The Cutters

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Mexican lawmakers approved a constitutional reform this week to eliminate a number of autonomous regulatory bodies, a move that supporters say will save public funds but one that critics warn could undermine transparency, democracy, and compliance with international trade agreements, Reuters reported.

The lower house of Congress – dominated by the ruling Morena party – passed the reform bill with 347-128, with no abstentions, after hours of heated debate.

Specific amendments were debated and approved in a final vote Thursday with the bill now to advance to the Senate, where Morena needs just one more vote to reach the two-thirds majority required for passage.

The proposal will see the abolition of seven oversight organizations, including the antitrust regulator, the telecom watchdog, the energy regulator, and the transparency institute.

The roles of these organizations are to be transferred to government ministries, the electoral authority and other state offices.

The reforms were pushed by former President Andrés Manuel López Obrador and backed by his successor, President Claudia Sheinbaum.

Officials have claimed that the changes will streamline the government and save $5 billion annually. However, critics, opposition lawmakers and analysts warned that the proposed reforms jeopardize institutional independence and consolidate power with the executive.

The decision has also raised concerns about potential violations of the United States-Mexico-Canada Agreement, which requires an independent telecom regulator.

While Sheinbaum has promised to maintain “technical independence” for certain functions, analysts worry that the changes could risk Mexico’s trade relationships and credit ratings.

Opposition lawmaker Verónica Martínez García called the proposed changes “another blow by Morena to our rights and democracy,” Bloomberg wrote.

The recent reform follows a series of controversial state overhauls under Morena, including changes to the judicial and public energy sectors.