RIO DE JANEIRO, BRAZIL – On Thursday, January 21st, Mexico’s president forcefully defended his drive to strengthen the state’s role in the energy sector, seeking to downplay hopes he might cede ground under a new U.S. administration which investors hope will defend their rights.
Arguing the last government skewed the market in favor of private companies, President Andres Manuel Lopez Obrador has worked to help state oil firm Petroleos Mexicanos (PEMEX) and power utility commission (CFE).
His regulatory interventions have upset some of Mexico’s allies, including the United States, Canada and several European countries, and angered investors who believe the government is violating their rights under trade agreements it signed.
Industry groups and foreign powers hope that the new U.S. administration of President Biden will take a firmer line in defending investors’ rights under the United States-Mexico-Canada Agreement (USMCA) trade deal that took effect in July.
Lopez Obrador said there was no urgent need for talks with Biden because the two had spoken a month ago, while noting that energy matters would come up at “some point” in their dealings.
But when asked if he would change policy, he was resolute in saying ‘no’ and vowed to keep protecting PEMEX and the CFE.
“There’s not going to be a change because we’re not going to continue with the policy of dismantling the nation’s companies,” he told a news conference. “And they shouldn’t be surprised. They, like any country, defend their strategic economic areas.”