The Government of Canada said Wednesday it would also launch its own consultations with Mexico on its energy policies, which it says are incompatible with a New North American Trade Pact (USMCA), backing a similar measure announced by the United States.
“We agree with the United States that these policies are inconsistent with Mexico’s obligations under the USMCA,” USMCA spokeswoman Alice Hansen said. Canadian Minister of International Trade Mary Ngin a statement sent to Reuters.
“We join the United States in taking action run our own queries under the USMCA to address these concerns, while supporting the United States in its challenge,” Hansen said.
The United States earlier this Wednesday requested consultations on settling disputes with Mexico under the North American Trade Agreement over the Latin American nation’s energy policies which it considers discriminatory and which ” harm” their businesses.
The request, announced by the Office of the Trade Representative (USTR), represents the most serious dispute between the Washington government and Mexico since the T-MEC took effect. If left unresolved, it could lead to punitive tariffs by the United States.
The USTR explained that the requested consultations relate to measures that it says harm U.S. companies in favor of Mexico’s state-owned companies, the Federal Electricity Commission (CFE) and Petróleos Mexicanos (Pemex).
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