Cofece warns that shielding of AMLO’s works is a risk for competition – El Financiero

The Federal Economic Competition Commission (Cofece) pointed out that the agreement decreed by President Andrés Manuel López Obrador that seeks Shielding the projects and works of the Government of Mexico implies possible risks in terms of competition and free competition.

Specifically, the agency indicated that the agreement grants preferential treatment to projects promoted by the Federal Government, therefore there would be an asymmetric and preferential treatment between public and private projects.

What’s more, Cofece stated that according to the decree, even if a project is declared of public interest and national security, it does not imply that the related contracts are framed as an exception to the bidding according to articles 41 (sections II and IV of the Law of Acquisitions, Leases and Services of the Public Sector) and 42 (sections II and IV of the Law of Public Works and Services Related to them).

“In any case, the use of public bidding should be privileged so that the State is in a position to achieve the best contracting conditions. The exceptions must respond to specific and delimited cases, where there is a clear rationale for danger, risk or alteration to public safety in accordance with the applicable regulations ”, he stressed.

The commission reaffirmed its commitment to remain vigilant in the face of public or private acts that may affect the conditions of competition to the detriment of the efficient functioning of the markets and to the detriment of consumer welfare.

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