U.S. Lawmakers Attempt to Pause Mexico’s Electricity Reform

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On Wednesday, Nov. 3, a number of U.S. congressmen protested against Mexican President Andrés Manuel López Obrador’s (AMLO) controversial electricity reform in a letter to U.S. government officials, saying that the proposal would violate international treaties like the United States–Mexico-Canada Agreement (USMCA), and is discriminatory against both private investment initiatives and cleanly sourced energy.

U.S. Republican members of Congress sent said letter toU.S. Secretary of State Antony Blinken, Secretary of Commerce Gina M. Raimondo, Secretary of Energy Jennifer M. Granholm and Trade Representative Katherine Tai about their concerns, likewise calling the legislation biased against U.S. investment in the sector, as it would provide priority energy upload to Mexico’s state-owned Federal Electricity Commission (CFE) and diminish the capacity for private companies, standing in stark violation of the USMCA’s provisions.

“Recent reports of discriminatory actions against U.S. companies require a timely and clear response,” read the letter. “We urge you to redouble your efforts to pressure Mexican authorities to stop discriminatory actions and provide U.S. companies that operate or trade with Mexico equality of conditions, as foreseen by the USMCA.”

That very same day, U.S. Ambassador to Mexico Ken Salazar went to the National Palace, AMLO’s place of work and residence, to express the U.S. government’s “serious concerns” surrounding the proposed reform to López Obrador.

Meanwhile, legislators from AMLO’s party, the National Regeneration Movement (Morena), voted alongside their allies to postpone the vote on the electricity reform until April 2022, putting Mexico’s budget approval as a priority for the moment.


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