Mexican Economy Minister Resigns, Blows Trade Commission During U.S. Negotiations

Mexico’s Economy Minister Tatiana Clouthier resigned on Thursday, leaving Mexico with one of its top trade negotiators as its government tries to avoid a major energy conflict with the United States and Canada.

Clouthier, scion of a powerful political family who became economy minister early last year, first told President Andres Manuel Lopez Obrador he wanted to resign after fears the energy conflict could make Mexico too expensive.

His resignation was effective immediately.

On July 20, the United States requested negotiations with Mexico to resolve energy issues. Cloutier said he discussed his resignation with Lopez Obrador on July 26 and used baseball as a metaphor to explain his decision.

“Like in sports, you have to know when you’re going to retire,” Cloutier said as López Obrador stood next to her.

López Obrador, a baseball fan, has made strengthening government control of energy a cornerstone of his economic agenda. The policy has angered American and Canadian investors, who say their companies are being unfairly left behind.

The U.S. energy complaint, which Canada has joined, has put Clouthier in a difficult position, forcing him to defend a policy that Mexican officials say could violate the North American trade deal that Lopez Obrador has also promised.

When Claudier read his resignation letter, which was moved during a government press conference, he said he had discussed his resignation plan with López Obrador in September.

Lopez Obrador said he respected his decision. “We insisted that she stay, but she is a woman of faith,” he added.

A replacement for Clouthier will be announced Friday, Lopez Obrador said.

He left just days after the initial consultation period on the energy dispute was due to end. Washington had the option to invoke the dispute panel after 75 days, but U.S. and Mexican officials told Reuters talks would continue.

Trade experts say Mexico could face punitive tariffs if the dispute ends up in a panel.

Clouthier thanked the president for showing that “there is no insurmountable fatigue, illness or obstacle when it comes to public service.”

Lopez Obrador did not respond to a reporter’s question about whether Cloutier was ill.

Cloutier, a former congressman and former member of the opposition center-right National Action Party (PAN), later joined leftist López Obrador in helping to run his 2018 presidential campaign (Reporting by Kylie Madry; Additional reporting by Sarah Moreland and Raul Cortes; Dave Graham and Jonathan Otis editing)