Fast-growing Peruvian market expected to become increasingly attractive to international law firms

Last week's announcement that Baker & McKenzie is to combine with Peruvian law firm Estudio Echecopar – becoming the first international entrant into the local legal market – has once again turned the spotlight onto the emerging markets of Latin America.

Estudio Echecopar, one of Peru's biggest law firms, employs around 250 lawyers, trainees and administrative staff, working across practices including banking, M&A, mining and energy and disputes.

The addition of a Lima base will take Bakers' geographic spread to 72 offices across 45 countries, including 15 offices across Latin America, including bases in Argentina, Brazil, Chile, Colombia and Mexico.

While the more established economies of Brazil and Mexico have long been seen as key targets for expansion, Peru is now expected to become increasingly attractive to global law firms alongside other fast-growing markets such as Chile and Colombia.

International firms with an existing presence in the region include Norton Rose, which gained a Colombia base in Bogota this year as a result of a tie-up with Canada's Macleod Dixon in January, and Spain's Uria Menendez, which has an association with Philippi Yrarrazaval Pulido & Brunner in Santiago, Chile.

Bakers executive committee chairman Raymundo Enriquez said: "All the banks are looking towards Peru at the moment. [Factors like this] convince us that we've made the right decision in forming an alliance with Estudio Echecopar. Peru was the missing link in Bakers' South American network. 

"Chile, Colombia and Peru are negotiating more now with regards to future trade, so a presence in Peru will leverage the capabilities of the other two offices. We expect the alliance will introduce more referrals."

Peru's economic growth rate, political stability and macroeconomic policies have been gaining increasing interest from clients against the backdrop of problems in Europe, with China identified as the main export market.

Mining, natural resources and infrastructure are standout sectors. According to industry reports, Peru's mining sector, mainly driven by copper, gold and gas, is forecasted to grow by more than 4% in 2012.

White & Case head of Latin American arbitration Jonathan Hamilton said: "Like most markets in the region, Peru adopted a pro-investment economic and legal framework in the 1990s. Unlike some, Peru has maintained that approach and encouraged companies to invest and follow the rules, facilitating economic growth."

On top of this, the rise of Peru's middle class over the past few years has increased demand for more projects and infrastructure work. However, the jurisdiction is still seen by some as a jigsaw piece in the Andean market, as opposed to a standalone area. 

Yves Hayaux-du-Tilly, a London-based partner at Mexican law firm Nader Hayaux & Goebel and co-founder of UK business network LatAm Forum, commented: "Law firm efforts are focused on the entire Latin American region rather than just one country as they need to fit into the region's economy as a whole and within a firm strategy.

"The alliance between Bakers and Estudio Echecopar seems like a natural step to take in terms of the US firm's strategy, and could well set a trend among international firms that have a strategy and appetite to grow in Latin America."