(Spanish CNN) — Three years ago came into force the T-MEC, a new trade agreement between Mexico, the United States and Canada that is today at the center of a dispute after Washington and Ottawa began a process of consultation to resolve the disagreements that exist on the political energy of the government of Andrés Manuel López Obrador. But what does this treaty consist of (and what do the three countries exchange)?

What is the USMCA?

T-MEC is an updated version of the North American Free Trade Agreement (NAFTA), implemented in 1994, which changed the economies of all three countries with the elimination of export tariffs.

The T-MEC went into effect on July 1, 2020, months before López Obrador took office as president of Mexico. Its renewal was offered as a campaign promise by then US President Donald Trump, who claimed it was the “worst trade deal ever”. After months of negotiations between the three governments, including Mexico’s president-elect’s transition team, the deal was finally announced in 2018. But it was approved through 2020 in the U.S. Congress after Democrats added stricter work rules.

It is a treaty that promotes investment, free trade, job creation and the development of countries. It is expected to create 176,000 jobs after six years and increase US GDP by 0.35%, according to a report published in 2019, well before the pandemic, by the US International Trade Commission.

What do Mexico, the United States and Canada trade?

The commercial exchanges that exist between Mexico, the United States and Canada are deeply interconnected. 83.48% of Mexican exports go to Canada or the United States, According to Mexico’s Secretary of Economyproducts ranging from automobiles to flat panel televisions and data processors.

While, according to the Mexican government, more than 45.99% of Mexican imports come from the two countries. The country imports gasoline, corn and other products.

Among the main products that Mexico exported under the T-MEC in 2021 are the following, according to a report by the Ministry of Economy:

• Data processing machines
• Particular Cars
• Vehicles for the transport of goods
• Vehicle parts and accessories
• televisions

And among the main products that Mexico imported under the T-MEC in 2021 are the following:

• Petroleum oils except crude
• Petroleum gas, gaseous hydrocarbons
• Vehicle parts and accessories
• diesel engines
• Corn

AMLO’s energy policy, contested

The United States this week began a consultation process under the T-MEC, believing that the energy policies of the López Obrador government are harming American companies by limiting them by favoring public companies and not respecting the provisions of the ‘commercial agreement. Canada joined a few hours later and also requested this consultation process.

“The consultations relate to certain Mexican measures that harm U.S. businesses and U.S.-generated energy in favor of Mexico’s state electric utility, the Federal Electricity Commission (CFE) and of the state oil and gas company, Petróleos Mexicanos (Pemex),” U.S. Trade Representative Katherine Tai said in a statement.

The announcement from the United States is not surprising given that it had been warning for more than a year about its concerns about the energy changes that the López Obrador government is implementing.

In January 2021, the U.S. Secretaries of Commerce and Energy sent a letter to their Mexican counterparts denouncing regulators for “blocking permits for private sector energy projects.” A year later, in January 2022, the US Senate Finance Committee sent a letter to Mexico denouncing the suspension of import permits for more than 80 US energy companies.

“We have repeatedly expressed serious concerns about a series of changes in Mexico’s energy policies and their consistency with Mexico’s commitments under the T-MEC,” Tai said when announcing the processes. consultation.

With information from CNN’s Katie Lobosco