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Published online by Cambridge University Press: 05 November 2014
The Mexican Constitution has prohibited monopoly since its ratification in 1917. Historically, however, Mexican competition policy initiatives and practices began during the mid-1980s to procure ending central government control and the protection of national economy in an effort to develop, instead, a market-based economy. Within the initial activities conducted by the Mexican government was adherence to the General Agreement on Tariffs and Trade (GATT), and as a result most compulsory import licences which had existed until then were eliminated and official import prices abolished. In addition, in 1994, Mexico entered into the North American Free Trade Agreement (NAFTA), the signing of which was followed by Mexico entering into free trade agreements with the European Union and other Latin American countries.
During the early 1990s the government also undertook important initiatives aiming at the privatisation of state-owned corporations, the largest of these being the sale of Telefonos de México, the telephone monopoly, which was followed by the privatisation of commercial banks, tv-broadcasting, satellites, airport and seaport facilities, as well as railway companies.
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