Page 4 - LatAmOil Week 27

LatAmOil COMMENTARY LatAmOil

What next for US-Mexico

energy relations?

As USMCA takes effect, some industry observers remain concerned

about Mexico’s willingness to remove obstacles to US investors.

US President Donald Trump has won praise Trump are good news for US independent oil
from oil and gas industry players for his signing and natural gas producers. Free trade helps not
WHAT: of the United States-Mexico-Canada Agreement only our industry, but the US economy as whole.
A new free trade deal (USMCA) on January 29. At a time when oil and natural gas production is
between the US, Canada At that time, Mike Sommers, the CEO of increasing, we have the best high growth outlets
and Mexico came into the American Petroleum Institute (API), called we could ask for in our neighbours Mexico and
force on July 1. the deal “a win-win for American workers and Canada,” he was quoted as saying in an IPAA
energy consumers.” statement dated January 29.
WHY: He added: “North American energy markets More recently, George Y. González, a trade
The agreement may not are deeply integrated and interconnected, and lawyer from the Haynes and Boone law firm,
guard against the erosion the free flow of energy products and investments offered an equally positive assessment. Speaking
of Mexico’s 2013 energy in natural gas and oil across our borders is crit- on July 1, the day that the USMCA took effect,
reform initiative. ical to sustaining American energy leadership he said that he expected the deal to help the US
and economic growth.” energy sector by facilitating natural gas exports
WHAT NEXT: The deal was also lauded by Barry Russell, the to Mexico.
US gas exports to Mexico president and CEO of the Independent Petro- “USMCA builds the foundations for the
are going up, but there leum Association of America (IPAA). “The world’s best oil and natural gas partnership,” he
may be friction ahead. terms of the USMCA signed today by President told the Dallas Morning News.

P4 www. NEWSBASE .com Week 27 09•July•2020