John Kerry Returns to Mexico
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John Kerry Returns to Mexico

Photo by:   Ken Salazar
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Perla Velasco By Perla Velasco | Journalist & Industry Analyst - Tue, 03/21/2023 - 17:24

The lack of financial support granted by the federal government to clean energy projects is compensated by the opportunity that natural resources offer, in addition to the skilled labor the country has to offer, President López Obrador said during his morning conference held in Oaxaca, where he will meet with US climate representative John Kerry to discuss energy policy.

Kerry arrived in Mexico today to promote dialogue between the US and Mexico on climate collaboration and actions around clean energy. The US official was received by Marcelo Ebrard, Minister of Foreign Affairs; Ken Salazar, US Ambassador to Mexico; Manuel Bartlett, CFE Director, and Roberto Velasco, Chief Officer for North America at the Ministry of Foreign Affairs.

Mexico is currently in an energy dispute with the US and Canada regarding its energy policy. While financial stimuli and federal support have been signaled as favorable for the development of clean energy, the lack of these policies is not the only issue the country faces. Private players have pointed out unfair competition in the market due to the administration’s efforts to favor state-owned companies.

In January 2023, Raquel Buenrostro, Mexico’s Minister of Economy, assured that the Mexican government was making progress during talks with its counterparts from the US and Canada. However, US Energy Associations have urged Joe Biden to pressure Mexico to address complaints about its purported nationalist energy policy. 

Likewise, Mexico has faced criticism due to regulatory uncertainty and regulation setbacks. The delay in permit-processing was a key issue in the dispute. Recently, CRE announced its new system to process permits. However, different players have pointed out that it will create more bottlenecks. According to the Mexican Association of Service Station Suppliers (AMPES), CRE’s recently imposed restriction on hydrocarbons and electricity permits will paralyze the energy sector’s growth. Additionally, the Business Coordinating Council (CCE) said that the agreement favors CFE and PEMEX over their private sector competitors.

Photo by:   Ken Salazar

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