We speak with Rafael García, VP of External Affairs at TC Energy and President of CanCham Mexico. We discuss Mexico’s energy infrastructure needs, TC Energy’s role in the country’s natural gas pipeline network, and why reliable infrastructure to facilitate low-cost natural gas imports from Texas is key for Mexico’s competitive electricity generation, nearshoring and industrial growth. We also look at how the Canada-Mexico business relationship is evolving as both countries navigate USMCA and seek a common front with the United States. First Eduardo and Damian discuss some of the main news of the week: * The USMCA outlook: the treaty remains in force, but the US has opened the door to annual reviews for the next decade unless a new agreement is reached. * Mexico’s top 1H26 stock market moves, focusing on Diablos and Fibra Nova on the upside. * Tulum’s tourism troubles. * UBS data showing Mexico’s fast-growing millionaires.

75. Mexico’s Energy Infrastructure Needs; USMCA Outlook; Top 1H26 Stock Moves; Tulum Troubles; Minting MIllionaires

MexMoves

# Full Transcript

**Podcast:** MexMoves

## Transcript

Welcome to MexMoves, our weekly podcast on Mexico business and finance for global audience. How are you Eduardo? Doing well Damien, how's everything? Good, we're going to have a challenging Sunday, you and me? We do indeed, it's going to be interesting without a doubt. Yeah, I hope it's going to be a good game and the Mexicans treat the English fans with respect and kindness. It's going to be interesting to see that.

Well, anyway, so this week we have a great interview with Rafael Garcia. Rafael is the Vice President of External Relations at TC Energy. TC Energy is among Mexico's largest private energy infrastructure operators, more than $5 billion of assets here, mainly focused on natural gas pipelines that are critical to electricity generation, industrial supply and so on.

Rafael is also President of the Canadian Chamber of Commerce here in Mexico and he'll talk in addition a little bit about Mexico-Canadian business relations. And Eduardo, I think this week we can touch on USMCA, some developments that the market's mostly shrugged off. We have the end of the first half of the year, so we could talk about some stock movers, some news stories about how Tulum is doing very poorly this year,

and something on Constellation Brands and Mexico's millionaires according to UBS. Does that sound good? Sounds fair enough to me. Okay, so if you want, we can start with USMCA. As was expected on July the 1st, the US said that they weren't going to automatically renew for another 16 years the treaty, the trade agreement between Mexico, US and Canada.

But instead, we will automatically go to a period of multi-year reviews for as long as 10 years, unless of course the three countries reach an agreement in the meantime to go to a 16-year extension.

So basically, we have 10-year automatic renewal with reviews with the possibility of reaching some kind of deal in this year, next year, or when it might be over the next 10 years that then would lead to the 16-year extension, and then be 16 years beyond that if the same process is followed. As I said, this was expected. The Mexico abroad had telegraphed this. The US had telegraphed this.

Trump wasn't just going to rubber stamp USMCA for another 16 years. And we saw that in the market reaction. I mean, the peso weakened a little bit, but that was probably more to do with comments from the Fed. The dollar was strong across the board. But, you know, nearshoring companies like Festa, Fiber Montereo, Pan Norte all were up on the news. So there was nothing particularly surprising for people who follow this closely,

even if some people who don't follow it closely because they have probably better things to do, you know, were initially a little bit alarmed by some of the headlines. So I think now there's another round of talks on July the 20th, I think. Now, you know, Mexico's goal is to try and get a treaty and move away from these multi-year reviews that can o...

75. Mexico’s Energy Infrastructure Needs; USMCA Outlook; Top 1H26 Stock Moves; Tulum Troubles; Minting MIllionaires

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75. Mexico’s Energy Infrastructure Needs; USMCA Outlook; Top 1H26 Stock Moves; Tulum Troubles; Minting MIllionaires

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.