MEXICO Law and Practice Contributed by: Jorge Asali, Omar Colomé, Rodrigo Macin and Saul Fonseca, Bufete Asali
high-profile disputes, both in commercial and invest - ment arbitration. The mining industry has also seen a notable increase in arbitration cases, especially in investor-state pro - ceedings. Legal reforms adopted in 2023 created uncertainty around the granting and renewal of mining concessions, prompting several foreign investors to initiate claims. These disputes often concern changes in environmental regulations, permit revocations, or measures perceived as expropriatory. Large-scale infrastructure projects – such as high - ways, railways, ports, and energy facilities – frequently lead to arbitration. These projects are complex, involve substantial capital, and often include cross-border elements or public-private partnerships. Arbitration has become the preferred method of dispute resolu - tion in these contexts due to its perceived neutrality and efficiency. Renewable energy is an emerging sector in Mexican arbitration. As the country has attempted to transition toward cleaner energy sources, foreign investors have faced shifting regulations and delays in government approvals. Several disputes have already arisen, par - ticularly in relation to solar and wind energy projects, and this trend is expected to continue. Looking ahead, the 2024 judicial reform – which intro - duces the direct election of all judges – may lead to further growth in arbitration beyond these traditional sectors. There is growing concern among investors and legal professionals that the reform could under - mine judicial independence and predictability. As a result, arbitration may become increasingly attrac - tive in other sectors, particularly manufacturing and nearshoring-related industries, where foreign invest - ment is expanding rapidly. Companies entering into supply chain, construction, or service agreements in this context may be more inclined to include arbitra - tion clauses to mitigate legal uncertainty. 1.3 Arbitration Institutions In commercial arbitration involving Mexican parties, both international and domestic arbitral institutions are widely used. The most frequently chosen insti - tutions are the International Chamber of Commerce
(ICC), the International Centre for Dispute Resolution (ICDR), and, to a lesser extent, the London Court of International Arbitration (LCIA). On the domestic side, the Centro de Arbitraje de Méx- ico (CAM) and the Centro de Arbitraje de la Cámara de Comercio de México (CANACO) are the leading arbi - tral institutions. These centres have played an impor - tant role in promoting arbitration locally, and they continue to attract parties looking for cost-effective and efficient resolution of commercial disputes under Mexican law. 1.4 National Courts Mexico does not have designated or specialised courts for arbitration-related matters. Instead, when judicial intervention is required – whether in support of arbitration proceedings or for enforcement purposes – the competent courts are determined in accordance with the rules set out in Article 1422 of the Commerce Code. Accordingly, both local and federal courts have concurrent competence regarding arbitration matters. In Mexico, international arbitration is governed by Title IV, Book Five of the Commerce Code ( Código de Comercio ). This section of the Code incorporates the UNCITRAL Model Law on International Commercial Arbitration almost in its entirety. While Mexico’s legislation is based on the original 1985 version of the Model Law, it has not adopted the 2006 amendments. Nevertheless, the core struc - ture and guiding principles of the Model Law – such as party autonomy, competence-competence, and limited grounds for setting aside awards – are fully preserved in Mexican law. 2. Governing Legislation 2.1 Governing Law There are very few differences between the 1985 Model Law and Mexico’s arbitration provisions. One of the few differences is the number of arbitrators in case there is no agreement. Article 10 of the Model Law provides for three arbitrators while Article 1426 of the Commerce Code provides for a sole arbitrator.
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