After U.S. Trade Representative Katherine Tai announced that the United States is taking enforcement action against Mexico for undermining American companies and U.S.-produced energy in favor of Mexico’s state-owned electrical utility, the Comisión Federal de Electricidad (CFE), and state-owned oil and gas company, Petróleos Mexicanos (PEMEX), Ways and Means Republican Leader Rep. Kevin Brady (R-TX) issued the following statement:

“After two years of increasing engagement on these issues, the United States is taking proper action to enforce USMCA by addressing the many ways Mexico has been flaunting its USMCA obligations in the energy sector, harming American businesses and North American competitiveness, as well as Mexico’s own consumers and environment.

“I applaud Ambassador Tai’s leadership on this enforcement effort, and I appreciate the substantial time she has spent with me, other Members of Congress, and a wide range of stakeholders, in order to develop the right strategy to address these issues. I urge Mexico to do the right thing and reverse its problematic policies in the energy sector.

“I look forward to continued engagement by our Administration in addressing other ways in which Mexico is harming Americans by failing to live up to its USMCA obligations, such as its failure to follow the science and issue prompt approvals of biotech crops.”

Background:

Mexico’s problematic measures include, but are not limited to, amendments to Mexico’s electricity law that would prioritize the distribution of Mexican-generated power over cleaner sources of energy provided by private-sector suppliers owned by U.S. companies. They also include numerous decisions taken by Mexico’s energy sector regulators that restrict the ability of U.S. companies to operate in Mexico, as well as to transport electricity and fuels across the border.

Mexico’s policies have largely cut off U.S. and other foreign investment in the country’s energy infrastructure, depriving Mexicans of the innovation they need to create the right energy mix, while threatening over $10 billion in U.S. investment that has already been made.