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Doing Business in Latin America

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Detailing various free trade and tax agreements between the U.S. and Latin American countries, highlighting the importance of understanding the region’s diversity, and exploring the principal means of cross-border trade within the region. Also illustrating current trade practices and issues through a case study of an Ohio company exporting to Brazil.

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Doing Business in Latin America

  1. 1. Presented by Luis Alcalde April 13, 2018 Doing Business in LATIN AMERICA
  2. 2. 20 countries + Puerto Rico in which Romance/Latin derived languages are spoken Shared historical experience, language and culture derived from the Spanish/Portuguese colonization of the Americas
  3. 3. Country Capital Language Argentina Buenos Aires Spanish Bolivia La Paz or Sucre Spanish Brazil Brasilia Portuguese Chile Santiago Spanish Colombia Bogota Spanish Costa Rica San Jose Spanish Cuba Havana Spanish Dominican Republic Santo Domingo Spanish Ecuador Quito Spanish El Salvador San Salvador Spanish Guatemala Guatemala City Spanish French Guyana Cayenne French Haiti Port-au-Prince French Honduras Tegucigalpa Spanish Mexico Mexico City Spanish Nicaragua Managua Spanish Paraguay Asuncion Spanish
  4. 4. TRADE in Latin America
  5. 5. Free trade and/or tax agreements with 12 of 20 Latin American countries Reduce tariffs on U.S. imports Remove barriers to U.S. services Reduce technical custom + investment barriers Increased IP protection Labor + environmental protection Tax treaties protect investors against double taxation- reduces domestic withholding rates on repatriated income
  6. 6. DIVERSITY of Latin America
  7. 7. Significant cultural differences Mexico vs Brazil vs Chile Significant differences in colonial history, domestic politics and U.S. relations Mexico vs Cuba vs Brazil Significant differences in Ethnic Backgrounds Mexico vs Cuba vs Chile Significant legal/business differences
  8. 8. CROSS-BORDER TRADE in Legal Context Goods, services, technology, intellectual property, contract rights, money and/or people are moving from one legal jurisdiction to another legal jurisdiction Cross-border nature of trade and exchange means that the law of two different legal jurisdictions apply to the transaction as well as principles of international law
  9. 9. EXPORT = IMPORT Export goods, services, technology, IP, money, people from U.S. company to Brazil Becomes an import of goods, services, technology, IP, money, people by Brazil company from U.S. U.S. Law – Exports Brazilian Law – Imports
  10. 10. Principal Means of Cross-Border Business Exporting + importing Sales agents in foreign country Employees in foreign country Contract manufacturing Foreign subsidiary Joint venture Distributorship Franchises Licensing + other contractual arrangements
  11. 11. CASE STUDY Ohio International Inc. sets up Brazilian Limitada Goods, services, technology, intellectual property, contract rights, money and/or people are moving from one legal jurisdiction to another legal jurisdiction Cross-border nature of trade and exchange means that the law of two different legal jurisdictions apply to the transaction as well as principles of international law
  12. 12. Shipping costs, Brazilian import duties and Brazilian taxes increase the price of imported Ohio goods by 50% to the ultimate customer in Brazil Brazil market has grown and there is a need to improve in- country logistics and speed delivery time to customers Ohio International Inc. has been exporting to Brazil for a number of years though a customer also acting as distributor Distribution subsidiary is initial step to future production in Brazil
  13. 13. z Luis Alcalde Kegler Brown Hill + Ritter lalcalde@keglerbrown.com keglerbrown.com/alcalde 614-462-5454

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