Mexico's Election Spurs Policy Shifts

Though fierce intraparty fighting over the details of major reforms affecting labor, energy and politics will continue, the potential is emerging for negotiated agreements among Mexico's three major parties. Mexico's legislature has seen a flurry of activity on questions affecting the Mexican economy since the Institutional Revolutionary Party's candidate, former Mexico state Gov. Enrique Pena Nieto, won Mexico's July presidential election. The Chamber of Deputies has since passed major labor reforms — reforms the Senate is likely to approve by Nov. 1. This represents a level of cooperation on policy issues that was absent for several years as Mexican politicians remained deadlocked over policy changes to deprive rival parties of any political advantage ahead of the 2012 elections. The new dynamic should continue for several years into Pena Nieto's administration, during which time the government will tackle major questions that will shape Mexico's economic and political future.