Legal certainty for foreign investment

Signing Agreements on Reciprocal Promotion and Protection of Investments (RIPPA) is part of a strategy established by the Mexican government to provide national and foreign investors a legal framework that offers stronger protection for foreign investment in Mexico and Mexican investment abroad.

In general, RIPPAs cover the following disciplines: investment definition, scope of application, promotion and admission, investment treatment, expropriation, transfers and resolution of Investor-State and State-State controversies.

Mexico has signed 27 of these agreements.

Furthermore, some of the Free Trade Agreements that Mexico has signed include a chapter on investment that is similar to an RIPPAs, for example, the agreements signed with the US, Canada, Chile, Colombia and Japan.

The institutional framework that relates to trade agreements regarding investment (through RIPPAs) brings legal certainty to businesses that decide to establish operations in Mexico.