Will the New, Improved Mexican Film Law Work?

Although the new Mexican Film and Audiovisual Law consists of only 68 articles, it harbors many hopes for the renewal of national cinema. It is a reform that includes a new law (the previous one is from 1992), modifications to two other laws (Labor and Copyright) and a decree for Fiscal Incentives for Film and Audiovisual Production.

“It is the most progressive and ambitious audiovisual policy proposal in decades,” Juan Carlos Vargas, a film professor from Guadalajara university, told The Film Verdict. “It contemplates the reactivation of the film industry as an ecosystem and considers support from training, production and distribution to exhibition and preservation. Moreover, it includes dubbing, A.I., and streaming platforms. We will have to see whether it is applied and followed.”

The proposal began its legislative process on March 3, 2026, and is expected to be approved before April 30. Claudia Sheinbaum Pardo, President of the Republic, has already approved a decree for Fiscal Incentives for Film as a complement to the law.

The atmosphere was festive when the legal reform was presented in February at Palacio Nacional, seat of the Mexican government, in the presence of a large swath of the filmmaking community. Mexico’s cultural authorities and President Sheinbaum spoke about the benefits of the law and the decree, the complexity of the task, as well as the consultations held with associations and companies. Producers Inna Payán and Salma Hayek-Pinault spoke — with great emotion —  about the major improvements in procedures and funding, as well as the economic significance for the country.

This presentation — unusual for a legislative proposal — was considered a good sign. “The fact that the federal government is turning its attention to the film and audiovisual industry and finding ways to update, modernize, and promote it is, in itself, a particularly important indication,” commented film director, academic, and programmer Juan Manuel González to TFV. “The reform sounds remarkably interesting. We will have to see how it progresses and what obstacles it faces on its way before it is signed into law.”

Filming by decree

At the presentation of the reform, Salma Hayek-Pinault noted that the production incentives will allow her to finish her first film as a director, currently in progress in the states of Veracruz — her home state — and Quintana Roo. “I could shoot this film in Australia, the Canary Islands, or the Dominican Republic because they do have incentives there, but I want to shoot a love letter to Mexico and it has to be filmed here, with Mexicans.”

But what does the decree mean for smaller productions? Speaking to TFV, Ozcar Ramírez González, Mexican producer and director (9 meses, 9 días, La 4ª. Compañía, Días de gracia), voiced a different opinion. “This decree is to attract investment, which is not to say that it’s bad in itself, but we shouldn’t pretend it will help.  It is for foreign films. For someone like me who makes independent films, it does not benefit me; it truly changes nothing.” Estrella Araiza, director of the Guadalajara International Film Festival, with a background in film distribution and markets, said, “The production issue is and has been solved for a while. There are many issues that affect Mexican cinema, but producing is not one of them.”

The decree requires that the talent and actors be predominantly Mexican. “We must understand that the spirit of the decree is that there is a distribution of these tax credits to all Mexican service providers for the audiovisual industry; that is, even if a large company receives this credit, it is distributed among all those who provide services to the production,” commented Juan Manuel González. The decree does not include, as in other countries, a cash rebate or tax rebate, which means that companies will be compensated with a tax credit without affecting tax collection. This may make it less attractive.

What about funds for the promotion of national production?

The new law will provide a legal framework for FOCINE (Fund for the Promotion of Cinema) which has been operating since April 2020 as a stimulus program through calls for proposals, without being included in any law, which made it very vulnerable. The Ministry of Finance will annually assign the amount of this fund.

FOCINE replaced the very successful FIDECINE (Investment and Stimulus Fund for Cinema) which between 2002 and 2019 supported 230 feature films ranging from memorable first works (Duck Season directed by Fernando Eimcke) to films by established directors (The Reasons of the Heart by Arturo Ripstein) and some commercial films like Instructions Not Included and Una película de huevos. FIDECINE was closed, without warning, in 2020 during the pandemic.

The irony of exhibiting in Mexico

Mexico, as a country, is the fourth largest market in the world for audiovisual content both in theaters and on platforms. However, Mexican films, successful at festivals around the world, with very few exceptions are not even released in the country’s commercial circuit. Distribution and exhibition is a complex problem: on one hand, audience development is necessary, and on the other, exhibition chains often pose an obstacle, citing losses.

The new law proposes extending screening times and improving exhibition schedules. However, according to musician, producer, and “film doctor” Pablo Mondragón, “Nobody cares about the screen percentage, and no Mexican is going to watch movies just because Mexican cinema is in theaters for three more weeks. The United States are geniuses in this field; they have been revolutionizing creativity, talent, and technology for years to create products unobtainable elsewhere. As a friend used to say, ‘your creativity with limited resources is competing against a U.S. content industry that, except in Japan, China, and India, is overwhelming the whole world’. That is why funding must embrace new ways of production developed by creators who have a lot to teach us. As we have always said: if we join forces with those who have new needs and solutions, then we CAN compete with any film industry.”

At  the presentation, the new law and decree were celebrated as a great achievement. And so they are: the Mexican film industry could not continue working under a law that is 34 years old and makes no mention of ethnic diversity or the representation of minorities. When it begins to take effect, we will see, in theaters and on streaming platforms, whether this reform was enough.