Mexico moves ahead with USMCA dispute negotiations under new leadership

Mexico’s recently appointed economy minister, Raquel Buenrostro, will focus on maintaining amicable negotiations with the US in the ongoing USMCA trade dispute concerning energy sector policy.

"Both parties are committed to continue the consultations and to create working groups, emphasizing continuous dialogue," the economy ministry said via Twitter after Buenrostro met for the first time with US trade representative Katherine Tai.

During the virtual meeting, Tai "underlined the importance of making expeditious progress in addressing the issues in Mexico's energy sector that the United States identified" in its USMCA consultations request issued in June, the trade representative's office said in a release.

The dispute stems from a set of Mexican policies that the US and Canada argue hurt private sector companies and unjustly favor state-owned firms, such as changes in dispatch priority rules and growing permitting hurdles, as well as controversial natural gas pipeline regulations. 

Concerns in Mexico’s energy sector arose last month after Buenrostro changed key members of the country's negotiating team. Undersecretary for international trade Luz María de la Mora and the general counsel on international commerce, Orlando Pérez Gárate, were forced out in mid-October together with some members of lower rank.

The US and Canada could have asked for the establishment of a panel since October 3, but they have decided to extend preliminary negotiations in a bid to reach a settlement. Mexican authorities have also signaled that they have made strides in direct negotiations with affected private firms.