Page 4 - LatAmOil Week 29 2022

LatAmOil COMMENTARY LatAmOil

USTR Tai (L) met with Canadian Minister Ng (R) in Vancouver on July 9 (Photo: Twitter/@AmbassadorTai)
US, Canada raise concerns

over Mexican energy policy

Washington and Ottawa have asked Mexico City to review key energy policy provisions under USMCA

WASHINGTON and Ottawa have both asked “We have repeatedly expressed serious
Mexico City to settle disputes over energy policy concerns about a series of changes in Mexico’s
WHAT: within the framework of the US-Mexico-Can- energy policies and their consistency with Mex-
The US and Canadian ada Agreement (USMCA), the trilateral trade ico’s commitments under the USMCA,” Kather-
governments are disput- deal signed in 2020 to replace the North Ameri- ine Tai, the head of the office of the USTR, wrote
ing Mexican energy policy can Free Trade Agreement (NAFTA). in the document.
under the USMCA.
The US and Canadian governments sub- One of the examples Tai’s office cited was
WHY: mitted separate dispute resolution requests on a rule instituted by the Mexican government
This is not the first time July 21. However, officials in Ottawa made clear in 2019 under which Pemex, the national oil
the issue has arisen, later in the day that they backed Washington’s company (NOC), became the only firm in the
but it could lead to the position. country eligible to receive extra time to ensure
imposition of punitive compliance with new laws lowering the cap on
tariffs. US request sulphur content in road diesel.
The first request was made by the office of the US Additionally, USTR noted that Mexican
WHAT NEXT: Trade Representative (USTR). In a document authorities had effectively blocked private com-
Mexico’s president may sent to Mexico’s Economy Ministry, USTR com- panies from participating in certain types of
seek to avoid domestic plained that Mexican authorities were unfairly energy projects by “delaying, denying or failing
political fallout by paint- burdening US companies and restricting mar- to act” when it received permit applications for
ing the US as an enabler ket access in order to ensure advantages for two the construction of renewable energy facili-
of corruption. state-owned companies, Pemex and the Federal ties or for the storage, transshipment or sale of
Electricity Commission (CFE). refined fuels.

P4 www. NEWSBASE .com Week 29 21•July•2022