The Business Council of Canada (BCC) called for the creation of a North American Energy Alliance as part of the USMCA consultations.

The Council noted that business leaders from the United States, Mexico, and Canada have requested the creation of a North American Energy Alliance. And the proposal seeks to strengthen energy supply chains and make them more resilient. It also aims to expand regional reach to provide allies with secure access to critical, reliable, and affordable energy and minerals.

Business Council of Canada

From the BCC’s perspective, the USMCA should include a Continental Energy Security Committee. This would involve governments and the private sector. Its role would be to exchange information, streamline permits, and design a common vision for projects that strengthen energy and critical mineral supply chains, with an emphasis on cross-border infrastructure and exports.

The BCC brings together leaders from large Canadian corporations. Many have investments and operations in Mexico and the United States. In addition, its companies generate millions of jobs, move billions in annual trade, and sustain trillions of dollars in industrial investment in the region.

Mexican energy industry

In 2021, Mexico reformed the Electricity Industry Law. It ordered CENACE to prioritize electricity generated by CFE over private supply. A year later, Sener instructed CENAGAS to request that gas transport users give preference to purchases from CFE or Pemex.

For the Business Roundtable, these actions contravene the USMCA. It argues that they violate Article 2.3 on Market Access by denying national treatment to US goods. It also points to Article 22.5.2 on State-Owned Enterprises by failing to guarantee neutrality in regulation.

The energy counter-reform expanded these changes. It modified laws and impacted hydrocarbons and electricity. According to the BRT, Mexico has imposed new non-tariff barriers, such as import permits, inspections, and audits. In addition, fuel price controls limit private competition and violate Article 22 of the trade agreement.