Mexico's Lower House Approves Reforms Banning Open-Pit Mining and Fracking, Restricting Genetically Modified Corn
In a groundbreaking move, a committee in Mexico's lower house of Congress has approved two constitutional reforms that would put an end to open-pit mining and fracking, as well as limit the use of genetically modified corn. These proposals, passed on Wednesday, are set to be discussed by the full lower house when lawmakers reconvene in September.
The reforms aim to protect the environment by prohibiting the exploitation of water in areas facing scarcity, except for domestic use in populated areas. President Andres Manuel Lopez Obrador introduced these reforms as part of a larger package of constitutional changes earlier this year, which also includes a proposal to overhaul the judiciary.
For these changes to become official, they must be approved by a two-thirds majority in both the lower house and the Senate, as well as by most local congresses. With Lopez Obrador's Morena party and its allies securing a strong majority in the lower house during the June elections, the reforms are likely to pass.
Lopez Obrador has been vocal about his opposition to mining contracts signed by previous administrations, emphasizing that his government has refrained from granting new private concessions in the sector. However, the Mexican Mining Chamber (Camimex) argues that banning open-pit mining could have detrimental effects on the country's economy, potentially leading to a 1% GDP contraction and putting 200,000 jobs at risk.
In addition, the proposal to restrict genetically modified corn comes amidst a trade dispute between Mexico and the United States under the U.S.-Mexico-Canada Agreement. The reform would allow genetically modified corn to enter Mexico solely for non-human consumption, provided that it cannot germinate.
Overall, these reforms signal a significant shift in Mexico's approach to environmental protection and sustainable development. By prioritizing the preservation of natural resources and indigenous communities, the country is taking a bold step towards a more environmentally conscious future. Investors should closely monitor these developments, as they could impact industries such as mining and agriculture, as well as the overall economic landscape in Mexico.