With that total, Mexico is the third most demanded country at the regional level and the most demanded fourth in the world, while 93% of the demands were filed by US, Canadian and European investors.
Mexico has paid 296.6 billion dollars in compensation to foreign investors since 2015, according to a report revealed by the Transnational Institute.
In addition, he pointed out that “in 2023, Mexico was the country that received the most investment arbitration demands” in the framework of investment protection treaties worldwide.
“With 53 cases in total, Mexico is among the most demanded countries in the world by foreign investors before international arbitration courts, and is the third most demanded country in Latin America and the Caribbean,” the international organization of the international organization of research and political incidence.
With that total, Mexico is the third most demanded country at the regional level and the most demanded fourth in the world, while 93% of the demands were filed by US, Canadian and European investors.
In addition, he said that “more and more public money is at risk of having to pay investors the multimillion -dollar amounts resulting from arbitrations.”
He recalled that the figure of 296.6 billion dollars is three times the budget of the Ministry of Culture of Mexico in 2024 and greater than the budget for the search for missing persons.
And he pointed out that Mexico is part of 31 Bilateral Investment Treaties (TBI) and 11 Free Trade Agreements (FTA) that provide the appeal to international arbitral courts as the main mechanism for conflict resolution between investors and states (ISDS, in English).
But despite this, “Mexico continues to sign investment protection treaties that include the appeal to international arbitral courts as the main mechanism for conflict resolution between investors and State (also known as ISDS, in English),” said the document .
He recalled that in recent years, Mexico ratified the integral and progressive treaty of Transpacific Association (CPTPP, in English); He renegotiated the treaty between Mexico, the United States and Canada (TMEC), maintaining between Mexico and the US the investor-state dispute solution system; and closed the “in principle” renegotiation of the Free Trade Agreement with the European Union (TLCUEM) that includes a new investment protection chapter.
In addition, in 2018 it became a full member of the Convention of the International Center for Differences Arrangements related to Investments (CIADI) of the World Bank. In this report we will look at the investment protection regime of Mexico and reveal its main consequences for the country.
In recent years, Mexico also ratified the CPPPP, renegotiated the TMEC maintaining the ISDS mechanism and closed the “in principle” renegotiation of the agreement with the European Union (Tlcuem).
Given this scenario, the organization recommended auditing all investment protection treaties and suspending the possibility of the use of demands; Exit Ciadi and not sign new treaties with investment protection clause. EFE
Source: forbes
