Trade liberalization resulting from neoliberalism caused the inflow of capital to several countries seeking economic development. Due to the fact that Mexico is within these parameters, the federal government found necessary to propose to foreign capitals the opportunity to invest in our territory, which would lead to a technological breakthrough and emerge asource of jobs.
Needless to say, any action taken in our territory needs proper regulations and the establishment of the foreign investment law appeared in December, 1993 by the President of Mexico in that time, Carlos Salinas de Gortari. Former law limited foreign investment in certain sectors and established complicated administrative proceedings to obtain authorizations for Foreign Investment toparticipate in our economy. The former Mexican policy was to “protect” Mexican investors, by limiting the access to foreign investment.
It is worth mentioning that this law has its own regulation. The difference between them is referred to the hierarchy of laws. First we have to mention that laws have a higher rank from regulations, this is because the legislative is the one who creates andenacts laws through a complex process between chambers. This law is a legal instrument issued by the legislature in order to command or forbid acts related to foreign investment.
On the other hand, the regulation is the way the law has to be applied. It is the product of the regulatory power the President is granted by the Constitution to provide in the field of foreign investment. Regarding theConstitution, articles 27, 28, 30 and 33 are important when we talk about the foreign investment; the first talks about our country, our properties and our territory which is the place in which we can invest. Then we have article 28 that is also significant because it explains that in Mexico there should be no monopolies, meaning that no company can monopolize a sector of our economy and even worseif we talk about a foreign company.
Another article that is important to emphasize is article 30, where is set the criteria that the law mentions for us to receive the tittle of Mexicans and the difference between a foreign investor and one Mexican, finally article 33 which talks about the delimitation of foreigners to intervene on issues that only are us.
Apart from this, the Law OnProtection Of Trade And Foreign Investment Rules In Contravention Of International Law prohibits persons or entities, public or private that are in the country, those actions have effects occurring or wholly or partly in that territory, as well as those that are subject to Mexican law, acts that affecting trade or investment, when such acts result from the extraterritorial effects of foreign laws. Also,Migration Law guarantees the exercise of the rights and freedoms of foreigners in the Constitution, treaties and international agreements to which it is part of the Mexican State and the provisions of applicable law, regardless of their immigration status.
Finally, the Law of Acquisitions, Leasing and Services of the Public Sector sets the rules about hiring procedures of open international.The agencies will compete on an equal footing, by the use of human resources in the country and the acquisition and leasing of goods produced in the country and have the percentage of national content which shall have, in the economic comparison of the proposals, with a margin of up to fifteen percent of the price preference in respect of imported goods, according to the rules established by theMinistry of Economy, upon advice of the Ministry of Public Function.
The current legislation establishes clear channels for this participation in Mexico, as well as liberalizing certain sectors important for the development of our country, where Foreign Investment is a key player to develop the same. Under the current law, foreign investment is defined simply as participation of foreign...