U.S. Says Electricity Law Will Lead to ‘Endless Litigation’

The Government of the United States reacted on Thursday night to the ruling of the Supreme Court of Justice of the Nation (SCJN) that determined to maintain the validity of the Electricity Industry Law promoted by President Andrés Manuel López Obrador.
Hours after the resolution, the U.S. ambassador to Mexico, Ken Salazar, released a statement from the Joe Biden administration in which Washington insists on being concerned about the rule and warning that it will affect investments in the electricity sector.
“The U.S. government respects Mexico’s sovereignty and democratic processes. It is in this tenor of cooperation and respect that we are concerned that the Electricity Industry Law of 2021 will probably open the door to endless litigation, generating uncertainty and obstructing investment,” the message states.

The U.S. government respects Mexico’s sovereignty and democratic processes. It is in this tenor of cooperation and respect that we are concerned that the Electricity Industry Law of 2021 will probably open the door to litigation. https://t.co/vHApspdrY8
— Ambassador Ken Salazar (@USAmbMex) April 8, 2022

During Thursday’s session in the SCJN, although some ministers pronounced themselves for declaring the legislation promoted by López Obrador unconstitutional, the qualified majority to invalidate the norm was not reached.
Supporters of this order argue that it favors state control over the electricity sector, while its critics argue that it curbs clean energy and threatens ongoing investments.

The issue was discussed in the SCJN while the Chamber of Deputies is getting ready to discuss an electricity reform also promoted by López Obrador, although already at the constitutional level.
“The measures before the Mexican Legislature have impacts on the competitiveness of North America, and therefore we hope that the resulting legal framework will support the creation of a North America that is a clean energy powerhouse, that protects the current and future investments of U.S. companies in Mexico in accordance with Mexico’s obligations under the Mexico-United States-Canada Agreement, and to protect the integration of U.S.-Mexico supply chains in favor of the prosperity of our region,” the U.S. government said. 
“We hope that any legal framework will establish a clear commitment to combating the climate change crisis, and to providing clean, cheap and accessible energy for all,” he added. 
Last week, the Mexican president said his proposed electricity reform will not be modified, despite concerns expressed by the U.S. government.
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Original source in Spanish