The President of Mexico, Andrés Manuel López Obrador, accused the opposition on Monday surrender into the arms of foreign companies, after defeating in Congress his constitutional reform for the electricity sector.

“Yesterday an infidelity against Mexico was committed of a group of lawmakers who instead of defending the interests of the people, of the Country, instead of defending what is public, have become explicit defenders of foreign companies, ”the leftist president said at his regular morning conference.

“Don’t tell the traitors that the reform has been affected, they have nothing to argue against,” he added about the initiative, which sought to give supremacy to the State in energy generation and distribution.

In addition to opposition parties -including the influential PRI and the conservative PAN-, the initiative was rejected by the governments and companies of the United States, Canada (Mexico’s partners in the T-MEC trade agreement) and Spain, which are threatening a blow to their investments in the country.

defeat

Since last week, López Obrador has been looking forward to his project may not receive enough votes in the Chamber of Deputiesso he said his government was ready for such a scenario.

He cites the endorsement given by the Supreme Court of Justice in early April to a law — approved by an official majority in bicameral Congress in 2021 — that gives priority to the state’s Federal Electricity Commission (CFE) over private office company. of energy.

“If they declare it unconstitutional, then yes we were left with nothing“, said the president, determined to reverse a 2013 reform that, according to him, subsidizes private companies and punishes small consumers with high charges.

The reform sank in the House allocated at least 54% of energy production to CFEagainst 38% currently managed by it and the 62% in the hands of private individuals and foreigners.

The initiative as well contemplating nationalization lithium, an important mineral for electric car batteries, cell phones and new technologies. Despite the setback, López Obrador sent a project to Congress on Sunday for that purpose.

The numbers

Not as a constitutional reform, this measure would require only a simple majority in Congress, a number of lawmakers that the ruling Morena party and its allies have.

For electrical reform, on the other hand, need two-thirds approval of 500 deputies.

According to the United States, Mexico’s largest trading partner, the reform will unleash “endless litigation” —by allegedly violating the T-MEC—, “legal uncertainty and harm” to its investors. .

The opposition also ensures that changes may cause environmental damage and risks for private investments in the country.

On Monday, the Business Coordinating Council (CCE) celebrated the rejection of the project and highlighted the “responsibility shown by federal lawmakers in the debate.”

Source: AFP, EFE and AP

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