Connect with us

Hi, what are you looking for?

News

Mexico eyes possible energy dispute fix, welcomes new US ‘tone’

STOCK PHOTO

MEXICO CITY – Mexico on Monday voiced hope it could work out a major dispute with the United States over energy policy as it welcomed a top US delegation and President Andres Manuel Lopez Obrador struck a conciliatory note in the critical stand-off.

Mr. Lopez Obrador was speaking before he met with US officials led by Secretary of State Antony Blinken, visiting to mark the annual so-called High-Level Economic Dialogue (HLED), which both sides hailed as a pathway toward deepening economic ties.

The energy row broke in July, when the US government demanded dispute settlement talks, arguing Mr. Lopez Obrador’s drive to tighten state control of the energy market was unfair to US companies and likely breached a regional trade deal.

The energy complaint, which Canada immediately joined, is arguably the biggest dispute to surface under the United States-Mexico-Canada Agreement (USMCA) since the North American trade deal came into effect in 2020. If unresolved, it could lead to the imposition of hefty trade tariffs against Mexico.

Officials said the dispute was not central to Monday’s talks, though Mexican Foreign Minister Marcelo Ebrard expressed optimism that a deal could be hashed out.

“That wasn’t the purpose of the meeting, because as we know that’s in a process of dialogue and I would hope that an agreement will be reached at some point,” Mr. Ebrard told a news conference with Mr. Blinken and others following the talks.

Mexican Economy Minister Tatiana Clouthier, who oversees trade in Latin America’s no. 2 economy, underlined the point, saying the two governments would work toward a fix.

Mr. Lopez Obrador, who has made his energy policy a matter of national sovereignty, had previously responded defiantly to the United States, saying he would defend Mexico‘s position at an independence day military parade taking place this Friday.

However, on Monday he said he would no longer talk about the energy dispute during his Friday speech because US President Joe Biden had responded to his concerns positively.

“There’s a different tone. There’s a respectful attitude. Rather, it’s a reaffirmation of respect for our national sovereignty,” Mr. Lopez Obrador told a news conference, referring to a letter he said had received from Mr. Biden.

After meeting with the US officials, Mr. Lopez Obrador said on Twitter he had a “productive and friendly” meeting with Mr. Blinken and US Commerce Secretary Gina Raimondo.

Mr. Blinken and the Mexican president spoke about joint efforts to tackle climate change by investing in clean energy and areas like electric vehicles, solar power, and semiconductor output, US State Department spokesperson Ned Price said.

The United States and Mexico also said they would work together on a pilot project to determine the feasibility of near-shoring semiconductor manufacturing inputs in a joint statement later in the day.

The two countries boast one of the world’s largest trading relationships, and officials said the efforts to modernize their economies would boost growth and jobs.

US Commerce Secretary Raimondo said the United States and Mexico have identified areas of collaboration on supply chains. She saw great potential for Mexico not just in manufacturing of semiconductors but also their testing, packaging and assembly.

“The best is yet to come,” said Ms. Raimondo, who declared she was “thrilled” with progress the two sides had made on a range of issues, including bolstering energy security.

Still, while observing the two sides did not discuss the energy controversy “extensively”, Ms. Raimondo said businesses wanted “predictability, fairness and transparency” in an apparent nod to companies’ concerns about Mexico‘s policies. – Reuters

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...

News

Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...

News

Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...

News

REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...

News

Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.