The Government of the United States reiterated its concern about the energy reform promoted in Mexico by the administration of President Andrés Manuel López Obrador, when responding to the questions raised by some members of the Capitol.
Three US government ministries responded to concerns raised by some members of Congress on November 3, 2021, who warned that the Mexican government had taken “discriminatory actions” against private companies in the energy sector.
We share your concerns regarding Mexico’s proposed constitutional reforms and recent actions that have failed US companies and investors in the energy sector,” states a letter addressed to Congressman Earl “Buddy” Carter.
The document dated Thursday, January 20, was signed by the United States Trade Representative, Katherin Tai; the Secretary of Energy, Jennifer Granholm, and the Secretary of Commerce, Gina Riamondo.
“Our agencies remain committed to ensuring fair treatment for U.S. exporters and investors. In addition, the Office of the United States Trade Representative continues to carefully review these measures and their implications for Mexico’s commitment under the United States-Mexico-Mexico Agreement. Canada (T-MEC)”, they say in the letter.
The brief letter highlights the visit of the US Secretary of Energy, Jennifer Granholm, to Mexico City in which she met with various Mexican officials to publicize the concerns of Mexico’s main trading partner regarding the reforms in that are currently being discussed in the Congress of the Union.
“Trade and investment in energy between the United States and Mexico are crucial to guaranteeing the energy security and economic prosperity of North America,” they reiterate in the letter.
Granholm expresses concerns to senior officials in Mexico
During her stay in Mexico, the United States Secretary of Energy, Jennifer Granholm, met with high-ranking Mexican officials, including President Andrés Manuel López Obrador.
On Friday, January 21, the US official spoke openly about her government’s concerns about the constitutional reform being discussed in Congress to return the monopoly of the entire energy value chain to the Federal Electricity Commission (CFE), giving it a legal minimum of 54% of the country’s electricity generation, canceling contracts from the regime prior to 2013 and removing autonomy from sector regulators, since this would harm US companies that have invested in the country.
The official assured that her visit to Mexico was to express the real concerns of the Biden-Harris administration about the possible negative impact of the energy reforms proposed by Mexico on US private investment in Mexico.
“The proposed reform could also hamper joint efforts by the United States and Mexico on clean energy and climate. We must maintain and improve open and competitive energy markets that benefit North America,” the US official said on Friday.
On November 3, 40 US congressmen sent a letter to officials from the Joe Biden administration expressing their concern about the actions of the Government of Mexico to exclude private companies from its energy sector.
In the document addressed to Katherine Tai, US Trade Representative; Antony Blinken, Secretary of State; Gina Raimondo, Secretary of Commerce, and Jennifer Granholm, US lawmakers warned that the actions are “harmful to investment, American workers, and North America’s commitment to sustainability, all of which are concepts protected by USMCA.” .
The congressmen indicated that the Government of López Obrador and his party have defended the regulation and legislative efforts that have been considered anti-competitive and harmful to the environment by the courts.