Mexico Candidate Sheinbaum on Trump, Migration, Peso

Summary

The transcript discusses the potential for former President Trump's return to the presidency and the current President López Obrador's positive working relationship with him. The candidate Claudia shb emphasizes the importance of maintaining strong economic integration with the United States and defending Mexicans abroad without supporting discriminatory discourse. She outlines plans for accelerating the energy transition, financing through various schemes and the involvement of both the Federal Electricity Commission and private generation. Addressing Pemex's financial situation, she suggests refinancing debt and diversifying into other energy sources, including cogeneration. The candidate also touches on the importance of reducing methane emissions and envisions a more technical profile for Pemex's leadership, combining financial and sector expertise. Regarding migration, she advocates for long-term cooperation for development in Central America to address economic needs and reduce irregular migration. The discussion also covers infrastructure projects, emphasizing the significance of connectivity in terms of ports, roads, railways, and internet access. Lastly, she addresses the challenges in the energy sector, the role of Pemex, and the potential for joint projects with the private sector, while also considering the peso's strength and the economic model's stability.

Takeaways

• 🇺🇸 The candidate Claudia Sheinbaum believes that regardless of whether President Biden or President Trump is in office, Mexico will maintain a strong economic integration and good relations with the United States.
• 🤝 Sheinbaum emphasizes the importance of defending Mexicans abroad and not supporting any discriminatory discourse, aiming for a positive relationship with the U.S., especially concerning the review of the free trade agreement.
• 💵 Regarding the financing of the energy transition, Sheinbaum mentions different financial schemes, including the purchase of Iberdrola plants and a stable financial mechanism that doesn't affect the country's financial and economic stability.
• 🏭 Sheinbaum discusses plans to inaugurate nearly 9,000 MW of new generation capacity currently under construction by the Federal Electricity Commission, which will help stabilize the demand curve.
• 📈 Sheinbaum highlights the strategic importance of Pemex and acknowledges its challenging financial situation, proposing a dual approach to address it, including refinancing debt and diversifying into other energy sources.
• 🌱 There is a commitment to accelerating the energy transition with a focus on renewable energy sources and cogeneration, which is particularly important in refineries.
• 🚫 Sheinbaum criticizes the absolute privatization model in the energy sector, arguing it has not yielded results and instead supports a national, sovereign development model for CFE and Pemex.
• 🌐 Sheinbaum stresses the need for connectivity in terms of ports, roads, rail for cargo and passengers, and internet access, which are key to fostering development, investment, and well-being.
• 🔄 Sheinbaum addresses the issue of migration, advocating for a long-term, more humane approach through development cooperation, which would naturally decrease migration flows by addressing economic needs.
• 💼 On Pemex's leadership profile, Sheinbaum suggests a need for a technical and financial expertise, without specifying a particular candidate but indicating the discussion will happen at the right time.
• 💰 Sheinbaum believes there is room for joint projects between Pemex and the private sector, considering the current developments and the importance of sovereignty in the energy sector.

Q & A

What is Claudia Sheinbaum's perspective on the potential return of former President Trump to the U.S. presidency?

Claudia Sheinbaum believes that regardless of whether President Biden or former President Trump is in office, Mexico will maintain a strong economic integration with the United States, which necessitates a good relationship. She intends to always defend Mexicans abroad and is not in favor of any discriminatory discourse.

How does Claudia Sheinbaum plan to finance the energy transition mentioned in the transcript?

Sheinbaum outlines different financing schemes, including the use of a financial mechanism that was previously used to purchase Iberdrola plants. She also mentions the involvement of the Federal Electricity Commission and private generation in a 54-46 scheme, aiming for stability in the country's financial and economic situation.

What is the current financial situation of Pemex, and how does Sheinbaum propose to resolve it?

Pemex is in a difficult financial situation. Sheinbaum suggests a two-pronged approach involving debt refinancing associated with oil production and refining, and the entry of Pemex into other energy sources or electricity generation schemes, such as cogeneration in refineries.

How does Sheinbaum view the role of renewable energy sources in Pemex's future?

Sheinbaum sees a long-term vision for Pemex that includes a transition to renewable energy sources. She mentions the importance of cogeneration and the potential for Pemex to explore other areas such as lithium extraction.

What is the timeline Sheinbaum has in mind for addressing Pemex's debt?

Sheinbaum indicates that the issue needs to be addressed by 2025 due to upcoming debt maturities. She believes that the current leadership of Pemex and the president will leave a long-term plan in place for her administration to build upon.

What measures does Sheinbaum propose to reduce irregular migration at the border?

Sheinbaum emphasizes the importance of cooperation for development and long-term, more humane solutions. She suggests that investment and support in Central America and other countries can reduce the need for people to migrate due to economic reasons. Additionally, she talks about providing humanitarian aid to migrants and addressing the labor needs in the U.S.

What is the flagship project that Sheinbaum envisions for her administration?

Sheinbaum highlights the connectivity of the country, including ports, roads, increased rail capacity for cargo and passengers, and internet connectivity as the hallmark projects of her administration. These projects aim to boost development, investment, relocation of businesses, and overall well-being.

What are the areas of focus for development within Mexico that Sheinbaum has in mind?

Sheinbaum is focused on strengthening the 12 welfare poles of the Isthmus of Tehuantepec, Chiapas, and 10 other development poles in different regions of the country. These initiatives are centered around territorial vocations, connectivity, and investment in housing, education, and health.

How does Sheinbaum view the potential for joint projects between Pemex and the private sector in the energy sector?

Sheinbaum believes in a mixed model involving both private investment and Pemex's own investment. She is against the absolute privatization of the energy sector, which she believes has not yielded positive results in Mexico or elsewhere.

What is Sheinbaum's stance on the current exchange rate of the Mexican peso against the U.S. dollar?

Sheinbaum believes that the exchange rate is not solely a government decision but is influenced by various factors, including the autonomy of the Bank of Mexico in terms of interest rates. She acknowledges the preferences of exporters and importers but emphasizes the strength and stability that the current currency provides to the Mexican economy.

How does Sheinbaum plan to address the issue of Pemex's debt and the company's future direction?

Sheinbaum proposes a long-term business plan for Pemex that addresses sustainability, stabilizes Mexican oil, and includes a vision for energy transition. She also mentions the possibility of Pemex entering into cogeneration and other areas, potentially even exploring lithium extraction.