Country Note Mexico 2024

CELIS Country Note on Mexico, 2024
by Galo Marquez, CELIS Assistant Country Reporter for Mexico

Mexico’s complex regulatory landscape for foreign investment, needs an examination of the intricate interplay between national policies and international agreements. The dichotomy between Mexico’s role in the United States-Mexico Agreement (USMCA) and its evolving political climate sets the stage for a nuanced analysis.
For the past few years, the Mexican government has prioritized combating corruption, social justice, and reclaiming the State’s role in key sectors, such as energy. These policy shifts have led to a surge in investment arbitrations against Mexico, reflecting tensions between the government’s radical and prudent wings. This Country Note outlines significant political decisions, including reforms in the energy sector and recent actions against taken by the federal government to illustrate the administration’s complex stance on private investment. Moreover, the legal framework, governed by the Foreign Investment Law, is explored alongside the regulatory bodies overseeing FDI. Despite Mexico’s historical openness to FDI, recent developments indicate challenges. Interested parties may scrutinize the underdeveloped screening mechanism and the
government’s use of ‘national security’ to prioritize state projects, leading to legal disputes. This requires a delicate balance between international agreements, evolving political ideologies, and regulatory mechanisms shapes Mexico’s dynamic landscape for foreign investors.