A bipartisan group of U.S. legislators that includes Texas senators John Cornyn and Ted Cruz says Mexico is violating the “spirit” of the new trade agreement between the United States and Canada (T-MEC) by granting preferential treatment to state energy companies.
In a letter sent to presidente Donald TrumpThey recall that “Mexico is the largest export market for petroleum products in the US and is a market for natural gas exports. In fact, US exports of refined products to Mexico have tripled.”
In the letter, they accuse that the Mexican government is protecting the state oil company Pemex and the electricity supplier Federal electricity commission (CFE), at the same time that it cancels the contracts of the US energy companies.
“An integrated North American energy market benefits US fuel, Mexican manufacturers, workers, and ultimately consumers. Following Mexico’s 2014 constitutional reforms that allowed private participation in the energy sector, US companies invested thousands of millions of dollars to develop energy infrastructure in Mexico and the United States to import fuel from our refineries to meet Mexican demand. “
They note that “these investments resulted in positive factors, such as infrastructure development and employment, and generation on both sides of the border. Despite this progress, recent reports indicate that the Mexican government is granting regulatory treatment for Mexican oil (Pemex) and postponement or total cancellation of permits for US energy companies. “
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They mention that they know that the Mexican authorities have been instructed “to use all available resources within the framework regulations to protect Pemex and the Federal Electricity Commission (CFE).
Additionally, members of the ruling Morena party have presented constitutional initiatives that seek to reverse the historic energy reform of 2014 and seek to renounce all contracts currently in force.
These efforts violate and contradict the spirit, if not the letter, of the T-MEC, an agreement whose main objectives are to promote growth among participating countries. Therefore, we are deeply concerned that these actions show a pattern of obstruction and we urge you to find a resolution with the government of Mexico to maintain the current conditions of the energy market“.
They conclude that “the reform of the regulatory framework provides, along with certainty and equity for US companies operating and competing in Mexico.”