OTTAWA, Jan 6 (Reuters) – Canada and the United States will argue next week at a summit of North American leaders Resolving a dispute over measures favoring Mexican energy companies would help attract more foreign investment to Mexico, Canadian Prime Minister Justin Trudeau said on Friday.
Last year, both nations began talks with the Latin American country to resolve disputes under the North American trade agreement, TMECarguing that Mexican energy policies are discriminatory and undermine foreign companies.
“Both the president (of the United States) (Joe) Biden and I are going to be (…) quite clear with the president (of Mexico) (Andrés Manuel) López Obrador that this (…) must be understood as a way to help Mexico develop to attract investment from companies in Canada and the United States,” Trudeau told Reuters.
Asked if he expected progress on the issue at the Mexico City summit, he replied: “Absolutely.”
Trudeau will arrive in the Mexican capital on Monday for a three-day visit, which will include bilateral meetings with Biden and Lopez Obrador. On Monday, he will meet with business leaders from the three countries.
López Obrador promised to reactivate the state Federal Electricity Commission (CFE) and Petróleos Mexicanos (Pemex), which he says were deliberately undermined by their predecessors and ceded the local market to foreigners.
“I understand that you want to put more emphasis on state-owned energy companies,” Trudeau said in his Ottawa office, “but this has to be done responsiblein a way that understands that he is part of (of the TMEC) and has to comply with those rules.”
The United States and Canada question the changes made to the Mexican law that prioritize the distribution of energy generated by CFE over sources of cleaner energy provided by private sector providers, such as wind and solar.
“Canadian companies invested around 13 billion Canadian dollars (9.675 million dollars) in energy infrastructure. In Mexico, 5 billion Canadian dollars are specifically in renewable energy,” he said. trudeau.
His message to business leaders will be that the new trade pact is working, he said, and is “creating jobs, opportunity and growth in all our countries.”
Conversations with Biden They are likely to focus on “maximizing economic opportunity” because major “economic turmoil is looming in the coming months,” Trudeau said, alluding to supply chains, the war In Ukraine, the inflation and the interest rates higher.
(1 dollar = 1.3437 Canadian dollars)
(Reporting by Steve Scherer. Editing by Alistair Bell)
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