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Increasing Natural Gas Trade Between the U.S and Mexico

July 1, 2019

Energy trade between the U.S. and Mexico has increased in recent years benefiting both countries but threats by newly elected Mexican President Andrés Manuel López Obrador to renegotiate contracts could reverse that.

Energy trade between the United States and  Mexico has long benefitted households and businesses on both sides of the border. U.S exports of natural gas to Mexico since 1988 have grown significantly recently since the fracking revolution. This mutually benefitical relationship is under threat, however due to concerns about newly elected Mexican President Andrés Manuel López Obrador disdain for free energy markets. Lopez Obrador has indicated he wants the state to have more control over energy exchanges, and is threatening to change existing pipeline contracts between the Mexican government and private American and Canadian companies. This is creating uncertainty in current and future investments and could slow future exchanges. 
Author
Nicolas (Nick) Loris, an economist, focuses on energy, environmental and regulatory issues as the Herbert and Joyce Morgan fellow at The Heritage Foundation as well as a policy advisor for The Heartland Institute.
nick.loris@heritage.org @@NiconomistLoris