Mexico’s Energy Grab: Can an Amparo Affect Your Investment Treaty Claims?
The Mexican government has been taking measures that harm investments in its energy sector, including amending key energy laws that may violate Mexico’s constitution and other laws, as well as international investment treaties. In response, companies have been taking legal action, including against amendments to the Power Industry Law and Hydrocarbons Law, under a specific federal protection proceeding called the Juicio de Amparo. This proceeding protects the company’s constitutional rights and, if successful, returns the company to its “status quo ante” or the way things were before the violation of constitutional rights. Companies, however, would be wise to consider what effect, if any, pursuing such rights may have on the company’s ability to pursue other remedies, especially under available international treaties that protect the company’s impacted investment.