Mexican business chamber Confederación Patronal de la República (Coparmex) has issued a statement warning that Mexican energy policy as outlined in a memorandum from President Andrés Manuel López Obrador to energy sector regulators is damaging to investor confidence at a time when the country desperately needs to jumpstart economic activity.

Mexico’s gross domestic product (GDP) contracted an annualized 53.2% in the second quarter of 2020, its largest quarterly drop on record, according to the Federal Reserve Bank of Dallas. 

Meanwhile the government of López Obrador appears to be doubling down on an energy sector policy that favors state companies and squeezes out the private sector.

The authors of the Coparmex statement said that the memorandum, which urges...