MEXICO Law and Practice Contributed by: Jorge Asali, Omar Colomé, Rodrigo Macin and Saul Fonseca, Bufete Asali
Bufete Asali Juan Salvador Agraz 73-piso 17 Santa Fe Contadero Cuajimalpa de Morelos 05348 Ciudad de México CDMX Tel: +55 5281 1300 Email: rodrigo.macin@bufeteasali.com Web: bufeteasali.com
1. General 1.1 Prevalence of Arbitration
• the consistent support of Mexican courts for arbi - tration agreements and awards. Historically, Mexican courts have been arbitration- friendly. However, a major judicial reform passed in 2024 is expected to further shift preferences toward arbitration. This reform mandates the direct election of all judges, eliminating prior requirements for competi - tive examinations. Many in the legal community fear this may affect the quality and independence of the judiciary, prompting more parties to avoid litigation and opt for arbitration. It remains to be seen whether the new Mexican courts will uphold the pro-arbitration approach of their predecessors. 1.2 Key Industries In recent years, certain industries in Mexico have stood out for their high level of international arbitration activity. These include energy, mining, infrastructure, and, more recently, renewable energy. What these sectors have in common is a strong presence of for - eign investment and frequent interaction with public authorities, which often leads to the inclusion of arbi - tration clauses in contracts and, at times, to investor- state disputes. The energy sector – particularly oil, gas, and electricity – has traditionally been one of the most active areas for arbitration in Mexico. This is due, in large part, to the involvement of state-owned enterprises such as PEMEX and CFE, which regularly include arbitra - tion clauses in their contracts with foreign suppliers and partners. In recent years, regulatory changes and government interventions have triggered a number of
Prevalence of International Arbitration in Mexico International arbitration is now the preferred method for resolving complex or cross-border commercial disputes in Mexico. This has not always been the case. While Mexico has been a party to the New York Convention since 1971, arbitration was seldom used before the 1990s due to the absence of a modern legal framework. The use of arbitration increased significantly with the signing of NAFTA in 1994. Article 2022 of NAFTA encouraged member states to promote arbitration for international commercial disputes. In response, Mex - ico adopted the UNCITRAL Model Law with minimal modifications, integrating it into the Commerce Code in 1993. A notable feature of Mexico’s arbitration law is its monistic approach: the same rules apply to both domestic and international arbitrations. Since adopting the Model Law, arbitration in Mexico has grown steadily. According to the ICC’s 2024 dis - pute resolution statistics, Mexico City ranks as the sixth most frequently chosen seat in ICC arbitrations worldwide. Mexican parties and arbitrators are also among the most active in Latin America. This growth can be attributed to: • the high level of participation by multinational com - panies doing business in Mexico; and
533 CHAMBERS.COM
Powered by FlippingBook