Legal mediation provisions under Mexican law may soon be subject to a major revision based on a recently introduced bill.  The purpose of the bill is to promote equal treatment for small and big business alike when dealing with merchandisers or suppliers and to protect the interests of small farmers, a social group rapidly disappearing in this developing nation.  Among other provisions, the bill establishes a Council for Fair Business Practices that will operate under the auspices of the Ministry of Economy, a federal government department designed to promote fair practices in economic exchanges.

Legal Mediation Provisions Called into Question

Some provisions of the bill, however, are raising eyebrows in commercial mediation circles.  In the chapter governing the use of mediation and arbitration to resolve economic disputes, the bill includes a non-compliance clause.  This clause applies to parties who refuse to participate in an initial mediation meeting.  The penalty for such refusal will be decided by the council and may be as high as 3% of the total income of the non-complying party for each day of refusal to participate.  If refusal continues, the fine can increase to as much as 8%; the council is also authorized to shut down the business.

These provisions contravene one of the major principles underlying the practice of mediation.  The very nature of mediation is that it is voluntary.  Using force of law to require mediation may undermine the ability of the process to reach a satisfactory outcome for all parties in dispute.