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López Obrador challenges Mexican Supreme Court ruling on infrastructure megaprojects

López Obrador challenges Mexican Supreme Court ruling on infrastructure megaprojects
Photo: AP

May 19 |

Hours after Mexico’s Supreme Court ruled on Thursday that a government agreement declaring large infrastructure projects as “national security” works is unconstitutional, President Andres Manuel Lopez Obrador published a similar order in the Official Journal of the Federation in clear defiance of the high court’s ruling.

The Court made clear that the federal government cannot simply decree that tourist trains or other public works projects are matters of “national security” because that violates the public’s right to information about such infrastructure.

However, on Thursday afternoon, a similar agreement went into effect giving that label to several projects, among them the Mayan Train, a controversial mega-project in the Mexican southeast that the president wants to finish before the end of his term in 2024.

López Obrador has tried to speed it up by exempting it from normal permits and public reporting on the grounds that it is vital for the country’s security.

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The ruling is the latest in a series of setbacks for the president, who has sought to expand the discretionary powers of the executive.

At the moment it is unclear whether Thursday’s court ruling only affects the public’s right to access information on spending, costs and other data on such projects, or whether it also repeals the fast-track permitting procedure. The court is scheduled to discuss and vote Monday on the overreach and implications of the ruling.

Unlike the 2021 ruling, which did not mention specific projects by name but referred to infrastructure in general, Thursday’s ruling decreed that the Mayan Train and the economic corridor that will cross the Isthmus of Tehuantepec, the narrowest part of the country, as well as three airports in that area of the southeast, were of national security.

López Obrador is upset with the highest court for dismissing some of his electoral reform initiatives, and has called for a change to make the Supreme Court an elected body. Currently, the president suggests the shortlists of potential justices, but the Senate chooses them.

In July, the government invoked national security powers to advance the Mayan Train construction project, a tourist railroad along Mexico’s Caribbean coast that threatens an area of caves where some of the oldest human remains in North America have been discovered.

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The government had paused the project in 2022 after activists won an injunction against the route because it opened a strip of jungle for the tracks without first submitting an environmental impact statement.

But the government invoked national security powers to resume construction. The measure also makes it easier for the government to withhold information on such projects.

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International

Air Canada suspends JFK flights amid soaring fuel costs linked to Iran conflict

Air Canada announced on Friday that it will suspend its flights from Montreal and Toronto to New York’s John F. Kennedy International Airport from June through late October, citing rising jet fuel costs driven by the conflict involving Iran.

“Since the beginning of the conflict with Iran, some routes and less profitable flights have become economically unviable, so we are making adjustments accordingly,” the airline said in a statement.

Despite the suspension, the carrier confirmed it will continue operating 34 daily flights from six Canadian cities to New York’s LaGuardia Airport and Newark Liberty International Airport.

Air Canada expects to resume its JFK operations after October 25.

Meanwhile, Iran announced the reopening of the Strait of Hormuz amid a temporary ceasefire in the region. However, jet fuel shortages could persist even if the truce holds.

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Fuel accounts for between 25% and 30% of operating costs for most airlines, and carriers worldwide have responded to the crisis by raising fares and suspending select routes due to safety and profitability concerns.

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International

UK braces for potential CO₂ shortage amid Middle East tensions

The government of United Kingdom is preparing contingency measures amid fears of a potential shortage of carbon dioxide (CO₂), which could impact the agri-food industry if the Strait of Hormuz remains blocked due to the ongoing conflict in the Middle East, The Times reported on Thursday.

According to the newspaper, officials assessed this scenario during a recent crisis meeting aimed at evaluating the consequences of a prolonged conflict, triggered on February 28 by joint attacks from United States and Israel against Iran.

Under this scenario, CO₂ supplies—primarily a byproduct of fertilizer production using natural gas—could fall by up to 18%, affecting multiple sectors including agriculture and food production.

The gas is widely used in the slaughter of pigs and poultry, as well as in extending the shelf life of packaged foods. Breweries could also face disruptions due to reduced availability.

“I don’t want to comment on a leak, but now that the information is out there, I hope people feel reassured knowing we are working on it,” said Peter Kyle, Secretary of State for Business and Trade, in remarks to Sky News.

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While a drop in CO₂ supply is not expected to cause major shortages in supermarkets, it could limit product variety, The Times noted, citing access to internal government documents.

To mitigate the impact, authorities are considering prioritizing CO₂ supply for critical sectors such as healthcare and civil nuclear energy, where it is used in cooling systems for blood reserves, organs, vaccines, and electricity generation. The government may also request domestic producers to increase output.

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Central America

El Salvador and Paraguay approve 2026–2028 cooperation program

The governments of El Salvador and Paraguay approved the 2026–2028 Cooperation Program, which includes six joint development projects, according to Salvadoran Vice Minister of Foreign Affairs Adriana Mira.

Mira stated that El Salvador will act as the “main provider of cooperation,” contributing five initiatives focused on road infrastructure, tourism, and local development. She also noted that one of the projects will be led by the Paraguayan side, although no further details were disclosed.

The agreement was reached during the Second Meeting of the Joint Commission on Technical and Scientific Cooperation between both countries.

According to Paraguay’s Ministry of Foreign Affairs, the First Meeting of the Political Consultation and Bilateral Coordination Mechanism was also held, with the participation of Vice Minister Víctor Verdún.

In an official statement, the Paraguayan government reported that both delegations agreed to identify mechanisms to promote competitiveness, economic growth, and market access. They also committed to signing agreements related to air transport cooperation.

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