In the Headlines
June 17, 2020
Mexico: President More Radical, Investor-Hostile
Latinvex
Mexico City Executive Partner Luis Rubio Barnetche was interviewed by Latinvex about the effects of recent policies from President Andres Manuel Lopez Obrador. Changes to renewable energy regulations and more spending on controversial projects have generated criticism and raised concerns in the financial service industry, where many companies are rushing to settle tax disputes and investors feel they are facing increased hostility. Mr. Rubio Barnetche commented on the effects of energy policies and talked about the possibility of a wave of lawsuits concerning the both the new regulations and Constellation Brand's new plant in Mexicali.
"In the case of the changes implemented in the energy sector, what we have seen on the part of this Government are continuous and repeated attacks to dismantle the legal framework that has been in place since the last administration," he said. "...These decisions are undoubtedly affecting not only the image of the President and his government, but in general, they affect the image of the country vis-à-vis business circles and foreign investment exporting governments. However, the most worrying aspect is that the President does not seem to care about this loss of prestige and remains rigid in his speeches of economic and social well-being, all of which are far from reflecting the reality."
READ: Mexico: President More Radical, Investor-Hostile (Subscription required)
"In the case of the changes implemented in the energy sector, what we have seen on the part of this Government are continuous and repeated attacks to dismantle the legal framework that has been in place since the last administration," he said. "...These decisions are undoubtedly affecting not only the image of the President and his government, but in general, they affect the image of the country vis-à-vis business circles and foreign investment exporting governments. However, the most worrying aspect is that the President does not seem to care about this loss of prestige and remains rigid in his speeches of economic and social well-being, all of which are far from reflecting the reality."
READ: Mexico: President More Radical, Investor-Hostile (Subscription required)