Canadian Investors Fear Impact of Judicial Reform in Mexico

Canadian investors are facing uncertainty due to the potential approval of a judicial reform in Mexico, led by President Andrés Manuel López Obrador. Graeme Clark, Canada's ambassador to Mexico, has expressed these concerns.

"We are going to see some constitutional changes. It's difficult for me to publicly discuss these matters, but I can confirm that our investors are worried. They are seeking stability and a functioning judicial system," Clark stated.

During the CanCham Day 2024 event, Clark highlighted that Canada is the second-largest foreign investor in Mexico, with 40 billion Canadian dollars invested. This makes the potential judicial reform a significant concern for Canadian investors.

"As an ambassador, I am merely conveying the concerns of our investors. We have a great relationship with the current government, but we have had to address some issues," Clark said on Thursday, August 22.

According to the Canada Chamber of Commerce in Mexico (CanCham), 88 percent of Canadian investments in Mexico are concentrated in five industries, with mining being the most significant at 40 percent.

"We have 80 years of diplomatic relations between Mexico and Canada. Thanks to this, Canada is the second-largest foreign investor in Mexico, and Mexico is the third-largest foreign investor in Canada," said Luis Noriega, president of CanCham in Mexico.

Noriega expressed hopes for a productive relationship with Mexico's future president, Claudia Sheinbaum. They plan to review the United States-Mexico-Canada Agreement (USMCA) together.