💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

U.S. lawmakers complain to Trump over Mexican energy policy

Published 10/23/2020, 12:32 PM
Updated 10/23/2020, 12:35 PM
© Reuters. Delivery of an investigation report marking the 6th anniversary of the disappearance of the 43 students of the Ayotzinapa Teacher Training College, in Mexico City

By Anthony Esposito

MEXICO CITY (Reuters) - More than 40 U.S. lawmakers have written a letter to President Donald Trump expressing concern that the Mexican government is threatening U.S. energy companies' investments and market access, as well as undermining a regional trade deal.

The letter, dated Oct. 22 and seen by Reuters on Friday, argued that reports showed Mexican President Andres Manuel Lopez Obrador is providing preferential regulatory treatment for state oil firm Petroleos Mexicanos, known as Pemex, and delaying or canceling permits for U.S. energy companies.

Four congressional sources confirmed the letter's authenticity.

Lopez Obrador, who took office in December 2018, argues that past governments fronted by corrupt politicians had skewed the Mexican energy market in favor of private interests at the expense of the public.

The letter noted that in a recently leaked memo, Lopez Obrador urged Mexican regulators to use all available means to protect Pemex and the Comision Federal de Electricidad (CFE), Mexico's state electricity company.

"These efforts violate and contradict the spirit, if not the letter, of the USMCA (United States-Mexico-Canada Agreement), an agreement among whose primary objectives are to promote growth among the participant countries," said the letter.

Negotiated at the behest of Trump, the USMCA from July replaced the 1994 North American Free Trade Agreement (NAFTA).

Signed by 43 members of Congress from both parties, many from states with powerful energy sectors, the letter said the actions of Lopez Obrador and his government undermined billions of dollars of U.S. investment in Mexico.

© Reuters. Delivery of an investigation report marking the 6th anniversary of the disappearance of the 43 students of the Ayotzinapa Teacher Training College, in Mexico City

The U.S. lawmakers said the actions demonstrate "a pattern of obstruction" and urged Trump to find a resolution with Mexico's government to preserve the market conditions set out under a 2013-14 energy reform that opened up the sector.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.