I started this week’s edition in my hotel room while staying in Veracruz, Mexico. The Mexican trade association that I initiated in 2017 held its annual assembly to share huge doses of ambiguity about changes to the country’s energy reforms. Surprisingly, the association has remained potent and active despite six years of anti-competitive attacks by the country’s former president. No one is sure where the new Sheinbaum Administration will land on energy reforms, but early indications are guarded that there will be limited expansion of opportunities for foreign investment. The key word is “limited”. We must await a slew of new laws on these matters come February.
Our meeting included an online session with two officers of the U.S. State Department assigned to the U.S. embassy in Mexico City. Both demonstrated detailed knowledge about energy and the upcoming legislative changes being proposed. They characterized the new Mexican Administration as being receptive to their concerns but beyond that it is too soon to know how different the new prez will be from the old one. Further, come January 2025 the new U.S. Administration will have something to say about U.S./Mexico relations, and while energy matters are not the most pressing item on the list, they are in the top five for sure.