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US and Canada launch trade dispute with Mexico over clean energy

Washington says nationalist policies are failing to meet with USMCA obligations

The US and Canada are seeking trade dispute talks with Mexico over the country’s nationalist energy policies, which they argue have undermined international companies investing in clean energy.

Washington accused Mexico of failing to meet its obligations under the US-Mexico-Canada Agreement (USMCA) by favouring state-run utility Federal Electricity Commission (CFE) and oil company Petróleos Mexicanos (Pemex). This came at the expense of US and other private firms that have poured billions of dollars over the past decade into the clean energy sector in Mexico, it said.

“Mexico’s policies have largely cut off US and other investment in the country’s clean energy infrastructure,” US trade representative Katherine Tai said in a statement on Wednesday.

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