BUYING PROPERTY IN MEXICO'S 'RESTRICTED ZONE': THE MISSED OPPORTUNITY THAT WAS THE 2013 BELTRONES PROPOSAL TO AMEND ARTICLE 27 OF THE MEXICAN CONSTITUTION

I. INTRODUCTION On April 3, 2013, Manlio Fabio Beltrones introduced a proposal to amend the Mexican Constitution. 1 The proposal suggested amending the provision of Article 27 of the Mexican Constitution of 1917, which prohibits foreigners from owning land within the "Restricted Zone." 2 The "Beltrones Proposal" quickly sailed through the Mexican Constitutional Commission of the Federal Congress (Chamber of Deputies) where the Chamber voted to approve the measure on Saturday April 20, 2013. 3 As of February 2014, the Mexican Senate was still considering the proposal, which if passed would have sent shockwaves through the entire Mexican economy. However, by late February the initiative was rejected, according to a report from the Secretary of Government. The rejection occurred because the Mexican Senate did not adhere to the procedure set forth in Article 89, number 2, Section III of the Rules of the Chamber of Deputies. 4 This Note proposes the general idea that the Beltrones amendments would have been successful in the short term because they would have allowed more foreigners to buy real estate. However, the proposed amendments did not allow individual foreigners to engage in any non-residential activity within the Restricted Zone. This Note argues that in the long run the proposed amendments may not have been nearly as successful as anticipated, because much of what foreigners would want to do near the border or the coast revolves around small businesses or professional services, which the proposed amendments prohibited. Those who do not comply ...