( Spanish) — The president of Mexico, Andrés Manuel López Obrador, publicly responded to the controversy with the United States over Mexico’s energy policy, after Washington denounced “unfair treatment” of companies in his country and began a consultation process within the framework of the North American Free Trade Agreement, T-MEC.
What does the T-MEC stipulate, what do the consultations imply and how many times has something like this happened before?
The US denounces an “unfair treatment” of Mexico to its companies
The United States Government explained this Wednesday in a statement that initiated the consultation procedure within the framework of the North American Free Trade Agreement (known as T-MEC or USMCA) for measures that in its opinion harm US companies and the energy produced there in favor of the Commission Federal Electricity of Mexico (CFE) and the Mexican state oil company, Pemex.
Trade representative Katherine Tai assured that they had repeatedly expressed their “serious concerns” about the changes in the energy policy of the López Obrador government. “We have tried to work constructively with the Mexican government to address these concerns, but sadly, American companies continue to face unfair treatment in Mexico,” she said.
The provisions of Mexico that the United States denounces include an amendment to the energy law that would give the energy generated by the CFE distribution priority over that generated by private companies, even in those clean energies such as wind and solar. The US also notes the existence of “Mexico’s delays, denials and revocations of the ability of US companies to operate in the energy sector.”
In its justification for the actions, the United States also made reference to the commitments assumed by Mexico in terms of clean energy.
“Mexico’s policies have largely cut off US and other investment in the country’s clean energy infrastructure, including significant steps to roll back reforms Mexico previously made to meet its climate goals under the Paris Agreement.”
Here you can read in English the document presented by the Government of Joe Biden a few days after his meeting with López Obrador at the White House.
AMLO’s response
This Wednesday, the Mexican Ministry of Economy reported in a statement that it received a request from the United States to initiate consultations within the framework of the trade agreement “in relation to its energy policy.”
“It is a query, nothing more, and we are going to answer them, on time, we are even going to make it public, here. Once we have it, when they notify, when the time is right,” López Obrador said.
AMLO added: “We have time. 75 days? Well, we are acting in accordance with the public interest, defending the people of Mexico against voracious companies used to stealing.”
What do the consultations in the framework of the T-MEC imply?
The consultations are a “non-contentious” stage of the mechanism provided by the T-MEC to resolve disputes, the Mexican government said in a statement.
From now on, he explained, the two countries have a total of 75 days to agree. If they fail, “the United States may request the establishment of a panel to decide on this matter,” she added.
According to the statement, this is the fourth time that the so-called general dispute settlement mechanism, contemplated in Chapter 31 of the T-MEC, is used.
Previously, there was a proceeding between the United States against Canada for an action in the dairy industry, one between Canada against the United States for a measure related to photovoltaic cells and one between Mexico and Canada against the United States for the rules of the automotive sector.
With information from Marlon Sorto and Sebastián Jiménez.
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