Energy in the USMCA

Document Type

Book Section

Publication Date

12-2023

ISBN

978 1 03531 541 3

DOI

10.4337/9781035315420.00011

Abstract

The USMCA reflects a disconnect between the actions needed to meet challenges to address the climate crisis and the actions the North American partners prefer to protect their access to energy resources and the distribution of energy in the region. The treaty has carveouts and exceptions that allow each of the three nations to move their individual energy agenda forward, sometimes at the expense of collective goals. As the chapter will explain, the lack of common ground leads to contradictions and a disconnect among the partners’ priorities. The U.S. can point to the USMCA as an example of its effort to achieve clean energy security in the long term by promoting environmental standards and ensuring the flow of energy products. The same treaty, however, can be used by Mexico to argue for policies in favor of developing fossil fuels through state-owned companies that infringe the rights of foreign investors producing renewable energy. The treaty allows both views to coexist. It is left to the dispute resolution bodies in the treaty to work out the inevitable conflicts.

First Page

69

Last Page

95

Num Pages

31

Publisher

Edward Elgar Publishing

Editor

David A. Gantz & Tony Payan

Book Title

The Future of Trade

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