Mexico | Foreign investors' claims against Mexico

Summary

There is an exponential growth of foreign investors' claims against Mexico. This press article analyzes the cases that Mexico has faced under the investor-State Dispute Settlement contained in international trade agreements and other treaties.

Key points

• Key points:
• Free trade agreements and other investment treaties have, among other objectives, to promote the predictability and stability of the legal framework for investment and contain a dispute settlement mechanism that allows investors to receive an indemnification if a country fails to meet its commitments.
• From 1997 to 2022, 23 investor-State disputes against Mexico have concluded, where the country had to pay more than $260 million dollars as compensation.
• The Secretary of Economy of Mexico reported 13 active cases from 2015 up to July 2023, where investors claim more that $8.5 billion dollars as compensation, without considering the cases that do not reveal such amount.
• According to the ICSID, from Janury to July 2023, nine investment disputes began under the USMCA against Mexico, presumably derived from the present Administration policies. The amount claimed as compensation is unknown.
• In order to avoid the increase of investment disputes, to attract foreign investment as well as to take advantage of the nearshoring, the Mexican government's actions must be consistent with its international commitments, guarantee the rule of law, and foster a favorable environment for investment.

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