Senators claim Mexico violating USMCA on energy

WASHINGTON - A bipartisan group of senators and congressmen that includes Texas Senators John Cornyn and Ted Cruz says Mexico is violating the "spirit" of the newly signed United States Mexico Canada trade agreement by giving preferential treatment to state-owned energy companies.

They claim the Mexican government under President Andres Manuel Lopez Obrador is protecting state-owned oil company Pemex and the electricity provider Comisión Federal de Electricidad, while simultaneously canceling contracts for U.S. energy firms.

"These efforts violate and contradict the spirit, if not the letter, of the USMCA, an agreement among whose primary objectives are to promote growth among the participant countries," the letter read. "U.S. companies invested billions of dollars to develop energy infrastructure in

Mexico and in the United States to import fuel from our refineries to satisfy Mexican demand."

The Mexican consulate in Washington did not immediately respond to a request for comment.

A large number of Texas congressmen also signed the letter, including Democrats Henrry, of Laredo, and Vicente Gonzlez, of McAllen, and Republicans Chip Roy, of San Antonio, and Pete Olson, of Sugar Land.

The letter drew applause from U.S. refineries, for whom Mexico is their largest export market.

Chet Thompson, president of the trade group American Fuel and Petrochemical Manufacturers, said U.S. investments in Mexico are, "now in jeopardy based on the Mexican government’s preferential treatment of PEMEX and their actions to delay or even cancel permits for U.S. energy companies."