Mexico's energy policies in crosshairs of presumptive US trade representative

Jamieson Greer, President Donald Trump's nominee to be the US trade representative, has slammed Mexico's energy policies amid growing trade tensions between the two countries.

In written responses submitted during the confirmation hearing before the US Senate Finance Committee this month, Greer stated the policies “unfairly favor Mexico’s state-owned energy companies over American energy companies, undermine US-produced energy, and raise serious concerns about Mexico’s compliance with [free trade agreement] USMCA.”

During the administration of Andrés Manuel López Obrador from 2018 to 2024, Mexico largely prevented foreign investment in the energy sector and strengthened the role of state-owned utility CFE and national oil company Pemex.

In 2022, the Joe Biden administration requested consultations with Mexico under the USMCA agreement over its energy policies, but did not escalate the process to a dispute settlement panel.

Greer said he "will carefully consider further actions the United States could take to resolve this issue. I am committed to holding our trading partners accountable and, if confirmed, will press Mexico... to adhere to its commitments under the USMCA."

The USMCA is due for a statutory review by the three participating countries in July 2026. 

Greer said he would begin consultations about the impact of Mexico's energy policies in advance of the review.

Mexico is the leading destination for exports of US natural gas and refined products. US companies are also active in Mexico's renewable energy sector.

The committee approved Greer's nomination on Wednesday. The nomination will now go to the full senate for approval.

Greer's comments come amid a wider trade dispute between the two countries, with Trump threatening to impose 25% tariffs on Mexican imports.

Mexico's position

Since taking office in October, President Claudia Sheinbaum has continued the energy nationalism of López Obrador.

Last week, Sheinbaum published draft legislation for the energy sector which will consolidate the primacy of CFE and Pemex, while providing some room for the private sector to invest.

At a press conference in Mexico City on Wednesday, Sheinbaum said that "there is no contradiction between the free trade agreement and the laws that were presented."