The energy industry is not vastly discussed in NAFTA except in the chapter regarding investment protection. There is still uncertainty about the potential impact from President Trump’s policies on Mexican industries but there are still plenty of factors to be examined besides his comments. More than half of Mexico’s gasoline consumption comes from imports, of which 80 percent comes from the US, not to mention gas. Such a massive amount of product being traded between the US and Mexico cannot simply be transferred to another country or region. Companies know that and are willing to protect their interests and get them recognized. Imagine a scenario in which the White House decides to cut gas trade with Mexico. Will it start trading with Europe or Asia at much higher costs, therefore bringing losses for the companies?
PEMEX needs to begin seeing safety as an investment, because until now they have seen it as an additional cost. Refineries growth in the past 50 years has been impressive, but it is important to consider modernizing their fire safety systems. Robust systems are vital to guarantee safety in any type of accident. The bestcase scenario is that that a big company like Shell or BP comes here to fund the safety systems of these plants. Not meeting safety standards puts PEMEX at risk of several negative circumstances. It risks falling short of insurance company’s minimum requirements in order to maintain their insurance premium. The company could negate the premium rate for not complying with its safety requirements. Additionally, it risks a significant accident occurring