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AMLO's Fragile Ties to Business Are Tested by Pipeline Contracts

  • Heads of business chambers seeking a deal to avoid dispute
  • Slim’s Carso, Ienova, among companies targeted in arbitration
Andres Manuel Lopez Obrador

Andres Manuel Lopez Obrador

Photographer: Luis Antonio Rojas/Bloomberg

A dispute over seven gas pipeline contracts is the most recent test of Mexican President Andres Manuel Lopez Obrador’s relationship with the country’s business community.

Earlier this week, Mexico’s Federal Electricity Commission, or CFE, filed six preliminary arbitration claims in London and one in Paris targeting natural gas pipelines being built by Carlos Slim’s Grupo Carso SAB, Infraestructura Energetica Nova SAB, TC Energy Corp, among others. The government says it doesn’t agree with some of the contracts’ clauses and is seeking fair treatment, while companies have said they’re willing to negotiate.