As talks emerge about tariffs on steel and aluminum, there are concerns about the commitment that the United States has towards the NAFTA agreement. Even though President Trump has openly talked about adding tariffs to the industry, he recently tweeted that he may be reducing tariff rates for Canada and Mexico if they are willing to negotiate a new NAFTA deal.There have been talks about changes being made to the NAFTA agreement between the United States, Canada, and Mexico. There are concerns that this may strain relations between these countries. The United States currently gets Its oil from both Canada and Mexico and sells natural gas and fuel back to them.
It is important to mention that Canada is the largest supplier of crude oil to the U.S.In the last decade, the U.S. has become one of the largest Natural Gas producers and has also become one of the largest oil producers. This is a result of hydraulic fracturing and horizontal drilling. At the same time, Canada and Mexico’s production of gas and oil have been declining in oil output.There is a long history between NAFTA, the United States, Mexico, and Canada. Mexico continues its progress in the energy sector and is looking to engage private investors.
Mexico has been prosperous in acquiring significant amounts of capital from other companies such as Talos Energy, and ENI.If changes do happen to the NAFTA agreement, Mexico may have to become dependent on its own resources for oil. However, there have been recent developments in Mexico which have introduced new opportunities for all three of the countries. Unfortunately, any changes made to the NAFTA agreement could cause problems for these new-found opportunities. Many of the experts believe the new arising opportunities will deter any alterations made to the NAFTA agreement and as a result will keep the three countries together as they have been in the past.