Doing Business in Latin America - Association of ??Doing Business in Latin America ... Ease of doing business 3. ... Mexico:Deregulation in foreign investment, foreign trade, energy

Embed Size (px)

Text of Doing Business in Latin America - Association of ??Doing Business in Latin America ... Ease of...

  • Doing Business

    in Latin America

    How to support your business

    partners in a fluctuating political and

    economic environment

  • Speakers:

    o Luciano Dequech, General Counsel - OdebrechtAgroindustrial S.A.

    o Gonzalo Rovira, Regional IP & Licensing Strategy, Policy, Regulation and Government Lead Latin America & Brazil

    Region - Monsanto Company

    o Martn Castro, Legal & Public Affairs Manager -Bridgestone Argentina

    2

  • Rank 1-38

    Rank 39-76

    Rank 77-114

    Rank 115-152

    Rank 153-189

    10 topics :

    1. Starting a business

    2. Dealing with construction permits

    3. Getting electricity

    4. Registering property

    5. Getting credit

    6. Protecting minority investors

    7. Paying taxes

    8. Trading across borders

    9. Enforcing contracts

    10. Resolving insolvency

    Source: Doing business database World Bank Group

    Ease of doing business

    3

  • Source: Doing business database World Bank Group

    There is a

    connection

    between the

    ease of doing

    business and the

    growth of a

    country

    Ease of doing business / Growth Momentum

    4

  • What is the connection?

    Its all about politics: open markets vs closed

    markets

    5

  • Doing business in Latin America is like riding a

    roller coaster

    Why?

    6

  • But despite the ups and downs, the growth is

    there

    7

    The difference in GDP forecast varies depending on the source, but there is a growth

  • So, what can the Legal Department do to be a

    business partner?

    Understand the political/economic environment

    Preempt risks and to be a problem-solver by

    maximizing opportunities (SWOT analysis)

    Litigation vs Negotiation

    Be a Game-changer

    8

  • General remarks

    Latin America is not one country, not even the Spanish-speaking ones.

    Personal relationships matter, everywhere.

    The importance of effective compliance programs (Ethics is also Corporate Social Responsibility).

    The evolution of the role of the In-House Counsel: Lawyer + Compliance + Public Affairs.

    Law outsourcing assessment: The importance of choosing the right law firm.

    Tips

    9

  • Trade barriers

    Labor issues

    New regulations

    Compliance: antitrust, anti-bribery

    Enforcement of the law

    10

    Trending legal topics

  • How to deal with Trade Barriers?

    Closed markets Semi-closed markets Open Markets

    Mexico/Chile/Colombia/Peru: Trade Barriers reduced. Broad FTAs

    with North America, EU, Japan and some Latin American countries.

    Mexico: Deregulation in foreign investment, foreign trade, energy

    and telecommunications sector. Argentina in the 90s.

    Brazil: Permits to import. Automatic & Non-Automatic Licenses

    (WTO).

    Argentina: Permits to import. From Non-Automatic Licenses to

    certain products to DJAI (Advanced Affidavits) to import everything.

    WTO DS444 Argentina Import Measures: What can we expect after

    Jan. 1st 2016?

    Antidumping in the region.11

  • How to deal with Labor issues?

    Labor laws: With certain exceptions (Chile) the region is becoming

    more and more protective - Labor Bill of Laws The problem of work-

    related accidents and illnesses.

    Light Duty Assignments: An increasing issue in factories.

    Contract termination: Reinstatements in Argentina candidates

    running for the position of union representative (immunity).

    Outsourcing: Joint and Several Liability. Precedent #331 of Brazil

    Superior Labor Court.

    Unions: Dealing with unions in the region.

    12

  • How to deal with new regulations?

    Common Law vs Continental Law

    Consumer Protection Laws: regulation being more restrictive in the

    region - The cultural difference between US consumer and Latin

    American consumer - Class Actions Price Observatory, regulations

    on supply.

    New Civil & Commercial Code in Argentina: New regulation of

    commercial channels (distribution, franchise) - the importance of

    negotiation.

    New Civil Procedure Code in Brazil: Practical tips to consider.

    Reinstatements: Reinstatements in Argentina the issue of

    candidates running to be representatives of the union.

    13

  • Corruption perception Index around the world

    14

  • Corruption Perception Index in Latin America

    15

  • How to deal with Compliance issues?

    Corruption: Broad anti-bribery laws and bill of laws almost

    everywhere since 2010: Law 12,846 in Brazil, Anti-corruption system

    reform in Mexico, Law 1474 in Colombia, Anti-corruption projects in

    Chile. Law 25,188 on Public Services in Argentina.

    Antitrust: Competition laws and projects almost everywhere since

    2000: Law 25,156 in Argentina, Law 12,529 in Brazil, Colombia

    regime, Chile DL 211, Law 26,876 in Peru.

    Enforcement: It will always depend on politics. The importance of an

    independent judiciary. The risks of using Local Regulatory Authorities

    to maneuver economic policies in closed and semi-closed markets.

    16

  • How to deal with Compliance issues?

    The importance of effective compliance programs:

    Corruption and unethical business behaviors are cultural

    problems. To address them properly requires a cultural solution.

    The importance of effective regional compliance programs

    (Corporate Social Responsibility): how to effectively spread the

    importance of an ethical behavior beyond the company.

    Best practices in the region.

    17

  • General remarks

    *The average time of enforcement might vary significantly per country

    Source: Doing business database World Bank Group

    Is it worth filing a lawsuit? The importance of knowing the judicial/administrative precedents and the cultural environment of the country (again, politics)

    The advantage of settlements

    Economy

    Average Time

    (Days)*

    Cost

    (% of claim)

    Procedures

    (number)

    Latin America &

    Caribbean736.9 30.6 39.8

    Enforcement

    18

  • Stifling regulationsInterventionism

    Increasing tax levies

    Threat of Corruption/Money Laundering despite recent

    regulations

    Closed markets

    Commodities boom helped governments to postpone

    reforms and unpopular measures,

    but now it might be the time for a

    deregulation

    Cultural problem, cultural solution = The importance of

    effective Compliance programs

    Huge profits / Time to invest

    General remarksChallenges Opportunities

    19

  • General remarks

    Questions?

    Thank You!

    20