Jamieson Greer and the USMCA: What does one say and what does the other say about Mexico‘s energy policy?
At his February 6 USTR confirmation hearing before the U.S. Senate Finance Committee, Greer expressed concern about his views on Mexico’s state-owned energy companies.
Jamieson Greer and USMCA
Regarding certain Mexican energy policies, President Joe Biden’s administration requested dispute settlement talks with Mexico in July 2022. Both sides set up dialogue tables, with no dispute settlement panel ultimately arising.
On that, to a question from Senator Michael Bennet at the conformation hearing, Greer responded, “I share your concerns about Mexico’s policies that unfairly favor Mexico’s state-owned energy companies to the detriment of U.S. energy companies, undermine U.S.-produced energy, and raise serious concerns about Mexico’s compliance with the USMCA.”
Greer stated that if his nomination is confirmed, he will consult closely with Congress and affected stakeholders, including in advance of the T-MEC Joint Review, to assess the impact of these policies on U.S. energy companies and U.S. workers.
“I am committed to holding our trading partners accountable and, if my candidacy is confirmed, I will press Mexico, including as part of the Review, to adhere to its commitments under the USMCA and will carefully consider other steps the United States might take to resolve this issue,” he added.
Dispute settlement
The Biden Administration challenged a 2021 amendment to Mexico’s Electricity Industry Law. This amendment prioritizes electricity produced by the Federal Electricity Commission (CFE) over that generated by private competitors. In addition, it challenged Mexico’s inaction, delays, denials and revocations of private companies’ abilities to operate in the country’s energy sector.
Also, the Biden Administration challenged a December 2019 regulation. This regulates compliance with Mexico’s maximum sulfur content requirements for diesel fuel for automobiles. According to the regulation, only Pemex receives an extension to comply with the requirements. In turn, it questioned an action taken in June 2022, which favors Pemex, CFE and their products in the use of the natural gas transportation network in Mexico.