Reuters
Newspaper La Jornada
Saturday July 23, 2022, p. 6
The Undersecretary of Economy of Mexico, Luz María de la Mora, expects a mutually satisfactory solution
in the conversations requested by the United States and Canada about what they affirm are Mexican breaches in energy matters within the T-MEC.
The demands by the United States and Canada come after years of concern by private companies in those nations that Mexican President Andrés Manuel López Obrador’s push to tighten state control over oil and electricity leads to unfair treatment and violating the regional trade agreement.
We want to take advantage of this consultation phase to see how we can reach a mutually satisfactory solution through an open, frank and constructive dialogue, which will allow us to overcome this difference
De la Mora said in an interview with Reuters.
The request for consultations marks the most serious trade confrontation between Washington and Mexico since the USMCA took effect two years ago and, if not resolved, could ultimately lead to punitive US tariffs.
Although De la Mora said that the Mexican government will seek to argue that its energy policies do not violate the trade agreement, his conciliatory tone about seeking a solution that benefits all parties contrasts with the defiant push of López Obrador, who on Friday affirmed that we will not give in
in the matter, vowing to continue a strong defense of his nationalist energy vision.
Asked if López Obrador’s energy policies are scaring investors, De la Mora highlighted the recent announcements of investments in Mexico by the US company Sempra Energy and Canada’s TC Energy.
He argued that the T-MEC’s dispute settlement mechanism gives investors certainty in the event that differences arise, as now.
The United States requested consultations in the context of the T-MEC on Mexico’s energy policies on July 20.
Under treaty rules, both countries will begin consultations within 30 days of the US request, unless the parties decide otherwise. If they do not resolve the matter through consultation within 75 days of the US request, the US may request the establishment of a dispute panel.
