Global annual report
also have to ask whether it makes sense for US firms to open offices in the UK .” Another partner remarks
that banks and hedge funds could “ trickle from London ”.
Chinese potential Away from the Brexit-related turmoil and uncertainty , the Chinese market has “ staggering potential ”, according to Valera . He adds : “ We [ Baker & McKenzie ] have established a Chinese practice in all major centres – the Chinese are
“
Many thought Brexit was not possible , but now some Asian and Latin American companies are seriously considering relocating [ from the UK ].
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José Luis Huerta Hogan Lovells looking at anything and everything and there are a lot of opportunities for cross-border work .” Valera highlights data showing that China ’ s outward foreign direct investment ( FDI ) in Europe and North America amounted to a record $ 40 billion in 2015 .
However , despite the opportunities offered by Chinese outbound investment , there are doubts about how profitable such work will be for law firms . “ It will take time to make money [ from Chinese investors ],” says one Madrid-based partner at a global firm . “ The Chinese are really tight on the way they negotiate fees .” Meanwhile , Singapore also offers considerable potential , according to Vázquez- Guillén . “ Singapore is a dispute resolution / arbitration hub – we see a great market there ,” he adds .
There seems to be a broad consensus among law firm partners in Spain that the US market is a difficult one to crack . One partner remarks that the US market is dominated by Manhattan-based firms and that US firms from outside New York are often left trailing behind them . Another partner comments : “ Collaboration and interaction is required and you need a strategic view [ when running a law firm ], but US firms generally seem to be more focused on getting revenues in quickly , they have a much more short-term view .” Meanwhile , there is a view that Anglo-Saxon firms could potentially make more inroads into the Latin American market . “ Anglo-Saxon firms are missing business in Latin America ,” one partner says .
Indeed , Javier Villasante , partner at Cuatrecasas , Gonçalves Pereira , highlights Latin America as one of the most active markets due to its “ openness
What are currently the biggest international opportunities for law firms ?
“ The outcome of the United Kingdom referendum on the EU is already creating a large number of doubts about the way in which international agreements ( such as those related to M & A , joint ventures , distribution and technology ) have been structured over the last few decades . There are a number of issues emerging related to applicable law , competent courts and the role of international arbitration . Therefore , leading Iberian firms are receiving more and more requests for advice on the new strategies companies are implementing following the referendum . Moreover , we are seeing a large flow of investment coming from both Latin America and China , where large companies ( such as multilatinas and Chinese privately-owned enterprises ) have strong incentives , and the financial resources , to continue their outbound expansion .” Jaime Folguera , partner , Uría Menéndez
“ Lusophone Africa has been , for the past few years , the scene of a high level of investment , not only by Portuguese companies investing abroad , but also by native investors and foreign ones . China is also a highly desired market . However , clients also need legal advice in : South America for energy ; Europe ( Spain , France , UK , Germany , Italy and Luxemburg ) for technology ; Africa and Maghreb for infrastructure , corporate and trading .” Pedro Raposo , partner , PRA – Raposo , Sá Miranda & Associados , Sociedade de Advogados
“ We will continue to build on our position in those major financial and regulatory centres that are crucial to clients , notably the US , London , Greater China ( including Hong Kong ), Singapore , Germany and Brussels . We will also promote our existing positions in Continental Europe , the Middle East and Japan and we will also pursue focused investment in Africa , Latin America and Asia-Pacific . We continue to develop our capabilities in those areas most critical to our clients – highly regulated sectors , and complex and transformational work , or where the client ’ s reputation is on the line .” Eduardo García , partner , Clifford Chance
“ Latin America offers the biggest international opportunities . In recent years , the most important Spanish law firms have strengthened their presence in Latin America . Firms from the US and the UK are also increasing their presence in the region . Fortunately , the economic slowdown of important economies , such as Brazil , does not show signs of affecting the potential growth of other regional economies , such as Mexico , Colombia , Chile and Peru , which are still very attractive for foreign investors . Argentina may also see new growth as a result of Macri being sworn in as the country ’ s new President .” Iván Delgado , New York resident partner , Pérez-Llorca
“ Currently , we have a joint venture with two European and American law firms and the idea is to strengthen this relationship .” Javier Casals Matute , managing partner , Casals Advocats
32 • IBERIAN LAWYER • July / August 2016 www . iberianlawyer . com