Business group blasts Mexico’s new lithium law as violating trade deal
MEXICO CITY (Reuters) – A Mexican regulation that nationalizes its future lithium trade violates its commerce obligations and will show pricey to the federal government if mining corporations search to recoup losses, the native department of the Worldwide Chamber of Commerce stated on Wednesday.
Mexico’s Congress final week authorised a invoice championed by President Andres Manuel Lopez Obrador to nationalize lithium. He has additionally vowed to evaluation all energetic contracts to use the coveted battery metallic.
The proposal was handed by a big majority of lawmakers in each chambers who argued that Mexico’s untapped lithium deposits ought to solely be developed by a government-run firm, not international or non-public miners.
However the regulation conflicts with Mexico’s commerce treaty obligations below the Complete and Progressive Settlement for Trans-Pacific Partnership (CPTPP), in response to the Mexico workplace of the Worldwide Chamber of Commerce.
The enterprise group stated it acknowledged that Mexico’s structure already declares that each one mineral sources belong to the nation.
“However that recognition should not be confused with the rights of Mexican and international buyers to take part, by the use of concessions, in financial exercise associated to exploration, exploitation and manufacturing of mineral sources,” in response to the assertion.
Near a dozen international corporations maintain contracts to discover potential Mexican lithium deposits, together with Bacanora Lithium, which is managed by Chinese language agency Ganfeng Lithium Co.
The enterprise group cited language that prohibits events to the commerce pact from introducing new restrictions on financial exercise not explicitly reserved to the state.
CPTPP entered into drive in late 2018, simply weeks after Lopez Obrador started his six-year time period.
The enterprise group warned that Mexico must compensate corporations with energetic mining concessions if their rights are violated, and stated it’s “worrying” that the brand new regulation doesn’t clearly spell out how mining corporations with concessions in Mexico can be affected.
(Reporting by David Alire Garcia; Modifying by Sandra Maler)
