Ottawa siding with U.S. in trade pact fight over Mexican energy policies

Canada says Mexico's energy policies are 'inconsistent' with its CUSMA obligations. Canada is backing U.S. efforts to push back against what they see as protectionist energy policies in Mexico that violate North American trade rules.

U.S. Trade Representative Katherine Tai says Mexico is unfairly prioritizing its own state-owned energy operations and shutting out American firms, including solar and wind producers. A spokesperson for Trade Minister Mary Ng said Canada supports a U.S. request for dispute resolution talks with Mexico, and also plans its own consultations. Alice Hansen said Canada agrees that Mexico's policies are inconsistent with its obligations under the U.S.-Mexico-Canada Agreement, referred to in Canada as CUSMA.

U.S. energy producers have been complaining for months that Mexico provides preferential pricing and emissions standards for two of its largest companies: oil and gas producer Pemex and the Federal Electricity Commission. The USTR is accusing Mexico of using "delays, denials and revocations" to thwart U.S. access to Mexico's energy sector, including on renewable energy.  Canada has consistently raised its concerns regarding Mexico's change in energy policy. We agree with the United States that these policies are inconsistent with Mexico's CUSMA obligations," Hansen said in a media statement. "We will be joining the United States in taking action by launching our own consultations under CUSMA to address these concerns, while supporting the U.S. in their challenge."

This was excerpted from the 20 July 2022 edition of CBC News.