Legal Insights: A conversation with Carlos Camacho

"The diplomatic experience gave me perspective and allowed me to grow personally."

Latin Counsel has had the privilege of conversing with Carlos Camacho, a leading partner at Arias Law. With a remarkable track record ranging from international diplomacy to advising on Costa Rica’s most dynamic sectors, Camacho has established himself as a key figure in the Central American legal landscape.

Since joining Arias in 2008, he has successfully led the International Trade, Foreign Direct Investment (FDI), Government Affairs and Real Estate practices. His multidisciplinary approach allows him to guide companies and individuals through the complex processes of investment and business expansion, with special emphasis on the free trade zone regime that has turned Costa Rica into a magnet for medical equipment manufacturing and other high-tech industries.

Camacho, who also served as a diplomat and consul in New York, brings a global perspective that is invaluable to multinational clients. His experience, combined with a strong U.S. background, uniquely positions him to understand and meet the expectations of international investors.

In this interview, we delve deeper into Camacho’s experience, exploring how his past has shaped his current approach, the factors that make Costa Rica an attractive investment destination, and the challenges companies face.

Latin Counsel: What originally motivated you to study law and become a lawyer?

Carlos Camacho: A natural inclination and curiosity to solve problems and a constant intention to help others. Also, my mother, who is a lawyer and has always been a great personal and professional influence and inspiration.

Latin Counsel: If you had not gone into law, what professional alternative do you think you would have followed?

Carlos Camacho: Letters have always been my forte, hence my decision to study law, but at some point I considered careers with more creative veins such as advertising and architecture.

Latin Counsel: Your experience as a diplomat and Costa Rican consul in New York gives you a different international vision. How has that role influenced your current approach as a corporate lawyer?

Carlos Camacho: The diplomatic experience and having belonged to the Foreign Service gave me perspective and allowed me to grow personally. It allowed me, at a young age, to have contact with the world, to travel and get to know other cultures and to learn how to create professional relationships. This role allowed me to strengthen my communication skills and understand the importance of networking.

Latin Counsel: With an LL.M. in Austin and certificates from NYU, what specific skills or knowledge acquired in the U.S. have been most valuable to your practice in Latin America?

Carlos Camacho: Studying in the U.S. was a very enriching experience that gave me new knowledge in the areas of business, international trade and technology. Of great importance, I learned how the Anglo-Saxon system works and it gave me perspective on the expectations of international clients and the quality of communications they expect. I also understood the importance of clear and concise communication.
The experiences at NYU and the University of Texas also allowed me to develop a greater understanding of the needs of U.S. companies looking to expand their operations in other jurisdictions.

Latin Counsel: How did you begin your experience working with companies in the medical device sector in Costa Rica?

Carlos Camacho: My career as an attorney has been focused on serving foreign clients seeking to operate in the Central American region and specifically in Costa Rica. With the boom of investment attraction in the country, in the Firm we started looking for the areas of greatest development and opportunity and we managed to obtain an important client which was an "OEM" in the medical sector and we were applying knowledge and building experience based on the work done in this project of great magnitude. We applied this experience in attracting companies in the sector and that has led us to build a valuable specialized trajectory, gaining experience and generating confidence in our clients.

Latin Counsel: What kind of legal advice do foreign companies that wish to establish manufacturing operations in the country usually require?

Carlos Camacho: Foreign companies seek support in the process of analyzing the regulatory environment, in making decisions about expansion in Costa Rica and the installation process. The consultations we resolve are focused on regulations, benefits, requirements and installation time. We also advise on investment planning processes to maximize benefits and accompany companies on relevant issues such as labor and human resources advice and commercial and customs issues.

Latin Counsel: From your perspective, what makes Costa Rica such an attractive destination for the medical device industry?

Carlos Camacho: There are four key elements:

1) Human Talent with technical knowledge. The country has invested in educating the population in areas necessary to meet the needs of the industry, both at university and technical level. Costa Rica invests in promoting and providing opportunities for the study of languages and technical work, thinking of continuing to renew the labor force needed by the industry.

2) The Free Trade Zone Regime. A set of tax incentives for companies that make a commitment to invest in fixed assets and to a level of employment, with quite possible requirements. Incentives include total or partial exemption from income tax, import tax exemptions for equipment and raw materials, value added tax on local purchases of goods and services, withholding taxes on remittances, municipal taxes, among others. The benefits vary depending on the economic sector, the magnitude of the investment or the location of the project (favoring projects located outside the Greater Metropolitan Area).

3) Costa Rica’s economic and political stability. Costa Rica has a long tradition of peace and economic tranquility; always respectful of the rule of law which creates a good reputation as an investment destination. Costa Rica has maintained its investment attraction strategy for more than 40 years, for example, the Free Trade Zone Regime has remained unchanged, which inspires investor confidence.

4) Its geographical location and trade relations. Costa Rica’s position in Central America facilitates the transportation of goods, being a key location for "Nearshoring". The country has 19 free trade agreements as a result of its good diplomatic and trade relations, which gives a great advantage to companies exporting from Costa Rica in accessing international markets.

Latin Counsel: Have you identified recent changes in regulations, incentives or public policies that are further boosting this sector?

Carlos Camacho: Costa Rica is making an effort to bring development to less developed areas and is therefore promoting the establishment of companies outside the Greater Metropolitan Area (GAM). This strategy includes greater tax benefits for companies that set up outside the GAM.

Latin Counsel: What are the main legal challenges that these companies face during the process of establishing themselves in the country?

Carlos Camacho: There are really no legal challenges that affect the establishment process; Costa Rica is a country of legality and the rules for setting up an operation in the country are clear and pro-investment. Now, it could be said that the biggest challenge is the time involved in the approval of the Free Zone Regime, which takes between four and five months. It is common for companies that decide to set up in the country to have an urgent need to establish themselves and start operations and the approval process that involves the analysis, approval, signatures and publication of the executive agreement negatively impacts the company’s timeline. However, this challenge can be managed with proper legal advice and regulatory planning for the project. We prepare an action plan and timeline that allows companies to work several processes in parallel and accommodate the approval process so that the impact on the development of the process is minimal or non-existent.

Latin Counsel: Could you share with us, in general terms, any recent project you have worked on with a company in the sector?

Carlos Camacho: We have advised more than 20 Free Trade Zone projects in the last two years, both in the service and manufacturing areas. Most of the processes in which we have participated have been to medical device companies. We have participated from the country analysis stage, to project planning and branding. Our participation goes from setting up the legal entity, to planning and obtaining the free zone regime as well as all the registrations and permits required to operate. In parallel, we work on real estate, labor and tax issues. A complete accompaniment for the start of operations and constant advice on the day to day operations and development of future plans.

Latin Counsel: What key lessons have you learned from your experience advising companies in this industry?

Carlos Camacho: The installation processes in Costa Rica have taught us that communication and anticipation are key to a successful process. It is extremely important to talk to the company or investor to understand their business, their processes, their plans and expectations, in order to plan and anticipate specific issues that may arise during the installation process. Taking into account the needs of the client and the operation itself are vital to be able to attend the project in an interdisciplinary manner. We have added to our team specialists in several areas that are relevant to make the process simple, clear and successful.
In our years of experience, we have understood that every process is different. Even if it is the same industry, each process, each product is different; companies, despite being in the same niche, are different, with different expectations, so it is necessary to dedicate the necessary time to learn the specific issues and anticipate.

Latin Counsel: What recommendation would you give to a company that is evaluating setting up its medical device operation in Costa Rica?

Carlos Camacho: For companies that are thinking of setting up in Costa Rica, it is advisable that they have all the necessary information to prepare a business plan, especially to understand the timing, costs and processes. Within this analysis, it is necessary to understand whether the processes to be carried out in Costa Rica are suitable for the ecosystem of the medical cluster in Costa Rica. To do so, it is necessary to understand what Costa Rica’s strengths are, so the right advice from the beginning is extremely important so that they have all the information to plan the project successfully.

The preparation of a timeline facilitates the development of the process. For this, a coordinated multidisciplinary consultancy is valuable to maximize benefits and plan investment. The project should be seen as a long-term process, so we always analyze the company’s investment plans, in order to advise on the best way to maximize and extend the terms of benefits. The project should not be seen as obtaining the Free Trade Zone Regime, but as an ongoing process and a symbiotic relationship between the company and the country, where both find benefits within the project.

To achieve these tasks of analyzing all the information and planning for the long term, finding key partners within the country is extremely important in order to receive multidisciplinary advice that allows planning taking into account all aspects, anticipating issues and coordinating all efforts to meet the objectives and schedule of the installation project.

Latin Counsel: Since you joined Arias in 2008, you have led several key areas, what do you consider to be your greatest contribution in developing the practices of International Trade, Telecommunications, Foreign Direct Investment, Free Zones, and Real Estate Law?

Carlos Camacho: The formation of teams with conviction, dedication, work ethic and knowledge. My greatest contribution has been to surround myself with knowledgeable people, highly motivated and eager to learn. All areas have a common and important element, which is foreign investment. Therefore, we have formed a team with key knowledge, but even more, with the motivation and clarity of the main objective of our clients, which is to protect the investment. We have put a lot of emphasis on investing in our people and retaining talent. We are also aware that we learn from each other every day and that everyone brings their knowledge to each project. Teamwork has been key to the different projects we have led and to the growth of each of the areas I have supervised. I believe that understanding that legal services are a team effort has been key to be able to give the best advice to the diversity of clients in all these areas.

Latin Counsel: How has the customs regulatory environment in Costa Rica evolved in recent years, and what strategies do you implement for local and foreign companies to comply with regulations and optimize their operations?

Carlos Camacho: In recent years, Costa Rica has reformed its customs legislation, introducing a comprehensive reform of the General Customs Law and its respective Regulations, as well as the approval of the Central American Uniform Customs Code (CAUCA IV) and its Regulations (RECAUCA IV). These reforms have included, among others, the following issues:Soon, the implementation of non-intrusive control by means of scanners in all ports is expected, on which the collaboration of the United States government has been communicated.
 

• Incorporation of the Authorized Economic Operator and the Special Customs Agent.
• Emphasis on the use of computer systems, including means equivalent to the autograph signature and the inclusion of the digital signature.
• Use of non-intrusive controls.
• Increases the term for the temporary deposit of goods.
• Modification in the challenge of resolutions and acts of the customs service.

Additionally, the implementation of the ATENA system is expected, which will encompass all the different customs platforms of the Ministry of Finance, as part of the digital evolution of the entity.

Latin Counsel: What do your clients in the medical devices area look for when they seek legal advice to establish operations in Costa Rica?

Carlos Camacho: They are looking for experience and knowledge in the processes of application to the regime. Now, more than anything else, they are looking for advice in all areas in a coordinated "one stop shop" manner and this is one of Arias’ strengths.

Our team has the experience of more than 25 years of participating in processes of installation of companies in Costa Rica, with a team that includes diverse areas to be able to advise holistically in the process.

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