Mexican congress fires starting gun on stripping regulators of independence

Mexico’s congress will vote next week on ending the independence of regulatory authorities in the energy and telecom sectors.

Ricardo Monreal Ávila, who is member of ruling Morena party and responsible for political coordination in the lower house, told reporters that the constitutional reform should be approved between November 11 and November 14.

Morena holds a large majority in congress and in the last month, its members have approved far-reaching changes to the constitution.

The proposal has previously been approved by the constitutional committee of congress.

This latest reform will end the autonomy of hydrocarbons regulator CNH and electricity authority CRE and fold both bodies into energy ministry Sener.

Other authorities which will lose their independence include competition authority Cofece and telecoms regulator IFT.

The proposal has raised concerns among business groups, which have claimed that without independent regulators it will be harder for the private sector to compete on a level playing field.

Employers association Coparmex has said that the measure "seriously compromises democratic stability and the balance of powers in our country."

"These bodies are crucial to prevent market concentration and to promote economic development," Coparmex said in a press release after the constitutional committee approved the proposal.

"Their work is essential to guarantee fair economic competition and protect consumer welfare."

The reform may also conflict with the United States-Mexico-Canada (USMCA) free trade agreement.