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Special Economic Zones

Author:Santamarina Y Steta SC
Profession:Santamarina Y Steta SC
 
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On June 1st, 2016, it was published on the Mexican Federal Official Gazette, the decree by which the Special Economic Zones Federal Law was issued (the "Law").

On the other hand, on June 30th, 2016, it was published in the Mexican Federal Official Gazette the regulation of the Law. This new regulation is an innovative and cutting-edge legal instrument that complements and establishes the institutional and legal design of the Law. In addition, that same day, it, was published in the mentioned Gazette, the decree by which the Federal Authority for the Development of the Special Economic Zones was created.

Background

On September 29th 2015, the President of the Mexican United States, in exercise of his constitutional faculties, sent to the House of Representatives, the Legislative Initiative of the Law. Such initiative aims to set the standards for the planning, establishment and further operation of the Special Economic Zones (the "Zones"), as instruments to contribute and enhance growth and sustainable and balanced economic development of the regions of the country with greater social backwardness and high underdevelopment rates, through the promotion of productive and social investments. Likewise, on December 14th, 2015, the House of Representatives approved the Legislative Initiative of the Law submitted by the President of the Mexican United States and proceeded to submit the Minute of the Decree of Issuance of the Law to the Senate. In ordinary session on April 14th, 2016, the Senate approved with amendments the above mentioned Minute, and submitted it to the House of Representatives for the corresponding constitutional approval. On April 19th, 2016, the Board of the House of Representatives turned over the Minute containing the Decree of Issuance of the Law to its Economic Commission for the corresponding review.

What are the Special Economic Zones?

The Zones are specific geographical areas located within the national borders of the Mexican United States where business rules are different and apply in a special way. Such rules are designed to regulate a free market economy rather than the traditional business rules that prevail in national territory. The Zones are to be used as a tool to boost trade, investment and a differentiated industrial policy, which aims to overcome investment barriers to a wider economy, including security policies, lower governance indexes, inadequate infrastructure and property access problems. In this regard, the issue...

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