ASSESSMENTS

Interventionist Constitutional Reforms Unlikely To Deter Foreign Investment in Mexico

Nov 4, 2024 | 18:40 GMT

National Action Party Sen. Miguel Angel Yunes Linares (L) addresses lawmakers in the legislature's upper house about the judicial reform proposed by the government in Congress in Mexico City, Mexico, on Sept. 10, 2024.
National Action Party Sen. Miguel Angel Yunes Linares (L) addresses lawmakers in the legislature's upper house about the judicial reform proposed by the government in Congress in Mexico City, Mexico, on Sept. 10, 2024.

(Photo by CESAR SANCHEZ/AFP via Getty Images)

Mexico's government will likely concentrate power and introduce interventionist policies that will increase operational costs for companies and inefficiencies in the economy, but structural drivers behind geopolitical realignments will continue to underpin foreign investment inflows in the long term. Nov. 1 marked President Claudia Sheinbaum's first month in office and the second month of the new legislature dominated by the ruling coalition. Throughout September, government allies leveraged their two-thirds majority in the Chamber of Deputies and their comfortable lead in the Senate to rush parts of a package of 18 constitutional reforms that then-President Andres Manuel Lopez Obrador presented in February -- dubbed "Plan C." Out of that package, the most controversial and consequential proposal was the judicial reform, which Congress approved and Lopez Obrador enacted in just two weeks on Sept. 15. In his last day in office on Sept. 30, the former president also signed into law two...

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