U.S. Escalates, Under USMCA, Claim to Q4 for Energy Policy

International Trade and Arbitration attorney Carlos Véjar was interviewed by the newspapers Reforma, El Norte and Mural about the United States government's request for dispute resolution consultations with Mexico under the United States-Mexico-Canada Agreement (USMCA). The United States considers Mexico's energy policies discriminatory in favor of the state entities Federal Electric Commission (CFE) and Pemex, and detrimental to U.S. companies. If Mexico is found to have violated its obligations under the USMCA, the United States hopes to obtain a reopening of the market, fair competition and the operations of its investors in the country. Mr. Véjar says that in the request for consultations, the United States must present the actions of the Mexican government that are violating the USMCA or that may inhibit trade and investments that are protected under it. He also detailed what would happen if an award were issued in favor of the United States.

"Mexico would have to eliminate the measures that have been identified as violating the treaty or could suspend benefits to Mexico, considering the impact on the issue of energy trade or establish tariffs, either in the same sector or in another that is more efficient or important," he said.

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