Judicial reform: What is Article 14.6 of the USMCA, which could get Mexico into trouble?

For a week now, Diplomatic relations between Mexico, the United States and Canada became strained, following comments made by Ken Salazar, US ambassador to Mexico, on the approval of the reform to the Judicial Branch.

“If the elections for judges in 2025 and 2027 are approved, they threaten the historic commercial relationship that we have built, which depends on trust and on the investments that must be made here in Mexico to achieve prosperity for the people of Mexico,” warned Salazar.

It should be remembered that Mexico, the United States and Canada signed a trade agreement during the six-year term of Andrés Manuel López Obrador.the USMCA.

Therefore, The business sector has expressed its concern if the reform to the Judicial Branch is approved. US Chamber, The most powerful chamber of commerce in the world, shared its position on the issue.

They said their situation will be subject to legal uncertainty and they think they are at risk. “We firmly believe that certain constitutional reforms proposed by the Mexican government – ​​in particular, judicial reform, could undermine the rule of law and the guarantees of protection for commercial operations in Mexico, including the minimum level of treatment granted through the Treaty between Mexico, the United States and Canada (T-MEC)”.

But now, what is the minimum level of treatment? In his column Attention: this is Article 14.6 of the USMCA, Jonathan Ruiz Torre explains what is causing concern in the American business sector.


What does Article 14.6 of the USMCA say about the minimum standard of treatment?

According to Article 14.6 of the USMCA, The minimum standard of treatment is that each Party shall accord to covered investments treatment consistent with customary international law, including fair and equitable treatment and full protection and security.

It therefore requires the governments of the United States, Mexico and Canada to provide “fair and equitable treatment.” Ruiz explains that this includes not denying justice in judicial, criminal, civil or administrative proceedings.

In addition, Juan Carlos Baker Pineda, general director of Ansley Consultores, also explains that the reform proposed by Andrés Manuel López Obrador could undermining legal certainty necessary for the proper functioning of the T-MEC.

A central aspect is the impact on labor rights, since a less robust judiciary might not defend workers, regardless of the nationality of their employing companies, Baker said.

With information from Jassiel Isai Valdelamar.