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US Preparing To Escalate Claim Mexico Violated USMCA Pact

MEXICO
  • The US is preparing to escalate its complaints that Mexico’s state-favoring energy policies violate the nations’ free-trade agreement, people familiar with the matter said, a move that would risk exacerbating tensions between the countries’ governments. (BBG)
    • US Trade Representative Katherine Tai’s office in recent weeks has been working on a request for formal consultations under the US-Mexico-Canada Agreement and discussing it with other agencies, according to the people, who asked not to be identified without permission to speak publicly. The timing for the request is still being determined, the people said.
  • While the initial headlines overnight sparked a quick sell-off for the Peso with USDMXN spiking to 20.09 highs, the Peso selling was well absorbed and currently trades at it’s best levels of the week and back below the 20.00 mark for USDMXN.
  • Later today, Petroleos Mexicanos (Pemex) will release data on May oil production and exports.

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