The Mexico Institute’s “Weekly News Summary,” released every Friday afternoon summarizes the week’s most prominent Mexico headlines published in the English-language press, as well as the most engaging opinion pieces by Mexican columnists.
What the English language press had to say…
This week’s news outlets centered in the Energy Reform approved by both the Mexican Senate and Chamber of Deputies. As expected, the law includes measures to open the oil and gas industry to private and foreign investment, through cash, profit-sharing and production contracts. What is new however, as a Forbes article explains, is the legal entity of the “license”. Although the legislation still explicitly prohibits the use of concessions in the hydrocarbons sector, the license will act in a very similar way, with the idea that it will be applied to unconventional projects like shale. The Economist noted that, as a consequence of the Reform, financial markets reacted with a burst of enthusiasm absent for most of the year, although it also claimed that the potential benefit from the reform will depend on the strength of secondary legislation that will specify what contracts will be offered for which type of oil or gas field, and what royalties and taxes the government will take. Finally, The Global Post noted that there were still political hurdles to overcome and that it will take a while before Mexico finally sees the investments and technology it needs to improve capacity and modernize Pemex.
On another topic, several news outlets highlighted stories concerning border issues. KPBS noted that U.S. and Mexico officials joined together on Tuesday in San Diego to signal construction crews to begin work on a $700 million border infrastructure project. The goal of the new freeway, and eventually a new port of entry, is to increase the $54 billion worth of goods that move across the Tijuana – San Diego Region by cutting border wait times that exceed two hours. The New York Times published a story describing how, even when agents do their jobs professionally and well, current immigration policy fosters insanity and menace in the Southern Border. It argues that when migrants have no hope of visas, the Border Patrol’s job is made harder while the drug lords get richer. On another note, the San Diego Union Tribune published a piece stating that the unprecedented spending of the U.S. government on border security has led to a nearly nonstop stream of reports, audits and studies criticizing how some of that money has been spent. Customs and Border Protection has acknowledged errors but also insists the unprecedented boost in spending has made the border far more secure.
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