Mexico: politics and the reform agenda
Published 1 June 2014
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0.1 Detail
The Mexican Congress’ first legislative session of 2014 ended on 30 April. This constituted the first round of debate on the secondary legislation that will implement the historic structural reforms passed in 2013. It was always expected that discussion and approval of the secondary legislation and actual implementation, would, in many ways, prove the greater challenge.
While President Peña Nieto’s PRI party and its allies in Congress have the necessary majority to pass the secondary legislation in the lower chamber they have chosen to negotiate with the two main opposition parties to find a consensus route. Given the significance of the measures, the PRI argue that broad support is important for the legitimacy of the eventual reforms.
With the formal ending of the Pact for Mexico in December 2013, the negotiation process has become more difficult
Achievements so far
Congress agreed some significant steps forward. These include a reform of transparency laws and the regulations for both popular consultation and citizens’ initiatives, through which voters are able to introduce bills for discussion in Congress. The approval of the regulation for “preferential initiative”, a mechanism through which the President will be able to send a limited number of bills to Congress each year to be discussed and voted in a specified period of time, will also ensure that future executive-led reforms will not be affected by legislative paralysis.
One highlight of the session was Congressional approval of changes to the military code of justice, passing a bill requiring soldiers implicated in crimes against civilians to be tried in civilian courts. Human rights organisations have been calling for Mexico to pass a bill like this since 2006 in order to comply with an IACHR ruling. This decision increases oversight of the armed forces’ actions in the fight against organised crime and should help to address impunity. It should also enhance Mexico’s status as a credible actor – and partner – on the international Human Rights agenda. 6. Congress also approved the competition law, formally establishing the new Federal Commission of Economic Competition (COFECE), allowing for more competition across all sectors through the removal of various barriers and the gradual elimination of monopolies.
The sticking points
However, progress on two key economic reforms, energy and telecoms, has inevitably proved harder than hoped. After intense negotiations, President Peña Nieto finally brought forward his government’s proposed energy bill on 30 April. Discussions are expected to begin in special session on 29 May and conclude by 19 June. On telecoms, the sticking points are around the powers afforded to a new regulatory body to punish monopolistic businesses and measures judged to curtail internet freedoms.
Comment
The main architect of the reforms – Finance Minister Luis Videgaray – has confirmed that the government remains as determined as ever to seize this “historic opportunity for Mexico … and to do it right”. The Government will continue to work for as broad a consensus as possible
The determination is there and the potential rewards remain huge – for Mexico, and also for British business. .
0.2 Disclaimer
The purpose of the FCO Country Update(s) for Business (”the Report”) prepared by UK Trade & Investment (UKTI) is to provide information and related comment to help recipients form their own judgments about making business decisions as to whether to invest or operate in a particular country. The Report’s contents were believed (at the time that the Report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by UKTI or its parent Departments (the Foreign and Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS)) as to the accuracy of the Report, its completeness or its suitability for any purpose. In particular, none of the Report’s contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other form of financial instrument. No liability is accepted by UKTI, the FCO or BIS for any loss or damage (whether consequential or otherwise) which may arise out of or in connection with the Report.