Alternative Dispute Resolution (ADR) in Mexico is encouraged by the government to relieve the pressure on the courts from the growing number of cases that need to be resolved. If you are looking to resolve a commercial dispute through ADR in Mexico, please note that significant efforts have been made to improve the professionalism of this practice. For example, a few years ago, a comprehensive training and certification program for mediators was initiated and is being implemented. The authorities, including the judiciary, inform the parties about the possibilities and advantages of using the mediation procedure and recommend resorting to it in order to resolve the conflict. However, mediation is still not a very popular method of resolving commercial disputes in Mexico. Arbitration, both domestic and international, continues to be the most popular ADR method in the United Mexican States.
Arbitration in Mexico
Arbitration in commercial transactions in Mexico has gained widespread use, including because it is based on the UNCITRAL Model Law.
Mexico is also a party to most international conventions, including the Convention on the Settlement of International Investment Disputes.
If you plan to settle commercial claims in Mexico through arbitration, it is important to consider that arbitration awards may not be enforced. This is only possible if a good reason for canceling it can be demonstrated.
The following may be transferred to international commercial arbitration in Mexico by agreement of the parties:
- disputes on contractual and other civil law relations arising in the implementation of foreign trade and other types of international economic relations, if the commercial organization of at least one of the parties is located abroad;
- disputes between enterprises with foreign investments and international organizations created in the territory of Mexico, disputes between their participants, as well as their disputes with other subjects of Mexican law.
Mediation in Mexico
In recent years, mediation has been gaining momentum in the resolution of international disputes in Mexico. If you are planning to resolve a commercial dispute in Mexico, then it would be useful to find out what rights a mediator has in this jurisdiction.
The mediator has the right:
- to receive a fee, established through negotiations with the parties, depending on the nature and subject of the conflict, as well as to reimburse the costs associated with the implementation of mediation;
- inform the public about the implementation of their activities in compliance with the principle of confidentiality;
- apply their own rules for organizing the mediation procedure.
Other forms of ADR
There are several other forms of ADR that can be used in court cases at some point.
If you are planning to start a legal proceeding in Mexico, it is worth considering that the court encourages the parties to reconcile their differences during the hearing. In this case, the mediators are trying to persuade the parties to settle the dispute out of court in Mexico and conclude an agreement.
The law allows the parties to appoint one expert to present his expert opinion.
The Mutual Agreement Procedure (MAP) provided for in double tax treaties is another ADR method available in this jurisdiction.
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Conclusions
Mexico is one of the most developed countries in Latin America. Recent trends show that the country has a leading position in the region for arbitration, and the number of arbitrations in Mexico continues to grow steadily.
If you still have questions on the topic of the article, you can ask our specialists during a personal consultation on the settlement of international disputes in Mexico using ADR.
Representation of the client's interests in the settlement of a dispute through mediation in the EU is also included in the list of services of our company.
