Legal certainty for foreign investment

Signing Reciprocal Investment Promotion and Protection Agreements (RIPPAs) 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 include the following topics: investment definition, scope of application, promotion and admission, investment treatment, expropriation, transfers and resolution of Investor-State and State-State controversies.

Mexico has signed 28 of these agreements.

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

This institutional framework brings legal certainty to businesses that decide to establish operations in Mexico.