U.S. oil companies blame Mexico for non-compliance with agreements
The American Petroleum Institute urged the Secretaries of State, Energy, Economy and the U.S. Trade Representative to demand that the Mexican government comply with the commitments acquired in international treaties. The API is a conglomerate of exploration, production and service companies of the American Union, who have been affected by the reform to the Hydrocarbons Law that went into effect last Wednesday and which has generated at least 50 requests for protection.
This is the second appeal made by the organization so far in the administration of President Andrés Manuel López Obrador, after the first letter sent in July 2020. In the letter that Mike Sommers, president of API, sent to several U.S. secretaries, he requested that compliance with treaties such as the T-MEC, be a main topic of discussion at the next meeting of the Free Trade Commission agreed by Tatiana Clouthier, Secretary of Economy; and Katherine Tai, U.S. Trade Representative.
"We encourage you to continue to interact diplomatically with President López Obrador and your cabinet-level counterparts in Mexico's agencies to urge the Government of Mexico to uphold its T-MEC commitments to treat U.S. investors and exporters fairly," Sommers stated in the letter.
He noted that energy is critical to driving economic growth, creating jobs in all three countries, and strengthening North America's global competitiveness, where over the past 25 years, North American energy markets have become increasingly intertwined and interdependent. "Unfortunately, we have seen continued efforts by the Lopez Obrador administration to undermine that agreement and discriminate against U.S. investors in violation of Mexico's commitments under both NAFTA and T-MEC," he noted.
In this regard, he pointed out that "President López Obrador has increased such actions, both in scope and severity, to change the fundamentals of the energy sector in Mexico. He has spearheaded important amendments to two laws, the Electricity Industry Law and the Hydrocarbons Law, to change the rules of the market in favor of Petróleos Mexicanos (Pemex) and the Federal Electricity Commission (CFE) and against private companies."