11 Jan 2023 | 15:50 UTC

Mexico, US and Canada make commitments on energy amid summit on semiconductor manufacturing

Highlights

Leaders agree to electrify public transport, develop hydrogen market

Countries to define standards for electric-vehicle charging stations

Also commit to reducing methane emissions from waste

Mexican president to meet with Canadian energy companies

Getting your Trinity Audio player ready...

The leaders of the US, Mexico and Canada made a handful of energy-related commitments Jan. 10 when meeting in Mexico City.

US President Joe Biden, Canadian Prime Minister Justin Trudeau and Mexican President Andres Manuel Lopez Obrador, meeting to discuss ways to improve the production chain of semiconductors in the Northern Hemisphere, agreed to electrify public transport in the region, develop a regional hydrogen market and work on the standards for electric vehicle-charging stations along the borders. They also committed to reducing methane emissions from the solid waste and wastewater sector and deepen collaboration on waste and agriculture methane measurement and mitigation.

The countries will "develop a food loss and waste reduction action plan by 2025 and share info on best practices to electrify and decarbonize public buses," the White House said in a statement. The three countries recognize the urgency for rapid coordinated and ambitious measures to build clean energy economies and respond to the climate crisis, the statement said.

Avoiding energy disputes

The three leaders, however, did not discuss disputes between the countries regarding the Mexican energy policy under the rules of the US-Mexico-Canada trade agreement, or USMCA.

The leaders, however, avoided the thorny discussions related to the Mexican energy policy, which prompted the US in 2022 to request consultations under the USMCA. The US has charged that changes in Mexican energy policy favors PEMEX and national utility CFE. The consultations are ongoing and the panels are expected to meet in January.

"The energy topics are being discussed in a separate process," the Mexican Foreign Secretary Marcelo Ebrard told reporters after the event.

Ebrard said that the three governments had agreed not to speak about the disputes. Lopez Obrador specifically avoided answering a question from reporters about discussions surrounding the energy disputes during the summit.

Following a Jan. 11 bilateral meeting with Trudeau, Lopez Obrador said he had committed to meeting with Canadian energy companies that might have disagreements with the policies of his government.

"We are always open to dialogue," he said.

Strengthening North America

Discussions during the summit, held on Jan. 9 and Jan. 10, were focused mainly on the joint goal of keeping North America "the most competitive, prosperous and resilient economic region in the world," US President Joe Biden said in a brief speech after the meeting.

Previously, during a conversation with Trudeau, Biden had said that supply chains must not be disrupted again by external events like the recent pandemic and stressed the need to bring the production of semiconductors close to the US.

During the summit, Lopez Obrador stressed the role Mexico can play in that effort and requested the cooperation of the different development banks to make it possible.

The recently passed act related to chip manufacturing in the US is expected to attract investments to Mexico in the coming years.

"We are working to strengthen our cooperation in supply chains and critical minerals so we can continue to accelerate our efforts to build the tech or tomorrow right here in North America," Joe Biden said during his speech.

"We are stronger and better when we work together, the three of us," he said.

Register for free to continue reading

Gain access to exclusive research, events and more

Already have an account?Log in here