Following the election of President Enrique Peña Nieto in July 2012, Mexico’s three major political parties began holding joint discussions on the trajectory of reforms that Peña planned to undertake during his administration. The final product of the three-party meetings was the Pact for Mexico (Pacto por Mexico), an ambitious program of sweeping reforms aimed at restructuring the economy and enhancing anticorruption enforcement in Mexican society. Since the three parties announced the Pact on December 2, 2012 – the day after Peña took office – the reforms have attracted a wide degree of praise and support from across the Mexican political spectrum.
A substantial portion of the Pact includes reforms intended to boost Mexico’s economic growth and competitiveness. If implemented successfully, the economic reforms have the potential to transform an already attractive emerging market into a Latin American powerhouse on the same order as Brazil. Furthermore, the Pact contains plans for major changes and improvements to Mexico’s criminal law and judicial procedures, as well as anti-corruption and transparency initiatives designed to end the predations of bureaucrats and reshape the relationship between Mexicans and their government.
Many of the Pact’s reforms will have a substantial impact on both Mexican companies and foreign companies operating in Mexico. In this client alert, we will provide an overview of those reforms and an analysis of their possible effect on local and foreign companies.