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The Disappearance of Autonomous Bodies in Mexico: Potential Impacts on Competitiveness

On November 21, 2024, the Mexican Chamber of Deputies approved in general and specific terms a bill to dissolve seven autonomous bodies. These include the National Institute for Transparency, Access to Information, and Data Protection (INAI); the Federal Economic Competition Commission (Cofece); the Federal Telecommunications Institute (IFT); the National Council for the Evaluation of Social Development Policies (Coneval); the Energy Regulatory Commission (CRE); the National Hydrocarbons Commission (CNH); and the National Commission for the Continuous Improvement of Education (Mejoredu). The bill will now be discussed in the Mexican Senate and will be subject to a vote.

The potential elimination of these autonomous bodies could violate international agreements, such as the United States-Mexico-Canada Agreement (T-MEC), as well as other treaties with the European Union.

The elimination of these institutions, which issue technical and transparent decisions, could jeopardize fundamental rights such as access to public information, data protection, and the defense of fair competition in the market.

If these bodies are abolished and their functions transferred to the Federal Public Administration, it could lead to greater opacity and corruption, fostering monopolistic practices and increasing risks of high prices and shortages of essential goods and services.

POTENTIAL KEY IMPACTS IN COMPETITIVENESS

INAI

COFECE

IFT

CNH

CRE

Difficulty investigating corruption.

Increased monopolies, raising prices for goods and services, including basic products.

Higher costs for services like internet and telecommunications.

Greater environmental pollution risk from irresponsible extraction practices.

Increased prices for electricity, gas, and gasoline due to lack of competition and regulation.

Loss of access to information on the use of public funds.

Reduced product quality due to lack of competition.

Reduced service quality, with more interruptions and connectivity issues.

Potential fuel shortages and higher gasoline prices.

Possible disruption of energy supply reliability, leading to frequent outages.

Risk of violating citizens’ privacy.

    

 

At Calderón Marín, we are closely following the development of this proposal in the Senate and will keep you updated on its progress. We are at your disposal for any questions or comments regarding this matter.

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