We’ve written here before about the opening up of Mexico’s energy industry, but it is clearly a big story and a big issue for Mexico,...
We’ve written here before about the opening up of Mexico’s energy industry, but it is clearly a big story and a big issue for Mexico, the United States, and Canada. So, it is natural that articles like this one in the Dallas Morning News and this piece in the Wall Street Journal talk about the liberalization of Mexico’s oil and gas industry. As the Journal reports: “Opening Mexico’s closed energy market in particular was historic for a country that largely pioneered oil nationalism by kicking out foreign oil companies in 1938, a move hailed for generations of Mexicans as the country’s defining moment of the 20th century.”
But the bigger story is a series of constitutional and statutory changes across several sectors. Those include taxes, education, and liberalizing the telecommunications market. There are many details to work out. For instance, the unreported story about energy is the environmental regulatory system that will be created to oversee the industry. That system still must be finalized.
This energy story still has many chapters to go. But it is an important one, whose roots can be traced back to the in the creation of the North American Free Trade Agreement.
