Energy free trade under the North American Free Trade Agreement (NAFTA) has been good for the people of Canada, the United States (U.S.) and Mexico, keeping energy on the continent more affordable and reliable for citizens and the economy. This finding is according to a joint position paper released by the Canadian Association of Petroleum Producers (CAPP), the American Petroleum Institute (API) and Mexican Association of Hydrocarbon Companies (AMEXHI).
“Since NAFTA’s inception in 1994 our three economies have become interconnected and integrated,” says CAPP president and CEO Tim McMillan. “Supporting a free trade zone is more compelling today than ever before.”
The position paper recognizes that there are opportunities to update NAFTA through the upcoming renegotiation. However, it emphasizes that any changes should avoid harm to existing trade relationships. Changes that disrupt energy trade across North American borders or revert to high tariffs and trade barriers could put long-term investments, national prosperity and jobs at risk.
The joint paper recommends support for market-oriented policies and opportunities for commercial growth and job creation under NAFTA.
Jack Gerard, president and CEO of API notes, “The positions we put forward today reinforce our commitment to the energy trade alliance under NAFTA, which supports jobs and manufacturing in energy, helps to make energy more affordable, and enhances our energy security.”
AMEXHI president Alberto de la Fuente adds that NAFTA has played a key role in energy reforms that have occurred in Mexico, opening up that country’s energy sector to foreign and domestic private investment. “The synergy between NAFTA and the Energy Reform in Mexico is essential to attract investments, develop integrated value chains and increase North America’s economic competitiveness,” says de la Fuente.
“NAFTA provides the continent with energy self-sufficiency and security, and has the potential to create new opportunities in the future to enhance our trade relationships with the U.S. and Mexico,” says McMillan.
Download the paper here.