Doing business in emerging markets Latin America Martin Castro Legal & Public Affairs Manager - Bridgestone Argentina President of ACC Argentina Chapter https://ar.linkedin.com/in/martincastro

LATAM - Ease of doing business ranking 10 topics : Starting a business Dealing with construction permits Getting electricity Registering property Getting credit Protecting minority investors Paying taxes Trading across borders Enforcing contracts Resolving insolvency Source: Doing business database – World Bank Group

México – Legal trends Trade Barriers: reduced. Broad FTAs with North America, EU, Japan and some Latin American countries Hot topics: Deregulation in foreign investment, foreign trade, energy and telecommunications sector: PPP Law (i) transparency/publicity; (ii) defined rights/obligations, risk sharing; (iii) rules for investors taking security interests and compensation rights, (iv) feasibility of submission to jurisdiction of domestic or international arbitration.  Stricter regulation in consumer protection and IP Tax reform Compliance: Anti-corruption System Reform, Antitrust Law

Brazil – Legal trends Trade Barriers: Permits to import. Automatic & Non-Automatic Licenses. Complex Tax System: Surfing 72 taxes Hot topics: Outsourcing – Statement 331 of Superior Labour Court Pros and cons of commercial channels: Distribution vs Commercial Representative Compliance: Law 12.529 – Antitrust, Law 12.846 - Anti-bribery: Company and personal civil and administrative liabilities, even if doing business temporarily. Criminal Code.

Argentina – Legal trends Trade barriers: DJAI (Advance Affidavits) – permits to import Exchange barriers: non-formal. Central Bank authorizes payments abroad. Hot topics Growing interventionism Law 26,991: Supply and distribution of good and services Law 26,992: Price Observatory / SIMONA Law 26,993: Consumer disputes New Civil & Commercial Code – Issues: Dealers, Debts in foreign currency / New Labour Law? Compliance: Law 25,156: Antitrust, Law 25,188 Ethics on Public Service, Criminal Code

General remarks Opportunities Challenges Commodities boom helped governments to postpone reforms and unpopular measures, but now it might be the time for a deregulation The times they are a-changin’ (Cultural problem, cultural solution=Compliance programs) Huge profits / Time to invest Stifling regulations Interventionism Increasing tax levies Threat of Corruption/Money Laundering despite recent regulations Closed markets

General remarks Enforcement Tips: Source: Doing business database – World Bank Group Tips: Latin America is not one country, not even the Spanish ones Personal relationships matter, everywhere Corruption exists because someone pays – The importance of effective compliance programs The evolution of In-house counsel: lawyer + compliance + PR Economy Time (days) Cost (% of claim) Procedures (number) Latin America & Caribbean 736.9 30.6 39.8