text: ENERGY: U.S. officials launched settlement talks over Mexican legislation that mandates Mexican state-owned energy company CFE receive priority over privately owned companies. The U.S. Trade Representative (USTR) office says the new policies place U.S. companies at a distinct disadvantage and claim Mexico has been deliberately “delaying, denying or failing to act” on permit applications and fuel sales by U.S. companies in violation of regional trade agreements. Mexico’s economic ministry has said it was willing to negotiate a “mutually satisfactory solution” to the issue, however, USTR says attempts to work with Mexican officials have been fruitless for 18 months and has suggested punitive tariffs could be implemented if an agreement could not be met. (AC: This latest diplomatic crisis comes in the wake of last week’s joint agreement on $30 million in U.S. investment in renewable energy infrastructure in Mexico. This dispute also risks further deteriorating U.S.-Mexican relations at a time when the U.S. has become reliant on Mexican support to deter a growing immigration crisis. – R.P.)CALIFORNIA TRUCKER PROTEST: Truckers protesting a California labor law are causing a 13 day backup at the ports of Los Angeles and Long Beach. Meanwhile, protestors blockaded the Port of Oakland, causing major delays to port operations. (AC: California bill AB5 is intended to push trucking companies to hire truckers as full-time employees so they can unionize, instead of hiring contract and gig workers. The law is pinching small-time owner/operators whose trucks are contracted out by larger companies. Truckers have vowed to continue their protests until California Governor Gavin Newsom speaks with them. – M.S.)SENATE COMMITTEE CALLS ON DOD TO STOP ANTI-EXTREMISM PROBES: In a report accompanying the Defense Authorization Act, the Senate Armed Services Committee has directed the Department of Defense to cease its anti-extremism programs, characterizing them as an “inappropriate use of taxpayer funds.” Data indicates the DOD has allocated $30.8 million and nearly 5.8 million hours on the programs in the last year while examining service members for “prohibited extremist activity”. This effort revealed 100 cases, accounting for 0.005% of all active and reserve military service members. According to a statement, the Committee supports quick action against extremism, but that “the case incident rate does not warrant a Department-wide effort on the issue.” (AC: The current language of the report is likely to change as the Defense Authorization Act proceeds through the Senate – R.P.)GEOSTRATEGIC INTSUMCHINA BECOMING MORE BELLIGERENT OVER WESTERN SUPPORT OF TAIWAN: Beijing has shown an increasingly aggressive stance toward Taiwan over the last several months, increasing the size, complexity and frequency of major military exercises in the vicinity of the island nation. Most recently, China’s People’s Liberation Army (PLA) Eastern Theater Command conducted several large-scale military exercises near Taiwan on July 8th. The exercises corresponded to U.S. Senator Rick Scott’s visit with Taiwan President Tsai Ing-wen. U.S. Representative and Speaker of the House Nancy Pelosi has scheduled a similar meeting with President Tsai in August, which the Chinese condemned and threatened with a “forceful response.” (AC: China is becoming more belligerent as the U.S. and other western nations demonstrate support for Taiwan’s resistance against forced-reunification with mainland China. China may see Russia’s invasion of Ukraine as being too much of a drag on the U.S. and its allies for them to successfully oppose a Chinese military move on Taiwan. Favorable timing on Chinese military action will increase around the upcoming Chinese Communist Party Congress as well as favorable weather patterns in the East China Sea during the October-December timeframe. – M.M.)