Despite Trump’s Policies, U.S. Energy Agreements With Canada and Mexico Aren’t Going Anywhere Soon
In the weeks following the presidential election, many things are up in the air. Between mortgage interest rates skyrocketing to immigration taking a dive, many Americans are wondering where their country stands.
Nevetheless, one thing is for sure: even if Trump has his way and changes some key policies, America’s energy reserves and partnerships aren’t going anywhere.
For the past decades, the U.S., Canada, and Mexico have worked together to combine their energy sources in a way that benefits all three countries. Even though Donald Trump has promised to renegotiate the North American Free Trade Agreement, the results could end up being positive as the new administration seems friendly to the energy sector.
Take former Texas Governor Rick Perry, who was just picked by Trump as the new energy secretary. This appointment is being seen as a plus for the oil and gas sector because Perry has been extremely vocal about using the U.S.’s nuclear energy as an energy power house for both Canada and Mexico.
Not only that, but there are talks of the Mexican government building more pipelines to take U.S. natural gas as far south as Mexico City. These enthusiastic plans come after several months of successful natural gas trade between the two countries.
American wood is also an important natural resource that consumers have been using for heating and electricity for hundred of years. It doesn’t look like it is going anywhere soon, as North America’s demand for wooden pellets is expected to rise to around five million metric tons by 2025, which goes to show how much in demand multiple energy sources are in American homes.
Worried about the new president-elect making yet another promise he cannot keep? Pundits are reminding Americans that Trump’s team promised that if change was to happen, it wouldn’t happen fast.
“It’s not so simple to say we’re going to renegotiate the trade deals. We set up the system to create those inter-linkages. You just can’t overnight legislate or executive order that away. If you try to do that, it’s going to have negative economic impacts, not just for the economies on the border but for these specific industries, like energy,” explains Scott Anderson, chief economist at Bank of the West.
