Abstract

Significance The move was not altogether unexpected, with the energy ministry having previously hinted it was possible. It nevertheless feeds concerns that the outgoing administration of President Andres Manuel Lopez Obrador (AMLO) might become increasingly radical after the June 2 general election, as its term ends. Impacts Financial losses at several state-owned enterprises will put pressure on public finances. The next government will face financial and reputational costs resulting from heavy-handed actions carried out under AMLO. Hopes of increasing nearshoring investments may push the next government to avoid forceful actions against foreign companies.

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