BUSINESS-ECONOMY
Companies including Amazon.com Inc. and Woodside Energy Group Ltd. announced about $20 billion in projects in Mexico, a development that bodes well for President Claudia Sheinbaum as she seeks to attract investment from wary business leaders. Economy Minister Marcelo Ebrard said that Woodside plans to invest US$10.4 billion to develop a deepwater project with state oil company Petroleos Mexicanos in the Gulf of Mexico. Amazon will invest $6 billion through 2026 in improving its network and digital infrastructure in the country, Ebrard said. According to Ebrard, Royal Caribbean Cruises Ltd. is planning to invest $1.5 billion in tourism in the state of Quintana Roo. He made the announcement on Tuesday during a news conference after a meeting of the US-Mexico CEO Dialogue. Speaking to around 240 Mexican and international company leaders, Sheinbaum sought to downplay concerns that several constitutional reforms will erode democracy and judicial independence in the country, the largest trading partner of the US. Among those reforms include the judicial overhaul approved last month in Congress - a new law to elect federal judges by popular vote and an energy bill that provides priority for state-owned companies over private firms in energy production and power transmission. Critics say the judicial reforms render investment in Mexico riskier as control over the courts is likely to fall into the hands of Sheinbaum's popular Morena party. “The president doesn’t want to control the judiciary,” Sheinbaum said. “What we want is to have a judiciary free of corruption.” Sheinbaum also said that, although the government wants to control 54 per cent of energy generation and transmission in Mexico, there will be clear rules for private investment in the remaining 46 per cent. During the CEO meeting, the government created working groups with companies to address energy projects. The government will have its energy plan ready by the end of the year, Sheinbaum said. A set of rules known as secondary laws will define the participation process of private companies in energy projects. After listening to business concerns, Sheinbaum said the government will create a digital transformation agency to reduce red tape and help companies with investment projects. The North American free-trade pact known as the US-Mexico-Canada Agreement, or USMCA, must be strengthened so that the three countries complement each other rather than compete with each other, she said. This article includes reporting from Bloomberg. None
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