Q&A with Dr Gustavo Richardson of the South America Beachhead

Dr Gustavo Richardson holds both New Zealand and Argentine citizenship. A director of his own law firm in Buenos Aires, he has lived and worked in South America for more than 30 years.

He is active in commercial and financial law and provides legal advice to the retail, banking and financial sectors. In recent years Dr Richardson has assisted as legal and strategic advisor to several New Zealand firms that have established operations in South America.

He has extensive professional and family connections in New Zealand, including a mutual collaboration agreement with a South Island law firm.

What are the opportunities for New Zealand firms in South America?

The main opportunities are for business to business trade, and for partnerships between New Zealand and South American companies to target third countries, in particular into Asia where New Zealand is very well regarded and perceived as a provider of high value products and services, and Europe, where South American firms have strong traditional roots.

New Zealand technology, raw materials and expertise will be very well received here.

Companies are looking for support and investment in new activities and to help them achieve new levels of competitiveness. There is a big demand for agritechnology, consultancy services and outsourcing – providing products for high value niches.

How is New Zealand perceived in South America?

The New Zealand brand is very strong. It commands a lot of respect compared with other nationalities and that’s a very important advantage. A lot of South Americans want to get to know Kiwi firms.

Why do South American firms want to partner with New Zealand into Asia?

The strong New Zealand brand and presence in those countries is of particular interest.

South America is looking for more opportunities to export its products and services; in some cases it is not permitted to enter Asian markets easily, so needs the intervention of a third country.

To be present in Asia with the support of New Zealand, the best country in the world in terms of values, is a very attractive proposition.

If New Zealand firms want to grow in those third markets, a South American partner can offer more raw materials, more production, greater manufacturing capability.

South America can act as a supermarket; you can buy everything you need here, cheaper than other places in the world and with lower labour costs.

We can compete in some markets and we can complement in others and we can all get more market share.

What are some of the challenges of doing business in South America?

The most important thing is to know who is who and the right door to enter.
New Zealanders need to understand that each South American country has different behaviours and different opportunities to offer. Chile, for example, is a small but stable market where you know what the rules are.

In Argentina changes come too quickly and we have a saying there is a new crisis every ten years.

On the other hand, professionals in Argentina are very able to manage crises, and it’s a very attractive market with opportunities that are not possible in other countries in terms of potential, volumes and revenue.