By RICARDO CASTILLO

Energy Plaintiffs Sue, AMLO Replies

There was a response from Mexican President Andrés Manuel López Obrador (AMLO) on Monday, May 18, to the international plaintiffs suing his administration for breach of contract regarding the cancelation of their operations of clean energy production.

“They have the right to go to court,” he said, “as do we have the right to do it within the framework of current laws to defend the interests of Mexicans.”

So far, at least two wind and solar electricity production concerns have obtained “provisional legal suspensions” of the new ordinance published on Friday, May 15, which states that the state-owned Federal Electricity Commission (CFE) is no longer obliged to buy as much as 12 percent of its electricity from them.

One of those plaintiffs is the Spanish-owned solar energy producer Mexsolar.

What the published edict said is that, in the past, particularly during the attempt to open Mexican energy markets to foreign investment participation, private companies were awarded as much as half of the total national electricity market.

“There were leonine contracts to produce clean energy, AMLO said, “as well as special terms for companies that produce renewable energy, clean energy. But in some cases, the contracts were all about dirty business dealings that attempted to push the CFE out of business.”

AMLO defended the new edict, claiming that, “if we don’t bring about order, we’re going to have more of the same, corruption, and (foreign investors, particularly from Spain) will continue to see Mexico as a land of conquest, the way they did in the past.”

On a separate front, Energy Secretary Rocío Nahle acknowledged receipt of letters from the embassies of the European Union and Canada expressing their with concerns and questions about the new regulations for foreign investment in the electricity sector.

Nahle said she would respond “later this week.”

“But this is not about the good and the bad, nor about public or private,” she said.

“It is about imposing order in a disorderly sector.”

Leading business organizations, however, are angrily arguing that the new regulations will spur foreign investment mistrust and will stop the growth of renewable energy, while bringing more government control to the industry.

Nongovernmental organizations such as the World Wildlife Fund have labeled the edict “damaging to the economy, the environment and the health of Mexicans-“

The WWF and other have offered their assistance in helping Mexico find better ways to contribute to “the global fight against climate change.”

Vehicle Makers Gear up

At least 25 vehicle assembly plants in Mexico are gearing up for a restart of operations after much hesitation from the government as to whether to give them a green light to do so.

Miguel Elizalde, president of the National Association of Buses, Trucks and Tractor Trucks (Anpact), said that its members are ready but that each company is on its own to meet all the demands the government has laid down as conditions for new production standards imposed by the covid-19 pandemic.

Now, all manufacturing companies have until May 31 to prepare their facilities to meet the government’s new guidelines, which have already been made public, with new sanitary regulations soon to follow.

The auto manufacturing industry is also following suit after General Motors, Ford and Fiat-Chrysler began preparations in their U.S. plants to open up, putting pressure on the Mexican government.

Mexican plants produce at least 39 percent of the auto parts the Big Three U.S. automakers use and any miscue in synchronization will bring about breakdowns is links of the supply chain.

All factories in Mexico, however, have workers making preparations to get rolling in June.

Interesting Interest Rate

Even with the recent decrease of half a point, the interest rate of 5.5 percent in Mexico’s central bank, Banco de México (Banxico), continues to be one of the most attractive in the world today.

It must be pointed out that rates in advanced economies are at near zero and even some below that level, making Mexico a maximum attraction compared to the nearest competitive players, such as Brazil, with 3 percent, and South Africa, with 4.3 percent.

Pemex Oil Price Surges, Dollar Drops

Mexican export crude produced by the state-owned oil company Petróleos Mexicanos (Pemex) was quoting on Tuesday, May 19, at $26.73 a barrel, bouncing back significantly from low prices quoted at the start of the covid-19 pandemic two months ago, when it actually fell into negative territory.

There are no signs of turbulence right now in the world oil market, so global prices are expected to slowly keep going up as Saudi Arabia announced it will cut production by another 10 million barrels a day.

Meanwhile, the Mexican peso-dollar parity remained relatively stable, with the peso floating at around 23.73 pesos per dollar Tuesday, May 19, a gain of 1.35 pesos against the greenback compared to the week before, when it quoted for as much as 25 to the dollar.

Successful Auction

The third auction of properties once owned by alleged organized criminals was carried out successfully on Sunday, May 17, and brought in a total of 64.3 million pesos.

The auction was carried out at the former presidential residence of Los Pinos, now a cultural center and a dormitory for doctors working in hospitals treating covid-19 patients.

The auction was organized by the Institute to Return to the People What Was Stolen from Them (INDEP).

The funds, said INDEP Director Ricardo Rodríguez Vargas, will go to Mexico’s recently created Institute for Health and Wellbeing.

Sports: What’s Going on with the Soccer Season?

It would come as no surprise if the Mexican Soccer Federation (FMF) were to decide to call off the season that is usually carried out during the first half of 2020.

The season was “temporarily suspended” nine weeks ago, but with the covid-19 peak in place right now, it’d seem that the cancelling the season altogether is the only way out.

FMF President Enrique Bonilla held a video conference on Monday, May 18, with team owners as well as advertisers and television representatives to discuss the situation of the 18-team Mexican Soccer League.

FMF President Enrique Bonilla held a video conference on Monday, May 18, with team owners as well as advertisers and television representatives to discuss the situation of the 18-team Mexican Soccer League.

They all agreed that under the healthy distancing measures imposed by the government there are no conditions to finish the 2020 tourney.

A definite meeting is due for Wednesday, May 20, during which the call will be made, with hopes to play again as of next August.

The closing of the season will cost the team about 4 billion pesos since some of the nearly 600 players in the league continue to collect their wages.

If the season is cancelled, it would be the first time in the 77-year-old modern league’s history that a tournament is suspended.

…May 20, 2020