Mexican lawmakers reject president's energy reforms opposed by US

Mexican lawmakers have rejected constitutional electricity reforms at the centre of diplomatic tensions with the United States, in a blow to President Andres Manuel Lopez Obrador.

After a marathon session in the lower house of Congress on Easter Sunday, Lopez Obrador's Morena party failed to secure the two-thirds majority needed to amend the constitution.

There were 275 votes in favour and 223 against the bill, with no abstentions, the president of the lower house, Sergio Gutierrez, announced.

Lopez Obrador promoted the changes to strengthen the state-owned electricity provider and roll back the effects of liberalisation under previous governments that he says favoured private companies.

But his plans alarmed the United States and Canada, prompting warnings that Mexico is in danger of violating its trade commitments by favouring state-run entities heavily dependent on fossil fuels.

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Electricity market

Gutierrez had earlier accused the opposition of wanting to remain "imperialist lackeys" at the service of foreign companies.

But Jorge Romero of the conservative National Action Party argued that the bill would put the country "back 50 years" in efforts to protect the environment.

The changes would have ensured that the state-owned Federal Electricity Commission has at least 54 percent of the electricity market — a move the government says is needed to prevent soaring power prices.

Earlier during the debate, supporters of Lopez Obrador held a rally outside the Chamber of Deputies calling for the reforms to be passed, with one carrying a sign that said "Don't sell out the nation."

The vote marked one of the few legislative setbacks Lopez Obrador has suffered since taking office in late 2018. But he has vowed to submit separately a bill that would nationalise the mining of lithium.

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