US congressmen call for Biden’s intervention in the face of AMLO’s protectionist energy policy

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The congressmen consider that there is a preferential regulatory treatment from López Obrador towards Pemex and the CFE.

Mexico’s energy course continues to arouse concern, several United States congressmen sent a letter to President Joe Biden requesting his intervention, as they consider that the policies of his counterpart, Andrés Manuel López Obrador, are limiting American companies and undermining the spirit of the trade agreement Mexico, United States and Canada (USMCA).

The congressmen mentioned that this issue had been discussed previously in the administration of Donald Trump, since there is a preferential regulatory treatment from López Obrador towards Petróleos Mexicanos (Pemex) and the Federal Electricity Commission (CFE), while companies US energy companies are being delayed or canceled, “these challenges continue to be a serious problem.”

The 20 congressmen who signed the letter refer to the changes promoted by AMLO to the Electricity Industry Law and the Hydrocarbons Law.

In the case of the first, they point out that the reform gives preference to the CFE’s energy dispatch with less efficient and more polluting generating plants. Also, it eliminates competition in the energy sector and this negatively impacts US investments and will increase costs for Mexicans.

While the reform to the Hydrocarbons Law, they said, implies that the Mexican government can exercise discretionary control over the distribution, storage, import, and export of fuels, as well as the ability to suspend or revoke permits throughout the value chain for benefit Pemex.

This is generating great uncertainty for US energy companies that have investments already made and for those that seek to do so, as their long-term viability is threatened, they considered.

“We ask that you address these violations when you participate in diplomatic conversations with President López Obrador,” the congressmen asked Joe Biden.

Source: forbes.com.mx

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