Mexico's High Court Greenlights Reforms To Electricity Sector

By Caroline Simson (April 8, 2022, 6:42 PM EDT) -- Mexico's Supreme Court has blocked a challenge to controversial reforms to Mexico's electrical industry that favor the country's state-owned utility over foreign energy investors, setting the stage for an avalanche of litigation that could ultimately go to international arbitration.

The court issued its ruling Thursday, affirming that the reforms do not violate the Mexican Constitution. Although seven of the court's 11 justices ruled that the reforms are unconstitutional, it was not enough to overturn them. For that, a supermajority of eight judges would have been needed.

Still, the decision leaves open the possibility for foreign investors claiming to be affected by...

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