Business & Politics Outlook Articles

National Treatment Extended for Foreign Investors under Article 17 of Mexico’s Foreign Investment Law

By Marimar Pérez-Cacheaux

In accordance with article 17 of Mexico’s Foreign Investment Law, foreign business entities that plan to conduct business in an ongoing manner, or that plan to establish themselves in Mexico, are required to request authorization from the Mexican Department of Economy. Notwithstanding this fact, as a result of the execution of various free trade treaties, Mexico agreed to grant investors of the treaty nations treatment that is no less favorable than that which it grants to domestic Mexican investors. Therefore, in August 2012, the Department of Economy published a resolution setting forth the criteria for the applicability of article 17, which waives the requirement to obtain authorization from the Department of Economy for those business entities established in treaty nations, … read more

Recent Jurisprudence – Trademarks. Foreign Language

By Adrián Salgado

Recently, the Full Session on Administrative Matters of the First Circuit of the Supreme Court of Justice of the Nation approved legal opinion number PC.I.A. J/23 A (10a), titled: “Trademarks. The Mexican Institute of Industrial Property has the authority to translate words in a foreign language that are submitted for registration in order to determine their viability for registration.” In this legal opinion, the court resolves, by contradictory legal opinion, that the Mexican Institute of Industrial Property may translate words submitted for registration that are in a foreign language in order to determine whether such may be registered through means of the trademark examination procedure. The foregoing applies, considering that section XXII of Article 6 of the Industrial Property Law … read more

Potential Popular Referendum on Mexico’s Energy Reform

By José María Lujambio I.

In August 2012, a decree of reforms to the Mexican Constitution on political matters was published in the Official Journal of the Federation to, among other things, recognize the right of citizens to vote in popular referendums on issues of national importance. Since then, this mechanism of direct democracy has complemented the representative democracy model shaped by Articles 39, 40 and 41of the Constitution. In terms of Article 35, section VII of the Constitution, popular referendums shall be called by Mexico’s Federal Congress at the request of the President of at least 33% of the members of each of its chambers, or the equivalent of a minimum of 2% of registered voters. Under the latter option, last April members of … read more

Calderon Assumes Presidency and Names His Cabinet

In the face of blockades and protests, Felipe Calderon Hinojosa assumes Mexico’s presidency and announces his government’s priorities. Felipe Calderon Hinojosa took the oath of office on December 1st as President of Mexico in the Legislative Palace of San Lazaro in the face of blockades impeding his access to such chamber by legislators from the Party of the Democratic Revolution (PRD). Mexico’s new president announced that the three priorities of his government will be security, reducing poverty and creating jobs, and he provided various proposals to confront the problems that exist in these areas. The Mexican executive’s new cabinet: a technocrat and modernizer. The cabinet of President Felipe Calderon Hinojosa will be comprised of twenty secretaries that the international press … read more

US-Mexico Trade Relations Not as Sweet Due To Potential Trade War on Sugar and High Fructose Corn Syrup

By guest Les Glick

A recent case under the antidumping and countervailing duty law against imported Mexican sugar is only the latest chapter in the complicated saga of the relationship between the United States and Mexico when it comes to sugar. Sugar has been an impediment to the economic integration of the two countries that was originally foreseen at the signing of the North American Free Trade Agreement (NAFTA). Indeed, due to a dispute between the countries involving the importation of U.S. high fructose corn syrup (HFCS) into Mexico, Mexico did not gain full access to the U.S. market for sugar exports through NAFTA until 2008. In their petition for the imposition of antidumping and countervailing duties on imports of sugar from Mexico, the complainants, … read more

Intellectual Property Notes – Comparative Advertising of Trademarks

By Antonio Campero

Comparative advertising is a tool used in many countries to highlight the benefits of products recognized by the general public by means of the trademark indicated thereon, so that potential consumers can have additional information in order to make an informed decision regarding the purchase of advertised products. In Mexico, comparative advertising occurs in only rare cases, because including trademarks belonging to third parties in one’s own advertising is often considered an infringement that can give rise to penalties from Mexico’s IP authorities, based on the fact that current legislation on this issue establishes that no one “shall disparage or attempt to do so with respect to the products, services, industrial or commercial activities or the establishment of another,” and, … read more

Political Thermometer

Mexico’s political temperature continues to rise as the political campaigns formally begin their march towards Mexico’s upcoming election.  The public is now learning of the candidates’ proposals, and while there had been indications of what each candidate’s proposal would contain, they are now learning the details of each candidate: Andres Manuel Lopez Obrador, for the MORENA-PES-PT, Ricardo Anaya, for the PAN-PRD-MC,  and Jose Antonio Meade, for the PRI-PVEM-PANAL, who are joined by Margarita Savala and Jaime Rodriguez Calderon (Mr. Rodriguez is also known as “El Bronco”), as two independent candidates who have gained entry onto the presidential ballot. In light of the confusion generated by the various party coalition, in which it has been difficult to distinguish the ideological formulas … read more

The 2018 Political Year

Political Thermometer

For Mexico and the United States 2018 will be a crucial political year, notwithstanding the impact that the global economy will have on the lives on citizens of both countries. In the U.S., 2018 will feature congressional mid-term elections in which the composition of the U.S. Congress, and in particular the U.S. Senate, will be hotly contested. The current majority held in the Senate by the Republican Party could change if enough Democrats are elected to wipe out the small majority currently held by Republicans.   Mexico will hold its presidential elections this year and will vote on a completely new federal Congress. The 2018 Mexican election will feature 128 Senate contests, consisting of three senators from each state (96 … read more

Political Thermometer

As soon as the second half of 2017 begins, Mexico is already in 2018. Politics continues to be the activity that occupies much of the lives of Mexicans. Now, in full electoral mode, the country has the democratic opportunity to decide who will take the country’s reins. Gone are the times when everything revolved around a one-man decision, with the ability to decide who would be his successor. This so called “dedazo” was almost left behind in the wake of recent democratic reforms. Nevertheless, the President still has the capacity to influence the election by choosing who will run for President of the Republic on the Institutional Revolutionary Party (PRI) ballot. This heats up the political atmosphere because in the … read more

Mexican Tourism Welcomes Good News

Recent hard times in Mexico have made it difficult to highlight, as should be the case, the progress and achievements of society as a whole, regardless of whether such progress has occurred in the public or private sector. Bad news related to violence, insecurity, corruption and organized crime has generated public distrust. This has prevented a clear appreciation of a series of achievements in different areas that evidence Mexico’s progress. It is true that some electoral results have been criticized, but it is equally true that they were processes that have been conducted without major problems. The fact that the winning candidates do not have high percentages of votes in their favor is the result of the spreading of votes … read more