The Mexican president is set to undo major energy reforms

President Andr মs Manuel Lেজpez Obrador has taken his aggressive action against Mexico’s energy reforms, sending a bill to Congress to allow the government to suspend approved permits for private companies in the hydrocarbon sector and give them to state oil companies. Pemex More control

Fuel and oil import and export, storage and distribution permits could be suspended under the bill on national security grounds – experts said uncertainty and inequality in the sector would only increase investment in a vague and prudent definition.

The bill is the latest attempt by nationalist Lopez Obrador The clock is back And the 2013 power reform without changing the constitution – which he believes is an attempt to destroy Perex and state utilities CFE.

Earlier this month, Congress approved sweeping changes in the power sector that would prioritize the production of expensive and diarrhea CFEs from renewable to cheap electricity. After a welter of ban, now the bill Hold on.

Friday’s bill is not expected to face any hurdle in Congress, where Lopez Obrador Both houses are predominant. However, analysts said that this would also start a legal challenge.

The bill showed that La Paz Obrador was not abandoning his ambition to restore state power companies as he saw state power companies at the center of the economy as their rightful place. “There is no doubt that Petraeus Mexicoos should play a leading role,” he wrote at the introduction of the bill.

Alfredo Sandoval, an economist at Banco Base, highlighted two more concerns. If a permit is suspended, the government can send a state-owned enterprise – such as Pemex and CFE known – to run things, without affecting legal ownership.

“This means that if you suspend the permission of a petrol station, Perex can continue it,” he said.

In addition, contrary to the proposed rules of the current rules, if the authority does not respond to a request for permission within 90 days, the permit will be deemed not granted.

“It’s a more effective way to deny permission,” Sandoval said.

Energy consultant Gonzalo Monroe said the bill would not enable the government to suspend licenses granted to private oil companies at historic oil auctions after the reforms, ending a decade-long monopoly on the sector. However, it may revoke a company’s permission to export any crude oil it produces.

The reform also freed filling stations from the obligation to purchase fuel from Perex. Under the bill, such import permits could be imposed on ice, analysts said.

“It is unfortunate that the Mexican government continues to pursue the wrong energy policy by misleading us about energy, the environment, competition, investment, jobs, our laws and trade agreements,” said Armando Ortega, who assisted the United States and Canada in negotiating a free trade agreement with Mexico. Agreement with which has now been updated as USMCA.

“Any cancellation under the investment chapters of the USMCA, the CPTPP and the Mexico-EU Free Trade Agreement can be considered ‘equivalent to confiscation,'” he added. “They have to be very careful.”

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