Oil industry welcomes NAFTA replacement

Canada at the last moment has joined an agreement with Mexico and the USA to replace NAFTA, international media reported on Monday.

The agreement, called the United States, Mexico, and Canada Agreement (USMCA), will have a “sunset clause” and will expire in 16 years, unless renewed, the Wall Street Journal reported.

USMCA will help guarantee that the USA will be able to continue investing in Canada and Mexico and exporting oil and gas products to their markets, the American Petroleum Institute said in a statement.

“We urge Congress to approve the USMCA,” said Mike Sommers, the institute’s president and CEO. “Having Canada as a trading partner and a party to this agreement is critical for North American energy security and U.S. consumers. Retaining a trade agreement for North America will help ensure the U.S. energy revolution continues into the future.”