The American Petroleum Institute (API), Canadian Association of Petroleum Producers (CAPP) and the Mexican Association of Hydrocarbon Companies (AMEXHI) has outlined their shared policy positions on further strengthening the competitiveness of the North American energy industry under the North American Free Trade Agreement (NAFTA).
In a joint paper, the three organizations, who collectively represent more than 750 international oil and gas companies in the U.S., Canada, and Mexico, highlighted their support for market-oriented policies and opportunities for commercial growth and job creation.
“The natural gas and oil industry across North America is united in our support for NAFTA and the significant consumer, economic and security benefits it generates,” said API President and CEO Jack Gerard. “As the energy flows between our countries continue to grow, it’s important to highlight the critical role NAFTA has played in facilitating cross-border trade and investment in energy. 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.”
“It is imperative to maintain fully reciprocal market access for Canadian oil and natural gas between Canada and the U.S., as well as enhance trade with Mexico,” said CAPP President and CEO Tim McMillan. “Since NAFTA’s inception in 1994 our three nations’ economies have become interconnected and integrated. The logic in supporting a free trade zone is more compelling today than ever before which is reflected in our joint position to strengthen our deep trade relationship for all three countries.”
“After Mexico’s Energy Reform, NAFTA itself enabled much of the investment attraction, infrastructure development and a more intensive commercial exchange,” said AMEXHI President Alberto de la Fuente. “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.”
The joint paper outlines the North American oil and natural gas industry’s positions on specific policy areas of NAFTA, including the preservation of tariff reduction and elimination in the trade of energy products, market access, a modernized system of certificates of origin, regulatory cooperation, and fully liberalized trade across North America. It also highlights the support for preserving provisions for strong investment protections and Investor-State Dispute Settlement (ISDS), including rules that restrict expropriation of investments and that provide for prompt, adequate and effective compensation when expropriation does occur.