[CTC] Members of Congress accuse Mexico of violating NAFTA on energy

Fri Oct 23 13:37:59 PDT 2020

Letter and signers below...

https://www.houstonchronicle.com/business/energy/article/Senators-claim-Mexico-violating-USMCA-on-energy-15669928.php <https://www.houstonchronicle.com/business/energy/article/Senators-claim-Mexico-violating-USMCA-on-energy-15669928.php>

Senators accuse Mexico of violating USMCA on energy
By James Osborne  
10/23/2020

WASHINGTON — A bipartisan group of U.S. lawmakers that includes Texas Sens. John Cornyn and Ted Cruz says Mexico is violating the "spirit" of the newly signed United States Mexico Canada trade agreement by giving preferential treatment to state-owned energy companies.

In a letter to President Donald Trump, they say the Mexican government under President Andres Manuel Lopez Obrador is protecting state-owned oil company Pemex and electricity provider Federal Electricity Commission, while simultaneously canceling contracts for U.S. energy firms.

"These efforts violate and contradict the spirit, if not the letter, of the USMCA, an agreement among whose primary objectives are to promote growth among the participant countries," the lawmakers wrote. "U.S. companies invested billions of dollars to develop energy infrastructure in Mexico and in the United States to import fuel from our refineries to satisfy Mexican demand."

The Mexican consulate in Washington did not immediately respond to a request for comment.

A large number of Texas congressmen also signed the letter, including Democrats Henry Cuellar, of Laredo, and Vicente Gonzalez, of McAllen, and Republicans Chip Roy, of San Antonio, and Pete Olson, of Sugar Land.

The letter drew applause from U.S. refineries, for whom Mexico is their largest export market.

Chet Thompson, president of the trade group American Fuel and Petrochemical Manufacturers, said U.S. investments in Mexico are, "now in jeopardy based on the Mexican government’s preferential treatment of Pemex and their actions to delay or even cancel permits for U.S. energy companies."

====

https://www.cornyn.senate.gov/content/news/cornyn-urges-trump-administration-ensure-us-energy-gets-fair-treatment-mexico
Cornyn Urges Trump Administration to Ensure U.S. Energy Gets Fair Treatment from Mexico

WASHINGTON – U.S. Senator John Cornyn (R-TX) today wrote President Trump requesting that the Administration work with Mexico to ensure that in the spirit of the recently-signed U.S.-Mexico-Canada Agreement (USMCA), energy trade between the U.S. and Mexico remains fair to U.S. energy companies.

They wrote: “As you know, Mexico is the largest export market for U.S. petroleum products and is a growing market for natural gas exports. In fact, U.S. exports of refined products to Mexico have tripled over the past decade. An integrated North American energy market benefits U.S. fuel manufacturers, workers, and ultimately Mexican consumers.”

“Despite this progress, recent reports indicate that the Mexican government is providing preferential regulatory treatment for Petroleos Mexicanos (PEMEX) and delaying or cancelling outright permits for U.S. energy companies.”

“These efforts violate and contradict the spirit, if not the letter, of the USMCA, an agreement among whose primary objectives are to promote growth among the participant countries. Therefore, we are deeply concerned that these actions demonstrate a pattern of obstruction and urge you to find a resolution with the Government of Mexico to keep the current market conditions that the Energy Reform regulatory framework provides, along with certainty and fairness for U.S. companies operating and competing in Mexico.”

Joining Sen. Cornyn in signing the letter were Sens. Bill Cassidy (R-LA), Ted Cruz (R-TX), Jim Inhofe (R-OK), and James Lankford (R-OK) and U.S. Representatives Vicente Gonzalez (TX-15), Filemon Vela (TX-34), Will Hurd (TX-23), Bob Latta (OH-05), Bruce Westerman (AR-04), Jim Costa (CA-16), Mike Conaway (TX-11), David Schweikert (AZ-06), Henry Cuellar (TX-28), Xochitl Torres Small (NM-02), Michael Burgess (TX-26), Pete Olson (TX-22), Lou Correa (CA-46), Marc Veasey (TX-33), Kelly Armstrong (ND-At Large), Garret Graves (LA-06), Randy Weber (TX-14), Roger Williams (TX-25), Ken Calvert (CA-42), Brian Babin (TX-36), Veronica Escobar (TX-16), Carol D. Miller (WV-03), Chip Roy (TX-21), Lizzie Fletcher (TX-07), Kevin Hern (OK-01), Kendra Horn (OK-05), Jeff Duncan (SC-03), Guy Reschenthaler (PA-14), Jodey Arrington (TX-19), Kevin McCarthy (CA-23), and Steve Scalise (LA-01).

The full text of the letter is here <https://www.cornyn.senate.gov/sites/default/files/10.22.2020%20Cornyn%20VGonzalez%20POTUS%20Mexico%20Market%20Issues%20Ltr%5B3%5D%202.pdf%5B69%5D.pdf%5B39%5D.pdf> and below.

October 22, 2020

Dear Mr. President,

We write today to bring to your attention concerning actions by the Government of Mexico that threaten U.S. energy companies’ investment and market access and undermine the spirit of the United States- Mexico-Canada Agreement (USMCA).

As you know, Mexico is the largest export market for U.S. petroleum products and is a growing market for natural gas exports. In fact, U.S. exports of refined products to Mexico have tripled over the past decade. An integrated North American energy market benefits U.S. fuel manufacturers, workers, and ultimately Mexican consumers.

Following Mexico’s 2014 constitutional reforms allowing private participation in the Mexican energy sector, U.S. companies invested billions of dollars to develop energy infrastructure in Mexico and in the United States to import fuel from our refineries to satisfy Mexican demand; resulting in positive factors, such as infrastructure development and employment generation in both sides of the border.

Despite this progress, recent reports indicate that the Mexican government is providing preferential regulatory treatment for Petroleos Mexicanos (PEMEX) and delaying or cancelling outright permits for U.S. energy companies. These anecdotal experiences have recently been given additional credence by a leaked memo from President of Mexico, Andres Manuel Lopez Obrador directing Mexican authorities to use all available resources within the regulatory framework to protect PEMEX and the Comision Federal de Electricidad (CFE). Additionally, members of the governing party, MORENA, have presented constitutional initiatives that would roll back the historic 2014 Energy Reform and seek to relinquish all contracts currently in force.

These efforts violate and contradict the spirit, if not the letter, of the USMCA, an agreement among whose primary objectives are to promote growth among the participant countries. Therefore, we are deeply concerned that these actions demonstrate a pattern of obstruction and urge you to find a resolution with the Government of Mexico to keep the current market conditions that the Energy Reform regulatory framework provides, along with certainty and fairness for U.S. companies operating and competing in Mexico.

We appreciate your consideration of this request.

Sincerely,

/s/

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.citizenstrade.org/pipermail/ctcfield-citizenstrade.org/attachments/20201023/9a365d50/attachment.html>