In a Mexican border city, the majority of the voters had rejected the construction of a big, US-owned brewery. The brewery was targeted to be built in a region in the country where there are known widespread water shortages, says an article.

For farmers and activities, this is a collective victory against a rich company with support coming from state and local officials.

The Vote

In the city of Mexicali, 76.1% of the voters showcased their disapproval of the proposed $1.4 billion breweries. The brewery was to be constructed by Constellation Brands to brew beer for export. The products to be made are Pacifico, Modelo, and Corona.

The Resistance Movements

There had been campaigns led by resistance movements for two years. They have been rallying in the streets and visiting courts to hold a plebiscite, says a lawyer named Daniel Solorio who worked with the opposition.

According to Solorio, it was a surprise that the president had asked a plebiscite on such short notice. Solorio said they had been requesting a vote for two years.

Projections from the Brewery

A water expert from the College of the Northern Border named Alfonso Cortez Lara, the brewery was forecasted to use more water compared to other industrial users in Mexicali combined.

Lara said that the proposed peak water usage of the brewery can reach 25% of the water reserves of the city.

According to federal officials, the plant may lose its water permits. Also, the government will be undergoing negotiation with the business.

Participants to the Vote

The critics had complained that only 3.5% of the total population of the city of Mexicali had cast their votes. The vote was called two weeks earlier by Mexican President Andrés Manuel López Obrador.

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Vote During the COVID-19 Pandemic

The vote was made during the COVID-19 pandemic which came during a difficult time for the country where the economy is falling and the peso is declining.

Some international investors were shocked at the willingness of the Mexican president to call snap voted on under-construction projects. An example of this scenario is the new airport in Mexico City.

A Blow to Investors' Confidence

The consultation on the Constellation Brands in Mexicali is a huge blow to the confidence of investors amid the economic crisis, says Coparmex in a social media post.

The shares of the Constellation Brands had already dropped by at least 10% upon the release of the news of the plebiscite.

According to Cortez, the issue will be taken to court through an investor protection provision in the free trade deal of Mexico with Canada and the United States.

The Biggest Exporter of Beer

Mexico is the biggest exporter of beer in the world. However, the industry had transformed into a center of resentment in the north where different breweries are being seen to use up scarce water resources to quench the thirst of other nations. Climate change had been causing intense drought in the region.