Trade – Energy and Opportunity

API Supports Free Trade

Global trade and investment regimes are of critical importance. Free trade provides opportunities for business growth and expansion; increases the range of oil, natural gas, and other petroleum products available to consumers; enhances market‐based production globally; and contributes to global energy cooperation. API believes these ends can only be achieved by eliminating impediments imposed on international oil and natural gas producers, fostering a pro‐export environment, and maintaining a level playing field among industry sectors by reducing trade barriers that distort the market and raise costs to consumers. In addition, API opposes policy measures under Section 232 - such as additional tariffs, quotas, or other measures to restrict U.S. imports of steel and aluminum - that would be based on a broader definition of "national security."

API Member Companies' Free Trade Principles

North American Energy Self-sufficiency and Energy Benefits of Free Trade Agreements

The U.S. is the world’s largest producer of natural gas and oil. North American energy markets are highly integrated and interdependent. They benefit the United States by expanding the size of our energy markets which create economies of scale that attract private investment, lower capital costs, and reduce energy costs for consumers. The U.S. – Mexico – Canada Agreement (USMCA), and the North American Free Trade Agreement before it, play a critical role supporting and growing North American energy integration, interdependence and energy security by eliminating tariffs for crude oil, gasoline, kerosene-type jet fuel and other refined products, and for energy-intensive manufactured goods. The USMCA contains key provisions of enabling the continued U.S. energy revolution while benefitting American consumers. These provisions should be maintained during the six-year review period beginning on July 1, 2026.

Strong Investment Protections

Strong Investment Protections, including ISDS, promote US interests and enforce fair trade and investment practices by US trade partners. The investment chapter of US free trade agreements (FTAs) such as USMCA and the Central American Free Trade Agreement (CAFTA) contain a core commitment by the host country to accord oil and gas investors of the other FTA countries a basic standard of protection that includes non-discrimination, fair and equitable treatment and limits and rules for expropriation. This commitment to a basic standard of protection is backed up by a commitment to ISDS, which allows investors to seek a remedy for alleged violations of that standard in a neutral forum. ISDS is specifically important for natural gas and oil production since producers must go where the resources are located.

Duty Drawback

API advocates that trade agreements continue to include duty drawback provisions for U.S. manufacturers to obtain a refund (or “drawback”) of duties, taxes and fees that were paid on imported goods used in that manufacturing effort. The drawback of Federal duties, taxes and fees helps U.S. manufacturers, retailers and distributors compete in the global marketplace by reducing the distribution and production costs of U.S. exports.