Mexico will defend itself in controversy with the US and Canada

President Andrés Manuel López Obrador affirmed on Thursday that Mexico has elements to respond to the claims made by the United States and Canada in energy matters within the framework of the free trade agreement and warned that, if it is a political sanction, “we are leaving to defend”.

During his morning conference, López Obrador ruled out that Mexico has incurred in any violation of the free trade agreement that it maintains with the United States and Canada, the T-MEC, but made it clear that the domain that Mexico has over its oil industry is not under discussion.

“We can have commercial relations, but we define our policies in Mexico and they have to do with our Constitution and with the laws,” he added.

Without offering further details, López Obrador said that he had indications that the controversies announced by the United States and Canada “have to do with the vested interests that were dedicated to looting Mexico,” to whom he assured that he gave a halt to the government in the 2018.

“We are going to carry out everything that corresponds to us. And make it clear that there is no violation of the treaty. And clarify that we can have commercial relations, but we define our policies in Mexico and they have to do with our Constitution and with the laws. For example, on the energy issue, well, we are not going to put in negotiation the domination of the nation of the people of Mexico over oil, that is very clear. The oil belongs to the Mexicans,” López Obrador said.

Meanwhile, the former Secretary of the Economy, Ildefonso Guajardo, involved in the negotiations during the past six-year term, warned that the federal government’s decision to unilaterally change the rules of the game in the energy sector could lead the country to unimaginable legal consequences and would put at risk foreign investments and jobs for Mexicans.

He considered that the actions of the governments of the United States and Canada are reactions to public policy decisions taken unilaterally.

“This start of consultations is not a private panel against the government, it is a consultation for a State-State controversy panel, the sanctions are tariffs against Mexican exports for the equivalent of the damage caused, we are facing a situation that may end up affecting the capacity exporter from Mexico,” said Guajardo.

The United States ambassador to Mexico, Ken Salazar, indicated that the consultation mechanism is a fundamental element of the T-MEC that benefits the three countries by allowing disputes to be resolved quickly, so this dispute must be addressed with determination and seriousness for a resolution. expedited.

The United States and Canada activated on Wednesday a dispute settlement mechanism established in the free trade agreement that could lead to the application of trade sanctions against Mexico.

Washington maintains that the energy policies promoted by the López Obrador administration unfairly favor state-owned Mexican electricity and oil companies over US competitors and clean energy providers.

Among the specific issues in dispute is a reform last year to the Mexican law on the electricity sector that, according to the United States, unfairly privileges the production of electricity by the state company, the Federal Electricity Commission (CFE), over that generated by private companies and on cleaner sources such as wind and solar.

[Con información de The Associated Press]

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