The new NAFTA (called CUSMA) no longer includes a clause that had required Canada to maintain its current share of energy exports to the USA.
Recently, the Calgary Herald published a letter calling on our government to “stand up for and unshackle western Canadians from this oil and gas slavery” by removing the energy proportionality clause from the new NAFTA agreement.
Good news: We already did.
Thank you to the Calgary Herald for publishing my response: https://calgaryherald.com/opinion/letters/your-letters-for-june-1
Under the newly negotiated NAFTA (called the Canada-United States-Mexico Agreement, or CUSMA), Canada will no longer need to maintain our share of energy exports to the U.S. This is critical for being able to sell to new customers and will come into effect once the new deal is ratified in all three countries.
By comparison, under the original NAFTA, if Canada were to decide to limit energy product exports, we would have had to give the U.S. the opportunity to maintain the same proportionate volume of Canadian supply. Basically, the U.S. would get first dibs on our products up to the same percentage they had before the limit. While this provision was never used, elimination of the proportionality clause in the new NAFTA reaffirms Canada’s sovereignty over its energy resources.
The new agreement is actually filled with good news for the energy industry. We negotiated hard and held out for a good deal for Canadian businesses, workers and economy — and we got a good deal.
CUSMA safeguards $2 billion in daily cross-border trade and adds significant protections for workers and the environment.
Liberal Member of Parliament for Calgary Centre
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