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Economy & Business - July 2019

Pipeline contract dispute could impact USMCA ratification

In addition to the steel duties discussed in the previous article, separate developments related to a long-running pipeline construction project threaten to impact the ratification of the US-Mexico-Canada Agreement (USMCA). Mexico’s state-owned electricity firm, CFE, has clashed with several international energy companies, including a consortium led by Canadian firm TC Energy, over compensation payments. The dispute may go to international arbitration, with the Canadian ambassador to Mexico voicing concern that it may hamper the USMCA’s ratification.

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