Lopez Obrador Refuses To Back Down In Trade Dispute

Mexico President Andrés Manuel López Obrador has refused to back down in a trade dispute with USMCA partners the US and Canada.

• Yesterday, Washington accused Mexico of failing to meet U.S.-Mexico-Canada Agreement (USMCA) obligations by favouring state run energy companies.
• US Trade Rep Katherine Tai said “Mexico’s policies have largely cut off US and other investment in the country’s clean energy infrastructure."
• Reuters carrying comments from AMLO saying "Mexico's control over its oil is not going to be up for negotiation."
• AMLO also reportedly claiming that moves to nationalise elements of the Mexican energy sector are not in violation with USMCA.
• FT: "Mexico president Andrés Manuel López Obrador made light of the US’s complaint at his morning press conference by saying “nothing is going to happen.”"
• If the complaint is unresolved then Mexico could face "retaliatory tariffs," according to former Mexican ambassador to the US, Arturo Sarukhán.
• Reuters claims the dispute settlement request from the US is "the most serious trade fight between Washington and Mexico City since the U.S.-Mexico-Canada Agreement on trade took effect two years ago. If unresolved, it could ultimately lead to punitive U.S. tariffs."