US, Canada raise concerns about Mexico over govt's new energy policies

Speaking at a news conference in Mexico City where US Trade Representative Katherine Tai was joined by Canadian Trade Minister Mary Ng and her Mexican counterpart Tatiana Clouthier, Tai said the two countries were closely monitoring the energy policies of the Mexican government and would further raise concerns.

The United States and Canada have expressed apprehensions about the Mexican government's attempts to increase state representation in energy projects involving international investors, Tai said. "Of course, we are both concerned and that's what we have expressed at this meeting," Tai added during the first anniversary of the US-Mexico-Canada Agreement on Wednesday.

In April, the Office of the US Trade Representative voiced concerns about the worsening climate for US energy investors in Mexico. The statement came after Mexican President Andres Manuel Lopez Obrador attempted to reverse previous reforms that enticed foreign investors and sought to strengthen the state's role in the energy sector, including bolstering the state oil company Petroleos Mexicanos.

About the deteriorating climate that bothers the USA

Mexican President Andres Manuel Lopez Obrador, bidding to reverse previous reforms that enticed foreign investors, has sought to strengthen the state’s role in the energy sector, including bolstering state oil firm Petroleos Mexicanos (Pemex). Obrador's interventions upset some of Mexico's main allies, including the United States, Canada and major European countries, and angered investors who believe the government is violating their rights under trade agreements Mexico signed.

The USA at odds with Mexico indicates more concerns

US energy companies have also expressed concerns about extended delays on permit approvals for retail fuel stations, as well as efforts by Petroleos Mexicanos to wrest away operational control of a big shared crude deposit discovered by a US-led consortium three years ago. The U.S. government is also at odds with Mexico over weed-killer glyphosate, which Mexico is trying to phase out amid concerns the pesticide causes cancer.

“The United States continues to press Mexico to grant import permits for glyphosate-containing products,” a report said.

U.S. companies also complained about changes in the Mexican procurement process, which included exemptions for Pemex, Mexican armed forces, and power utility the Comision Federal de Electricidad (CFE). U.S. businesses thought the process was less transparent than before.

Image Credits - AP