utility rates have been corrected.“ Opportunities occur in a more favorable environment to bring the levels of investment- lower in recent years – to that of other countries of the Region in the last decade( Chile, Peru, Colombia, Brazil, Uruguay),” stresses the lawyer.
The Government of Ecuador encourages public-private partnerships, while Honduras has launched the Honduras 20 / 20 Program to attract foreign capital. Fanny Rodríguez, Partner, and René Serrano, Arias Associate explain that the program“ aims to attract foreign capital in the amount of 13 billion US dollars to be invested in the four areas of greatest economic growth in the country( tourism, textiles, intermediate manufacturing and business support services) resulting in the creation of 600,000 new jobs by 2020. This initiative, the largest in Honduras’ history, will be carried out with the support of private companies and McKinsey.”
“ The Honduras 20 / 20 program aims to attract foreign capital for US $ 13 billion and creating 600,000 jobs by 2020.”
FANNY RODRÍGUEZ, PARTNER, ARIAS
Nicaragua, Panama, Paraguay and Uruguay have also established tax incentives and rules that are prone to foreign investment.
Panama has the Colon Free Zone, a free zone that offers many jobs to nationals and foreigners, while Paraguay has the lowest taxation rates in the Region and Uruguay is one of the countries that is most open to Foreign Direct Investment in Latin America, receiving annual flows of 5 % GDP.
On the other hand, good preparation of human capital is a very important factor in Chile, Costa Rica and Nicaragua, while El Salvador has an abundant, proactive and labor-intensive workforce.
“ El Salvador is a country of many opportunities, there are no barriers to foreign investment, we have a dollarized economy and the legislation is clear on the requirements needed to enter regulated markets, such as Energy, Telecommunications and Banking.”
LILIAN ARIAS & ZYGMUNT BRETT, CO-MANAGING PARTNERS. ARIAS
“ Perhaps the greatest of Costa Rican attraction to the foreign investor is the very prepared human resources that the country offers.”
ERIC SCHARF, PARTNER, SFERA LEGAL
At the sectoral level, the attractiveness is numerous: mining( Bolivia, Colombia and Cuba); Gas / oil( Bolivia, Mexico and Colombia); Infrastructures( Mexico and Colombia, where, as Santiago Concha, C & R Law Partner comments,“ many got into 4G roads( Fourth Generation Road Concessions) without financial support and now they must make financial closures, they have nothing to do it with. They are selling positions),” Construction( Bolivia); Transportation( Bolivia, Cuba, Panama), tourism( Bolivia, Cuba, Mexico, Peru, Dominican Republic, Costa Rica); Pharmacy( Cuba) and
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