Amid concerns that changes to the judicial system in Mexico will affect your business, American companies US$35 billion injection paused, US newspaper says The Wall Street Journal.
The newspaper says there is great concern among foreign investors who fear that judges will become dependent on voters or political considerations instead of the law, following changes in the reform proposed by the Government of Andres Manuel Lopez Obrador.
“Company representatives and advisors estimate that foreign firms are retaining about 35 billion dollars “in investment projects in sectors ranging from information technology and automobile manufacturing to gas pipelines and industrial infrastructure due to uncertainty related to the reform and the US elections,” the American newspaper said.
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The Wall Street Journal added that “that figure is almost equivalent to what Mexico, Washington’s largest trading partner, attracts in foreign direct investment in an average year. Recently, most of that investment has come from companies that reinvest their profits.”
One of the alerts issued by the newspaper is that 18 billion dollars in private investment are at stake, which Mexico needs to increase the demand for electricity for industrial use.
“Costly international arbitrations over investment rights are likely to increase as companies try to avoid Mexican courts. Corporate lending in Mexico would also be affected by the uncertainty, according to bankers.”
According to the American newspaper, the former US ambassador to México, Earl Anthony Waynesays that his country’s executives have told him that they decided to pause investments in Mexico while the judicial reform is resolved.
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The media highlighted that there is a risk to negotiate the T-MEC in 2026, according to the Global Companies in Méxicowhere executives from 60 firms stand out among the multinationals AT&T, FedEx, 3M, PepsiCo, Honeywell International, Cargill, Visa, MetLife y General Motors.
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2024-09-11 16:58:13