Special focus : Latin America
rivals by opening in Costa Rica , says Terencio García , regional managing partner . García is confident about the outlook for
the region and expects the firm will eventually cover all of Central America in order to take advantage of opportunities in sectors such as banking and finance , infrastructure , public-private partnerships , dispute resolution and real estate .
For many law firms , expanding their presence in the DR-CAFTA region poses a number of problems , according to Álvaro Castellanos , partner at Consortium Legal in Guatemala . “ Ten years ago there were few pan-regional ( Central American ) law firms ;
Consortium was the second to be formed ,” he says . “ Now , there are more than ten , and it seems that regionalisation has become the standard for services for any
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There are opportunities in banking and finance , infrastructure , dispute resolution and real estate across Central America .
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Terencio García García & Bodán law firm competing for clients bringing foreign investment .” In addition , Castellanos also forecasts the arrival of new players in the market : “ Before 2015 , Central America did not look like a market for global law firms and now we have Dentons here .”
The arrival of Dentons in Costa Rica , Guatemala and Panama in 2016 sent shockwaves through the Central American legal market , not least because it caused the split of the firm Arias & Muñoz , which many considered the pioneer of pan-regional law firms in the area given its longstanding presence in Costa Rica , El Salvador , Guatemala , Honduras , Nicaragua , and more recently , Panama .
Dentons was not the first international law firm in the region – Santo Domingo became home to one in 1998 when Steel Hector & Davies ( now Squire Patton Boggs ) launched an office in the Dominican Republic . However , Squire Patton Boggs has yet to
Lawyers based at firms operating in DR-CAFTA countries were asked whether they had plans to strengthen their presence in other countries in the region
58 % Yes , we plan to open in other countries 34 % No , we have achieved the regional coverage we planned 8 % No , we will remain focused on our national market for at least the next five years
The Latin American Lawyer surveyed law firm partners and in-house counsel located in , or with business interests in , Costa Rica , El Salvador , Guatemala , Honduras , Nicaragua , as well as the Dominican Republic . show interest in expanding in the region . More recently , global immigration boutique Fragomen , EY and employment outfit Littler Mendelson have all established operations in the DR-CAFTA region .
Global players arriving ? The majority of lawyers ( 60 per cent ) who responded to the survey said they expected new international or global law firms to arrive in the DR-CAFTA region . One managing partner of an independent firm says firms in Central America , like those in other areas of Latin America , are vulnerable to competition in the shape of global firms establishing operations in the region . Álvaro Castellanos , Guatemala partner at Consortium Legal , says global players that do so will merely be mirroring the expansion of their clients . Meanwhile , Ana Messina , partner at Bufete Messina & Lugo IP in the Dominican Republic , expects more Spanish law firms to expand to the region , as they have done elsewhere in Latin America .
Nevertheless , other survey participants are not convinced there will be an influx of global law firms into the DR-CAFTA region . Oscar Samour , El Salvador partner at Consortium Legal , believes international law firms are not especially keen on opening in Central America . This sentiment is echoed by Alejandro Cofiño , partner at QIL + 4 in Guatemala : “ The market in Central America is not that interesting or robust for an international firm .”
Positive outlook The overall outlook for law firms in Central America and the Dominican Republic is positive , with 97 per cent of lawyers surveyed expecting growth , largely driven by regulatory changes , a more positive economic outlook across the region and new service lines . Meanwhile , nearly 30 per cent of interviewees expect revenue to increase by 5-6 per cent , in large part due to an expected increase in corporate / M & A and dispute resolution mandates .
Just over half ( 51 per cent ) of lawyers expect the US market to
44 • IBERIAN LAWYER • July / August 2017 www . iberianlawyer . com