(Liam Denning – Bloomberg)
Long before the Trump Administration called for “energy dominance,” the pre-election Trump campaign derided the North American Free Trade Agreement. There’s a brewing clash between these two populist positions.
Talks to renegotiate NAFTA have been going on since last summer and there is growing concern it could unravel altogether.
North America’s energy market has been transformed since NAFTA came into force in 1994, though more coincidentally than anything else. U.S. fears of scarcity, which accelerated in the first decade of this century, have given way to dreams of energy independence and, of late, “dominance.”’
At just under three million barrels of oil equivalent a day, U.S. net imports of oil and natural gas from its two nearest neighbors are now actually back to where they were when NAFTA began 1. But the underlying balances have shifted significantly... Click here to read more.