Introduction
In recent weeks, various associations, chambers, and authorities in the United States have expressed their concerns regarding several recent constitutional and legal reforms in Mexico that pose risks to American companies’ investments in the country or even violate the T-MEC.
Concerns from U.S. Companies
Through the Motion Picture Association, companies such as Sony, Netflix, Universal, Disney, and Amazon have conveyed their worries to the U.S. government about Mexico’s judicial reform, which could lead to censorship of media and uncertainty in audiovisual investments. The U.S. Department of State’s 2025 Investment Climate Report also addressed Mexico’s judicial selection and the extinction of various autonomous bodies, deemed unfavorable to investment.
U.S. Chamber of Commerce’s Involvement
The U.S. Chamber of Commerce has participated in panels and consultations for the T-MEC renegotiation, urging negotiators to review the SAT’s aggressive and opaque practices. Additionally, a group of U.S. congresspeople, both Democrats and Republicans, demanded that the U.S. government activate an arbitration panel against Mexico’s energy policy, backed by over 600 oil companies and nearly 1,000 related to clean energy.
Private Sector’s Awareness in Mexico
It appears that the private sector in neighboring Mexico is beginning to grasp the scope of Morena’s so-called “Plan C” and that concern over their investments has even united opposing parties in the U.S.
Mexican Citizens and Businesses’ Hope
Meanwhile, Mexican citizens and businesses, having exhausted all efforts domestically to halt Morena’s legislative attacks, have unintentionally placed their last hopes in the upcoming T-MEC renegotiation. Industries and business chambers tried their best to contain the officialdom’s legislative follies through parliamentary processes. However, protests, marches, and public statements from associations and experts failed to stop the haphazard imposition of senseless reforms, approved within days or hours due to excessive accumulated power and resentment towards the opposition.
Constitutional Weakness and International Treaties
With a weakened constitution, Mexican lawyers cling to the so-called constitutional block, placing international treaties at the same level as the constitution and obliging the Mexican government to respect them to protect citizens’ rights. Although international human rights treaties play a significant role, enforcing them is challenging. Foreign states or international instances rarely intervene forcefully in a country’s sovereignty to safeguard citizens’ rights, except in extreme cases.
Trade Treaties and Their Impact
Unlike human rights treaties, trade treaties like the T-MEC have direct political and economic interests involved in the agreement. Any violation of the T-MEC could directly impact the investments of hundreds of American companies, who would naturally pressure their government to ensure Mexico’s compliance.
Hope in T-MEC Renegotiation
Given that the only apparent checks on Sheinbaum’s government have been external factors like exchange rates and tariffs, many Mexicans place their hopes in the T-MEC renegotiation, expecting it to reverse or mitigate risks from judicial reform, amparo reform, telecommunications reform, the INAI’s disappearance, and other damaging measures to the rule of law.
Key Questions and Answers
- What are the concerns of U.S. companies regarding Mexico’s reforms? – U.S. companies, including Sony, Netflix, Universal, Disney, and Amazon, are worried about Mexico’s judicial reform that could lead to censorship and uncertainty in audiovisual investments.
- How has the U.S. Chamber of Commerce been involved in T-MEC renegotiation? – The U.S. Chamber of Commerce has participated in panels and consultations, urging negotiators to review the SAT’s practices and demanding an arbitration panel against Mexico’s energy policy.
- Why are Mexican citizens and businesses placing their hopes in T-MEC renegotiation? – With limited success domestically in stopping Morena’s legislative attacks, Mexican citizens and businesses hope the T-MEC renegotiation will reverse or mitigate risks from various damaging reforms.
- What is the significance of international treaties versus trade treaties in this context? – While human rights treaties are crucial, enforcing them is challenging. Trade treaties like the T-MEC have direct political and economic interests involved, making any violation potentially impact American companies’ investments in Mexico.
