Agenda – 2021

In 2013 and 2014, Mexico implemented an energy reform meant to open one of Mexico’s most important sectors still protected from market forces—and formally reserved under the North American Free Trade Agreement. This was meant to be the last building block to project Mexico forward, concluding the liberalization of the country’s economy. There was in fact much optimism in the industry and many companies readied to invest in Mexico. But this all changed in 2018, with the advent of the López Obrador administration. In effect, even before he took office, Mr. López Obrador began to make substantial changes, first rhetorically and then through specific administrative and legislative measures, to the overall business environment in Mexico. Many of these are now reaching the energy markets. Many companies, some already holding contracts to operate in Mexico, were left with great uncertainty on their investments and their future in the country. Others simply put their investments on hold. This conversation examines where is Mexico today, what the political landscape tells us about whether Mexico will step back from its previous path or move forward, or whether we can expect a return to the previous path of a modern Mexico, open to foreign investment.

• Mr. Tony Payan, Director, U.S.-Mexico Center, Rice University's Baker Institute