From a legal standpoint, an initial assumption could be that the North American Free Trade Agreement became more relevant to these American companies entering the Mexican oil market. Indeed, the legal regime provided by NAFTA Chapter 11, which was designed to protect property rights in long-term investments, could be essential to ventures involving operations that might last for over two decades. For instance, oil companies like Exxon and Chevron have circumvented the lack of investment protection in countries like Venezuela, investing through Dutch or Danish subsidiaries that provide access to treaty protection.
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