The Employers’ Confederation of the Mexican Republic (Coparmex) stated that the approval of the reform to the Amparo Law, approved by Morena legislators and allies, will delay investment and erode the confidence of businessmen to inject capital into Mexico.
“When the law stops protecting with certainty and legality, investment is delayed, employment stagnates and trust is eroded,” he stated in a statement this Wednesday.
The organization chaired by Juan José Sierra Álvarez maintained that Mexico sent a negative message to national and foreign investors, by showing that the rules can change without consensus, that institutions lose independence and justice is no longer reliable.
Read: Reforms to the Amparo Law are unconstitutional: López Rabadán
He added that the reform of the Amparo Law cannot be seen in isolation, since it is part of a series of judicial and electoral changes to concentrate power, reduce judicial independence and put the division of powers at risk.
“In a context where Mexico competes to take advantage of the potential of the USMCA and nearshoring, (the reform) weakens legal certainty and legality, and is simply taking a step back in competitiveness,” he stated.
‘One of the pillars of the rule of law was weakened’
Coparmex assured that far from strengthening the legal framework, one of the most important historical pillars of the Rule of Law was weakened.
He explained that the approved version of the Amparo Law once again puts the focus on the retroactive clause, which had been pointed out as a direct threat to ongoing trials, maintains restrictions that reduce access to justice, limit judicial control over acts of authority and violate the legal security of people and companies.
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He added that among the most delicate provisions, the suspension of the claimed act is restricted, even in tax matters, which means that a company could face embargoes, cancellations of digital seals or blocking of accounts before a judge decides whether the authority acted in accordance with the law.
In practice, the reform eliminates the possibility of protecting taxpayers against arbitrary or disproportionate acts, affecting the liquidity and operational continuity of businesses.
Reform to the Amparo Law will overwhelm the courts
He added that by requiring each person or company to promote their protection, legal costs will multiply and the courts will be saturated, generating an unequal system where micro, small and medium-sized companies will be at a disadvantage compared to those who can sustain long judicial processes.
He considered that the new definition of “legitimate interest” is more restrictive, since under this interpretation the defense of collective rights is weakened and associations, chambers or colleges are prevented from representing common causes.
He pointed out that if a rule affects society as a whole, only those who promote individual protections will be able to obtain judicial protection, which leaves open the possibility of maintaining unconstitutional rules applicable to the majority.
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