Kill reforms and competitiveness

One of the biggest mistakes of the López Obrador administration (and look, there are many to choose from) is to have dismantled or intend to dismantle the structural reforms approved at the beginning of the six-year term of former President Peña Nieto under the Pact for Mexico: education, energy, telecommunications, broadcasting and economic competition, among others. All of them sought to boost the country’s competitiveness through education, investment and effective competition in traditionally highly concentrated sectors.

After the barbarity of flooding what was to be the New International Airport of Mexico City in Texcoco, with the patrimonial damage that this represents, the Obradorist administration repealed the educational reform to return the future of children to the whims teachers’ union policies. President López Obrador cares about guaranteeing his corporate vote so that he or those close to him can stay in power beyond 2024, and he does not care about the education and training of the children of Mexico to compete in an increasingly integrated world. , in which we Mexicans will no longer only compete with each other but with the Chinese, the Indians, the Koreans, the Brazilians or the Colombians. With the retrograde model reinstated by López Obrador, ignorant teachers unaware of the world will educate generations of Mexicans who are ignorant and dependent on government handouts.

The counter-reform in energy intends that the state monopolies (Pemex and CFE) become regulators of themselves and of the limited participation that private initiative may have. This would imply a flagrant violation of the United States-Mexico-Canada Treaty (T-MEC) in many of its provisions, such as: equal treatment, government purchases, independent regulators, equal expropriation, etc. The entire argument of the Obrador administration hangs on a small paragraph of the T-MEC that says that Mexico will retain its sovereignty in this sector. For a change, the parochialism of the workshop bureaucrats will put us in a bind with our main trading partners and the locomotives of our economy. For the United States and Canada, the sovereignty of Mexico implies the freedom to govern itself without external interference, but always complying with its international obligations. For the government of the trapiche and the tlayudas, sovereignty is equal to a state monopoly. For him, the simple mention of the word sovereignty implies the right to expropriate without compensation. As you can see, the same text reads very differently if one takes the ideological blemishes out of one’s head.

For their part, the reforms in telecommunications, radio broadcasting and economic competition seek to be eliminated by starvation, both in terms of budget and management capacity. We already know that López Obrador abhors everything that does not submit to his will, and this is the case of the Federal Telecommunications Institute (IFT) and the Federal Economic Competition Commission (Cofece), autonomous constitutional bodies that were expressly designed so that their action is strictly technical, regardless of the ups and downs and political interests. The commissioner selection mechanism has proven its strength against a government that it intends to overwhelm. In order to be commissioned, a rigorous examination prepared by the Bank of Mexico and INEGI must be passed, proposed by the president and ratified by two thirds of the Senate. Not having the unconditional vote of two-thirds of the Senate, López Obrador would find it necessary to negotiate with the opposition, something that irritates him extremely, but, above all, prevents him from placing his 90% loyal and 10 % able. For this reason, both the IFT and Cofece today have only four commissioners out of the seven established by the Constitution, and they do not have presidents duly appointed by the Senate. This situation makes them inoperative to deal with many of the matters provided for in the Federal Economic Competition Law and for which a quorum of at least five commissioners is required.

López Obrador is very clear about what he wants to destroy, what no one yet understands is what the hell he intends to build. I don’t think he even knows.


Gerardo Soria

President of IDET


Lawyer specializing in regulated sectors. President of the Telecommunications Law Institute (IDET). Doctorate in modern letters at the UIA.

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