Page 4 - NorthAmOil Week 27 2021

COMMENTARY Y
NorthAmOil COMMENTAR NorthAmOil

Ng (left), Clouthier (middle) and Tai (right) met in Mexico City this week (Photo: Twitter/@AmbassadorTai)

USMCA signatories concerned

about Mexico’s energy policy

Washington and Ottawa are paying close attention to the Mexican president’s displays of favour

for Pemex and other state-owned companies, according to US and Canadian trade officials

WHEN the US-Mexico-Canada Agreement President Donald Trump. Instead, Trump
(USMCA) took effect a year ago, replacing downplayed the possibility of future disagree-
WHAT: the North American Free Trade Agreement ments and talked up his own successful bid to
US and Canadian trade (NAFTA) signed in 1994, there were concerns convince Lopez Obrador to sign USMCA by
officials are concerned that Mexico’s government might not hold up its promising not to interfere in Mexico’s domestic
about conditions in Mexi- end of the deal. energy policy.
co’s energy sector. These worries stemmed from the fact that Much has changed since then. Trump is no
Mexican President Andres Manuel Lopez Obra- longer president, and his accomplishments with
WHY: dor made no secret of his desire to see state-con- respect to last year’s trade deal have been over-
Lopez Obrador is deter- trolled organisations such as the national oil shadowed by other events – the continuation
mined to give state-run company (NOC) Pemex dominate the domestic of the coronavirus (COVID-19) pandemic, the
energy companies an energy sector, despite the existence of laws man- roll-out of COVID-19 vaccines, the outcome of
edge over competitors. dating competition. the US presidential election and quarrels over
US firms had already observed that Lopez the legitimacy of the election results, to name
WHAT NEXT: Obrador’s policy preferences were hampering just a few.
Washington and Ottawa their efforts to invest in Mexico, and they were Nevertheless, worries about Mexico’s com-
may take a tougher
stance if Mexico’s concerned that USMCA did not do enough to mitment to USMCA persist, and they were on
president steps up uphold their interests. display earlier this week at a meeting between
efforts to sideline foreign These expressions of concern did not seem representatives from all three signatories to the
competitors. to make much of an impression on then-US agreement.

P4 www. NEWSBASE .com Week 27 08•July•2021