Continental Energy Trade: What to Expect From NAFTA 2.0

The implementation of the North American Free Trade Agreement (NAFTA) in 1994 significantly impacted the North American energy market via the provisions of Chapter 6. The original agreement with respect to Chapter 6 included three important principles: (1) a full respect for the constitutional restrictions of each party; (2) the need to strengthen and increase trade of energy products and services through gradual and sustained liberalization; and (3) the need to create competitive energy sectors. This article examines whether NAFTA continues to serve the interests of the three signatory states and whether potential changes are necessary or would be beneficial. In addition, the authors take an in-depth look at the energy markets of each North American country on an individualized basis. In particular, the authors examine the respective energy industry backgrounds, legal frameworks for natural resource regulation, and trends in the energy markets for Canada, Mexico, and the United States.