It contravenes the USMCA and eliminates the country’s opportunity to be a thriving economy, says the American Chamber of Commerce of Mexico.
The proposed constitutional reform of the electricity sector will affect confidence and certainty for the economic recovery of both Mexico and North America, contravenes the USMCA and creates concerns about sufficient electricity supply for companies in the country, said the American Chamber of Commerce of Mexico (AmCham).
“By potentially increasing the energy costs of the productive chains on Mexican soil and negatively affecting investor confidence, Mexico would lose the opportunity to be a thriving and competitive economy, and it would also compromise the prosperity of the North American region,” he highlighted in a position where it offers legislators and the federal government the technical knowledge of its National Network of Committees.
The organization, which represents more than 1,000 US-owned companies in Mexico, called on legislators to focus on health, the economy and the rule of law, and also offered technical support from experts for the analysis of the initiative of the Executive.
“In the midst of a process of national and regional economic reactivation, in which Mexico and the United States make joint efforts to relocate and develop regional supply chains, this constitutional reform proposal will negatively affect the climate of trust and certainty necessary for the recovery, “he said.
He indicated that the proposal does not propose to respect until its expiration the regulatory and contractual schemes under which long-term investments were made, ”he indicated.
“Constructive dialogue with private initiative is key to identifying the best energy alternatives for the well-being of Mexicans and the competitiveness of companies, always prioritizing the prevalence of the rule of law,” he said.
AMCHAM considered that the reform proposal contravenes the commitments established by Mexico in the USMCA by eliminating coordinated regulatory bodies in energy matters, disappearing the wholesale electricity market, imposing market quotas and canceling private contracts, among others.
In addition, he affirmed that it will reduce the diversity of electricity supply options, which raises concern in companies, risks of shortages and could increase the final cost of energy in Mexican homes.
If approved, the reform will prevent Mexico from achieving international objectives in the Paris Agreement, the Agreement on Environmental Cooperation between Mexico, the United States and Canada, within the framework of the USMCA, and the agreement of the Objectives of the 2030 Agenda for Sustainable Development.
“It moves the energy transition towards a single generator with limited clean generation capacities,” warned AMCHAM.
Complementarity between the public and private sectors is the best way to strengthen energy security, and it must be in an environment of free competition and stable rules, in which they compete to offer clean, reliable, resilient and affordable energy to homes and businesses. Mexican, he stated.