The American Petroleum Institute, Asociacion Mexicana de Empresas de Hidrocarburos (AMEH), and Canadian Association of Petroleum Producers outlined their shared policy positions on further strengthening North American energy industry competitiveness under the North American Free Trade Agreement.
The groups, which collectively represent more than 750 international oil and gas companies in the US, Canada, and Mexico, highlighted their support for market-oriented policies and opportunities for commercial growth and job creation in an Aug. 2 joint paper.
"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," API Pres. Jack N. Gerard said.
"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," he noted.
"Since NAFTA's inception in 1994 our three nations' economies have become interconnected and integrated," CAPP Pres. Tim McMillan said. "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."
AMEH Pres. Alberto de la Fuente said, "After Mexico's energy reform, NAFTA itself enabled much of the investment attraction, infrastructure development, and a more intensive commercial exchange. 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, according to API.
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, the trade association indicated.