Hispanic Latino Team Blog : Hispanic Latino Business Lawyers & Attorneys : Sheppard Mullin Law Firm : Cross Border Transactions, Government Contracts

By Daniel L. Brown & Giselle Rivers

On May 27, 2010, the Court of Appeals for the Second Circuit affirmed in part and remanded in part a district court's decision certifying class actions against the Republic of Argentina and granting over $2 billion in damages to eight classes of plaintiffs.  Puricelli v. The Republic of Argentina, No. 09-0332, 2010 WL 2105132 (2nd Cir. May 27, 2010)("Puricelli"). While the Court of Appeals concluded that class certification was appropriate, it held that the district court erred in entering aggregate class-wide relief, as opposed to determining individual relief.

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By Jerry Gumpel & Larissa Calva-Ruiz

A few years ago, the Mexican government set its sights expanding it manufacturing capabilities in the aerospace industry. The preliminary results from this effort are in and the Mexican story is a story of success. Due to government's efforts, Mexico has become an "emerging cluster" with more than 190 aerospace companies employing more than 20,000 workers and exported goods in excess $3,400,000,000 in 2008.[1] Indeed, in a survey of major manufacturing investments in the aerospace industry from 1990-2009 conducted by AeroStrategy Mexico emerged as the country with the most manufacturing investments of any country. (Exhibit 1). This article will explore some of the reasons why "setting up shop" in Mexico is so attractive.
 

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By Curt Dombek and Karin Johnson

With the award to Rio de Janeiro of two of the highest profile sports events in the world—the 2014 World Cup and the 2016 Summer Olympics—many U.S. and multinational corporations will be looking for investment opportunities in Brazil. If the 2008 Olympics in China are to be any kind of guide, foreign investment in Brazil will dramatically increase over the next several years and Brazil will become an increasingly attractive market. Companies looking to do business or invest in Brazil, however, should also be aware of the risks they face under the Foreign Corrupt Practices Act (“FCPA”) and should ensure that they have a strong compliance program in place.
 

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By Jerry Gumpel

 

In February, Mexico's President Felipe Calderon approved a decree establishing new incentives for the film industry in Mexico. Mr. Calderon announced the incentives at a special ceremony held March 9, 2010 at Baja Studios in Rosarito, Mexico (www.bajastudios.com), where major motion pictures like Titanic and Master and Commander were filmed. (Readers should note that Baja Studios is a client of Sheppard Mullin.) The highlight of the new incentive program is a proposed refund of up to 7.5% of amounts spent by filmmakers in Mexico for movie productions with expenditure of at least $70,000,000.00 Pesos. When added to available state incentives and the refund of value added tax upon "export" of a movie, the total value of an incentive package could be approximately 28% of the amount spent in Mexico for production (Note: state incentives vary on a state by state basis.). In addition, President Calderon announced that ProMexico (the government's agency in charge of promoting foreign investment) would be charged with responsibility to provide special assistance to the movie industry to expedite the paper work involved in the production of movies in Mexico. This assistance would include expediting the import of goods and the prompt processing of the refunds under the incentive program. The President stated that the new incentives should serve to put Mexico back on the map of the world of film. Mexico hopes to use its proximity to Hollywood, relatively low labor costs, and new tax incentives to lure major productions back to the country.

For further information, please contact Jerry Gumpel at (858) 720-8965.

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By Keith Gercken and Dawn Mayer

On February 4, 2010, the Department of Treasury signed a new income tax treaty with Chile, signifying a milestone for both countries. The treaty has not yet been ratified, but if approved by the U.S. Senate, would become the first income tax treaty between the U.S. and Chile and only the second U.S. income tax treaty with a South American country (a treaty with Venezuela was signed in 1999).
 

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By Keith Gercken

U.S. persons are generally required to file an annual information statement with the U.S. Internal Revenue Service (IRS) disclosing any beneficial interest in, or signatory authority over, bank or other financial accounts located outside the U.S. This information statement is filed on Form TD F 90-22.1, and is generally referred to as an "FBAR" (Foreign Bank Account Report").
 

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By Donald Klawiter and Jennifer Driscoll-Chippendale

This article is the first in a three-part series on multi-jurisdictional cartel investigations. 

In a break from traditional enforcement trends, two recent events underscore the importance of antitrust compliance training for companies located or doing business in Mexico and Latin America. First, in November 2008, the European Commission announced that several cement companies, including Cemex, a global building materials company headquartered in Mexico, were under investigation for violating Article 81 of the EC Treaty, which prohibits cartel behavior. In May 2009, Mexico’s Federal Competition Commission joined the probe, wreaking further havoc on Cemex’s precarious financial position. Second, in February 2009, the Brazilian Ministry of Justice, in conjunction with the U.S. Department of Justice and the European Commission, took the lead in an antitrust investigation of compressor makers, including Empresa Brasileria de Compressores S.A.-Embraco and Tecumseh do Brasil Ltda. The scope of the Brazilian inquiry was unprecedented, with nearly 60 federal police agents, Justice ministry officials and state prosecutors working to serve six search warrants in Sao Paolo and Santa Catarina and gather evidence of wrongdoing.  
 

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By Bram Hanono

In July 2007, President Felipe Calderon launched the National Infrastructure Program ("NIP") to increase coverage, quality, and competitiveness of Mexico's infrastructure. Through infrastructure investment, Mexico is seeking to advance its regional and global standing. The NIP, slated for 2007 through 2012, calls for approximately US$230 billion, comprised of federal and private investment, to finance 480 infrastructure projects. About half way through its duration, there are still ample procurement opportunities for U.S. Companies.  
 

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By Robert Magielnicki

There are three laws which a foreign company contemplating an acquisition of a United States corporation or other business should be familiar with because they can have a significant impact upon the proposed acquisition. These statutes are:

(1)   Section 7 of the Clayton Act;

(2)   The Hart-Scott-Rodino Antitrust Improvements Act of 1976, and

(3)   The Exon-Florio Amendment to the Defense Production Act of 1950.
 

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