Mexico does not have positive experiences with the nationalization of economic activities, warned the Employers’ Confederation of the Mexican Republic.
The Employers’ Confederation of the Mexican Republic (Coparmex) warned that the government of Andrés Manuel López Obrador nationalized the company as Air Liquide, owner of a hydrogen plant in Tula, Hidalgo to give it to the Armed Forces.
“The federal government is developing a strategy to renationalize certain activities of the economy, the most worrying manifestation of which is the commitment to militarize these tasks, as occurred recently with the purchase, management, and distribution of medicines and the operation of an airline, and of the Maya Train,” the statement read.
Mexico does not have positive experiences with the nationalization of economic activities, since they have generated deep economic costs due to inefficiencies and poor management of public companies, said the employers’ union.
Coparmex recalled that the nationalization of companies has generated a negative social impact, ultimately affecting families by having to pay extra costs, receive poor services, or assume the payment of debt through taxes.
“We express our deep concern and our rejection of the expropriation actions of (Air Liquide operations) carried out by the federal government,” the Coparmex statement continued.
On December 28, 2023, the government of Andrés Manuel López Obrador declared the conservation and provision of the hydrogen supply service, its use, exploitation, operation, and exploitation of the U-3400 Hydrogen Production Plant, located in the fraction of land inside the Miguel Hidalgo Refinery, located in Tula de Allende, state of Hidalgo.
In the same legal act, it ordered the immediate temporary occupation in favor of Pemex Industrial Transformation as a subsidiary State productive company of Pemex.
This plant has been operated since 2017 by Air Liquide (a French company), which fulfilled the commitment to supply hydrogen for 20 years to the oil installation and reduce Pemex’s costs.
The amount of compensation must be covered in accordance with the appraisal carried out by the Institute of Administration and Appraisals of National Assets. Likewise, within ten days after the entry into force of the decree, interested parties can go to the procedure to dispute the amount of compensation.
“Although they are actions regulated by the Expropriation Law that establishes the causes of public utility, and regulates the procedures, modalities and execution of expropriations, it is noteworthy that this decree does not indicate the period of temporary occupation and is ambiguous in some aspects. , which prevents the possibility of calculating the compensation provided for in Article 2 Bis. of said legislation,” stated Coparmex.
The employers’ body demanded that the Executive Branch act responsibly, to exhaust the dialogue and negotiation mechanisms with supplier, permit holder, concessionaire or bidder companies with which it has differences, before carrying out unilateral acts such as the occupation or expropriation of assets.
“We consider that Mexico cannot afford to scare away investments or show itself to the world as a country with a fragile rule of law,” he said.
In addition to these risks, Coparmex warned of additional damage: seriously discouraging the attraction of investments and wasting the great opportunity that the relocation of companies and production chains or nearshoring opens up for our country.
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