La Jornada: The Executive proposes preventing foreign investment from harming national security

The proposal, which was sent to the Senate for analysis and voting, proposes strengthening the integration of the National Foreign Investment Commission (CNIE), so that it not only evaluates operations with an economic criterion but also a security criterion to identify and prevent purchases that could compromise strategic interests.

It is proposed to add to the CNIE the heads of the Secretariats of National Defense, the Navy and Security and Citizen Protection. Those responsible for the Attorney General’s Office, the National Intelligence Center, the Tax Administration Service and the Financial Intelligence Unit would also be invited to the sessions.

The 34-page document adds to the law a sixth bis title on national security in foreign investments. It states that a favorable resolution from the respective commission will be required for foreign capital to participate directly or indirectly in a percentage greater than 49 percent of the share capital of a Mexican company located in strategic sectors, such as energy, transportation, mining, and data processing or storage.

There are also critical technologies and dual-use products (military and civil), including artificial intelligence, robotics, semiconductors, cybersecurity, aerospace, defense, quantum and nuclear energy storage technologies, as well as nanotechnologies and biotechnologies.

Included in the list is the supply of fundamental inputs, particularly energy and raw materials; food safety, and access to sensitive information, such as personal data. The current Foreign Investment Law provides for the eventual impediment of certain business acquisitions; However, it does not establish the parameters and guidelines that the federal Executive now proposes.