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State trading enterprises in Mexico

Mexico

notified the WTO in 2016 that it had two state trading enterprises as defined in Article XVII of GATT 1994.

These companies operate in the energy sector; they are Petróleos Mexicanos (Pemex) and the Federal Electricity Commission (CFE), both of which are considered State-owned productive enterprises (SOEs).

On the one hand, Pemex reported revenues of 2 trillion 383,388 million pesos in 2022, an increase of 59.4% year-on-year, and net profits of 99,998 million pesos (compared to a loss of 294,776 million pesos in 2021).

On the other hand, CFE recorded Ps. 620.848 billion, an advance of 9.6%, a net loss of Ps. 15.667 billion (compared to a net loss of Ps. 106.260 billion in 201).

The objective of Pemex and CFE is to generate economic value and profitability for the State.

In the case of Pemex, it also seeks to maximize oil revenues to contribute to the country’s economic development.

Commercial companies

Pemex participates in all activities of the productive chain of the hydrocarbons sector.

In 2016, Mexico notified the WTO that Pemex had a monopoly on the trade of crude oil and derivative products, natural gas and other products.

However, the same notification indicates that the state monopoly on trade was eliminated for LPG and for gasoline and diesel.

In 2022, Pemex and a quarantine of private operators, with the permission of the Ministry of Energy (Sener), imported and exported hydrocarbons and petroleum products.

However, Pemex is still the most important operator.

Until 2017 the price of some of the oil products was controlled.

For its part, CFE retains the exclusive operation of the electricity transmission (and distribution) network and, as such, of electricity imports and exports.

Electricity transmission (and distribution) tariffs are regulated.

The State has full (100%) control of Pemex, CFE and its subsidiaries.

Pemex has 3 subsidiaries and CFE, 10.

In 2019 CFE Telecomunicaciones e Internet para todos, a new subsidiary, was created.

In addition to these two companies, in 2021 the State controlled 64 companies operating in various sectors, mainly in the services sector.

 

Redacción Opportimes