NAFTA successor applauded, analysed by API, other groups

The American Petroleum Institute and other leading US business organisations initially welcomed the US-Mexico-Canada Agreement, which the Trump administration said would improve terms for them under the 1994 North American Free Trade Agreement it apparently would replace.

 

Business groups also have begun to analyse USMCA to determine whether it preserves investment protections and other important NAFTA provisions.

 

“We urge Congress to approve the USMCA,” API Pres. Mike Sommers said following the White House’s announcement on the 1st October. “Having Canada as a trading partner and a party to this agreement is critical for North American energy security and US consumers. Retaining a trade agreement for North America will help ensure the US energy revolution continues into the future.”

 

API noted that in addition to investment protections to which all countries commit and the eligibility for Investor-State Dispute Settlement for US oil and gas companies investing in Mexico, important provisions to the US oil and gas industry include:

  • Continued market access and no tariffs for US natural gas and oil products
  • A requirement that Mexico retain at least its current level of openness to US energy investment
  • Additional flexibility allowing US customs authorities to accept alternative documentation to certify that oil and gas entering the US have originated in Canada or Mexico.

 

US Chamber of Commerce President Thomas Donahue welcomed the renegotiated and modernised agreement. “We look forward to reviewing the details with our members to determine next steps, and we commend the negotiators for their commitment to finding a path forward that includes the US, Mexico, and Canada,” he said.

 

National Association of Manufacturers President Jay Timmons said, “As we review the agreement text, we will be looking to ensure that this deal opens markets, raises standards, provides enforcement, and modernises trade rules so that manufacturers across the US can grow our economy.”

 

Source: Oil & Gas Journal