Economic Constitution of Mexico

Introduction

The “Economic Constitution” (Constitución Económica) refers to the set of constitutional provisions that establish the economic order of Mexico, including the allocation of economic functions among the state, private sector, and social sector. Articles 25, 26, 27, 28, 31, and 73 of the Constitution form the core of the economic constitution, addressing economic planning, property rights, natural resources, competition, and taxation.

State Role in the Economy

Article 25 establishes the state as the rector of national economic development (rectoría del desarrollo nacional). The state is responsible for planning, conducting, coordinating, and directing economic activity to guarantee national sovereignty and improve living conditions. The state may participate directly in strategic economic activities and regulate private economic activity for public interest purposes.

Economic Planning

Article 26 establishes the National System of Democratic Planning (Sistema Nacional de Planeación Democrática), requiring the federal government to develop a National Development Plan (Plan Nacional de Desarrollo) for each presidential term. The plan sets national objectives, strategies, and priorities, and guides federal budget allocation. State and local governments participate in planning through coordinated mechanisms.

State Ownership of Natural Resources

Article 27 establishes the nation’s direct, inalienable, and imprescriptible ownership of all natural resources, including hydrocarbons, minerals, water, and the continental shelf. This provision, originally a cornerstone of the 1917 Constitution, was modified by the 2013 energy reform to allow private participation through contracts while maintaining state ownership.

Competition and Monopolies

Article 28 prohibits monopolies, monopolistic practices, and state monopolies (except for strategic areas such as postal services, telegraph, and radioactive minerals). The article establishes COFECE and IFT as autonomous competition authorities. It prohibits tax exemptions designed to protect specific enterprises and requires the state to protect consumers.

Strategic Areas and Reserved Activities

The Constitution reserves certain economic activities exclusively to the state, including: planning and control of the national electrical system; transmission and distribution of electricity; exploration and extraction of hydrocarbons; nuclear energy; postal services; and telegraph. The state may grant concessions or contracts for certain activities while retaining ultimate control.

Conclusion

The Economic Constitution establishes a mixed economy framework in which the state plays a leading role in economic planning, owns natural resources, regulates competition, and reserves strategic activities while permitting private participation within regulatory boundaries. This framework balances state sovereignty with market-oriented economic policies.