US CEOs warn Mexico reform may risk investment, urge ISDS return
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Mexico Business News | 3 November 2025
US CEOs warn Mexico reform may risk investment, urge ISDS return
By Mariana Allende
Leaders of major US companies are raising concerns over Mexico’s judicial reform, warning it could undermine investment protections and affect upcoming United States-Mexico-Canada Agreement (USMCA) negotiations in 2026.
In a document submitted during public consultations ahead of the treaty review, the Business Roundtable (BRT), representing roughly 200 CEOs, including Apple’s Tim Cook, JPMorgan Chase’s Jamie Dimon, General Motors’ Mary Barra, and FedEx’s Raj Subramaniam, urged the US administration to protect companies from what they described as the “politicization” of Mexico’s justice system.
The group said the reform, which would make Mexico the only country where all judges are elected by popular vote, threatens independent arbitration and “puts disputes between private investors and the government at risk of being subjected to political whims rather than the rule of law.” The BRT added: “Mexico’s recent judicial reforms… will negatively affect the investment climate in the country.”
The CEOs also called on the US Trade Representative to restore the Investor-State Dispute Settlement (ISDS) mechanism under the USMCA, arguing it would allow complaints to be resolved by neutral arbiters. “The mere existence of the ISDS mechanism would likely give pause to those politicians… who are considering expropriation or pressuring the courts to yield to political whims,” the document stated.
US companies raised additional concerns over alleged government favoritism toward state-owned enterprises and select firms, citing Pemex and the Federal Electricity Commission (CFE) in energy, Telmex in telecommunications, and Mexicana in aviation. They also criticized restrictions on cargo operations at Mexico City International Airport (AICM) and new postal licensing requirements for private couriers.
The BRT also highlighted what it described as discriminatory practices in sectors including energy, telecommunications, aviation, and parcel services, as well as regulatory inconsistencies at agencies such as Cofepris. It cited past cases, such as the expropriation of a US-owned quarry and retroactive taxes on insurers, as evidence of increasing investor risk.
Mexican opposition lawmakers echoed these concerns. Senator Raymundo Bolaños said the so-called “jueces del Bienestar” do not provide legal certainty and warned that the reform weakens the separation of powers. “The fact that autonomy is lost… of course it is risky,” he said. Senator Alejandra Barrales noted that the request from US executives reflects distrust in recent legislation: “It is a sign of mistrust, of dissatisfaction.” Senator Claudia Anaya cautioned that restoring ISDS could disadvantage Mexican companies if only foreign firms have access to international arbitration.
Ruling-party lawmakers characterized the concerns as expected ahead of treaty renegotiations. Senator Waldo Fernández said it was “normal” for US industry to seek improved conditions, while noting that Mexico has also identified trade barriers in the United States, particularly in steel, aluminum, and transportation regulations.
