Mexico put into force an Agreement for the Protection and Reciprocal Promotion of Investments (APPRI) with Hong Kong this Wednesday.
The APPRIs create a framework of clear and transparent rules that, on the basis of reciprocity, legally protect capital flows destined for the productive sector and, among others, contribute to:
- Improve the climate for foreign direct investment (FDI) in the country and strengthen Mexico’s capacity to attract productive foreign capital to any sector by transmitting positive signals and legal security to the international business community.
- Improve conditions abroad for Mexican investors.
- Promote the diversification of FDI flows that the country receives.
- Consolidate a legal framework more favorable to investment.
- Maintain and improve Mexico’s competitive position as a recipient of FDI among developing countries.
“Between Mexico and Hong Kong there is an important relationship in terms of investment that today is strengthened even more,” said the Ministry of Economy in a press release.
Hong Kong is Mexico’s 26th investor worldwide and from 1999 to March 2021, Hong Kong’s accumulated investment in Mexico totaled $ 1.18 billion.
“The entry into force of the BIT reaffirms the interest of both nations to deepen bilateral economic relations and expand the potential that exists for the exchange of investments between both governments, by providing legal certainty that guarantees competition and increases the legal security of the investors and the investments of both parties ”, added the Ministry of Economy.
With this APPRI, Mexico expands its network of international investment agreements to 30, adding to Mexico’s APPRIs in force with Germany, Argentina, Austria, Bahrain, Belarus, China, Korea, Cuba, Denmark, United Arab Emirates, Slovakia , Spain, Finland, France, Greece, Iceland, Italy, Kuwait, Netherlands, Portugal, United Kingdom, Czech Republic, Singapore, Sweden, Switzerland, Trinidad and Tobago, Turkey, Belgian-Luxembourg Economic Union and Uruguay.