The Latin American Lawyer magazine Volume II (2017) | Page 4

Opinion

‘ Trump effect ’ biggest threat to Mexico-US trade relations

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The potential impact of the US ´ protectionist trade policies in the wider global economy have caused widespread concerns
“ The Trump Daniel Del Rio effect is
the biggest challenge Mexico will deal with in 2017 ,” says Daniel Del Rio , partner at Basham , Ringe & Correa in Mexico City . “ There is a degree of uncertainty affecting political and commercial relations between the US and Mexico .” Del Rio adds that there is still a lack of clarity regarding US policy changes on trade , investment , immigration or international relations .
Such changes constitute a “ difficult process for Mexico which has seen its business model adapt under NAFTA for over 22 years , but also for the US , where approximately 40 states have Mexico as one of their biggest trade partners ”, Del Rio says . He adds that the potential impact of protectionist trade policies in the wider global economy have caused widespread concerns beyond Mexico .
While some clients have paused their plans for Mexico while they await further developments , others are continuing with their projects , highlighting the confidence in the Mexican economy which remains stable , partly due to a highly-qualified workforce . The outlook for the coming year in sectors such as tourism and energy is positive . The key for Mexico is to focus on diversification , according to Del Rio , specifically , expanding investment in energy and related infrastructure , growing in tourism and making the internal market even more attractive to foreign investment .
Mexico remains a key component of the global strategies of international law firms and multinational companies , Del Rio argues . The country ’ s legal market remains highly competitive and , with the new challenges ahead , all law firms need to adapt , though expected opportunities in the energy sector have yet to fully materialise , Del Rio says . “ There are opportunities for law firms in other sectors so the challenge is to keep moving and find better strategies ,” he added .
However , Del Rio adds that he expects his firm to grow in 2017 , keeping up with last year ´ s promotions , as it expands its human rights and international trade practices . Del Rio says the firm ’ s strategy includes expanding its Japan and China desks .

Peruvian infrastructure and energy sectors attracting investors

2017 outlook is increasingly positive as government keeps proinvestment credentials
With investors in Peru targeting the
Luis Carlos Rodrigo Prado infrastructure ,
energy , and ports sectors , there are considerable opportunities for domestic and international law firms operating in the country , says Luis Carlos Rodrigo Prado , partner at Rodrigo , Elías & Medrano Abogados .
“ Following a relatively slow 2016 , the year 2017 started on a positive note as the government is pro-foreign investment and there are great projects in the pipeline ,” Rodrigo Prado says , though he adds that expectations have been dampened in recent weeks due to the potential implications for Peru of the Odebrecht corruption scandal .
Rodrigo Prado says there is a clear need for foreign investment in Peru . He adds : “ Business confidence remains stable , and investors are attracted to opportunities in infrastructure , energy and ports , in
addition to the usual mining and natural resources ventures .”
International law firms remain interested in opening in Peru , according to Rodrigo Prado , who highlights CMS ’ recent alliance with Estudio Grau . He expects the imminent arrival of other international firms and says this signals the “ attractiveness and dynamism ” of the Peruvian market . Rodrigo Prado says there have recently been a number of regulatory changes which have generated plenty of work for law firms in areas such as tax , compliance and public procurement . In particular , there has been an increase in instructions relating to compliance , energy and oil and gas . He adds : “ There is also an uptick in mining M & A as the sector is receiving renewed interest – other areas of growth include international arbitration and transfer pricing .” Meanwhile , Rodrigo Prado reports that his firm ’ s Asian desk is increasingly busy and that last year ´ s growth in talent – 25 new lawyers in the last quarter of the year only – has paid off with a noticeable expansion in mandates in the areas of compliance , energy , oil and gas , particularly following the growth of work arising from new regulatory changes .
2017 • THE LATIN AMERICAN LAWYER •
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