The American Petroleum Institute (API), Canadian Association of Petroleum Producers (CAPP) and the Mexican Association of Hydrocarbon Companies (AMEXHI) have released a new joint position paper reiterating the importance of NAFTA and maintaining robust investment protections to keep North American energy integration strong as the fifth round of negotiations to modernise the North American Free Trade Agreement (NAFTA) begin.
“We support a modernised NAFTA that enhances the North America energy success story; if it is not possible for the US, Canada and Mexico to agree on an updated NAFTA, we urge policy makers to retain the current NAFTA and all of its considerable mutual energy benefits that would be diminished greatly without a trilateral NAFTA. We do not support proposals such as a sunset clause or an ISDS ‘opt in/opt out’ mechanism that would weaken stability and investment protection for long-term investments,” the three organisations, who collectively represent more than 750 international oil and gas companies in the US, Canada and Mexico, stated in the paper.
The full API, CAPP, AMEXHI position paper is available on the API website.
“NAFTA has been a success story for North American energy security by allowing for the more efficient flow of energy, spurring economic growth, investment and job creation here at home,” said API President and CEO Jack Gerard. “The US must retain its commitment to NAFTA and its robust protections for US businesses and workers to continue benefiting energy consumers and advancing our nation’s energy leadership throughout the world.”
“Since NAFTA was created in 1994 the economies of Canada, the US and Mexico have been intertwined,” said CAPP CEO Tim McMillan. “The agreement has been, and continues to be, mutually beneficial, with the potential to create new opportunities to enhance our trade relationships across North America. NAFTA is important to ensuring our continent’s energy self-sufficiency and security.”
“As the NAFTA modernisation continues, we observe certain extreme positions which are not beneficial to any of the three countries,” said AMEXHI President Alberto de la Fuente. “It is fundamental that the negotiators achieve agreements that preserve the positive impacts of NAFTA to the three economies recognising the importance that energy integration under NAFTA has for the productivity and competitiveness of the region. We expect the fifth round of negotiations achieve advancements in a constructive dialogue for the whole region.”
In August, the three organisations released an initial joint paper highlighting their shared support for market-oriented policies and opportunities for commercial growth and job creation.