MEXICO Law and Practice Contributed by: Allan Kaye Trueba, Rebeca Sánchez and Mariana Santillán, Aziz & Kaye Business Law
Aziz & Kaye Business Law Edificio Reforma Plus Paseo de la Reforma #2620 suite 304 Col. Lomas Altas Alcaldía Miguel Hidalgo C.P. 11950 Mexico City Mexico Tel: +52 55 5985 6605 Email: contacto@azizkaye.com Web: www.azizkaye.com/english/index.html
1. Market Conditions 1.1 Geopolitical and Economic Factors Setting up a joint venture (JV) is one of the main strat - egies for companies seeking to navigate the com - plexities of the Mexican market while leveraging local expertise. Activities related to JVs have recently been impacted by several factors, such as those outlined below. Currency Fluctuations The peso’s strong performance has complicated matters for foreign companies seeking cost-efficient participation in JVs. This has made acquisitions and partnerships potentially more expensive for interna - tional investors. However, several geopolitical factors (such as US foreign policy) may impact the Mexican currency and cross-border transactions. Geopolitical Factors Tensions between the United States and China have played a significant role in companies needing to explore alternative substitute markets, with Mexico emerging as an attractive option. Foreign companies interested in entering the Mexican market are assess - ing three main approaches: • establishing a buyer-seller relationship; • forming a JV; or • pursuing an acquisition. However, global relocation activities, such as nearshoring, have been affected by US foreign policy.
US Foreign Policy The evolving foreign policy of the United States pre - sents challenges for cross-border JVs, creating an environment of uncertainty that may affect investor confidence and complicate long-term strategic plan - ning. Nevertheless, Mexico continues to benefit from its geographic proximity to the US. For JV partners, this environment requires careful risk assessment and flexible structuring, but Mexico’s established manufacturing base, skilled workforce, and evolving regulatory framework for emerging tech - nologies continue to present opportunities for com - panies seeking to diversify supply chains and access North American markets through strategic partner - ships. 1.2 Industry Trends and Emerging Technologies The artificial intelligence sector represents an area of increased interest, with companies assessing market entry and expansion strategies within Mexico and joint ventures emerging as one of the alternatives for cross- border transactions. While this trend may not yet translate into broader macroeconomic indicators, it reflects growing momen - tum in the technology sector driven by Mexico’s stra - tegic position and accommodating regulatory envi - ronment for emerging technologies. As of September 2025, Mexico has not enacted comprehensive federal legislation specifically regulating artificial intelligence,
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