Doing Business
in Latin America
How to support your business
partners in a fluctuating political and
economic environment
• Speakers:
o Luciano Dequech, General Counsel - Odebrecht
Agroindustrial S.A.
o Gonzalo Rovira, Regional IP & Licensing Strategy, Policy,
Regulation and Government Lead Latin America & Brazil
Region - Monsanto Company
o Martín Castro, Legal & Public Affairs Manager -
Bridgestone Argentina
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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
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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
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But despite the ups and downs, the growth is
there…
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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
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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
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� Trade barriers
� Labor issues
� New regulations
� Compliance: antitrust, anti-bribery
� Enforcement of the law
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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.
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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.
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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.
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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.
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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
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• Stifling regulations
Interventionism
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
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