Mexico could bend over energy disputes with the US and Canada: JP Morgan

The US bank JP Morgan considered that the Mexican government probably it will buckle in the face of the energy dispute with the United States and Canada, because too much is at stake for the development of the country and the Treaty between the three nations (T-MEC).

The governments of United States and Canada requested consultations on Mexico's energy policies; President Andrés Manuel López Obrador sent a letter to President Joe Biden in which he reiterated his desire for the two countries to maintain good relations.

“It is likely that Andrés Manuel López Obrador will bend because there's just too much at stake, but what is worrying is how far he has already taken it and how much further he seems willing to go,” said a JP Morgan analysis, according to Forbes.

The president has reiterated several times what ten respect always prevails sovereignty of nationswithout generating a condition of inequality and much less submission.

For the American firm, discussions for practices that do not meet the T-MEC could take years, which "they would be very expensive in Mexico for an administration that has announced austerity" said JP Morgan.

"We think the outcome is unlikely to be positive, but 'how bad could it be' remains the question, could it lead to a global sum, tariffs by the United States or even the risk of 'no Free Trade Agreement' again", he adds.

(With information from Forbes and Reformation)