Salvador Ortíz
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Salvador Ortíz
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SAI Derecho & Economía

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?

During the 2016 US presidential campaign, eventual President Donald Trump promised to rip up NAFTA as soon as he took office
Salvador Ortiz
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Salvador Ortiz
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SAI Derecho & Economía
SAI Derecho & Economía is a Mexican law firm and economics consultancy with over 20 years of experience.
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