economy and politics

International companies warn of arbitrations against Mexico due to judicial reform

International companies warn of arbitrations against Mexico due to judicial reform

“In fact, in recent years and through its resolutions, the Federal Judicial Branch prevented the initiation of numerous investor-state arbitrations that could have probably resulted in multimillion-dollar sentences against Mexico,” they said in a statement.

They added that Mexico is experiencing a key moment with the “nearshoring” phenomenon, which presents a historic opportunity to attract global investments, which may be compromised if the stability and legal certainty necessary for investors are not guaranteed.

“The global ICC (representing 45 million companies worldwide) and its Mexican chapter respectfully request the Congress of the Union to act with caution regarding the proposed reform of the Judicial Branch, because in the terms in which it is drafted, it could jeopardize the independence and impartiality of the Mexican judicial courts, which would have serious consequences for national and foreign investment and, ultimately, for the country’s economy and the Mexican people.”

They explained that, in the terms in which the proposed reform of the Judiciary is drafted, the popular election of judges, magistrates and ministers generates negative incentives that could result in the politicization of their function or interference by third parties.

Furthermore, Mexico has made international commitments that require it to maintain an independent and impartial judicial system, which allows for the rule of law that provides legal certainty, a crucial element for attracting and retaining foreign investment.

Mexico ranks fourth in the world and third in Latin America and the Caribbean, among the countries facing the most lawsuits from foreign investors, according to a report by the Transnational Institute, an international think tank.



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