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P 162050Z JAN 07
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC PRIORITY 4935
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE PRIORITY
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UNCLAS SECTION 01 OF 07 MEXICO 000212 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EB/IFD/OIA 
STATE FOR WHA/MEX 
 
E.O. 12958: N/A 
TAGS: ECON EINV KTDB OPIC USTR ELAB ETRD EFIN PGOV
MX 
SUBJECT: MEXICO 2007 INVESTMENT CLIMATE STATEMENT -- PART I 
 
REF: 06 SECSTATE 178303 
 
 
This is part one of a two part cable that provides suggested text 
for the 2007 Mexico Investment Climate Statement. 
 
Openness to Foreign Investment 
 
Mexico is open to foreign direct investment (FDI) in most economic 
sectors and has consistently been one of the largest recipients of 
FDI among emerging markets. In recent years, however, Mexico has 
become less competitive relative to other emerging economies, 
particularly China, but also India and countries in Eastern Europe, 
as it has failed to address serious crime and safety issues or 
pass much needed fiscal, labor and energy sector reforms. Recent 
reports from AT Kearney, Transparency International, the World 
Economic Forum and the Organization for Economic Cooperation and 
Development (OECD) have detailed the perceived decline in Mexico's 
attractiveness as an investment destination. 
 
Foreign investment in Mexico has largely been concentrated in the 
northern states close to the U.S. border where most maquiladoras are 
located, and in the Federal District of Mexico City. The Yucatan 
peninsula, historically an area for tourism investment, has seen 
industry in other sectors grow due in part to the ability to quickly 
send goods from its ports to the United States. Financial services, 
automotive and electronic sectors have received the largest amounts 
of FDI. Historically, the United States has been the largest source 
of FDI in Mexico.  As of September, U.S. investors had provided 
61.5 percent of 2006 FDI. 
 
The Government of Mexico has had some success in simplifying the 
process of investing in Mexico. The Secretariat of Economy (SECON) 
maintains a Spanish-language website (www.economia.gob.mx) 
offering an array of information, forms, links and transactions. 
Among other options, interested parties can download import/export 
permit applications, make on-line tax payments, and chat with 
on-line advisors who can answer specific investment and trade 
related questions. 
 
The SECON website also contains a link to the Rapid Business 
Start-Up System (SARE), set up through an executive decree by 
President Fox in January 2002. SARE reduces the time and number of 
government formalities required to open a low-risk business. State 
governments, notably Nuevo Leon, have also passed small business 
facilitation measures to make it easier to open businesses. Despite 
progress however, according to a World Bank study it takes on 
average 27 days to complete all paperwork required to start a 
business in Mexico; compared to an average OECD figure of 17 days. 
The Embassy advises potential investors to contact SECON for 
detailed information on investing in Mexico. The address and 
telephone number for SECON is: 
Secretaria de Economia, 
 
SIPDIS 
Alfonso Reyes No. 30, 
Col. Hipodromo Condesa 
C.P. 06179, 
Mexico, D.F. 
Tel: 52-55-5729-9100 
 
The 1993 Foreign Investment Law is the basic statute governing 
foreign investment in Mexico. The law is consistent with the 
foreign investment chapter of NAFTA (the North American Free 
Trade Agreement). It provides national (i.e. non-discriminatory) 
treatment for most foreign investment, eliminates performance 
requirements for most foreign investment projects, and liberalizes 
criteria for automatic approval of foreign investment. 
 
The Foreign Investment Law identifies 704 activities, 656 of 
which are open for 100 percent FDI stakes. There are 18 activities 
in which foreigners may only invest 49 percent; 13 of which require 
Foreign Investment National Commission approval for a 100 percent 
stake; 5 reserved for Mexican nationals; and 10 reserved for the 
Mexican state. 
 
Below is a summary of activities subject to investment restrictions. 
 
TABLE I 
SECTION 1: SECTORS RESERVED FOR THE STATE IN WHOLE OR IN PART: 
 
A)  Petroleum and other hydrocarbons; 
B)  Basic petrochemicals; 
C)  Telegraphic and radio telegraphic services; 
D)  Radioactive materials; 
E)  Electric power generation, transmission, and distribution; 
F)  Nuclear energy; 
G)  Coinage and printing of money; 
 
MEXICO 00000212  002 OF 007 
 
 
H)  Postal service; 
I)   Airports; 
J)  Control, supervision and surveillance of ports and heliports. 
 
SECTION 2: SECTORS RESERVED FOR MEXICAN NATIONALS: 
 
A)  Retail sales of gasoline and liquid petroleum gas; 
B)  Non-cable radio and television services; 
C)  Credit Unions, Savings and Loan Institutions, and Development 
    Banks; 
D)  Certain professional and technical services; 
E)  Domestic transportation for passengers, tourism and freight, 
    except for messenger or package delivery services. 
 
U.S. and Canadian investors generally receive national and 
most-favored-nation treatment in setting up operations or acquiring 
firms. Exceptions exist for investments for which the Government of 
Mexico recorded its intent in NAFTA to restrict certain industries 
to Mexican nationals. U.S. and Canadian companies have the right 
under NAFTA to international arbitration and the right to transfer 
funds without restrictions. NAFTA also eliminated some barriers to 
investment in Mexico, such as trade balancing and domestic content 
requirements. Local governments must also accord national treatment 
to investors from NAFTA countries. Mexico is also a party to several 
OECD agreements covering foreign investment, notably the Code of 
Liberalization of Capital Movements and the National Treatment 
Instrument. 
 
Approximately 95 percent of all foreign investment transactions 
do not require government approval. Foreign investments requiring 
applications and not exceeding USD 165 million are automatically 
approved, unless the proposed investment is in a sector subject to 
restrictions by the Mexican constitution and Foreign Investment 
Law that reserve certain sectors for the state and Mexican nationals 
(see Table 1). The National Foreign Investment Commission determines 
whether investments in restricted sectors may go forward and has 45 
working days to make a decision. Criteria for approval include 
employment and training considerations, technological contributions, 
and contributions to productivity and competitiveness. The 
Commission may reject applications to acquire Mexican companies for 
national security reasons. The Secretariat of Foreign Relations 
(SRE) must issue a permit for foreigners to establish or change the 
nature of Mexican companies. 
 
Energy 
------ 
 
The Mexican constitution reserves ownership of the petroleum and 
other hydrocarbon reserves located within Mexico. Oil and gas 
exploration and production efforts are under the sole purview of 
Pemex, Mexico's petroleum parastatal. The constitution also 
provides that most electricity service may only be supplied by two 
state-owned companies, the Federal Electricity Commission (CFE) and 
Central Power and Light (LYFC). There has been some opening to 
private capital. Private electric co-generation and self-supply are 
now allowed. Private investors may build independent power projects 
but all of their output must be sold to the Federal Electricity 
Commission in wholesale transactions. Private construction of 
generation for export is permitted. In 1995, amendments to the 
Petroleum Law opened transportation, storage, marketing and 
distribution of natural gas imports and issued open access 
regulations for Pemex's natural gas transportation network. Retail 
distribution of Mexico's natural gas is open to private investment, 
as is the secondary petrochemical industry. Since the government's 
announcement in August 2001 that national and foreign private 
firms will be able to import liquefied petroleum gas duty-free, 
one LNG terminal has begun operation in Tamaulipas state, a second 
is under construction in Baja California, and CFE is bidding a 
third on Mexico's Pacific Coast. 
 
Multiple Service Contracts (MSCs), designed to comply with the 
country's constitution, mark Mexico's most ambitious effort to 
attract private companies to stimulate natural gas production by 
developing non-associated natural gas fields. Under an MSC contract, 
private companies will be responsible for 100 percent of the 
financing of a contract and will be paid for the work performed and 
services rendered. However, the natural gas produced in a specific 
field remains the property of Pemex. Examples of work that 
contractors can perform include seismic processing and 
interpretation, geological modeling, fields engineering, production 
engineering, drilling, facility design and construction, facility 
and well maintenance, and natural gas transportation services. Some 
Mexican politicians still oppose MSCs as a violation of the Mexican 
constitution's ban on concessions. Some contracts have failed to 
attract any bids, demonstrating the limited success of MSCs. 
Minor changes to the regime through which Pemex remits funds to the 
 
MEXICO 00000212  003 OF 007 
 
 
Federal Government passed in November 2005 and further limited 
changes are contemplated in the current legislative session to 
reform specific aspects of Pemex's commercial operations. 
 
Telecommunications 
------------------ 
 
Mexico allows up to 49 percent FDI in companies that provide 
telecommunications networks and services. This includes the Cable 
TV (CATV) industry, with one exception: companies can issue Neutral 
or "N" stocks up to 99 percent, which can be owned by a foreign 
company. In fact, one CATV company operates under this ownership 
scheme. There is no limit on FDI in companies providing cellular 
services.  However, Telmex continues to reign as the dominant 
telecom power and wields significant influence over key regulatory 
and government decision makers. Mexico's dominant landline and 
wireless carriers are traded on the New York Stock Exchange. 
 
Several large U.S. and international telecom companies are active 
in Mexico, partnering with Mexican companies or holding minority 
shares.  Following a 2004 WTO ruling, international resellers are 
authorized to operate in Mexico and so some companies are also 
looking to sell wholesale minutes to resellers.   Telcel 
(technically independent, but majority owned by Telmex owner's 
Grupo Carso) still retains a majority share (about 70 percent) of 
the cellular market. However, Spain's Telefonica Movistar, among 
others, continues to grow and challenge the status quo. They have 
deployed extensive mobile infrastructure to increase coverage 
around the country. 
 
Telmex continues and will continue to dominate the market in Long 
Distance (local and international), Internet access through DSL, 
and bundle services. A new Convergence Accord, published in October, 
allows Telmex to offer broadcasting or TV services.  The Federal 
Telecommunications Commission has not found any legal reason 
that Telmex would be required to pay a fee to the government for 
the privilege, but the Secretariat of Economy is reviewing the 
issue.  The accord has elicited strong concerns from the CATV 
industry, which fears that it will push CATV operators to 
consolidate. However, under the accord, CATV operators (including 
TV duopolist Televisa's Cablevision) will also be allowed to begin 
providing telephone services, which might increase competition 
in the telephony market. 
 
As in telecommunications, there are concerns that the two dominant 
television companies - Televisa and TV Azteca, who share duopoly 
status in the sector - continue to exercise influence over Mexican 
judicial, legislative, policy, and regulatory bodies to prevent 
competition. The Radio and Television Law passed in March 2006 
has been criticized as catering to the interests of dominant 
industry players by imposing permanent disadvantages on new entrants 
as compared to the current dominant duopoly. 
 
U.S. firms remain unable to penetrate the Mexican television 
broadcast market, despite the fact that both Televisa and TV Azteca 
benefit from access to the U.S. market. TV Azteca has used the 
Mexican legal system to harass a U.S. firm trying to enter this 
sector. This harassment included TV Azteca personnel directing a 
raid, with the support of Mexico City auxiliary police, on 
production facilities for the purpose of stopping production of a 
show in Mexico for U.S. Spanish-speaking audiences and thereby 
obtaining relief that Azteca could not legitimately obtain in the 
United States. Mexico's television ad market is estimated to be 
worth in excess of 2.5 USD billion annually. 
 
Real Estate 
----------- 
 
Investment restrictions still prohibit foreigners from acquiring 
title to residential real estate in so-called "restricted zones" 
within 50 kilometers (approximately 30 miles) of the nation's 
coast and 100 kilometers (approximately 60 miles) of the borders. 
In all, the restricted zones total about 40 percent of Mexico's 
territory. Nevertheless, foreigners may acquire the effective use of 
residential property in the restricted zones through the 
establishment of a 50-year extendible trust (called a fideicomiso) 
arranged through a Mexican financial institution that acts as trustee. 
 
Under a fideicomiso the foreign investor obtains all rights of use 
of the property, including the right to develop, sell and transfer 
the property. Real estate investors should, however, be careful in 
performing due diligence to ensure that there are no other claimants 
to the property being purchased. Fideicomiso arrangements have 
led to legal challenges in some cases. Title insurance has recently 
become available in Mexico and a few major U.S. title insurers have 
begun operations here. 
 
MEXICO 00000212  004 OF 007 
 
 
 
Transport 
--------- 
 
The Mexican government allows up to 49 percent foreign ownership of 
50-year concessions to operate parts of the railroad system, 
renewable for a second 50-year period. The Mexican Foreign Investment 
Commission and the Mexican Federal Competition Commission (CFC) must 
approve ownership above 49 percent. In a positive sign for 
competition, the CFC recently struck down a proposed merger between 
two of the three major railroad companies.  The decision may still 
be appealed.  Consistent with NAFTA, foreign investors from the 
U.S. and Canada are now permitted to own up to 100 percent of local 
trucking and bus companies, however, several companies have 
encountered long wait times and legal tie-ups when trying to obtain 
permits. 
 
CINTRA, the government holding company for the Mexican airline 
groups, Mexicana and Aeromexico, sold Grupo Mexicana to Grupo 
Posadas in December 2005.  Rumors of plans to sell Grupo Aeromexico 
still abound, although the timing of the proposed sale is still 
uncertain. These sales, coupled with the emergence of new low-cost 
start-ups are likely to change the dynamics of Mexican aviation 
in the short to medium term. Despite blossoming competition, foreign 
ownership of Mexican airlines is capped at 25 percent. Foreign 
ownership in airports is limited to 49 percent.  Express delivery 
service companies continue to complain that Mexican legislation 
unfairly favors Mexican companies by restricting the size of trucks 
international carriers are allowed to use. 
 
Conversion and Transfer Policies 
 
Mexico has open conversion and transfer policies as a result of its 
membership in NAFTA and the OECD. In general, capital and investment 
transactions, remittance of profits, dividends, royalties, technical 
service fees, and travel expenses are handled at market-determined 
exchange rates. Peso/dollar foreign exchange is available on same- 
day, 24- and 48-hour settlement bases. Most large foreign exchange 
transactions are settled in 48 hours. In June 2003, the U.S. Federal 
Reserve Bank and the Bank of Mexico announced the establishment of an 
automated clearinghouse for cross-border financial transactions. The 
International Electronic Funds Transfer System (TEFI) began 
operating in 2004 and commissions on transfers through the system 
have dropped rapidly. 
 
Expropriation and Compensation 
 
Under NAFTA, Mexico may not expropriate property, except for a 
public purpose and on a non-discriminatory basis. Expropriations 
are governed by international law, and require rapid fair market 
value compensation, including accrued interest. Investors have the 
right to international arbitration for violations of this or any 
other rights included in the investment chapter of NAFTA. There 
have been twelve arbitration cases, six of which are still pending, 
filed against Mexico by U.S. and Canadian investors who allege 
expropriation, and other violations of Mexico's NAFTA obligations. 
Details of the cases can be found at the Department of State 
Website, Office of the Legal Advisor (www.state.gov/s/l). 
 
Dispute Settlement 
 
Chapter Eleven of NAFTA contains provisions designed to protect 
cross-border investors and facilitate the settlement of investment 
disputes. For example, each NAFTA Party must accord investors from 
the other NAFTA Parties national treatment and may not expropriate 
investments of those investors except in accordance with 
international law. 
 
Chapter Eleven permits an investor of one NAFTA Party to seek money 
damages for measures of one of the other NAFTA Parties that allegedly 
violate those and other provisions of Chapter Eleven. Investors may 
initiate arbitration against the NAFTA Party under the Arbitration 
Rules of the United Nations Commission on International Trade 
Law ("UNCITRAL Rules") or the Arbitration (Additional Facility) Rules 
of the International Center for Settlement of Investment Disputes 
("ICSID Additional Facility Rules"). Alternatively, a NAFTA investor 
may choose to use the registering country's court system. 
 
The Mexican government and courts recognize and enforce arbitral 
awards. The Embassy has heard of no actions taken in the Mexican 
courts for an alleged Chapter 11 violation on behalf of U.S. or 
Canadian firms. 
 
There have been numerous cases in which foreign investors, 
particularly in real estate transactions, have spent years dealing 
with Mexican courts trying to resolve their disputes. Often real 
 
MEXICO 00000212  005 OF 007 
 
 
estate disputes occur in popular tourist areas such as the Yucatan. 
American investors should understand that under Mexican law many 
commercial disputes that would be treated as civil cases in the U.S. 
could also be treated as criminal proceedings in Mexico. Based upon 
the evidence presented a judge may decide to issue arrest warrants. 
In such cases Mexican law also provides for a judicial official to 
issue an "amparo" (injunction) to shield defendants from arrest. 
U.S. investors involved in commercial disputes should therefore 
obtain competent Mexican legal counsel, and inform the U.S. Embassy 
if arrest warrants are issued. 
 
Performance Requirements and Incentives 
 
The 1993 Foreign Investment Law eliminated export requirements 
(except for maquiladora industries), capital controls, and domestic 
content percentages, which are prohibited under NAFTA. Foreign 
investors already in Mexico at the time the law became effective 
could apply for cancellation of prior commitments. Foreign investors 
who failed to apply for the revocation of existing performance 
requirements remained subject to them. 
 
The Mexican federal government has eliminated direct tax incentives, 
with the exception of accelerated depreciation. A comprehensive 
fiscal reform package including changes to corporate, individual, and 
other taxes has been proposed. Some changes to tax law under this 
framework were approved with the 2005 Revenue Bill, reducing 
income tax rates on a gradual basis. Needed comprehensive fiscal 
reform has stalled although the current administration has indicated 
it will pursue the matter in the coming years.  Investors should 
follow this development closely as whatever reforms that ultimately 
emerge could have implications for investors. 
 
Most taxes in Mexico are federal; therefore, states have limited 
opportunity to offer tax incentives. However, Mexican states have 
begun competing aggressively with each other for investments, and 
most have development programs for attracting industry. These 
include reduced price (or even free) real estate, employee training 
programs, and reductions of the 2 percent state payroll tax, as well 
as real estate, land transfer, and deed registration taxes. Four 
northern states - Nuevo Leon, Coahuila, Chihuahua and Tamaulipas - 
have signed an agreement with the state of Texas to facilitate 
regional economic development and integration. Investors should 
consult the Finance, Economy, and Environment Secretariats, as well 
as state development agencies, for more information on fiscal 
incentives. Tax attorneys and industrial real estate firms can also 
be good sources of information. 
 
U.S. Consulates have reported that the states in their consular 
districts have had to modify their incentive packages due to 
government decentralization. Many states have also developed unique 
industrial development policies. Sonora, for example, is working to 
expand the free entry area for tourists (south from the border to the 
port of Guaymas). Sonora is one state that has implemented long-term 
agriculture and infrastructure development plans. The government of 
Yucatan provides information and support to potential investors and 
business entrepreneurs through several programs that target 
different industries such as technology, agroindustry and energy 
exploration. 
 
There is a government-owned development bank, Nacional Financiera, 
S.A. (www.nafin.com), which provides loans to companies in priority 
development areas and industries. It is active in promoting joint 
Mexican-foreign ventures for the production of capital goods. 
Nacional Financiera offers preferential, fixed-rated financing for 
the following types of activities: small and medium businesses; 
environmental improvements; studies and consulting assistance; 
technological development; infrastructure; modernization; and 
capital contribution.   The Mexican Bank for Foreign Trade, 
Bancomext, offers a variety of export financing and promotion 
programs (www.bancomext.com). 
 
Mexico has two programs to stimulate manufactured exports - 
maquiladora and PITEX (Program for Temporary Imports to produce 
Exports) - that largely operate in the same manner. The first is 
focused on companies that specialize in in-bond manufacturing and 
export, while the second is for companies that may have significant 
domestic sales.  In November 2006, the maquiladora and PITEX programs 
were combined into the renamed IMMEX (Industria Manufacturera, 
Maquiladora y Servicios de Exportacion) program. The IMMEX program 
adds services, such as business process outsourcing, to the maquila 
scheme and also simplifies and streamlines the processes under the 
two previous schemes.   The new program will continue to exempt 
companies from import duties and applicable taxes (e.g. VAT) on 
inputs and components incorporated into exported manufactured goods. 
In addition, capital goods and the machinery used in the production 
process are tax exempt, but are currently subject to import duties. 
 
MEXICO 00000212  006 OF 007 
 
 
Companies interested in investing in industrial activity in Mexico 
need to follow the new IMMEX guidelines closely, preferably in close 
consultation with locally based legal advisors.  Please refer to 
the Secretariat of Economy's IMMEX program website at: 
http://www.economia.gob.mx/?P=2297 
 
In order to maintain competitiveness of maquiladora and PITEX 
companies and comply with NAFTA provisions, since 2001 Mexico has 
applied "Sectoral Promotion Programs" (PROSEC). Under these programs, 
most favored nation import duties on listed inputs and components 
used to produce specific products are eliminated, or reduced 
to a competitive level. These programs comply with NAFTA provisions 
because import duty reduction is available to all producers, whether 
the final product is sold domestically or is exported to a NAFTA 
country.  Currently there are 22 PROSECs, including electronics 
and home appliances, automotive and auto-parts, textile and apparel, 
footwear, and others. The lists of inputs and components incorporated 
under each PROSEC are not exhaustive, and the Mexican government 
regularly consults with industries to include more goods. 
 
In the last three years the Secretariat of Economy conducted, in 
partnership with the private sector, 12 studies, called "Programs for 
Sectoral Competitiveness", of the country's most important sectors 
according to their levels of exports, employment and FDI.  Studies 
covering the electronics, automotive, textile, maquiladora, leather 
and footwear, and software sectors are currently available at the 
website of the Secretary of Economy: 
(http://www.economia.gob.mx/index.jsp?P=944). 
 
Right to Private Ownership and Establishment 
 
Foreign and domestic private entities are permitted to establish and 
own business enterprises and engage in all forms of remunerative 
activity in Mexico, except those enumerated in Section 1 Table 1. 
Private enterprises are able to freely establish, acquire and 
dispose of interests in business enterprises. The two most common 
types of business entities are corporations (Sociedad Anonima) and 
limited partnerships (Sociedad de Responsibilidad Limitada). Under 
these legal entities a foreign company may operate an independent 
company, a branch, affiliate, or subsidiary company in Mexico. 
The rules and regulations for starting an enterprise differ for each 
structure. 
 
Corporation                Limited Liability Company 
(Sociedad Anonima)         (Sociedad de Responsibilid Limitada) 
 
Can be up to 100           Can be up to 100 
percent foreign-owned.     percent foreign-owned. 
 
Must have a minimum        Must have a minimum of 
of 50,000 Mexican          3,000 Mexican pesos in capital stock 
pesos in capital stock     to start. 
to start. 
 
Must have minimum of       Must have a minimum of 
2 shareholders, with       2 partners to incorporate 
no maximum. Board of       a corporation with limited 
Directors can run the      liability. The partners 
administration of the      must manage the company. 
company. 
 
The enterprise has an      Exists only while there 
indefinite life span.      is a business purpose and 
                           partners remain the same. 
 
Free transferability       Restricted transferability 
of stock ownership is      of partnership shares. 
permitted.                 Any changes in the 
                           partnership composition 
                           may cause the partnership 
                           to be liquidated. 
 
Operational losses         If structured properly, 
incurred by the            it may offer tax advantages 
Mexican entity or          by allowing operational 
subsidiary may not be      losses incurred by the 
used by the U.S.           Mexican entity to be used 
parent company.            by the U.S. parent company. 
 
Limited liability          Limited liability is 
to shareholders.           afforded the partners. 
 
Protection of Property Rights 
 
Two different laws provide the core legal basis for protection of 
intellectual property rights (IPR) in Mexico -- the Industrial 
 
MEXICO 00000212  007 OF 007 
 
 
Property Law (Ley de Propiedad Industrial) and the Federal Copyright 
Law (Ley Federal del Derecho de Autor).  Multiple federal agencies 
are responsible for various aspects of IPR protection in Mexico. 
The Office of the Attorney General (Procuradur!a General de la 
Republica, or PGR) has a specialized unit that pursues criminal IPR 
investigations.  The Mexican Institute of Industrial Property 
(Instituto Mexicano de la Propiedad Industrial, or IMPI) administers 
Mexico's trademark and patent registries and is responsible for 
handling administrative cases of IPR infringement.  The National 
Institute of Author Rights (Instituto Nacional del Derecho de Autor) 
administers Mexico's copyright register and also provides legal 
advice and mediation services to copyright owners who believe their 
rights have been infringed.  The Mexican Customs Service (Aduana 
MQxico) plays a key role in ensuring that illegal goods do not cross 
Mexico's borders. 
 
Despite strengthened enforcement efforts by Mexico's federal 
authorities over the past several years, weak penalties and other 
obstacles to effective IPR protection have failed to deter the 
rampant piracy and counterfeiting found throughout the country. 
The U.S. Government continues to work with its Mexican counterparts 
to improve the business climate for owners of intellectual property. 
 Please refer to the Embassy's IPR Toolkit for more information: 
http://mexico.usembassy.gov/mexico/IPR.html 
 
Mexico is a signatory of at least fifteen international treaties, 
including the Paris Convention for the Protection of Industrial 
Property, the NAFTA, and the WTO Agreement on Trade-related Aspects 
of Intellectual Property Rights. Though Mexico signed the Patent 
Cooperation Treaty in Geneva, Switzerland in 1994, which allows for 
simplified patent registration procedure when applying for patents 
in more than one country at the same time, it is necessary to 
register any patent or trademark in Mexico in order to claim an 
exclusive right to any given product.  A prior registration in the 
United States does not guarantee its exclusivity and proper use in 
Mexico, but serves merely as support for the authenticity of any 
claim you might make, should you take legal action in Mexico. 
 
An English-language overview of Mexico's IPR regime can be found 
on the WIPO website at: 
http://www.wipo.int/about-ip/en/ipworldwide/p df/mx.pdf 
 
Although a firm or individual may apply directly, most foreign firms 
hire local law firms specializing in intellectual property. 
The U.S. Embassy's Commercial Section maintains a list of such law 
firms in Mexico at: 
http://www.buyusa.gov/mexico/en/business_serv ice_providers.html 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity 
GARZA