Canadian Chamber of Commerce in Mexico asks for electrical reform to be avoided

The Canadian Chamber of Commerce in Mexico (CanCham) asked the legislators of the Congress of the Union to reflect on the initiative of preferential electricity reform of the federal Executive, because it goes against constitutional principles and international commitments.

For the representation of Canadian companies in the country, the proposal will only generate uncertainty and violate free trade agreements and international agreements in which Mexico participates, as well as the Constitution itself, as it goes against economic competition, legal security, human rights, legality, environment and open access to the electricity system, among other factors.

“The preferential position that is intended to be granted to the Federal Electricity Commission (CFE), the lack of transparency in the granting of permits and the possibility of revoking contracts and permits previously granted, would lead to violations of the chapters relating to ‘State Companies and Designated Monopolies’ of various treaties,” CanCham explained.

The plan of the government of President Andrés Manuel López Obrador is to limit the generation of electricity by private parties, as well as to prioritize and strengthen the CFE plants.

If approved, CanCham stressed that chapters of good practices and regulatory coherence contained in the Agreement between Mexico, the United States and Canada (T-MEC), in the Comprehensive and Progressive Treaty of Trans-Pacific Partnership (TIPAT or TPP-11) would also be violated. and the Pacific Alliance.

At a time when the preferred initiative is being discussed in the Chamber of Deputies, the business organization asked legislators to carry out a “deep reflection” on the initiative to guide national energy policy under a focus of certainty, free competition and respect for international commitments.

Read full article (Spanish).