Trump administration sanctions Mexico over air carrier trade pact

UPI

5 days ago

The U.S. Department of Transportation announced sanctions against Mexico for violating a trade deal at Mexico City's international airport. File Photo by Bill Greenblatt/UPI | License Photo
July 20 (UPI) -- The Transportation Department has announced a series of actions against Mexico for violating a years-old bilateral air carrier trade pact.
The department said Mexico has not been in compliance with the airline competition agreement since 2022 when it took back some slots for flights for U.S. air carriers at Benito Juarez International airport in Mexico City and forced U.S. cargo planes to shift their operations to other parts of the city.
"Since 2022, Mexico has altered the playing field significantly for airlines that reduce competition and allow prominent competitors to gain an unfair advantage in the U.S.-Mexico market," a release from the Transportation Department said. "The United States and Mexico have an air services agreement... that commits both parties to a liberalized operating environment for all airlines...Mexico has walked away from its commitments."
Mexico has said it rescinded the slots to make room for construction at the airport, but the work has yet to materialize three years later, the transportation department contended.
"By restricting slots and mandating that all-cargo operations move out of [Mexico City International Airport], Mexico has broken its promise, disrupted the market and left American businesses holding the bag for millions in increased costs," the release continued.
The "America First" actions enacted by the Trump administration require Mexican airlines to file schedules with the transportation department for all of their U.S. operations, mandate prior DOT approval before operating any large passenger or cargo aircraft charter flights from the United States and addressing anti-competitive issues in the market.
Mexico seized slots from U.S.-based carriers American Airlines, Delta Airlines and United Airlines, as well as from three Mexican airlines -- Aeromexico, Viva Aerobus and Volaris -- to make room for the construction.
"Despite repeated outreach from the Department, Mexico has not provided any information regarding when these slots would be returned or any major construction projects at MEX will ever materialize," the release continued.
Duffy added that the United States is also reviewing trade agreements with other countries to determine if they are being violated, including pacts with some European nations.