ICC calls for caution in approving reform to the Judicial Branch

Mexico City. The International Chamber of Commerce Global and its Mexico chapter asked the Congress of the Union to “act with caution” regarding the initiative to reform the Judicial Branch that is being discussed by legislators, since they consider that its approval puts foreign investment in the national territory at risk, particularly in the context of the relocation of companies.

The global organization, which represents more than 45 million companies in more than 170 countries and has had a representation in the country since 1945, commented that the nation “as a sovereign State has assumed international commitments that oblige it to maintain an independent and impartial judicial system, which allows for a rule of law that provides legal certainty, a crucial element to attract and retain foreign investments.”

However, he noted that the initiative, as drafted, “could jeopardize the independence and impartiality of the Mexican courts, which would have serious consequences for national and foreign investment and, ultimately, for the country’s economy and the Mexican people.”

“The legal uncertainty that could arise from a politicization of the Judiciary would not only affect the confidence of investors, but would also create a context that could trigger international arbitrations against the Mexican State,” he warned.

Both ICC Global and ICC Mexico urged the Congress of the Union to consider the recommendations issued by the UN special human rights inspector, Margaret Satterthwaite, in April 2024; to observe international experiences in the protection of foreign investment, in order to prevent the risks of international law from increasing and leading to economic condemnations for the nation.

“Mexico is experiencing a key moment with the phenomenon of nearshoringwhich presents a historic opportunity to attract global investments, a situation that could be compromised if the stability and legal certainty necessary for investors are not guaranteed,” he insisted.

The international organization called for caution in approving the ruling, as it considered that the wording of the reform, which proposes the popular election of judges, magistrates and ministers, “generates negative incentives that could lead to the politicization of their function or the interference of third parties.”

He pointed out that the broad powers that the Disciplinary Court would have “generate legal uncertainty” and the risk that the judges will not act according to their own free judgment when resolving cases.

The ICC commented that in recent years the Judiciary has been a counterweight, which has prevented decisions by other branches from affecting national and foreign investment, in addition to preventing numerous investor-state arbitrations that sought to result in “multi-million dollar sentences against Mexico.”

The international organization and its chapter in the country indicated that the reforms should allow the attraction and growth of investments.