Canada warns Mexico that it should consult on reforming the mining sector

This content was published on Apr 26, 2023 – 16:51

Toronto (Canada), April 26 (EFE). Canada has warned Mexico that it should consult with Canadian companies that have investments in the country about reforming the mining sector proposed by the government of President Andrés Manuel López Obrador.

Canada’s Minister of International Trade, Marie Ng, revealed on Wednesday that she spoke on Tuesday with Mexico’s Minister of Economy, Raquel Buenrostro, to express the Canadian government’s “concern” over the proposed reform of the country’s mining sector. , in that Canadian companies constitute the largest foreign investor.

In a statement, the Canadian minister said she made it clear to Buenrostro that the reforms could affect Canadian investments in the sector as well as the competitiveness and resilience of the North American supply chain.

Ng also told the Mexican minister that it was important for Mexico to “consult widely and transparently” on reforms with all stakeholders in the sector, “including Canadian companies.”

Canada reminded Mexico of the need to honor the spirit of the commitments reached at the North American Leaders’ Summit held in the Mexican capital in January.

On April 21, Mexico’s Chamber of Deputies, with the support of the government and its allies, approved a mining restriction reform that shortens mining concession periods and makes it easier to revoke permits.

The new legislation, which now has to be approved by the Mexican Senate, reduces the duration of permits from 50 to 30 years, with an extension of only 25 years, after which companies must re-enter the competition.

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This is not the first time that the economic reforms promoted by López Obrador have caused friction with Canada.

In 2020, Canada made the unusual decision to express its unease with the López Obrador government’s decision to limit private renewable energy projects, in which Canadian companies have invested billions of dollars, with a letter signed by the Canadian ambassador to Mexico.

Since then, Canada has declared its unease with the measures taken by the Mexican government on several occasions and expressed concern about the country’s investment climate, “particularly in the mining and energy sectors.” EFE

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