March 1, 2001
It is essential for foreign companies or individuals considering investing or doing business in Mexico, to understand certain basic concepts and facts of the country's legal framework and its enforcement.
A modern substantive legal system is useless if it cannot be enforced in an effective, predictable and transparent manner. Potential investors in Mexico need to understand the "rules of the game" and how those rules will be enforced. Such enforcement is only possible through efficient and transparent judicial function.
Mexico is a democratic and federal republic. Commercial and business activities are subject to federal legislation, although local laws may also apply. It
While based on similar constitutional principles, Mexico's confined legal framework differs from the US common law system. Foreign investors should understand the basics of the country's legal system and its enforcement.