Mexico Is Seen Risking $30 Billion Hit in US-Canada Trade Spat
- US and Canada filed complaint over AMLO’s energy policies
- If Mexico loses dispute, tariffs may equal investment losses
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Mexico could be hit with between $10 billion and $30 billion in tariffs if it loses a trade spat with the US and Canada, according to two former officials who negotiated the pact under which the dispute was brought.
The US and Canada have requested dispute settlement talks under the US-Mexico-Canada Agreement, known as USMCA, arguing that Mexico is violating the North American free trade deal with its moves to prioritize energy from its state utility over private renewables companies. They argue the policies of President Andres Manuel Lopez Obrador, known as AMLO, have led to denials and revocations of US firms’ abilities to operate in Mexico’s energy sector.