Iberian Lawyer July August 2013 Special Focus Latin America July 2017 | Page 8
Special focus: Latin America
Costa Rica’s economic stability and need for
infrastructure offers potential for investment
The country’s real estate and tourism sectors are also creating opportunities for lawyers, though
there could be an economic slowdown ahead of the 2018 presidential elections
Mariano Batalla
Costa Rica is proving highly attractive to
international investors due to its social
and economic stability, and its high
number of ongoing infrastructure projects,
according to Mariano Batalla, partner at
Batalla.
Batalla adds that there is a pressing
need for infrastructure investment in Costa
Rica, and consequently opportunities
abound in the sector. He adds: “There are
significant transactions in infrastructure, as
well as real estate and tourism.” However,
Batalla also sounds a note of caution ahead
of the country’s presidential elections in
2018: “In an electoral year, a slowdown in
economic activity is normally expected,
this year the uncertainty is compounded
because of the potential adverse effects of
the ‘Trump effect’.”
While Costa Rica has escaped largely
unscathed from the rhetoric which
permeated the election campaign of
the US president Donald Trump, in
addition to his first six months in office,
“we are all keeping a concerned eye
on everything coming from the White
House,” Batalla says.
Meanwhile, Costa Rica´s legal market
remains highly competitive, according to
Batalla, who adds that law firms need to
adapt in order to deal with a number of
challenges. He notes that lateral hires are
becoming more common and leading law
firms are exploring a number of options,
including further integration with
neighbouring jurisdictions. However,
Batalla believes there is “no threat
to solid independent law firms and
specialised boutiques”.
He continues: “The arrival of Dentons
meant that what market observers had
expected for a while actually materialised,
that is, international law firms landing
in the region. However, the overall
consensus is that no other global law
firms are expected in Central America in
the near future. ”
Batalla adds that his firm is looking
to grow in several practice areas such
as corporate law, tax and real estate
in order to meet the demands of
international clients.
Colombian and Peruvian infrastructure projects
driving demand for legal services
Santi Pagès Carballeda
Infrastructure projects in Colombia
and Peru – particularly in the energy,
transport, water and sanitation sectors –
are currently attracting significant foreign
investment, according to Santi Pagès
Carballeda, partner at Roca Junyent.
He adds that economic and legal
stability has improved considerably in
both jurisdictions, with the result that
law firms are now participating in public
tenders and advising on the financing
of projects, as well as advising clients on
investments in projects.
With regard to identifying the best
opportunities that currently exist for
law firms in Latin America, Santi Pagès
Carballeda says it makes more sense to
talk about sectors rather than countries.
“There are always countries that go
through cycles of expansion that make
them particularly attractive to foreign
investment,” he explains. “This happened
with Brazil a decade ago and it’s
happening today in Colombia and Peru.”
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Meanwhile, Pagès Carballeda says
that the crisis in Brazil has opened
the door to foreign investment in the
country in two ways. On one hand, the
government has been forced to launch
the Crescer programme, the focus of
which includes privatisation and public-
private partnerships (PPP) – this has had
the effect of creating an environment that
is more attractive to private investors
as it seeks to reduce the associated
bureaucracy. On the other hand, the
Lava Jato Operation (an investigation
into money laundering in Brazil) has
precluded local construction companies
– such as Odebrecht, Carmargo Correa,
Queiroz Galvao and Andrade Gutierrez –
from participating in new tenders, which
has thereby created new opportunities
for foreign investors. “Consequently,
the difficult financial situation these
construction companies face has forced
them to divest major assets to foreign
investors,” says Pagès Carballeda.
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