Mexico's Controversial Reform: The End of Autonomous Regulatory Bodies

Mexico's Congress approved a reform to abolish autonomous regulatory bodies, risking U.S. tensions and credit downgrades. The proposal, supported by President Claudia Sheinbaum, seeks to centralize the state apparatus, ending institutions like Cofece and IFT. A final vote is expected before moving to the Senate.

Mexico's lower house of Congress has approved a sweeping reform targeting the abolition of most autonomous regulatory bodies within the country. This decision could exacerbate existing tensions with the United States and potentially affect Mexico's credit ratings.

In a notable display of political conflict, lawmakers in the Chamber of Deputies endorsed the reform with a vote count of 347 in favor against 128 opposed, following a lengthy and at times contentious debate. The session saw exchanges of jeers and personal insults among lawmakers.

The legislation aims to dismantle several autonomous public bodies, notably including the antitrust watchdog Cofece, telecommunications regulator IFT, and energy regulator CRE. The reform is part of a series of constitutional changes originally proposed by former President Andres Manuel Lopez Obrador, aimed at reducing public expenditure through centralization.

(With inputs from agencies.)