In light of legislative changes to the Judiciary and the new Mexican government that dominates Congress with the power to make constitutional changes, US companies in Mexico anticipate a complete renegotiation of the United States-Mexico-Canada Agreement (USMCA) and not a review as scheduled for 2026, although the negotiations in Mexico have already begun, according to local press reports.
The constitutional changes and other legal modifications in Mexico that include the disappearance of autonomous agencies (antitrust, energy, transparency, among others) made by the political party in power (from 2018 until at least 2030), will alter the course of the USMCA trade relationship and for this reason US businessmen are now evaluating Mexico with greater caution as a destination for their investments, said the president and chairman of the Board of The American Society of Mexico (AmSoc), Larry Rubin.
“These changes are causing American investors to think twice before betting on Mexico (...) American companies are closely watching the legal changes in Mexico, particularly those that affect the resolution of commercial disputes. If the conflict resolution mechanisms are weakened, we could be talking about a renegotiation rather than a simple review,” said the representative of American companies in Mexico, according to the newspaper El Sol de México. He said that the Mexican government must continuously redouble its efforts so that the country remains attractive for foreign investment.
The American Society (AmSoc) is a non-partisan and non-profit organization that represents the private interests of the United States in Mexico.
These legislative changes have already generated a relocation of investments to Mexico and now the destination is the United States despite the fact that there is not enough labor.