USTR Asks for Consultation Over Mexican Energy Policies
U.S. Trade Representative Katherine Tai asked for consultations with Mexico over a 2021 amendment to Mexico's Electric Power Industry Law that privileges the state-owned electric utility, and over 2019 and June 2022 actions that privilege PEMEX, Mexico's state-owned oil and gas company.
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The step, announced July 20, is the first in a formal state-to-state dispute process. If, within 75 days, Mexico and the U.S. cannot reach agreement, a panel will be formed to decide if Mexico is violating the commitments it made under USMCA.
Tai said Mexico's policy changes in its energy sector "impact U.S. economic interests in multiple sectors and disincentivize investment by clean-energy suppliers and by companies that seek to purchase clean, reliable energy. We have tried to work constructively with the Mexican government to address these concerns, but, unfortunately, U.S. companies continue to face unfair treatment in Mexico."
Mexico's Economy Secretariat, which is representing Mexico in these consultations, said July 20 in Spanish: "The Government of Mexico expressed its willingness to reach a mutually satisfactory solution during the consultation stage."
The U.S. Chamber of Commerce welcomed the news. “The Chamber applauds this important step toward addressing troubling measures Mexico is advancing in its energy sector that we believe violate the country’s commitments under USMCA,” Senior Vice President for the Americas Neil Herrington said. “We have repeatedly expressed our concerns with the direction of these policies, which have unfairly disadvantaged U.S. companies and are at odds with our common goals of generating reliable energy, sustainable growth, and a durable economic recovery.”