Top US diplomat in Mexico for economic talks

Top US diplomat in Mexico for economic talks

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Secretary of State Antony Blinken and other senior US officials visited Mexico on Monday for high-level economic talks, with President Andres Manuel Lopez Obrador striking a conciliatory tone despite trade tensions.

Washington filed a formal complaint against Mexico under a North American free trade agreement in July, saying its energy policies discriminate against US firms.

Lopez Obrador says the complaint is unfounded but his government has pledged to work towards a solution.

When asked if he would discuss the energy dispute with Blinken, Lopez Obrador told reporters that there was no set agenda for their meeting, but that if the issue was raised, it would be “dealt with.”

He welcomed the tone of a recent letter from US President Joe Biden, in which he said Mexico appreciated its “respectful attitude” compared to the trade complaint, which he described as “not the most diplomatic”.

Lopez Obrador’s push to roll back the effects of liberalization, which he says has benefited private companies, has alarmed foreign investors and environmentalists, who see the moves as favoring fossil fuels over renewable energy.

Washington has requested dispute settlement consultations under the US-Mexico-Canada deal, the first step in a process that could lead to retaliation for actions it says harm US companies and hinder clean energy development .

Lopez Obrador visited Washington in July for talks with Biden, who said both sides needed to rebuild ties.

A month earlier, the Mexican leader snubbed Biden by refusing to attend the Americas summit in Los Angeles, saying Cuba, Venezuela and Nicaragua had not been invited.

In addition to economic issues, Blinken plans to speak with Lopez Obrador and Secretary of State Marcelo Ebrard about working together on dealing with irregular migration and the synthetic opioid fentanyl, the State Department said.

The senior US diplomat will later lead the co-chair of the high-level US-Mexico economic dialogue.

Before the Covid-19 pandemic, Mexico was the United States’ second largest trading partner after China, with annual trade volume of more than $675 billion, according to US figures.

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