Doing Business

Doing Business in Mexico 2015

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39 Doing Business in Mexico 2015 Other restrictions Depending on the potential investor's activity and desired location, other restrictions beyond the scope of this Guide may apply. Accordingly, competent counsel should always be sought during the planning stage for any investment. Bilateral investment treaties Mexico has signed agreements with several countries to protect and promote investments of their investors in Mexico and vice versa. These agreements have been signed with Argentina, Austria, Australia, Belarus, Belgium, the Czech Republic, China, Cuba, Denmark, Finland, France, Germany, Greece, Iceland, India, Italy, Korea, Luxemburg, the Netherlands, Panama, Portugal, Slovakia, Spain, Sweden, Switzerland, Trinidad & Tobago, the United Kingdom and Uruguay. Mexico has entered into free-trade agreements with the United States and Canada (NAFTA), Guatemala, El Salvador and Honduras, Iceland, Norway, Liechtenstein and Switzerland (EFTA), Colombia (G2), Bolivia, Costa Rica, Chile, Israel, Nicaragua, Uruguay, Japan and the European Union. Some of these agreements also refer to investments between the signing countries, requiring non-discriminatory practices and most favorable nation treatment. Policy trends Effect on foreign investment The traditional trend in Mexico is definitely toward the acceptance of new foreign investment. This attitude is evident in the foreign investment law issued in 1993 and the expected upcoming reforms. In any event, the foreign business executive considering Doing Business in Mexico will be in a better position to secure approval, if required, if the proposal involves exporting goods or services from Mexico, providing employment opportunities and developing or improving local technology. Additionally, the location of plant sites in development areas and the degree of ecological protection offered would also be considered in an application. 5

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