Big oil backs new NAFTA deal

Big oil backs new NAFTA deal
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The American Petroleum Institute (API) is backing the Trump administration's latest iteration of the North America Free Trade Agreement (NAFTA), calling the proposal "critical."

Following the announcement that Trump had helped the U.S. come to a trilateral agreement with Mexico and Canada on Sunday, API on Monday urged Congress to approve the measure that the administration is calling the United States, Mexico, and Canada Agreement (USMCA).

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“Having Canada as a trading partner and a party to this agreement is critical for North American energy security and U.S. consumers,” API said in a statement on the deal.

“Retaining a trade agreement for North America will help ensure the U.S. energy revolution continues into the future.”

The group pointed to the continued need for zero tariffs on the import and export of American oil products and proposals, allowing U.S. oil companies to continue to invest in Mexico.

In August, API called Trump's bilateral trade agreement with Mexico "encouraging," despite Canada having yet to sign on board.

“America’s natural gas and oil industry depends on trade to continue to grow U.S. jobs and our economy, and deliver for consumers,” API said at the time.

Mexico was the leading importer of American oil and petroleum products in 2017, according to the U.S. Energy Information Administration.

Negotiations between the U.S. and Mexico have largely focused on crafting a deal on auto trade, but the talks have been bogged down by some Mexican officials who are skeptical of foreign oil companies entering the Mexican oil industry.