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Mexican Lawmakers Advance Controversial Plan to Dissolve Independent Oversight Bodies

By  |  January 2, 2025

In a significant legislative development, Mexico’s lower house of Congress has approved a constitutional proposal aimed at dismantling seven autonomous regulatory agencies. The measure, described by supporters as a step toward streamlining governance, has sparked widespread debate over its potential implications for institutional independence and economic agreements.

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    On Wednesday night, lawmakers voted 347-128 in favor of the proposal’s general text, with individual articles securing approval the following day. The bill will now proceed to the Senate, where the ruling coalition is just one vote shy of the two-thirds majority required for constitutional amendments.

    The proposed legislation targets seven oversight bodies: the transparency institute (INAI), the antitrust regulator (Cofece), the telecommunications watchdog (IFT), the energy regulator (CRE), the hydrocarbon regulator (CNH), the commission for educational oversight (Mejoredu), and the council for evaluating social policies (Coneval). According to a statement from President Claudia Sheinbaum, the move will result in budgetary savings, as their functions will be absorbed by various government ministries.

    Read more: Mexican Watchdog Proposes Fintech Reforms to Boost Financial Inclusion

    Critics, however, warn that the plan could compromise the independence of these organizations, with some expressing concerns about potential repercussions for international agreements such as the United States-Mexico-Canada Agreement (USMCA). The trade pact is scheduled for review in 2026, and opponents argue that the changes could undermine key provisions related to fair competition and transparency.

    To address these concerns, Ricardo Monreal, leader of the ruling Morena party in the lower house, introduced a proposal during the debates. Per a statement from lawmakers, this amendment would establish decentralized agencies to ensure the antitrust regulator and telecommunications watchdog retain technical autonomy and independent resources, even as some of their roles are integrated into government offices.

    This adjustment, described by Monreal as a safeguard for maintaining competition oversight, was seen as a concession to critics. According to Reforma, the new agencies would be tasked with preventing and addressing monopolistic practices and ensuring barriers to competition are removed.

    Source: MSN