IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 11 Aug 2014 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 11 August 2014, the Mexican president Enrique Peńa Nieto, signed a new law (DOF: 11/08/2014), partially opening the domestic electrical market for foreign companies. Art. 90 of the new law allows for partnerships between foreign and domestic companies.
 
However, Art. 91 of the law empowers the Ministry of Finance to introduce local content requirements for new projects. In case these requirements are not met (Art. 165 VIII) the law sets out the payment of a fine of 10% to 20% on the value of the purchased inputs.
 
This law is part of a reform of the Mexican energy sector which was introduced on constitutional level on 20 December 2013. Please, see also under Related Measures for the reforms on Mexico's hydrocarbon market.

AFFECTED COUNTRIES

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