Mexico denies trade pact breach after U.S., Canada request review

MEXICO CITY, July 21 (Xinhua) -- Mexican President Andres Manuel Lopez Obrador ruled out on Thursday that his country is in violation of the United States-Mexico-Canada Agreement, following a request for consultations by its partners regarding energy policy.

"We are going to make it clear that there is no treaty violation," the president said during his daily press conference, adding that his administration has "many, many elements" to present in response to the request.

"We can have trade relations, but our policies are determined in Mexico, according to our Constitution and laws," he said.

The U.S. and Canadian governments have claimed that Mexico uses discriminatory practices in energy matters, which harm international companies and cross-border supplies. They have separately requested consultations with "certain common elements," according to Mexico's Secretariat of Economy.

The partners have 75 days to resolve the controversy, and if they fail to reach an agreement, the matter could be escalated to the establishment of a panel.

The United States-Mexico-Canada Agreement replaced the North American Free Trade Agreement on July 1, 2020, updating such aspects as digital trade, automotive rules of origin and energy market operation.