The outgoing Trump administration is upset over Mexico's preferential treatment of its state-owned energy companies, triggering concerns that could threaten U.S. ag exports.
In a letter, Secretary of State Mike Pompeo, Energy Secretary Dan Brouillette and Commerce Secretary Wilbur Ross wrote to their counterparts in Mexico, the U.S. officials said that "recent regulatory actions by the Mexican government have created significant uncertainty about Mexico's regulatory processes, especially regarding the energy sector, and have damaged Mexico's overall investment climate," pointing to reports of a memo and meeting last year where regulators were "allegedly instructed to block permits for private sector energy projects and to exercise their regulatory authority to favor state-owned energy companies."
If true, the secretaries warned, it would be "deeply troubling and raise concerns regarding Mexico's commitments" under the U.S.-Mexico-Canada Agreement. It is not clear how this situation will play out, but it will clearly fall to the Biden administration to sort the issue out.