Colombian lawyers call on president to reduce deficit and attract more infrastructure investment

Legal community also wants new government to persist with the country’s peace agreement, which is credited with reducing violence and homicide rates

Lawyers in Colombia are calling on the country’s new government to reduce the nation’s fiscal deficit and work to attract private investment in infrastructure projects.
The first round of the presidential elections, the first since the peace deal that ended 50 years of war between the Colombian government and the insurgent group FARC, took place on 27 May. Colombians chose among five candidates, including frontrunners Ivan Duque, who is a right-wing senator considered an heir apparent to former president Alvaro Uribe, and Gustavo Petro, a leftist former guerrilla member and Bogota mayor.
Carlos Umaña, managing partner at Brigard & Urrutia, argues the newly-elected government needs to curb the fiscal deficit and put the economy on track, partly by pursuing sustainable growth. Fellow Brigard & Urrutia partner Sergio Michelsen says improving Colombia’s world competitiveness to attract foreign investment should be at the top of the new president’s agenda. A recent survey by Mergermarket shows Colombia trailing behind the other members of the Pacific Alliance (namely Chile, Mexico and Peru) among senior executives from North America, Europe and Asia in terms of attractiveness as an investment destination.
Michelsen also argues the new government should persist with the country’s peace agreement. The 2016 peace accord, controversial for many, is largely credited with reducing homicide rates, decreasing violence, while increasing international tourism in the country. During the election campaign, the two leading presidential candidates were on opposite sides of the spectrum, Duque opposed the peace accord, while Petro advocated keeping it.
Once the new administration is in place, the government should work to attract private investment, particularly in infrastructure, Umaña says. Such investment should present more business opportunities for law firms in Colombia, which are experiencing growing competition from international players and the ‘Big Four’,  as well as non-traditional service providers.
Tatiana Garcés, managing partner of Baker McKenzie in Colombia, highlights that the election of Duque signals to the global business community that the country is an attractive investment destination because of its legal and political stability, as well as its well-managed economy. For Garcés, the inclusive and constructive tone of the president-elect’s victory speech, along with his margin of victory, will make it easier to govern and sends a positive message to local and foreign investors.” Ciro Meza, head of tax at the same law firm, expects that expect a series of reforms, including the lowering of business taxes and the simplification of bureaucratic processes. “Overall, there is a great sense of optimism in the country,” he says. 

Note from Editor: Article updated with more comments after the election results were announced.