Mexico to Allow 100% Foreign Investment in Some Industries
Mexico will unveil a revamped law this week that allows foreign investors to buy into the tourist industry and drops other restrictions in some areas, the government newspaper El Nacional has reported.
The new regulations, which are to take effect today, replace the 1973 Foreign Investment Law that set a 49% limit on non-Mexican capital participation in most areas of the economy, the paper said Sunday.
The law, which has long been considered outmoded and a drag on economic growth, has increasingly been waived in recent years.
The new law will permit 100% foreign investment in tourism, in-bond industries, or maquiladoras, and some forms of transportation, El Nacional said.
It added, however, that only Mexican capital investment will be allowed in radio and television, retail banking, forestry, basic petrochemicals and oil exploration.
A 49% limit on foreign capital would be enforced in the secondary petrochemical industry, most mining ventures and the fishing industry, El Nacional said.
The old law placed a 100% ban on foreign investment in all sectors of the country’s key petrochemical industry.
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