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This paper describes the most relevant aspects of the former and current national content policy for the hydrocarbons sector in Mexico. This policy was initiated in 2008 as a result of a legislative reform that required the national oil company, Petróleos Mexicanos (Pemex), to establish mandatory provisions regarding the inclusion of obligatory state requirements to include local content in its contracts. Before 2008, no local content requirements were considered mandatory. The reform resulted in the issuance in 2009 of the Strategy for Developing Suppliers, Contractors and National Content, which was implemented between 2010 and 2014. More developments followed as a result of the 2013 reform, which established mandatory local content requirements for all companies partaking in exploration and production activities, although local content requirements for deep and ultra deep-water operations would not contribute to the fulfilment of the overall national content goals in the Mexican hydrocarbons industry between 2025 and 2035. Thus, this chapter will provide an overview of the legislative and institutional establishment of local content policy in Mexico and discuss some of its salient and economic implications.
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