The Daily Caller recently published an article on President Trump’s new trade agreement with Canada and Mexico and its provisions that “free up the energy industry to continue expanding U.S. Natural gas exports into Mexico without worrying about tariffs.” The pact, known as the U.S., Mexico, and Canada Agreement (USMCA), largely focuses on the export of automobiles, but the article notes that it “does allow for continued market access for U.S. gas and investments in Canada and Mexico, which is highly dependent on U.S. natural gas exports.”
American energy has the potential to benefit greatly from the USMCA. Considering the oil and gas boom, from the Marcellus to the Permian, and with continued investments in our critical energy infrastructure, the U.S. is in a strong position to provide reliable energy to not only American consumers, but also to our neighbors in Canada and Mexico. The Daily Caller reports that Mexico accounts for the bulk of U.S. gas exports, with 90 percent coming from pipelines and the rest from LNG. In fact, “the country’s energy industry expects to increase its natural gas use for electric power generation by about 50 percent over the next five years.” The Daily Caller expands on the important role of energy infrastructure in regards to transporting product to Canada and Mexico, writing:
Pipelines such as Rover and Nexus Gas Transmission are being built to shuttle gas from the Marcellus and Utica supply regions in Ohio, Pennsylvania, and West Virginia into areas on the Gulf coast and eastern Canada. USMCA is not expected to derail any future exports or pipeline constructions between the countries.
The positive influence of U.S. energy continues to grow as we reach record production levels, as well as modernize and expand our critical energy infrastructure network. GAIN looks forward to American industry continuing to provide reliable, affordable energy to our allies around the world, starting with Canada and Mexico.