Mexico Senate approves foreign investment law reform

The Mexican Senate has approved a reform to the Foreign Investment Law (LIE), which establishes a new mechanism for reviewing foreign acquisitions that may impact national security. The reform has now been sent to the Chamber of Deputies for further discussion and potential approval.

Under the proposed changes, the National Commission of Foreign Investments (CNIE) will oversee a scrutiny process for operations where a foreign investor seeks to acquire more than 49% of a Mexican company's capital, provided the transaction meets certain monetary thresholds and involves strategic sectors. These sensitive areas include strategic physical and virtual infrastructure, energy, critical technologies, dual-use products, food security, and the management of sensitive information.

The International Chamber of Commerce México (ICC México) has emphasized that while protecting national security is a legitimate goal, the new rules must be clear, transparent, and objective to avoid creating uncertainty for international investors. The organization noted that similar review mechanisms exist in Canada and the United States and suggested that Mexico could align its processes to improve North American coordination, particularly regarding supply chain relocation.