July 26, 2022
Canada and the United States both launched dispute settlement consultations under the Canada-United States-Mexico Agreement (CUSMA) with respect to Mexico's policies in its energy sector.
The consultations relate, within several issues, to certain measures by Mexico that favor of Mexico's state-owned electrical utility, the Comisin Federal de Electricidad (CFE), and state-owned oil and gas company, Petrleos Mexicanos (PEMEX) in a manner that is detrimental to U.S. and Canadian investors and producers.
Canada's Minister of International Trade, Mary Ng, issued the following statement: "Canada has consistently raised its concerns regarding Mexico's change in energy policy. We agree with the United States that these policies are inconsistent with Mexico's CUSMA obligations."
Under CUSMA the parties shall enter into consultations within 30 days of a member country's request, unless the parties decide otherwise. If the parties do not resolve the matter through consultations within 75 days of the request, the requesting party may ask for the establishment of a panel.