Articles tagged Usmca

Mexico is importing around 7 Bcf/d of natural gas from the United States this summer, but unresolved issues related to a trade treaty binding the two economies could complicate this relationship.

Editor’s Note: NGI’s Mexico Gas Price Index, a leader tracking Mexico natural gas market reform, is offering the following column by Eduardo Prud’homme as part of a regular series on understanding this process.

“The Southeast Gateway project represents a significant long-term investment for the people of southern Mexico by providing them with a new dedicated gas pipeline featuring state-of-the-art technology for natural gas transportation, while addressing the country’s growing energy demand,” Alexis Milo, one of Mexico’s top economists, told NGI’s Mexico GPI. 

The United States government could request a panel process by February to settle the ongoing energy dispute with Mexico over practices that are considered to be in violation of the U.S.-Mexico-Canada-Agreement, or USMCA.

A trio of U.S. trade organizations led by the American Petroleum Institute (API) is again calling on the Biden administration to engage forcefully with Mexico over the latter’s energy policies, which the groups say give preferential treatment to Mexico’s state-owned producers of hydrocarbons and electricity.

Mexico, the United States and Canada continue to work through their trade policy differences as the world’s energy supply becomes an increasing piece of geopolitical gamesmanship.

It’s probable that a trade dispute between Mexico and its northern neighbors Canada and the United States will be resolved through discussion, Carlos Flores, Director of Business Development at Nordex Group for Mexico, Colombia, Peru, Central America & Caribbean, told NGI’s Mexico GPI. 

Energy sector tensions between the United States and Mexico have quieted in recent days as both sides work to change the narrative towards cooperation. 

Mexico needs to reach an agreement during the consultation period with its commercial partners in the United States-Mexico-Canada-Agreement (USMCA) as part of a dispute over energy policies, Teresa Gallegos, an expert attorney in the Mexican energy industry, told NGI’s Mexico GPI. 

Mexican President Andrés Maneul López Obrador, joined by U.S. President Joe Biden and Canadian Prime Minister Justin Trudeau on Thursday pledged to create a “North American strategy on methane and black carbon” during a trilateral summit in Washington, DC.