Negotiations between Mexico, Canada and the United States regarding the former country’s controversial energy policies and the possibility of a possible arbitration lawsuit will extend beyond the period initially established.

Although Oct. 3 is the date set for the United States and Canada to decide whether or not to take the case to an arbitration panel, the partners will extend the talks, Reuters reported.

The disagreement stems from a set of Mexican policies that the United States and Canada say hurt investors and unfairly favor state-owned companies. They point in particular to the evolution of priority shipping rules and the growing obstacles to obtaining authorizations in the sector, as well as the controversial regulation on gas pipelines.

The report cites three unnamed sources in the US and Mexican governments as saying that since the negotiations were proving successful, the trading partners would attempt a negotiated exit in hopes of avoiding arbitration.

Mexican authorities recently changed their minds on the trade dispute. Calling it an illegitimate violation of Mexican sovereignty, President Andrés Manuel López Obrador and his allies began to declare that they were seeking a negotiated solution and seeking to remain on good terms with private companies affected by the legislative and regulatory changes in the country. ‘administration. .

This week it emerged that state power company CFE lost an arbitration between an investor and the state late last year and was forced to pay $85 million in compensation to the Canadian Atco last December. In 2018, CFE had unilaterally terminated a gas pipeline construction contract with the company.