Congressman Adrian Smith (R-NE) released the following statement on the Constitutional Reform of Strategic State Industries and Enterprises which passed the Mexican Senate. The legislation which had previously passed in the lower house, gives increased market preference to state-owned electric utilities.
“For years, the Biden-Harris administration has largely stood by as Mexico’s disregard for its USMCA commitments places American workers at risk. While these changes to Mexico’s constitution present new barriers to its USMCA compliance which were unanticipated when the agreement was enacted, impediments to a healthy bilateral trade relationship are not new, which is why I have repeatedly urged USTR to conduct robust engagement with stakeholders and Mexican leaders. I am disappointed by this administration’s lack of urgency and cooperation in defending the integrity of USMCA. Lack of enforcement of our agreements, not to mention a lack of long-term strategy, destabilizes the regulatory environment and weakens our competitiveness, ultimately putting American industry in a precarious position. With the review of USMCA coming in 2026, we should be strengthening, not neglecting, our engagement with one of our closest trading partners.”
BACKGROUND:
In September, Smith led a bipartisan group of colleagues in sending a letter to United States Trade Representative Katherine Tai expressing concerns regarding proposals related to electricity, mining, genetically modified corn, and regulatory bodies which were set to be considered by the Mexican government.