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Fitch Says USMCA Arbitration Will Be Costly If Power Reform Passes

MEXICO
  • Round up of headlines from Fitch Ratings event on credit risks if Mexico approves AMLO’s energy reform:
    • Expect foreign company arbitration cases if power bill passes
    • Mexico dependence on gas-fired power plants to rise
    • Mexico needs $10B/year electricity investment for 15 years
    • Mexico power bill approval could cause negative ratings for companies
    • Mexico energy bill has no major effect on gas pipelines
    • Lack of permits has decreased Mexico clean energy projects
    • USMCA arbitration will be costly for Mexico if reform passes
    • Mexico-U.S. friction has increased over power reform (All BBG)

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