U.S. Chamber Statement on Mexico’s CFE Requesting Arbitration in Pipeline Contracts

Monday, July 1, 2019 - 9:45am

The U.S. Chamber of Commerce issued the following statement today regarding the decision by Mexico’s Comisión Federal de Electricidad (CFE) to request arbitration to annul several clauses in a natural gas transportation services contract with private companies: 
 
“During the 11th U.S.-Mexico CEO Dialogue in Mérida, we were encouraged by President López Obrador’s expressed commitment to strengthening the rule of law, exemplified by his pledge to honor existing contracts. There are few factors more critical to investment and economic growth than the legal certainty and predictability fostered by the respect for the rule of law. Companies invest in markets where they have confidence in the integrity of institutions and where proper adjudication of the law is ensured.  
 
“For these reasons, we are concerned by CFE’s decision to seek arbitration to nullify several key terms of the contract with the owners of the Sur de Texas-Tuxpan pipeline, a key infrastructure project that would contribute to economic development and job creation in the states of southern Mexico. This action risks sending a negative signal to U.S. and other international investors about the business and investment climate in Mexico.  We therefore urge CFE and the Government of Mexico to reconsider this decision and to observe the president’s pledge to honor the sanctity of existing contracts.”