LATAM : Foreign Investors Survey 2017
Brazil also has a proven institutional and democratic maturity , says Andoni Hernández Bengoa , Counsel in Foreign Law of Demarest Advogados . However , he explains that “ the greatest short-term risk lies in the current government ’ s ability to approve in Congress some structural reforms essential for recovery , such as , in particular , the establishment of measures for the balance of public accounts ; reform of retirement benefits ; and the revision of the fiscal and labor framework . The market in general expects a fast and effective action on these fronts in the coming months .”
From its part , Guatemala is experiencing a change in its political institutions of great magnitude , which can always be a danger . However , “ these changes will make it possible to strengthen institutions and thus discourage corruption , impunity and lack of transparency ,” said José Guillermo Bonilla , Partner of Bonilla , Argueta , Zarceño & Alvarado .
“ Guatemala offers the advantage to the foreign investor to be experiencing a tendency to strengthen institutions and , in general , the regulatory framework , in order to discourage corruption , eliminate impunity and increase the transparency of government activity .”
JOSÉ GUILLERMO BONILLA , FOUNDING PARTNER , BONILLA , ARGUETA , ZARCEÑO & ALVARADO
Finally , in Bolivia , the political risks for foreign investment depend on the industry , as Carlos Pinto , Partner of Ferrere explains . “ For example , the State is currently putting a lot of pressure on the regulated sectors ( hydrocarbons , telecommunications , energy , mining , transportation , insurance , banking , basic services ), while unregulated sectors are less susceptible to political risks .”
“ In Bolivia , the state is currently putting a lot of pressure on the regulated sectors ( hydrocarbons , telecommunications , energy , mining , transport , insurance , banking , basic services ), while unregulated sectors are less susceptible to political risks .”
CARLOS PINTO , PARTNER , FERRERE
Some not-always-attractive labor regulations
The different labor regulations of the different countries of the Region should be thoroughly analyzed by investors as they differ greatly from country to country and they may deter investors in some countries . Eight countries seem to have the most favorable regulations : Chile , Costa Rica , El Salvador , Guatemala , Nicaragua , Panama , Paraguay and the Dominican Republic . Chile , Ecuador and Nicaragua have a very guaranteeing and protective legislation for workers , but it is very clear and well regulated .
“ Without a doubt , Chile has a very strict labor legislation and a worker ’ s guarantor , but very clear and well regulated , which gives the investor a high level of certainty regarding the operation of the same .”
MARCO SALGADO , PARTNER , BAHAMONDEZ , ÁLVAREZ & ZEGERS
In Costa Rica , which has the most qualified workforce in the Region , the regulations are “ absolutely competitive and clear in their application by the courts ,” says Rafael Quiros , Partner of Central Law . It also enjoys a good balance between worker protection and a good margin of flexibility for the contracting company . Lilian Arias and Zygmunt Brett , Arias ’ co-managing Partners in El Salvador , comment that “ there have been no relevant changes in recent years , which is indicative of the stability of the structure of labor regulations .”
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