Vanderbilt Journal of Transnational Law

First Page



The economic crisis in Mexico, which profoundly altered the financial and political course of that nation, has also had a significant impact on persons and corporations having business ties to Mexico. Foreign investors and businesses now are required to follow new Mexican rules that often differ dramatically from those previously in effect. The impact of the crisis has not been confined to changes in Mexican law. A substantial number of issues have arisen that will have significant bearing on United States and international law.

The Special Project discusses the changes in the legal environment following the crisis, with its focus upon issues confronting private persons, principally foreign businesses and investors. The Introduction and Overview summarizes the history and structure of Mexico's regulation of foreign investment and recounts the events of the crisis. The first section of the Special Project examines the problems faced by foreign lenders and creditors. Specifically, it addresses the following: (1) the Mexican regulations that set forth the schedules for repayment of amounts owed to foreign creditors; (2) the possibilities for relief should the obligations be dishonored; (3) the efficacy of leading proposals for the restructuring of Mexican and international debt; and (4) the recently promulgated laws and regulations that will govern future international lending activity by United States banks. The second section explores the problems of investors in devalued peso-denominated accounts and the applicability of United States securities laws to those obligations. Section three addresses the immigration problem now exacerbated by the economic crisis and discusses the scope, effect, and wisdom of the proposed Simpson-Mazzoli Bill. The fourth section studies transborder environmental issues that recently have arisen as a result of Mexico's desire for rapid industrial development.