Emerging countries only very periodically negotiate these types of complex commercial contracts, so there is not enough built-in expertise and experience in the government.
This dramatic imbalance leads to consequences ranging from Base Erosion and Profit Sharing (BEPS) and tax holidays to royalties and unfavourable sliding scales, but also insufficient social and environmental safeguards in (mining) contracts. Many companies have quite literally seen it all and have large teams of negotiators with experience across numerous jurisdictions. Governments in emerging economies do not have that same expertise and investors are much more savvy in negotiation.
CONNEX supports them where the expertise is most needed. Read more information about the countries and projects which we have supported.
PREPARING TO NEGOTIATE
For negotiations, governments should consider the following points related to negotiation and our potential support services.