The Biden administration plans to seek recourse under the United States-Mexico-Canada Agreement (USMCA) if concerns over Mexico’s energy policies are not resolved, according to U.S. Trade Representative Katherine Tai.

US Mex

“At the heart of the USMCA are core obligations with respect to trade and investment, including with respect to nondiscriminatory treatment,” Tai wrote in a letter late last month to Mexico’s economy minister Tatiana Clouthier. 

“For a long time now, the U.S. government has raised concerns about a series of administrative, regulatory and legislative changes in Mexico’s energy policies as violating these core obligations, including the 2021 changes to the Electric Power Industry Law,” Tai wrote

“We have also been very clear that the USMCA applies...