Mexico indigenous rights law faces legitimacy and investment concerns

Mexico is nearing the conclusion of the legislative process for a General Law on the Rights of Indigenous and Afro-Mexican Peoples. This initiative follows a 2024 constitutional reform intended to define state obligations and competencies regarding indigenous rights. The National Institute of Indigenous Peoples (INPI) has conducted over 80 regional assemblies to gather input from the country's 68 recognized indigenous groups.

However, the process has faced criticism regarding its legitimacy. Reports suggest the consultation period was rushed, leading to allegations of neglecting local customs and traditions. There are concerns that previous consultations have been used for political or economic purposes, such as facilitating extractive projects, without improving community living conditions.

Economic sectors, particularly energy, have expressed concern over legal uncertainty. Recent cancellations of solar and wind energy projects in Hidalgo, Yucatán, and Oaxaca—representing an $800 million investment—were attributed to a lack of community consent. Industry experts warn that the current wording of the proposed law could extend risks to all infrastructure sectors, potentially deterring new investments or threatening existing operations if implementation mechanisms remain unclear.