SENER Issues Clarification on USMCA Dispute

SENER issued a formal statement denying that US oil companies have initiated dispute settlement proceedings under USMCA over Mexico’s energy policies. The clarification followed reports by Diario Reforma suggesting that American oil firms had filed complaints accusing Mexico of breaching investment protection provisions in the treaty. SENER dismissed the claims as inaccurate, stating that “no notice of dispute has been submitted by US oil companies to date” and that any such proceeding would be a matter of public record under the USMCA framework.

SENER emphasized that Mexico “remains fully committed” to its international obligations, including those related to fair treatment and non-discrimination in the energy sector. The ministry reaffirmed that any potential claim would be reviewed according to the treaty’s procedures and that Mexico would exercise its right to respond through established legal channels.

The statement arrives amid continued scrutiny of Mexico’s energy policies, particularly those prioritizing state-owned enterprises PEMEX and CFE. Since 2021, the United States and Canada have repeatedly raised concerns that Mexico’s regulatory and legal changes favoring these companies could disadvantage private and foreign investors.

In July 2022, the US Trade Representative (USTR) requested formal consultations with Mexico under USMCA, marking one of the most significant trade tensions between the countries since the agreement came into effect. Washington cited actions such as delayed or denied permits for private power generators and fuel importers, as well as reforms to Mexico’s Electricity Industry Law that prioritize CFE over private renewable generators. Canada joined the consultations shortly thereafter.

Although the consultation process has not escalated to formal arbitration, it remains unresolved. Both US and Canadian officials have expressed frustration with what they describe as a lack of progress toward resolving the concerns. Analysts note that if the dispute were to advance to a USMCA panel and result in a ruling against Mexico, the country could face retaliatory tariffs on its exports worth billions of dollars.

The energy dispute has also been a point of discussion between US and Mexican authorities under President Claudia Sheinbaum’s administration. While Sheinbaum has pledged continuity in maintaining energy sovereignty, her government has sought to project a more conciliatory tone toward investors compared to that of former President Andrés Manuel López Obrador. SENER’s latest clarification appears aimed at signaling regulatory stability and countering speculation that the energy relationship with the United States has entered a new phase of confrontation.

Mexico’s energy reforms have included the consolidation of regulatory authority under SENER following the dissolution of independent bodies such as CNH and CRE. These moves, justified by the government as measures to enhance coordination and state oversight, have drawn criticism from private operators and trade partners who argue they weaken transparency and fair competition.

By reaffirming that no formal claims have been filed under USMCA’s investor-state dispute settlement (ISDS) provisions, SENER seeks to reassure both domestic and foreign investors of Mexico’s adherence to its trade commitments. The ministry reiterated that it will continue to provide updates “through official and verifiable channels” to avoid misinformation and maintain confidence in the country’s energy policy framework.