Mexico's energy reform strains ties with US

Mexico's plan to favor its own state-owned electrical power plants and limit energy sales by private, foreign-built projects could affect U.S. investment in Mexico, officials said during bilateral talks this week

MEXICO CITY -- Mexico’s plan to favor its own state-owned electrical power plants and limit energy sales by private, foreign-built projects could affect U.S. investment in Mexico, officials said during bilateral talks this week.

According to statements issued Friday, the U.S. government has “real concerns with the potential negative impact” on U.S. firms and investments.

“In each meeting, we expressly conveyed the Biden-Harris Administration’s real concerns with the potential negative impact of Mexico’s proposed energy reforms on U.S. private investment in Mexico,” according to a statement by U.S. Secretary of Energy Jennifer M. Granholm. “The proposed reform could also hinder U.S.-Mexico joint efforts on clean energy and climate.”

Mexican President Andrés Manuel López Obrador said he received a list of U.S. and Canadian firms who had voiced complaints and said he would “review them if they believe there has been an injustice.”