“Canadian Trade Minister Expresses Concerns over Mexico’s Proposed Mining Reforms; Impact on North American Competitiveness and Canadian Investment”

Reuters

The Canadian Trade Minister Mary Ng expressed his concern about the mining reforms proposed by Mexicoor in a call with the Mexican Secretary of the Economy, Raquel Buenrostro, the Ministry of Commerce said in a statement issued on Wednesday.

The mining reforms, proposed by the Mexican government last month, would include reducing concessions to 15 years from 50 years, tighten the rules for water use permits and requirements for give back al minus 10 percent of profit communities and reveal industry impacts. Last week, Mexico’s lower house voted to move forward with the review.

The proposal could affect Canadian investment in the mining sector of the Latin American country and have impacts on the competitiveness of North America and the resilience of the supply chain, said the Ministry of Commerce of Canada.

Ng also “urged Mexico to ensure that it upholds the spirit of the commitments made by the authorities at the North American Leaders Summit and the Canada-United States-Mexico Agreement.”

The reform of the mining law also has been criticized by industry leaders, who say it would cost Mexico billions of dollars in investment and lost jobs.

Mexico is Canada’s third-largest trading partner after the United States and China, and bilateral trade was valued at C$49.7 billion ($36.5 billion) in 2022.

In his call with Buenrostro, who is scheduled to visit Canada in June, Ng reiterated the importance of consultations with “all stakeholders regarding the proposed reforms, including Canadian companies, which represent the largest group of foreign investors in Mexico’s mining sector.”