ATLANTIKA GROUP participates in First European Investment Forum in Uruguay

On June 21st and 22nd, Atlantika Group partners Inés Bonicelli and Jean Jacques Bragard (Bragard & Duran Lawyers) participated in Uruguay’s first European Investment Forum in Uruguay; a conference organized by EU’s representatives in Uruguay and Uruguay’s export and investments promotion agency : Uruguay XXI. The event took place at the Radisson Victoria Plaza Hotel in Down Town Montevideo and the different panels and meetings were attended by professionals, journalists, members from every multilateral bank and agency as well as CEOs and managers of companies with European ties. After the welcoming words by Uruguayan Economy Minister Danilo Astori, its acting Foreign Affairs minister Ambassador Walter Cancela and Ambassador to the EU Mr. Fernandez Trigo, several panelists spoke about opportunities and challenges facing Latin America and specifically Uruguay regarding international insertion and attractiveness  in terms of Foreign Direct Investment.

One of the most interesting speeches was given by Douglas Ven den Berghe, CEO of Investment Consulting Associates, who shared trends and drivers of Foreign Direct Investment flows . Uruguay, a small country among huge neighbors is extremely well positioned to be the recipient of FDI if it can deliver what investors appreciate most: Transparency, Stability and Predictability. Skills of the labor force is also one of the main drivers for foreign investors when deciding where to pour their resources. Uruguay ranks very well in terms of Stability and Transparency (according to most internationally recognized rankings). However, as Mr Ven den Berghe and later speakers mentioned, there is room for improvement in terms of Labour Laws and negotiations as well as beaurocracy related issues. Tax incentives (and freezone benefits) are important, but not as much as predictabilotu. stability and Transparency.

In terms of comparable “developing countries”, consultants observe that cost differences between “home countries” and “developing countries” are diminishing, while risk associated with these developing countries is increasing (due to political and social issues mostly). Uruguay once again has the chance to position itself as attractive when compared to other developing countries, since social and political risk is relatively low compared to its neighbors. However, and it was repeatedly suggested by entrepreneurs and investors,  it should countinue its efforts to become more competitive and productive.