Foreign Investment Law - Government - Mondaq Mexico - Mondaq Business Briefing - Books and Journals - VLEX 529108226

Foreign Investment Law

Author:Mr Daniel Del Rio, Juan Carlos Serra and Francisco Gonzalez
Profession:Basham, Ringe y Correa, S.C.
 
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On April 30, 2014, the Federal Government submitted to Congress a package of nine new laws and twelve energy statutes to be amended "supplemental laws", resulting from the recent changes to Mexico's Federal Constitution with respect to the energy reforms.

The amendments to the Foreign Investment Law are proposed for a dual purpose: (i) reflect the new constitutional framework in the law for areas of strategic importance, and (ii) encourage foreign investment in the industry to strengthen the benefits of the reform.

Hydrocarbons exploration and production, as well as the planning and control of the National Electricity System, and the electricity transmission and distribution to the public, will remain strategic activities of the state, with the participation of the private sector.

Articles 4, 5, 6 and 7 of the Foreign Investment Law are amended so as to allow:

  1. free foreign investment in the sale of gas and liquefied petroleum gas and the supply of fuel and lubricants for vessels, aircraft and railway equipment;

  2. free participation in activities such as the use of vessels, coastal shipping, interior water navigation and shipping on the high seas as services to support hydrocarbon exploration and exploitation, and

  3. free...

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