Controversy due to Mexico's Energy Reforms/Crime rates decrease

USMCA Controversy due to Mexican Energy Reforms. The Ministry of Economy reported that the US has requested dispute settlement consultations with Mexico regarding its latest energy reform policies. The request concerns a revision mechanism established in the treaty. This occurs when a country thinks that one of the clauses of the agreement is not being complied with, it can then ask for a clarification. Moreover, Mexico´s president said he is willing to reach a solution.

López Obrador said that the request derives from the nonconformity that Mexican, US and Canadian businessmen have shown toward his government´s recent energy reforms. He assured that the new energy reforms enacted in his administration do not violate the USMCA.

Crime rates have decreased. Rosa Icela Rodríguez, Minister of Security reported that crime rates decreased 25.1 percent during June and that 49 percent of the homicides are concentrated in six states: Guanajuato, Baja California, Michoacan, Estado de Mexico, Jalisco and Chihuahua.

Moreover, Rodríguez reported that the current administration has obtained daily savings totaling MX$165 million (US$8 million) destined for security tasks to combat fuel theft in the country. Reports show that in 2018, 72,000 b/d were stolen and today an average of 6,000 b/d are being stolen, said the Minister of Security.

500kg of fentanyl confiscated. Minister of Defense Luis Cresencio Sandoval notified that members of Mexico´s Army confiscated over 500kg of fentanyl and highlighted the importance of this action for the current government. Furthermore, he said it was a relevant operation carried out in a collection center of chemical products in Sinaloa.

The Army has destroyed 246 clandestine drug laboratories this year where they found 950kg of methamphetamines, 12,820lt of chemical substances and 111 capacitors, said Sandoval.

Governor of Quintana Roo might join Federal Government after his mandate. President López Obrador said he will evaluate the possibility of Carlos Joaquín, Governor of Quintana Roo, joining the federal government once his term as governor comes to an end.

In Nov 2021 the president recognized the good work of the Governor publicly for the first time and anticipated that he would talk to him to convince him to keep helping in the federal government.

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