International Business Articles
Written By: Dr. Mario Melgar-Adalid
Cacheaux Cavazos & Newton
Out of all the structural reforms initiated by the administration of President Peña Nieto, the most complicated appears to be the energy reform. Mexico's general public and policy makers expected heated discussions and debate as to the energy issues that were historically considered to be taboo, such as the Nation's absolute ownership of its subsurface minerals and natural resources and the structure, organization and authority of the state owned oil company, PEMEX. While the initial announcement of the energy reform, which contained an Initiative by the President to modify the Constitution and allow participation by private companies in activities exclusively carried out by PEMEX, generated much public discussion and opposition, all signs appear to indicate that it will be approved. Supplementary regulatory laws, which remain pending, will provide an indication of the extent of the energy reform. In contrast, the education reform, which appeared to be resolved given the elimination of the possible battle announced by the opposition led by the former leader of the National Education Workers' Union (Sindicato Nacional de Trabajadores de la Educación (SNTE)), Elba Esther Gordillo, who is now in jail for various acts of corruption, has caused significant commotion in Mexico City. Protests, marches and roadblocks have disturbed a large part of Mexico City. Federal and local Federal District authorities have demonstrated tolerance in order to avoid any violent incidents that could escalate into conflicts given the disagreement over the proposed restructuring of Mexico's public education system. For now, the Mexican Constitution has been amended in order to pave the way to pending supplementary education laws. The hope is that this issue will be resolved in the interest of education and peace for Mexico City and the country as a whole.