U.S. Energy Sector in Dispute with Mexico

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The U.S. government has forced Mexico into negotiations over what Washington considers unfair practices that are effectively excluding U.S. and other foreign companies from the Mexican energy sector in violation of the free trade agreement they signed with Canada, the Associated Press reported. Mexico says it has received a similar notice from Canada related to its electricity law. The U.S. government says a change to Mexican law last year gives an unfair advantage to Mexico’s state-owned Federal Electricity Commission and puts energy sold by private companies, including cleaner energy from solar or wind, at a disadvantage. The U.S. also says a 2019 regulation gives only state oil and gas company Petroleos Mexicanos extra time to comply with tougher environmental standards limiting the sulfur allowed in automotive diesel fuel. Mexico has also delayed, rejected or failed to act on private companies’ applications for permits to operate in the energy business and has revoked or suspended existing permits, according to the U.S. government. Read more.