CounterPunch Exclusives

CounterPunch Exclusives

Re-Opening Mexico to Fracking Could Lead to More Corporate Lawsuits

Transnational corporations are heavily pressuring Mexico to open up its energy sector as part of the official review this year of the U.S.-Mexico-Canada Agreement. As La Jornada reported, Larry Rubin, head of the American Society of Mexico, recently emphasized the need for the trade pact to advance North American energy integration and establish clear rules for private investment in the energy sector.

At the same time, the Mexican government is moving toward reopening the country to hydraulic fracturing (fracking), claiming that this would help achieve “energy sovereignty” by reducing reliance on natural gas imports from the United States. President Claudia Sheinbaum’s plans to exploit “unconventional” gas reserves marks a significant shift from the previous administration’s critical position on fracking.

Mexican civil society organizations have voiced strong opposition to Sheinbaum’s plan, led by the Mexican Alliance Against Fracking, a coalition of over 40 organizations. Beyond the environmental risks, there is an obvious contradiction between national sovereignty goals and the opening of fracking to public-private projects that use “new technologies” from foreign companies.

The USMCA allows U.S. corporations to sue the government of Mexico over disputes related to the hydrocarbons sector (oil and gas)........

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