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Risk management reshapes the M&A landscape in Latin America
MEXICO CITY, MEXICO, January 16th, 2026 – Judicial reforms, fiscal pressure, and political risks will shape investment and M&A in Latin America throughout 2026. What is the expert outlook across the region?
In 2026, investment in Latin America will be defined by a combination of legal reforms, political uncertainty, and geopolitical tensions that are reshaping the region’s risk landscape for companies and investors. From the transformation of the judicial system in Mexico and the return to bicameralism in Peru, to rising fiscal pressure in Central America and disputes over strategic resources such as water, copper, and oil—as illustrated by the current situation in Venezuela—the region is entering a cycle in which legal certainty and the ability to anticipate regulatory change will be critical to decision-making.
In this environment, volatility no longer lies in the permanence of the law, but in the capacity of legal frameworks to mitigate systemic risks. The viability of investments now depends on the technical strength required to operate in a region where the rules of the game are constantly evolving in real time.
Mexico: Judicial Reform and USMCA Review
In Mexico, the judicial system is undergoing a period of adjustment following the 2024 reform. Eduardo Pizarro, partner at SMPS Legal, emphasizes that the popular election of judges, magistrates, and justices—along with structural changes—undermines judicial independence and the rule of law.
“The negative consequences of the 2024 judicial reform will persist. These measures have led to the deprofessionalization of courts, compromising judicial independence and the rule of law. At the same time, recent labor reforms (such as the gradual reduction of the workweek to 40 hours) and regulatory changes (in energy, telecommunications, and foreign trade) will increase operating costs, erode business competitiveness, and create uncertainty for investors,” he noted.
Additionally, Pizarro highlights that both domestic and foreign companies face significant challenges in their day-to-day operations. These issues stem from recent legal reforms and the expected review of the United States-Mexico-Canada Agreement (USMCA), which adds further uncertainty to the business environment.
While Mexico’s geographic position offers strategic advantages for attracting investment, the expert points to ongoing concerns regarding the government’s ability to provide the necessary infrastructure and security conditions.
“Questions remain as to whether the Mexican government has the capacity to develop the infrastructure and security conditions required to attract capital and successfully implement the ‘Plan México’ promoted by President Sheinbaum,” he adds.
The full article was made in collaboration with Lexlatin, and you can find the original article in Spanish herein: https://lexlatin.com/reportajes/riesgos-inversion-america-latina-reformas-legales
All the information placed in this article and the rights of distribution belongs to @Lexlatin.
