The regulation of foreign direct investment in Mexico and the North American free-trade agreement

This thesis*, after presenting an overview of Mexico, examines the new business environment prevailing in Mexico focussing on the laws and regulations affecting foreign investments and and foreigners in Mexico. It then compares Mexico's foreign direct investment (FDI) regulations with those of Canada and the United States in relation to the Canada-U.S. Free Trade Agreement of 1988. Since Mexico's FDI concerns and policies are similar those of Canada, this comparison provides useful perspectives for a prospective analysis of acceptable FDI regulations in a North American Free Trade Agreement (NAFTA).The adoption by Mexico of industrialized country standards and principles has led to the negotiation of a NAFTA between Canada, the United States and Mexico. Further investment liberalization will be a major part of the price Mexico will need to pay for the sucessful conclusion of NAFTA. Such liberalization will benefit Mexico's development provided that it retains a few of the prevailing restrictions and the legal means to implement future policies on investment, thus ensuring for itself a part of the benefits of FDI. (Abstract shortened by UMI.) ftn*This thesis encompasses all regulations in place before March 31, 1992