Mexico FDI control
Mexico FDI control

The following Competition practice note provides comprehensive and up to date legal information covering:

  • Mexico FDI control
  • 1. What is the applicable legislation?
  • 2. Which government or other body (or bodies) reviews foreign investments?
  • 3. What is the scope of the foreign investment regime? Does it only apply to specific sectors or types of investors (eg foreign or non-EU / non-WTO)? Are there specific rules for certain types of investors (eg state-owned enterprises)?
  • 4. What are the triggers or thresholds for the regime to apply? What types of transactions are caught? Is there a minimum level of shareholding or a control test that applies?  Are there any other thresholds that need to be met (e.g. based on turnover or market shares)?
  • 5. Are there any exceptions that may apply?
  • 6. Is there any discretion to review transactions that do not meet any thresholds for review?
  • 7. What are the grounds for review, eg public or national security or other grounds?
  • 8. What level of discretion do the relevant authorities have to approve or reject transactions? Is there scope for any other body to intervene?
  • 9. Where a transaction is caught by the regime, is notification mandatory and must closing be suspended pending clearance?
  • More...

A conversation with Gabriel Salinas Ruiz, senior associate, Adam Beach, associate, and María Inés Provencio from the Mexico City office of international law firm CMS on key issues on foreign direct investment (FDI) control in Mexico.

1. What is the applicable legislation?

The principal legislation regulating foreign direct investment (FDI) in Mexico is the Foreign Investment Law (the FIL), published in the Federal Official Gazette (Diario Oficial de la Federación) on 27 December 1993, and last amended on 15 June 2018, and its Regulations. The Regulations for the FIL and the National Foreign Investment Registry were published in the Federal Official Gazette on 9 September 1998.

In addition, international treaties for FDI (i.e. where the investment made by the foreign entity provides either a majority or control of the entity, administration rights or other entitlement of such nature. This refers to any corporate right, and not only economical rights to perceive any certain return) known as Agreements for the Encouragement and Reciprocal Protection of Investments (Acuerdos de Promoción y Protección Recíproca de las Inversiones or ‘APPRIs’, per its Spanish acronym) are designed to promote and protect capital cashflow invested in productive sectors. The APPRIs are recognised as generating trust for foreign investors, as they promote a favourable environment for investment and promote economic development. Mexico has subscribed to 32 APPRIs with 33 countries, and 30 are

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