Canadian companies in Mexico re-evaluate investments in the country due to proposed AMLO energy reform

150

“We see with surprise and concern the consequences that this proposed constitutional reform could have and could deteriorate the climate of confidence and certainty necessary for economic recovery,” said the Chamber of Commerce, CanCham.

If the electricity constitutional reform initiative promoted by President Andrés Manuel López is approved by the legislature, it will cause serious consequences to the country and “will destroy the investments of Canadian companies in the electricity sector and in other areas of the economy,” warned the Chamber of Canada’s Commerce in Mexico (CanCham).

In the midst of a process of economic reactivation, in which Canadian companies investing in Mexico contribute to the development of the country, “we see with surprise and concern the consequences that this proposed constitutional reform could have and could deteriorate the climate of confidence and necessary certainty. for economic recovery, “said the private body.

For this reason, as promoters of Canadian investment in Mexico, CanCham asked the Executive and the Legislature to participate in the debate to promote dialogue and find better options to strengthen the industry, underlining the importance of compliance with international treaties such as the USMCA, to which Mexico, the United States, and Canada belong.

“If the initiative is approved in the terms in which it has been proposed, it would have serious, deeply regrettable, and certainly irreversible consequences in many years, including the impact on the environment. The best way to strengthen the energy sector in Mexico is through the growing collaboration between the public and private sectors ”, he considered.

Canadian businessmen spoke out because the Union Congress rejects the changes proposed by the Chief Executive, since the cancellation of electricity permits will prevent electricity companies, including Canadians, from generating electricity, and will destroy investments under models of businesses in accordance with the Electric Power Public Service Law (LSPEE) and the Electric Industry Law.

Through a document, the Canadian Chamber of Commerce stated that North American countries have invested many years, which translates into a great effort to integrate the region. “The constitutional reform proposal represents a setback in the face of such efforts and moves away from the agreements reached to strengthen ties between member countries,” he warned.

The investment of private companies is decisive to supply energy to Mexicans and businesses that activate the economy of this country and which in turn encourages social development, offering lower and better rates in conditions of sustainability and protection of the environment.

For CanCham, the disappearance of the Energy Regulatory Commission (CRE) and the National Hydrocarbons Commission (CNH), as well as the reincorporation of CENACE to the CFE will result in an “inequitable regulation” issued by an industry participant that will be judge and party, damaging competition, which will increase inefficiencies in the electricity and fuel market.

The role of regulators is to act impartially to establish clear rules and promote legal and regulatory certainty in the energy market as an autonomous entity detached from political cycles. Therefore, in the USMCA, Mexico was obliged to maintain autonomous regulatory bodies that provide the necessary certainty for private participation in strategic sectors.

Regarding the lithium issue, the announcement to reserve for the State the strategic minerals of the energy transition, without defining these minerals, all to the detriment of the rule of law, generates great uncertainty in the sector.

Source: americaeconomia.com

Mexico Daily Post