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The
unusually broad diplomatic encounter is a measure of how the
leftist Lopez Obrador's break with the energy policy of the
previous government is worrying economies that have
traditionally been some of Mexico's biggest foreign investors.
U.S., Canadian and European officials privately voice concern
that Mexico's energy policy is eroding the legal foundations of
contracts worth billions of dollars with the previous
administration, in what they fear is a creeping squeeze-out of
their interests.
Mexico's government denies it is undermining those deals, but
says prior contracts were often damaging to the country, and has
sought to renegotiate the terms of some.
At Friday's meeting in Mexico City hosted by the U.S. embassy,
diplomats from Britain, Canada, the EU, France, Germany, Italy,
the Netherlands and Spain discussed their concerns and how best
to relay them to Lopez Obrador, said five people familiar with
the gathering.
Asked for comment, the U.S. embassy responded to Reuters that it
did not discuss its diplomatic conversations. The other foreign
embassies did not reply to requests for comment, nor did Lopez
Obrador's office.
Details of what happened at the meeting were not immediately
clear, although there was discussion about whether to make it
public, said one person. All the sources spoke on condition of
anonymity, due to the sensitivity of the matter.
Diplomats say foreign government differ in their opinions of how
openly to communicate their grievances to Lopez Obrador, lest he
feel he is being pushed about and ends up taking a more hardline
approach.
Lopez Obrador has committed himself to strengthening the state's
role in the energy sector, arguing that past market
liberalization and privatization of other industries deepened
chronic inequality in Mexico and encouraged corruption.
Broader concerns over Lopez Obrador's economic policies sapped
investment in Mexico last year and contributed to a slowdown
that pushed the economy into a mild recession.
Companies from around the world pledged to invest billions of
dollars in Mexico under constitutional changes to open up the
energy market, in particular for oil and gas, made by Lopez
Obrador's centrist predecessor, Enrique Pena Nieto.
Lopez Obrador has put the brakes on that liberalization process,
saying it has not yielded benefits for Mexico.
One particular dispute centers on who has the right to operate a
major offshore crude discovery in a reservoir straddling areas
held by state oil firm Petroleos Mexicanos (Pemex) and a
U.S.-led consortium of private investors.
Last year, Lopez Obrador's government also upset some countries
by threatening to tear up about $12 billion in contracts agreed
under Pena Nieto for construction of a string of natural gas
pipelines, arguing they ripped off taxpayers.
Although that dispute was eventually resolved, fresh conflicts
have surfaced.
Government steps to strengthen the state power utility Comision
Federal de Electricidad (CFE) have reduced incentives for
private capital to enter renewable projects, further clouding
investor confidence in Mexico.
Some of the money tied up in energy investments in Mexico is
linked to pension funds in Europe and North America. Critics of
the government's policies worry that diminishing returns on
those Mexican energy investments may hit pensioners.
(Reporting by Dave Graham; Additional reporting by Ana Isabel
Martinez; Editing by Clarence Fernandez)
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