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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

US panel backs Trump-themed coin amid controversy

The United States Department of the Treasury confirmed to AFP that the Commission of Fine Arts approved the design of a new collectible coin featuring Donald Trump, with members of the commission appointed by the current administration.

According to the proposal, the coin will feature an image of Trump standing with clenched fists over a desk on the obverse, while the reverse will display an eagle, a traditional symbol of the United States.

The sale price of the collectible has not yet been disclosed, although the United States Mint typically offers similar items for more than $1,000.

“There is no more iconic portrait for the front of these coins than that of our president Donald Trump,” U.S. Treasurer Brandon Beach said in a statement sent to AFP. He added that two additional coins — a $1 piece and a one-ounce gold coin — are also under consideration.

However, the Citizens Coinage Advisory Committee (CCAC), another body responsible for reviewing new coin proposals, declined to discuss the Trump design in late February.

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“Only nations governed by kings or dictators place the image of a sitting leader on their currency,” said Donald Scarinciat the time. “No country in the world has minted coins featuring a democratically elected leader during their term in office,” he added.

When contacted by AFP, the Treasury Department did not immediately respond to requests for further comment.

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International

Fed’s Waller warns of rising inflation risks amid Middle East conflict

Christopher Waller, a governor at the Federal Reserve, said Friday that he is increasingly concerned about the inflationary impact of the ongoing conflict involving United States and Israel against Iran, particularly due to the prolonged closure of the Strait of Hormuz.

Waller, who had supported interest rate cuts over the past year amid concerns about the labor market, said he has shifted his stance in recent weeks due to rising inflation risks.

“Since the Strait of Hormuz was closed, it suggests this conflict could be much more prolonged and that oil prices will remain elevated for longer,” Waller said in an interview with CNBC.

“Therefore, this indicates that inflation is a greater concern than I had previously assessed,” he added.

Waller also backed the Federal Reserve’s decision earlier this week to keep interest rates unchanged, signaling a more cautious approach as global geopolitical tensions continue to affect economic outlooks.

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Brazil offers to mediate Colombia-Ecuador tensions, calls for restraint

The government of Brazil has offered to mediate in the ongoing tensions between Colombia and Ecuador, while calling on both nations to exercise restraint.

In a statement released Wednesday, Brazil’s Ministry of Foreign Affairs urged the parties involved to act with moderation and seek a peaceful resolution to the dispute.

“Brazil encourages all sides to act with moderation in order to find a peaceful solution to the controversy. It stands ready to support dialogue efforts aimed at preserving peace and security in the region,” the statement said.

Brazil also expressed “serious concern” over reports of deaths in the border area between Colombia and Ecuador, noting that the circumstances surrounding the incidents have not yet been clarified.

The diplomatic move comes amid rising tensions between the neighboring countries, increasing regional concern over stability and security along their shared border.

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