MEXICO - HONG KONG BILATERAL INVESTMENT TREATY, BIT, Doing Business, Investing Mexico, Investments, Manufacturing

English, News


11 Jun , 2021  

Today, June 11, 2021, the Mexican Government published in the Official Gazette of the Federation, the Mexico-Hong Kong Bilateral Investment Agreement. This treaty will enter into force on June 16, 2021, and will protect investments and investors from Mexico and Hong Kong.

Our partner and director of VTZ Chinese Desk, Susana Muñoz, was part of the Mexican negotiating team for this BIT. Our partner highlights that the entry into force of this Agreement comes at a time when hundreds of Hong Kong-owned manufacturing companies from southern China are seeking to bring their operations closer to the US.

Bilateral Investment Treaties (BIT) 

With this new treaty, Hong Kong will increase to 22 Bilateral Investment Treaties (BITs) that cover 31 foreign economies. Mexico, on the other hand, will have 30 BITs.

Investments from Hong Kong in Mexico

Currently, there are more than 200 companies registered in Mexico with Hong Kong capital, representing an investment of 1.18 billion USD.

The Mexico-Hong Kong Bilateral Investment Treaty

This Treaty will serve as a regulatory framework to offer investors from both regions fair, equitable, and non-discriminatory treatment in their investments; compensation in case of expropriation of investments; and the right to free transfers abroad of their investments and returns.

In addition, this BIT also provides dispute settlement mechanisms under internationally accepted rules, including arbitration. In light of the above, we expect this BIT to be an ideal instrument for attracting Hong Kong investment into Mexico.

More Confidence to Invest and Doing Business in Mexico

The Mexico-Hong Kong Bilateral Investment Treaty will increase investor confidence, expand investment flows between these two economies, and further strengthen bilateral economic and trade ties.

If you have any questions, please feel free to contact us: info[@]

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