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Mexican Court Suspends Controversial Energy Reform

MEXICO CITY — In Mexico, a drastic change to the energy laws benefiting the state over private companies had been signed by the president. But in less than 24 hours, the Mexican Supreme court suspended it.  

The energy reform favors state-owned companies, while scrutinizing and limiting the private sector. It also puts clean energy at the end of the priorities for power generation. 

But a federal judge suspended the law, as it may distort the market, alter competition and affect the development of the energy sector. 

But President Andrés Manuel López Obrador disagrees. 

The president said the suspension comes after foreign and some national business owners are upset since the law would make them lose privileges. 

But many analysts warn that the reform not only goes against the constitution, but it also goes against international trade and environmental agreements. 

Rodrigo Cervantes was KJZZ’s bureau chief in Mexico City from 2016 to 2021.