Joint Venture Agreement Mexico


With respect to the clauses contained in joint venture agreements, these may vary considerably, as they are not expressly governed by Mexican contract law. Regardless of the above, the common clauses are: Joint ventures are therefore the “gender,” while “strategic partnerships” and “co-investments” are cash, and these concepts could be defined as follows: strategic partnerships or strategic alliances, type or type of joint venture, are agreements involving a project of cooperation between two or two companies. The idea is to share resources (office buildings, researchers, clients, know-how, etc.) and risks (without guarantee of obtaining results). In other words, each company offers features or characteristics that the other company needs, for which the purpose or end may be usual or different. In this type of joint venture, the parties are not able to invest in money, but in their qualities or characteristics. An example may be where a company allows another company to use its facilities for purposes other than those in which it normally participates to increase the flow of customers into its stores (i.e. express stationery delivery services). With regard to other legal considerations, it should be noted that in Mexico, joint ventures can be considered legal entities and may even lead to the creation of a stable institution for foreign investors in Mexico. In this sense, it is essential, when developing a joint enterprise contract, to take into account Mexican tax legislation and/or a relevant tax treaty. Finally, federal competition law must also be taken into account, as joint venture agreements can pose problems of cartels and abuse of dominance. In light of all these factors, we believe that the opportunities for U.S. companies to create joint ventures with Mexican companies to enter the Mexican market are unprecedented.

Although the future is never clear, many political and economic indicators indicate that Mexico is a harbinger of continued economic progress in Latin America. The size and proximity of Mexico make it an ideal springboard for the entire Latin American market. The U.S. Embassy estimates that two-thirds of Mexico`s foreign investment (approximately $7.1 billion) comes from the United States (OBA/BIAD, 1990). Mexico is the 14th largest country in the world and has the twelfth largest number. On the other hand, co-investment is another type of joint venture in which two people or companies, unlike strategic partnerships, invest money or property in a common project.