U.S. business leaders express their concern over Mexico’s energy sector

The business leaders complained about Mexico in a letter sent to the U.S. government 

U.S. business leaders express their concern over Mexico’s energy sector
Mexico has recently made decisions in the energy sector that could affect foreign investors - Photo: Adrián Hernández/EL UNIVERSAL
English 16/06/2020 09:05 Mexico City Editorial Actualizada 09:13

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In the United States, business leaders from the energy sector are upset about the decisions made by the Mexican government. The outrage was evident in a letter sent to Washington, where they ask their government to intervene through its diplomatic channels in Mexico. 
 
U.S. business leaders accuse Mexico’s Energy Regulatory Commission (CRE) of delaying the necessary permits to install new gas stations and the PROFECO of closing down fuel pumps for “minor or nonexistent violations,” as well as carrying out routine inspections “with coercive law and with the presence of the National Guard.” Moreover, they argue other measures only benefit Pemex. They also defined the measures as “unfair and discriminatory” and said that they violate the USMCA.
 
Government departments and state-controlled companies like the CRE and Pemex shouldn’t make others think that the energy sector in Mexico is closed to national and international investors. These are the rules; therefore, any company has the right to participate in the sector. Mexico must shun protectionist measures. 
 
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For 25 years, Mexico promoted and accepted the rules established in the NAFTA, now USMCA, and which was recently revamped by the current government. 
 
The Mexican government should explain some of the actions adopted recently and solve the doubts of national and international investors might have. Those who decide to invest in Mexico need the certainty that the federal government will enforce international agreements and follow national rules. 
 
Ideally, the Mexican government should make sure that companies act according to the law and to regulate the economy. When a company or a government is allowed to generate certain conditions to artificially dominate the market, the consumer will be affected. Therefore, this must be avoided. 
 
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