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Energy Tomorrow Blog

Let’s Win on Trade: Approve USMCA, End Harmful Tariffs and Quotas

trade  canada  mexico  energy exports 

Mark Green

Mark Green
Posted May 14, 2019

Winning on trade looks like this: 12 million U.S. jobs supported in all 50 states; commerce with neighbors Mexico and Canada was nearly $1.3 trillion in 2017 – four times what it was 25 years ago; in the energy space, trade helps the U.S. natural gas and oil industry, which supports 10.3 million jobs – many of which exist thanks to free North American trade

For these reasons and more, Congress should approve the U.S.-Mexico-Canada Agreement (USMCA), the successor to the North American Free Trade Agreement (NAFTA). From an energy standpoint, the case for USMCA approval is strong.

This agreement – as NAFTA did before – would support U.S. natural gas and oil (see here and here) by fostering a fair, level playing field for record-setting U.S. energy exports.

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Congress Should Approve U.S.-Canada-Mexico Agreement

trade  canada  mexico  us energy security  consumers  economic growth 

Mark Green

Mark Green
Posted February 26, 2019

When the U.S.-Mexico-Canada Agreement (USMCA) was announced last fall, we pointed out that it would be good for North American energy security and continue flourishing energy trade between the United States and its neighbors by providing market access and zero tariffs for U.S. natural gas and oil and related products.

The agreement would sustain and expand the gains made under its predecessor, NAFTA, which created a North American energy market, helped make the U.S. more energy secure and benefited U.S. consumers.

Congress should approve USMCA as soon as possible to lock in the critically important energy relationship between the U.S., Mexico and Canada – as well as the general flows of goods and services so vital to good economic health in this country. 

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Unintended Consequences in Alberta's Limits on Crude Output

alberta canada  crude oil  refiners  trade  production 

Dean Foreman

Dean Foreman
Posted February 19, 2019

A profound shift has taken place in North American oil markets over the past few months that’s now affecting trade between the United States and its biggest crude oil supplier, Canada.  

It involves supplies of heavier crude oil – important for the manufacture of a multitude of everyday products consumers use, from local road surfaces to the roofing for their houses. While the U.S. is producing domestic crude at record levels, there’s still a need for heavier crudes.

With heavy oil from Venezuela declining for years, the importance of close ties with Canada and especially the oil-producing province Alberta has increased. Unfortunately, Alberta’s decision to limit oil production appears to be advancing uneconomic outcomes, where some U.S. refiners signaled they’ll shift away from Canadian heavy crude oil and seek supply elsewhere. 


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U.S.-Canada-Mexico Agreement Supports U.S. Energy

trade  oil and natural gas  petroleum products  mexico  canada  us energy security 

Mark Green

Mark Green
Posted October 3, 2018

Announcement of the United States, Mexico and Canada Agreement (USMCA) – locking in Canada and Mexico as our nation’s closest trading partners – is good news for the U.S. energy renaissance. Attention now turns to Congress, which should ratify the deal....

Because zero or reduced tariffs, market access between the three countries and trade liberalization all worked to the benefit of U.S. energy under NAFTA, our industry’s chief goal was an updated agreement was to keep in place features that have supported U.S. energy. USMCA does that – and Americans will be the beneficiaries.


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Ending NAFTA Investor Protections Will Harm U.S. Energy Security

trade  investments  canada  mexico 

Mark Green

Mark Green
Posted May 8, 2018

There’s no denying that North American Free Trade Agreement (NAFTA) has been very good for U.S. energy over the years. Yet, whether we will be able to say the same about NAFTA 2.0 years down the road is an open question.

That’s because the Trump administration has signaled a key NAFTA provision safeguarding U.S. energy investments in Canada and Mexico shouldn’t be included in a revised agreement. It’s an outcome that would be a significant setback for our energy and security interests.


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Videos: NAFTA Supports U.S. Jobs, Security

trade  canada  mexico  us energy security 

Mark Green

Mark Green
Posted May 3, 2018

More on NAFTA – the North American Free Trade Agreement – which U.S., Canadian and Mexican negotiators are working to modernize.

Critically important to U.S. interests in any NAFTA 2.0 is keeping investor-state dispute settlement (ISDS) protections in the deal so that American investments and American property are protected against unfair treatment by host nation governments. ISDS is fundamental to this, which supports continuing U.S. investment in natural gas and oil projects outside this country. That, in turn, is fundamental to U.S. energy and national security. A couple of new videos underscore those points. 

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Keep NAFTA’s ISDS Protections for U.S. Investors

trade  canada  mexico  us energy  consumers  jobs  investments 

Mark Green

Mark Green
Posted October 10, 2017

With talks between the U.S., Canada and Mexico on modernizing NAFTA heading for a fourth round this week, our negotiators can help ensure the global competitiveness of U.S. energy companies by working to retain strong protections for U.S. investments abroad through the agreement’s investment protections and investor-state dispute settlement (ISDS) provision.

ISDS sounds a little wonky, but its basic mission is pretty straightforward: It helps protect U.S. investors from being treated unfairly by host nation governments. Conversely, there’s potential jeopardy if the U.S. allows ISDS to be weakened or removed in the current talks. It could undermine ISDS provisions globally in other treaties and agreements.

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Broad Business, Industry Support for NAFTA and Free Trade

trade  mexico  canada  oil and natural gas  petroleum products 

Mark Green

Mark Green
Posted September 22, 2017

U.S. businesses and industries continue to press the case for preserving and strengthening NAFTA provisions that have supported U.S. trade with Canada and Mexico. A number of business and industry sectors joined an API-hosted conference call with reporters to underscore the need for ongoing negotiations between the U.S., Canada and Mexico to sustain treaty features that foster North American trade, including North American energy integration.

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Keep NAFTA’s Support for North American Energy

trade  canada  oil and natural gas  mexico  economic growth  us energy security 

Mark Green

Mark Green
Posted June 22, 2017

With public hearings planned next week on the North American Free Trade Agreement (NAFTA), let’s review some of important reasons that any modernizing of NAFTA – as has been broached by the administration – must retain critical provisions supporting and growing North American energy integration, interdependence and energy security. This is fleshed out in API’s official NAFTA comments, submitted to U.S. Trade Representative Robert E. Lighthizer last week. 

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API, CAPP, and AMEXHI committed to strong North American energy alliance

canada  consumers  economic policy  Energy Security  energy policy  mexico 

Brooke Sammons

Brooke Sammon
Posted April 24, 2017

The North American energy flows continue to grow and the U.S. is building even stronger energy ties with its closest neighbors – Canada and Mexico. This week, API met with the Canadian Association of Petroleum Producers (CAPP) and the Mexican Association of Hydrocarbon Companies (AMEXHI) to discuss priorities and policies that would foster this North American energy alliance. 

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