U.S. Congressmen warn about changes in the Mexican energy market
A group of U.S. Senators and Congressmen sent a letter to President Donald Trump warning about the actions of the Government of Mexico in the energy market which, they say, threaten investment and market access for U.S. companies and undermine the spirit of the U.S.-Mexico and Canada Agreement (T-MEC).
"An integrated North American energy market benefits U.S. fuel manufacturers, workers, and ultimately Mexican consumers," they said.
They noted that following Mexico's 2014 constitutional reforms that allowed private participation in the Mexican energy sector, U.S. companies invested billions of dollars to develop energy infrastructure in Mexico and the U.S. to import fuel from U.S. refineries to meet Mexican demand.
However, they charged that according to a report the Mexican government is providing preferential regulatory treatment for Petroleos Mexicanos (Pemex) and delaying or canceling absolute permits for U.S. energy companies.
They added that according to a leaked memo, Mexican President Andres Manuel Lopez Obrador ordered Mexican authorities to use all available resources within the regulatory framework to protect Pemex and the Federal Electricity Commission (CFE).
"In addition, members of the governing party, Morena, have presented constitutional initiatives that would reverse the historic energy reform of 2014 and seek to renounce all contracts currently in force," the legislators said.
The group of congressmen urged Trump to dialogue with Mexico to maintain certainty and fairness for U.S. firms operating in the Mexican energy market.