To ensure an even playing field for manufacturers, the NAM is calling on policymakers to put a stop to Mexico’s unfair energy and power-generation policies. According to NAM Vice President of International Economic Affairs Ken Monahan, the Office of the U.S. Trade Representative took an important first step in this direction earlier this week.
What’s happening: On Wednesday, U.S. Trade Representative Katherine Tai announced that the U.S. will request consultations with Mexico under the U.S.–Mexico–Canada Agreement over Mexican policies “that undermine American companies and U.S.-produced energy in favor of Mexico’s state-owned electrical utility, the Comisión Federal de Electricidad (CFE), and state-owned oil and gas company, Petróleos Mexicanos (PEMEX),” according to the USTR.
Why it matters: “This bold action from the Biden administration and Ambassador Katherine Tai is critical to stemming measures implemented and proposed by the government of Mexico that contradict the letter and spirit of the USMCA and undermine the rule of law in Mexico,” Monahan said.
- “Energy and electric power generation measures implemented by Mexico have favored dramatically the interests of Mexico’s state-owned electrical utility and state-owned oil and gas company. This adds costs for manufacturers that rely on existing contracts with energy suppliers and makes it harder for them to meet long-term sustainability goals in Mexico, while also slowing the deployment of renewable energy in Mexico.”
- “Manufacturers welcome the news that the U.S. has requested dispute settlement consultations with Mexico under the USMCA. We stand ready to work with USTR to quickly reverse Mexico’s unfair energy policies and to address the many other industry challenges in Mexico.”
Duly noted: The Office of the USTR quoted the NAM’s response in their roundup of commentary and press coverage on Ambassador Tai’s announcement.