LATAM : Foreign Investors Survey 2017
Is there an appropriate framework for mutual promotion and protection of investments ?
Almost all countries say yes , except El Salvador , where it can be improved , specifically the law on legal stability of investments , and Guatemala , where some respondents think that their country has signed few reciprocal investment protection treaties . In other countries , many bilateral and international treaties are in force . We must highlight Chile and “ the role of the Agency for the Promotion of Foreign Investment , which fosters development strategies that facilitate collaboration between foreign investors and national companies ,” said Daniela Pardo , Associate and Marco Salgado , Partner of Bahamondez , Álvarez and Zegers ; Cuba , “ which has signed more than 60 Conventions for the Promotion and Reciprocal Protection of Investments , among which is the one signed with Spain which has been in force since 1994 . Cuba has a solid legal system , largely based on current Spanish legislation prior to its independence ,” according to Juan José Cigarrán Magán , Partner of Cigarrán y Asociados ; and Uruguay , “ with its very transparent justice and long democratic tradition and respect for contracts , has promoted projects for $ 7 billion since 2013 ,” explains Carlos Codas , Partner of Ferrere .
“ In Colombia , the framework for the promotion and reciprocal protection of investments is adequate ”
SANTIAGO CONCHA , PARTNER , C & R LAW
As for Brazil , it is a separate case . According to Andoni Hernández Bengoa , Foreign Counsel of Demarest Advogados , “ perhaps because of its tradition as a recipient of foreign investment rather than as an exporter , it has historically been reluctant to sign international investment protection treaties ( in fact , bilateral treaties investments it signed are not being implemented ), demonstrating the homogeneous and undifferentiated application of its internal rules for all investors and denying positive discrimination or additional protection to foreigners in regards to nationals .”
Finally , Bolivia has an Investment Law of 2015 for local and foreign investment . It provides incentives for sectors considered by the State to be strategic and guarantees freedom of change : there are no restrictions on entry and exit of capital , nor for the remittance abroad of dividends , interests and royalties for technology transfer and / or other commercial concepts .
So ... what country to invest in ?
Respondents support their respective countries but the countries most voted for by the respondents are Chile , Colombia and Peru , for the opportunities they present . However , it should be noted that everything depends on the sectors of interest and the degree of risk tolerance of the investor .
Santiago Fontana , Partner of Ferrere , ranks Uruguay and Chile in the first place for an institutional investor who makes primal the stability , transparency and clear rules of the game . “ Other countries may offer more market or lower costs , but under other game rules ,” he says .
“ For an institutional investor that makes stability , transparency and the rules of the game primal ,
Uruguay and Chile will probably be the first .”
SANTIAGO FONTANA , PARTNER , FERRERE
Chile , a highly technological country and a member of the OECD , benefits from a regulated , transparent and competitive market with a highly qualified workforce . The rule of law is very stable , respects private property and encourages foreign investment with specific laws and trade agreements with more than 60 countries . It is a safe place to invest according to international organizations .
In Colombia , according to Santiago Concha of C & R Law , “ the investor benefits from the Rule of Law , an adequate competition regime and a stable political power .” However , the fiscal framework is complex and labor regulations can be deterring on the investor . www . attitude-consulting . com 9