MEI 852 Midstream issues in NAFTA negotiations

MEI 852 Midstream issues in NAFTA negotiations

Need for greater market access and additional trade remedy measures

HOUSTON — This report offers “Talking Points” for U.S. and Canadian trade representatives who are in the current round of NAFTA negotiations.

The principal concern to be voiced is the lack of market access to Mexico’s motor fuel market by U.S. and Canadian exporters. While there are miscellaneous border deliveries by truck to cities on the U.S.-Mexico border, access to the principal cities of Mexico is controlled by the duopoly of Pemex Logística and PMI Comercio Internacional (PMI), its trading affiliate.

The report calls attention to the need for better trade remedy measures against predatory pricing inside Mexico by State-Owned Enterprises.

There is another concern that cannot be voiced at trade negotiations—and scarcely be voiced in any venue: the inherent market inefficiency of having Mexico’s State-Owned Enterprises legally established as corporate agencies of the State.

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Download a related report on upstream issues, Public Policy Perspective (PPP) 10048.

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Written by

George Baker

Baker & Associates offers niche-market business and policy intelligence related to Mexico's oil and gas, power and chemical industries. Over 1,000 reports have been issued in the last 20 years. Subject matter expert and publisher George Baker, who directs the firm, has carried out consulting assignments starting in the late 1970s at the height of the Oil Boom in Mexico. He brings bilingual and bicultural skill-sets to understanding and responding to challenges of business and public policy, coupled with a deep familiarity with the history and idiosyncrasies of the Mexican operating environment.

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