By Rep. Jodey Arrington (R-Texas), Amy Andryszak, and Jason Grumet
September 24, 2026
AS SEEN IN THE HILL

When U.S. and Mexican trade officials meet in Washington this month to continue the joint review of the U.S.-Mexico-Canada Agreement (USMCA), one unresolved trade issue should be at the top of the agenda: Mexico’s discriminatory treatment of American energy companies.

In his first term, President Trump secured historic commitments from Mexico in USMCA to open its energy markets to American investment and guarantee fair treatment for U.S. producers, but a deal is only as good as our willingness to enforce it. Although USMCA includes a clear dispute settlement chapter to resolve infractions, Mexico’s government has repeatedly violated the agreement since 2021 by enacting policies that gave its state-owned industries an unfair advantage over U.S. companies and undermined existing investments.

In 2021, the Mexican government enacted reforms that forced the country’s grid to prioritize electricity generated by its state-owned electric utility over private power generation. The Office of the U.S. Trade Representative challenged those policies in 2022 by opening consultations with Mexico — the first step in USMCA’s dispute process — but the administration stopped there. It never took the next step of requesting a formal dispute panel that could lead to meaningful enforcement.

In the meantime, Mexico went even further.

Changes to Mexico’s constitution in 2024 and new energy laws enacted in early 2025 expanded government control of the energy sector. Under the new framework, the state must account for at least 54 percent of the average electricity injected into the national grid each year, while greater regulatory authority has been consolidated under executive control.

By rigging the system in favor of its state-owned companies, Mexico is violating the fair-treatment commitments it made under USMCA and putting American energy companies at a competitive disadvantage. Oil and natural gas companies face new barriers involving exploration, drilling, refining, transportation, and market access. Wind and solar companies now face restrictions that limit their ability to generate and dispatch power. The result is less access for American energy companies, new barriers for U.S. energy exports, and fewer opportunities for our nation’s companies to invest, compete and grow.

Whatever the energy source, American companies cannot compete on a level playing field when a foreign government owns their competitor and writes the rules in its favor.

We come at energy policy from different perspectives and do not agree on every issue. But it’s our shared consensus that American companies should be able to invest and compete under clear, predictable rules — and that Mexico must live up to the commitments it made under USMCA.

The ongoing joint review gives the Office of the U.S. Trade Representative the opportunity to finally resolve this dispute, whether by ending Mexico’s discriminatory energy policies through negotiations or moving to formal dispute settlement. Congress should provide the administration every resource it needs to achieve this mission.

The bipartisan Mexican Energy Trade Enforcement Act would give the Office of the U.S. Trade Representative additional support to reverse Mexico’s energy investment barriers now entrenched in their law. The legislation gives the Trump administration the full backing of Congress to hold Mexico accountable and eliminate its USMCA violations in the energy sector.

Mexico is one of America’s most important economic partners, and we want more North American energy trade and investment, not less. Partnership cannot mean enjoying the benefits of USMCA while ignoring the commitments that come with them.

The future of North American energy trade — and the credibility of USMCA itself — depend on whether we are willing to enforce the deal we made.

Jodey Arrington is serving the 19th District of Texas in Congress. He is the chairman of the House Budget Committee and a senior member of the House Ways & Means Committee.

Amy Andryszak is president and CEO of the Interstate Natural Gas Association of America, the leading trade association representing America’s natural gas pipeline industry.

Jason Grumet is CEO of the American Clean Power Association, the leading trade association representing the U.S. clean energy industry.