Regulatory Governance of the Rail Sector in Mexico

image of Regulatory Governance of the Rail Sector in Mexico

The report provides a description and an assessment of the recent actions carried out by the Mexican government to enhance the quality of regulation and regulatory governance in the rail sector in Mexico. In particular, the report identifies and describes recent regulatory reforms in the rail sector; the progress in implementing OECD recommendations relative to rail regulation issued in 2017; the reforms that led to the Mexican Rail Regulatory Agency, as well as the legal powers granted. It also documents the current regulatory practices of this Agency. The reforms and practices are assessed against OECD principles and country experiences. Finally, the report provides recommendations for continuing the reform efforts.

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Regulations play a fundamental role in the performance of an industry. They can facilitate – or restrict – the entry of new companies to a given market, and they can either stifle or promote innovation. While regulations are supposed to pursue a legitimate interest such as protecting consumers, workers and the environment, they may fail to achieve these objectives, and instead create unnecessary burdens on businesses and citizens. Therefore, regulations need to be reviewed and revised continually in order to ensure that they are “fit-for-purpose”.

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