Buenrostro, Tai Meet to Discuss Mexico’s Energy Policy

Raquel Buenrostro, Mexico’s recently appointed Minister of Economy, held a virtual meeting with US Trade Representative Katherine Tai to talk about the state of the consultation period between Mexico and the US regarding violations of the USMCA in energy policy.

Buenrostro, the former Tax Authority Chief, assumed the position last month, shortly after Tatiana Clouthier stepped down, leaving the ministry without a lead negotiator amid trade disputes with the US and Canada.

The US administration opened a consultation period with Mexico under the Dispute Settlement Chapter of the USMCA back in July. According to US authorities, Mexico had violated the agreement by favoring state companies such as PEMEX and CFE over private companies, particularly foreign players, thereby affecting US companies operating in the country. At that time, Tai said she had serious concerns regarding Mexico's energy policies and their presumed inconsistency with commitments signed under the USMCA agreement. According to the representative, she tried to work together with the Mexican government to address these concerns. Nevertheless, despite these efforts, American companies continued to get similar treatment. Meanwhile, Mexico’s President López Obrador outlined his views that his energy policy was a matter concerning sovereignty and therefore did not fall under the USMCA’s reach.

October 3, 2022 was the deadline for the resolution of these consultations or to establish a panel, but both governments agreed to expand the talks. 

After this first approach, Buenrostro and Tai committed to continue consultations on energy issues and to enable working groups between the two countries. According to a statement by Mexico’s Ministry of Economy, the countries will continue these talks. "We will always privilege negotiation before anything else," said Buenrostro.

Besides energy policy, Tai also addressed the issue of the potential interruption of US yellow corn exports to Mexico, since President Lopez Obrador has remained firm on the ban of GMO corn for 2024. "It is important to avoid a disruption in US corn exports and return to a science and risk-based regulatory approval process for all agricultural biotechnology products in Mexico," she said.