Mexico’s judicial reforms could impact investment protections under the USMCA

By Manolo Pasero 

June 19, 2024

The Undersecretary of State, Brian Nichols, argued before the US Congress that Mexico’s judicial reforms must preserve transparency and legal protections for investments, especially under the USMCA.

During a session before the US Congress, Brian Nichols, the Undersecretary of State, made a compelling case for the preservation of transparency and legal safeguards within Mexico's ongoing judicial reforms. Nichols stressed the significance of these reforms, highlighting their pivotal role in upholding not only the integrity of Mexico's legal system, but also in safeguarding the interests of its international partners, particularly within the framework of the United States-Mexico-Canada Agreement (USMCA).

Central to Nichols' argument was the importance of transparency as a cornerstone principle essential for fostering trust and accountability within any judicial system. He emphasized that transparency serves as a linchpin for maintaining the rule of law, ensuring fair and impartial adjudication, and fostering investor confidence. In an era marked by increasing global interconnectedness, transparent legal frameworks are indispensable for attracting foreign investment and fostering economic growth.

Moreover, Nichols underscored the critical importance of preserving legal protections for investments, particularly those enshrined within the USMCA. As an integral component of the trilateral trade agreement, these protections serve as a bulwark against arbitrary expropriation and unfair treatment of foreign investors. Ensuring the continuity of such protections not only enhances the stability of the investment climate but also reinforces Mexico's commitment to honoring its international obligations.

In essence, Nichols' advocacy before the US Congress reflects a shared recognition of the symbiotic relationship between judicial reform, transparency, and investor protection. By championing these principles, he not only advocates for the advancement of Mexico's legal system but also reaffirms the enduring commitment to fostering mutually beneficial relationships with its international partners, thereby creating a climate conducive to sustained economic prosperity and cooperation.

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