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Mexico negotiates APPRI with South Korea, China and Switzerland

The Ministry of Economy is negotiating Agreements for the Promotion and Reciprocal Protection of Investments (APPRI) with South Korea, China and Switzerland.

On January 11 and 12, 2022, the fifth meeting of negotiations for the modernization of the APPRI between Mexico and South Korea was held.

Then on May 30 and June 1 of the same year, the sixth meeting was held.

According to the Ministry of Economy, in both meetings significant progress was made in the review of both substantive and procedural disciplines.

On the other hand, the second round of negotiations for the modernization of the APPRI between Mexico and Switzerland was held on January 25 and 26, 2022. The third round was held from May 4 to 6.

The Ministry of Economy said that important progress was made in the main substantive disciplines and the procedural aspects of this eventual agreement with Switzerland were discussed in general.

Finally, the second round of negotiations for the modernization of the APPRI between Mexico and China was held on December 6 and 7, 2021, and an additional meeting was held on April 7, 2022. As a result of these meetings, both parties explained the approaches and scope for the modernization of the APPRI.

In 2022, according to the World Trade Organization (WTO), Mexico has 30 Agreements for the Promotion and Reciprocal Protection of Investments; 12 free trade agreements with investment clauses; 1 Agreement on Cooperation and Facilitation of Investments (ACFI), and 60 agreements on double taxation.

APPRI

Mexico participates in the Convention Establishing the Multilateral Investment Guarantee Agency (MIGA) and, since 2018, in the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention).

Mexico does not apply exchange restrictions or restrictions to repatriate what is invested or pay profits, dividends, interest and royalties abroad.

However, remittances, including the payment of dividends and profits and any type of earnings, are subject to a tax.

As negotiated in the APPRIs and trade agreements, Mexico may temporarily limit transfers abroad to maintain balance of payments equilibrium.

Since 2017, three APPRIs have entered into force in Mexico (United Arab Emirates; Hong Kong, China; and Turkey).

 

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