Mexico Congress Approves Abolition of Regulatory Bodies

Mexico's lower house of Congress has approved a constitutional reform aimed at dismantling seven autonomous regulatory bodies, including the National Institute for Transparency and the telecommunications regulator IFT, with a vote of 347 to 128. This move, championed by the ruling Morena party and linked to former President Andrés Manuel López Obrador's agenda, is intended to streamline governance and reduce public spending. However, the reform has raised concerns about potential conflicts with the USMCA trade agreement, particularly regarding the IFT's abolition, which could lead to disputes with the U.S. and Canada. Analysts warn that the centralization of these bodies under government ministries could undermine their technical independence and potentially lead to credit rating downgrades for Mexico. Despite the ruling party's reassurances, the implications for economic stability and democratic practices remain contentious, prompting scrutiny from both domestic critics and international observers.