Written by Juan Carlos Machurro, Attorney and Principal Partner in Transaction Practice at Santamarina y Steta.
The 75-day minimum set by the T-MEC has already been met, in a consultation process initiated by the United States government, supported by the Government of Canada, in the context of the T-MEC and energy policies implemented by the Mexican federal government. This deadline was met last Monday, October 3rd.
Apparently, the governments of the United States and Canada have decided to stop, for the time being, from the process of forming an international commission to resolve the substance of the matter. This does not put the Mexican government’s negotiating position in any better position. On the contrary, from now on, our business partners can at any time begin the installation of said plate which, as we have mentioned on other occasions, is more than pessimistic in the interests of the government, the state and the Mexican economy.
Indeed, the points raised by the United States government were not resolved by the Mexican government. The completion of some delayed action by the Energy Regulatory Authority a few days in advance is not enough to provide clarity and, above all, certainty for private investments and, in the specific case, for investors from our North American trading bloc partners.
The expectations of our business partners are simple; Ground level compared to Mexican state producers. No more, no less.
From the viewpoint of President Biden’s government, it is a problem in which the issues of global warming and the environment, central to his government’s policy, are intertwined with the principles of free trade clearly and consistently enshrined in the T-MEC.
From the viewpoint of President Lopez Obrador’s government, complying with these obligations involves untangling the administrative, regulatory and judicial knots that have arisen in the energy sector throughout this administration. It is about reversing efforts to franchise state-producing companies and reversing the second generation energy reforms, in force in our country from 2013-2014.
Regardless of our pessimism about the position of the Mexican government in the context of consultations and the installation of an international commission, our country still misses golden opportunities in terms of Rounding in forming value chains.
It is clear that the future of the global economy will be in the corner of renewable energies and the participation of private initiatives.
The country needs to invest more than ten billion dollars annually in electricity generation, transmission and distribution, without us having these resources. Everything else is political noise.
Investments in all sectors of the economy, in this country and in other countries, will require, with an increasing frequency, hosting, among other conditions, clean energy in order to comply with the commitments made by global parent companies, financiers and participants in entire value chains.
It is time to re-assume ourselves as a reliable partner and to resume the international business prestige that it took so many years to build.
It is time to blast the trust and legal certainty that attract investment, employment, sustainability, and well-being to the economy and Mexicans.
Once again, it is time to act responsibly, beyond political agendas and issues of electoral pettiness and immediacy.
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