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U.S. says Mexico suspending energy import permits to favor its federal agencies

Mexico City, Mexico — Mexico suspended import permits for more than 80 energy companies to favor Pemex and the CFE, said Ron Wyden, president of the Finance Committee of the United States Senate.

Wyden raised this and other issues that allegedly violate commitments of Mexico and Canada in the Treaty between Mexico, the United States and Canada (T-MEC) in a letter sent Wednesday to the commercial representative, Katherine Tai.

The letter was signed by himself and Senator Mike Crapo.

According to both senators, the Mexican government is actively pursuing policies to give preference to its state electricity supplier (CFE) and its state oil company (Pemex) to the detriment of private competitors that often provide cleaner energy options.

In the letter, Wyden and Crapo affirm that Mexico has canceled permits for energy import facilities, putting U.S. investment at risk. It is advancing a constitutional reform project that would dissolve the Mexican electricity market, eliminate independent regulators and cancel contracts and permits granted to private companies.

“Mexico’s actions deprive private energy companies, including renewable energy companies of market access, non-discriminatory treatment and level playing field in Mexico’s energy sector,” they argued.

For them, it is vitally important that the United States Trade Representation continue to diligently monitor compliance with the T-MEC by Canada and Mexico and ensure that each chapter of the Agreement is fully complied with.

The two legislators expressed that they are ready to work with Tai as closely in the implementation of the T-MEC as they did in its negotiation and approval, and that they hope to receive a report soon on the progress made in addressing the expressed concerns.