Trade groups ask Congress to hold Mexico accountable for discriminatory energy policies

Congress needs to continue using the U.S.-Mexico-Canada Agreement (USMCA) to hold Mexico accountable for its discriminatory energy policies, American trade groups said in a letter to U.S. Trade Representative Katherine Tai Monday.

The American Clean Power Association, National Association of Manufacturers, and American Petroleum Institute sent the letter to Tai asking Congress to take action against Mexico for its policies that favor its state-run energy companies.

“The Government of Mexico’s escalating pursuit of discriminatory policies dramatically favors Mexico’s state-run electrical utility and state-run oil and gas companies, hindering private sector investment, threatening companies in the United States and their workers, and undermining North American energy integration and our regional competitiveness vis-à-vis China and other rivals.”

Last year, President Joe Biden used the USMCA to request consultations with Mexico, a move the groups support. However, they said further action is needed due to Mexico’s failure to engage in those meetings.

“In our view, the Government of Mexico has not engaged constructively in the consultation process with the United States, nor has Mexico taken meaningful steps to address the issues raised by the United States. As such, our organizations respectfully urge that the Biden administration continue to hold Mexico accountable by using every tool available to enforce the USMCA.”

The groups said Mexico’s failure to issue any permits for energy activities, like the ones that allow U.S. investors to open service stations in Mexico, undercut the group’s members and restricted the supply of energy manufacturers and consumers need.