Doing Business

Doing Business in Mexico 2015

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19 Doing Business in Mexico 2015 Chapter 3 Foreign investment and trade opportunities Investor considerations • The government has a favorable attitude toward foreign investment. • Foreign investment is restricted only in certain strategic activities reserved to the state or Mexican investors. With a recent law reform some of the restricted sectors will gradually allow foreign investment under specific forms. • Trade policy wide open. NAFTA and other trade agreements with many developed and developing countries are in place. • Mexico is a member of the Organization for Economic Cooperation and Development (OECD), the World Trade Organization and the Asian-Pacific Economic Cooperation Mechanism (APEC). • The inflation rate during recent years has been around 4%.Mexico has been able to control inflation, keep a relatively steady exchange rate, stabilize the economy in general terms and, above all, maintain the investor's confidence. • No exchange controls. • The labor force is large. • Antitrust law could impose investment restrictions on market concentration for any foreign and domestic investor. • Many laws have been updated or reformed with the purpose of modernizing the legal system and to facilitate international trade activities. • The Telecommunications Reform provides that direct foreign investment in telecommunications and satellite communications goes to a fully 100% and radio and television broadcasting to 49% with certain requirements. • The proposed Energy Reform establishes a new legal framework for oil, gas and electricity activities, effectively opening these markets to private foreign and local investors to engage in the exploration and extraction, transport, storage, distribution, importation, and exportation. • The Railroad Law allows foreign investors to participate with up to 49% of the capital stock in companies providing railway service. Railroad activity with more than 49% foreign participation requires prior authorization from the Foreign Investment Commission. • The Airport Law allows 49% foreign ownership in the construction and operation of airports located in Mexico. This requires prior authorization from the Foreign Investment Commission. 3

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