Modernizing NAFTA Helps
NAFTA Supports $446 Billion in US Exports
For US manufacturers and workers, the broader North American commercial market is the most important in the world. It’s also increasingly important to Andeavor. Updating the North American Free Trade Agreement (NAFTA) would continue to grow good US jobs through increased domestic exports which strengthen US competitiveness. Canada and Mexico are the largest buyers of American-made goods. The importance of NAFTA to the US economy is extraordinary. Mexico and Canada purchased one-fifth of all US-goods in 2016 — more than our next 10 trading partners combined:
The value of US exports to Canada and Mexico are up three-fold since NAFTA’s inception in 1994, and today total $446 billion. Further, 25% and 40% of these countries’ respective import values accrue from US-made subcomponents. US-manufactured exports to these two nations already support more than two million jobs at approximately 43,000 US companies. US transportation fuel exports to Mexico are also a growing part of Andeavor’s business.
Andeavor Now Active in Mexico
More than 80% of Mexico’s imported transportation fuels come from US Gulf and West Coast refiners, including Andeavor.
- Recent Mexican constitutional reforms have opened their energy markets to US investment, including Andeavor, to expand sales of US-manufactured energy products. Andeavor has already begun to compete in Mexico’s energy value chain. Andeavor’s investment in Mexico supports US refinery jobs, works to sustain a robust US refining sector and helps strengthen America’s balance of trade.
- Modernizing NAFTA ensures America continues to benefit from this important trade deal.
How to Modernize NAFTA:
NAFTA began 23 years ago—before America’s energy renaissance transformed our national manufacturing landscape. While a more level playing field between our three countries endures, a modernized NAFTA should:
- Eliminate remaining distortions and obstructions;
- Respect today’s regulatory, transparency, competitive, intellectual and investment property protections;
- Accommodate new digital trade provisions;
- Slash red tape at borders, duplicative regulations, and
- Strengthen regional coordination against third-country trade cheating.
- Current modernization negotiations must have as objectives continued job growth, encouragement of free markets and the avoidance of impediments to cross-border trade.