Mexico President-Elect’s Oil Stance Complicates Nafta Talks

As Mexico pushes to wrap up a Nafta deal with the U.S., negotiators are facing a new challenge, according to three people familiar with talks: managing President-elect Andres Manuel Lopez Obrador’s contempt for the nation’s 2013 oil-industry opening.

There’s a debate within his transition team about how the issue of energy should be handled in the trade deal, according to the people, who asked not to be identified discussing private meetings. On one side, leftist hardliners close to Lopez Obrador want to avoid making any additional commitment to the overhaul via Nafta. They oppose the energy rules negotiated over the past year, which would enshrine Mexico’s changes, giving extra protection and assurance to investments.