The bill proposes to eliminate several regulatory bodies including the transparency institute (INAI), the antitrust regulator (Cofece), the telecommunications watchdog (IFT), the energy regulator (CRE), the hydrocarbon regulator (CNH), the commission for oversight of education (Mejoredu) and the council to evaluate social policies (Coneval). Despite concerns, Economy Ministry officials insist that the legislation would not violate the North America free trade agreement (USMCA) and that the oversight body against monopolistic practices will operate independently under government auspices.
Key takeaways:
- Mexico's Senate has approved a bill that would dismantle autonomous government watchdogs, including those regulating antitrust issues and the energy industry, with their functions being absorbed by existing federal government ministries.
- The legislation was proposed by former President Andres Manuel Lopez Obrador as part of an effort to slim down the federal government and deliver on the ruling party's austerity pledge.
- The bill has faced criticism due to concerns that it could undermine the independence of regulators and their role in checking government power.
- The ruling Morena party, which holds the majority of seats in state legislatures, is expected to pass the bill into law in the coming days.