Tech Giants Challenge Mexico’s Judicial Reform

More than 2,200 technology firms represented by the Consumer Technology Association (CTA), including Nvidia, Panasonic, Microsoft, and Samsung, have expressed concern regarding the reform of the Judicial Branch in Mexico, stating that it affects the rights of United States companies under the USMCA.

In a document submitted to the Office of the United States Trade Representative (USTR), the organization warned that the election of judges by popular vote could violate provisions of Chapter 14 of the trade agreement, related to investment, and asked the administration of President Claudia Sheinbaum to reconsider the changes.

"The 2024 constitutional change that transformed the country's judicial system will harm the long-standing trade and investment relationship between the US and Mexico," the CTA stated in the document.

The association also requested that the US government raise its concerns with Mexican authorities.

Furthermore, they accused Mexico's Tax Administration Service (SAT) of threatening its members with audits to release merchandise in customs. According to the document, the SAT demands multi-million dollar payments for customs transactions and warns of the possible suspension of import licenses in case of non-compliance.

The CTA, which also includes companies such as Lenovo and LG, indicated that US exporters face an increase in inspections and simultaneous requests for information from various Mexican agencies when attempting to cross the border.

Other US sectors have also raised objections regarding Mexican policies. The Business Roundtable has pointed to the politicization of the Judicial Branch, discrimination in key sectors, and unfair practices by the SAT and Cofepris.

The American Petroleum Institute and the American Fuel & Petrochemical Manufacturers have denounced preferential treatment towards Pemex and the CFE, as well as regulatory barriers.

Even representatives from the Hollywood film industry have requested vigilance over Mexican judicial rulings to ensure they remain in line with USMCA commitments.