In 2021, Mexico climbed to the fifth place with the highest number of private investment disputes in international arbitrations -among the 150 nations it contemplates-, most of them in the energy and infrastructure sector, derived from changes in operating rules or new public policies undertaken by the government of the president Andres Manuel Lopez Obrador in the energy sector, said the Chamber of international trade (ICC) Mexico.
The private organization that brings together 45 million companies internationally, led by the United States, Japan, Europe, and others, stated that this panorama of controversies has scared away and significantly reduced investments in Mexico, due to the lack of rule of law. and changes in operating rules in key sectors, such as energy and infrastructure, which limits private participation.
During 2021, our country increased the number of complaints, and 70% of arbitration cases were located in energy, said Claus von Wobeser, President of the ICC Mexico. In as much, that in previous years it did not appear in the Top ten of the litigations.
In the framework of Conference of the International Court of Arbitration of the global ICC, the representative of the organization highlighted that to a certain extent, these legal modifications in energy matters in Mexico have inhibited greater investment as expected “and that they are very necessary in a time of recovery from the pandemic.”
“I have seen an increase in private disputes in the energy sector both in electricity, gas and oil, derived from the new policies of the federal government, let’s say, although we have not seen arbitrations, investors against the state, which are not necessarily governed by the rules of the ICC, but in the organization we have seen many disputes in gas pipelines, oil, electricity, derived from the new policies of the current government”, he stated at a press conference.
Alexander Fessageneral secretary of the International Court of Arbitration of the global ICC, explained that Mexico began to use more frequently in arbitration by companies against State agencies (dependencies or institutions) in 2021, to such an extent that it was placed between the first 10 places and more recently it reached the top 5 with the most litigation.
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