The Latin American Lawyer magazine Special Focus - Latin America July 2015 | Page 9
Special focus: Latin America
Lifting US embargo would lead to major regulatory
changes in Cuba
The Cuban government could potentially introduce monetary unification as well as measures aimed
at encouraging investment in infrastructure
The Cuban market will experience
significant regulatory changes in the
next two years if the US government
responds to calls for its embargo
against the country to be lifted,
according to Jaime Olleros, founding
partner of Olleros Abogados.
Among the potential changes,
Olleros highlights the Cuban
government’s intention to bring
about monetary unification, followed
by measures to attract international
investors in the infrastructure sector.
“At the beginning these changes will
happen in the context of a centralised
economy and then the Cuban
government will be forced to open
gradually,” he says. However, Olleros
reckons that the pace at which changes
have been made so far has been very
quick. “No one would have predicted
all of the changes that have occurred
since 17 December last year,” he says.
In anticipation of this gradual
opening up of the Cuban economy,
Olleros Abogados recently announced
a collaboration with McDermott Will &
Emery that will involve “coordinating
efforts” to provide advice to clients on
their interests in Cuba.
“We have a well-established
relationship with McDermott Will
& Emery in the corporate, tax,
international arbitration and litigation
areas,” says Olleros. “Therefore, it was
only natural to join forces to advise
American, European and Asian clients
on their entry strategy into the Cuban
market through the creation of a Cuban
desk,” he adds.
Client ‘avalanche’ expected
Olleros continues: “A lift of the
embargo from the US will ultimately
prompt a series of regulatory changes
from Cuba – if that happens, we will
reap the rewards of our first-mover
advantage.” Olleros is confident that
the two firms are well equipped to
handle the “avalanche” of clients
he predicts will come as a result of
changes in the US’ policy on Cuba.
Olleros leads the firm’s Cuban desk
in conjunction with fellow partners
Ignacio Aparicio and Javier Mata.
Providing effective advice to clients
with interests in Cuba is reliant on
“practical knowledge involving a deep
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understanding of Cuba’s decision
making processes, culture and
language, working style and senior
officials”, says Olleros. “These are
key to operating in that market,” he
adds. “If you add McDermott’s strong
network of US and international offices
and client base, we have a distinct
advantage.”
Although the Cuban government
has not made significant regulatory
changes to allow international law
firms to open offices in the island,
Olleros states his firm’s intention to
establish offices in Havana as soon as
the opportunity arises. Traditionally,
Olleros Abogados has been very
active in Cuba advising tobacco and
sugar producers, as well as clients
in the hospitality and automotive
industries. More recently though,
Olleros says a number of clients have
shown considerable interest in the
intermediate market, specifically
supplying the internal market as well
as exporting products.
Jaime Olleros
US politicians apply pressure
“The US has realised the importance of
lifting the embargo so that American
companies can compete on a level
playing field with European and
Chinese investors and take advantage
of the many opportunities this
untapped market offers,” says Olleros.
“There is a lot of pressure from both
Democrats and Republicans in the
US to lift the embargo soon, as they
have become conscious of the fact that
European competitors have gained
ground in their own backyard.”
As for other cross-border
investments, Olleros’ says foreign
investors are buying into Spanish
real estate as well as into mid-size
companies as a way to gain size.
In particular, English, French and
German investors are looking for
deals in the Spanish metal-mechanic
and biochemistry industries. Also,
Olleros notes that clients are showing
a keen interest in the Portuguese
manufacturing sector. “Portugal is of
great interest to our clients because of
its proximity to Spain and so is Florida,
in the US, because it is the perfect
pathway for reaching Latin American
investors”.
July / August 2015 • IBERIA 8