Mexican, Canadian Leaders Discuss Energy at NALS

President Andrés Manuel López Obrador agreed during a bilateral meeting with Canadian Prime Minister Justin Trudeau to give hearings to Canadian companies that consider themselves aggrieved by the reform of the electricity sector, which has been criticized for reportedly benefiting Petróleos Mexicanos (PEMEX) and the Federal Electricity Commission (CFE) over foreign companies. This meeting marks the end of the North American Leaders’ Summit (NALS).

“We have dealt with economic issues related to investments by Canadian companies in Mexico, mining companies and companies such as TransCanada, which is investing in building a gas pipeline in the Gulf of Mexico. It is a large investment, and it is crucial because it is going to supply gas to the southeast of Mexico,” stated López Obrador at the beginning of the meeting. He added that both leaders seek to resolve the problems that arise in these economic and commercial relations, especially in times of growth as Canadian investment in Mexico is growing. “I made a commitment with Prime Minister Trudeau to receive the companies that may have pending issues... We are always open to dialogue.”

This energy issue had been sidelined from the agendas of the three leaders at NALS, but addressing this matter was one of Trudeau’s priorities for the summit. The dispute over Mexican energy policies began when the US requested dispute settlement consultations with Mexico, alleging that the latter had implemented discriminatory policies against US energy companies to favor Mexico’s state-owned electric company CFE and state oil firm PEMEX. A day later, Canada joined in support of the US challenge. 

The Center for Research in Public Policy (IMCO) had previously said that Mexico’s energy policy not only limits the country’s abilities to benefit from the USMCA, but also jeopardizes the stability of the trade relationship between Mexico, the US and Canada, while simultaneously undermining the region’s competitiveness.

The Canadian and Mexican leaders mentioned that they are not only discussing economic and commercial issues; they are also discussing immigration programs in Canada and temporary visas for Mexican workers, as well as the recognition of indigenous communities. They announced they would sign an agreement on these topics.

“We will continue to talk about how we can further enhance our economic alliances, our people-to-people ties and above all, the prosperity we both bring to the trilateral relationship in North America, which has so much to offer the world,” said Trudeau. 

Trudeau and his wife Sophie Grégoire Trudeau will fly back to Canada from Felipe Ángeles International Airport (AIFA), a gesture that is considered to be at the request of President López Obrador. Trudeau will be welcomed at AIFA by Mexico’s Foreign Minister Marcelo Ebrard, Roberto Velasco, Head, North American Unit, and Canada’s Ambassador to Mexico Graeme Clark.