American Petroleum Institute declares support for modernization of NAFTA

Published on July 20, 2017 by Daily Energy Insider Reports

Following the Trump Administration’s announcement of recommendations for modernizing the North American Free Trade Agreement (NAFTA), the American Petroleum Institute (API) has declared support.

API President and CEO Jack Gerard cited the administration’s efforts regarding energy markets in the retooling, saying that they would seek to preserve and strengthen North American energy markets, and through that effort, benefit consumers. The API had commented on NAFTA directly to U.S. Trade Representative Robert Lighthizer in June, looking to maintain support for a 9.8 million job industry.

“NAFTA provides a strong foundation for the energy flows that occur between the U.S., Canada and Mexico,” Gerard said. “We applaud this administration’s willingness to consider ways to improve North American energy markets that are already providing enormous benefits to the U.S. economy and consumers. The U.S. is now the largest producer of oil and natural gas in the world, and this coupled with enhanced energy integration with Canada and Mexico will increase long-term U.S. energy and national security.”

As the API is a trade association representing interests across the oil and natural gas industry, its endorsement could be seen as a major coup for the administration’s efforts. It includes more than 625 members, from sprawling companies to exploration and production operations.

Gerard noted that NAFTA has supported U.S. jobs and manufacturing in the energy sphere by allowing companies the ability to compete in Canada and Mexico.

“Preserving these benefits is critical, and that includes supporting key provisions like a strong Investor State Dispute Settlement mechanism to protect U.S. companies and ensure they receive fair and equitable treatment,” Gerard said. “As the process gets underway, we look forward to working with the administration and Congress to continue the U.S. energy renaissance.”