Decree for the Immediate Authorization of Investments

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May 4, 2026

Background and Purpose

The Federal Executive (El Ejecutivo Federal) published a decree aimed at accelerating the establishment and operation of investment projects in Mexico, including Development Poles, Economic Development Poles, and Circular Economy Development Poles, in order to promote economic growth, strengthen the competitiveness of economic sectors, encourage job creation, and foster productive value chains.

The instrument seeks to reduce administrative burdens, improve coordination among authorities, and facilitate the execution of strategic projects, in line with the National Development Plan 2025–2030 (Plan Nacional de Desarrollo 2025–2030). In particular, it responds to the relocation of supply chains (nearshoring) and the need to enhance the country’s competitiveness.

Structural Elements of the Decree

The Decree introduces an institutional framework that combines administrative simplification with centralized control. Three key elements stand out: (i) the creation of an Authorization that allows projects to begin immediately; (ii) the implementation of a National Digital Investment Window as a single point of contact; and (iii) the establishment of an Investment Committee responsible for evaluating, authorizing, and monitoring projects. Additionally, a Presidential Office for Investment Promotion is created to serve as a support and coordination body.

Scope and Eligible Projects

The Decree applies to private projects that meet certain economic relevance criteria. In particular, it includes projects located in development poles, investments equal to or greater than MXN $2,000 million, as well as projects in strategic sectors such as technological infrastructure, data processing, advanced manufacturing, textiles and apparel, semiconductors, automotive and auto parts, medical devices, pharmaceutical, biopharmaceutical, aerospace, energy, chemical, among others.

Authorization Procedure

Applications for authorization must be submitted through the National Digital Investment Window and include detailed project information, including corporate documentation, technical description, investment timeline, sources of financing, employment impact, and regulatory compliance. The Investment Committee must issue a resolution within 30 business days. In the event that the submitted information is incomplete, the authority may request its correction within short timeframes (10 days to request and 5 days to remedy).

Effects of the Authorization

The Authorization allows investors to begin the execution of their projects immediately, without prejudice to continuing with the process of obtaining the permits, licenses, and authorizations required under applicable law. This model involves parallel processing of procedures, representing a significant shift from the traditional framework.

The Authorization will be valid for one year from its issuance and may be renewed up to two times for an equal period, provided that the investment project shows at least 90% of the committed progress within the corresponding period.

Additionally, the Decree provides for cases of tacit approval when authorities do not issue a decision within the established timeframes in relation to investment projects that do not have an Authorization but are processed through the National Digital Investment Window.

Obligations of Investors

Investors must comply with regulatory obligations throughout the validity of the Authorization, including the submission of periodic progress reports, compliance with environmental, tax, and labor regulations, and the engagement of local suppliers under the terms determined by the Investment Committee. Likewise, they must maintain a valid civil liability insurance policy covering potential damages arising from the project.

Regulatory Risks

The framework established by the Decree does not eliminate regulatory risks. The Authorization may be suspended or revoked in cases of non-compliance, submission of false information, or lack of progress in accordance with the timeline. Likewise, the early execution of projects entails assuming risks associated with the subsequent obtaining of sectoral permits.

Implications for Investors

The Decree represents a relevant opportunity to accelerate investment projects in Mexico, particularly in the context of the relocation of supply chains. However, it also requires greater initial preparation and comprehensive regulatory compliance management. Investors must adopt a strategic approach to take advantage of the benefits of the framework without incurring unnecessary risks.

SINCERELY,

Gerardo Nieto

nieto@basham.com.mx

Gil Zenteno

zenteno@basham.com.mx

Alejandro Barrera

barrera@basham.com.mx

Sergio Barajas

barajas@basham.com.mx

Víctor Barajas

mbarajas@basham.com.mx

Ramón de la Torre

rdelatorre@basham.com.mx