In the context of energy resources, Canada remains free to determine whether exports of energy resources to the United States or Mexico will be permitted.
But this is possible as long as the export restrictions do not: reduce the proportion of energy resources exported relative to the total supply of goods of the party maintaining the restriction compared to the proportion existing in the most recent 36-month period; impose an export price in excess of the domestic price (subject to an exception for certain measures that only restrict the volume of exports); and disrupt normal supply channels.
The three signatory countries of the Agreement between Mexico, the United States and Canada (USMCA) are prohibited from imposing a minimum or maximum export price requirement in any circumstance in which any other form of quantitative restriction is prohibited.
Signatory countries are also prohibited from imposing a minimum or maximum import price requirement, except where permitted in the application of countervailing and antidumping orders and undertakings.
The USMCA requires energy regulators to ensure the orderly and equitable implementation of any regulatory changes and to ensure that the implementation of those changes causes minimal disruption to contractual arrangements and avoids undue interference with pricing, marketing and distribution arrangements, all of which are important to Canadian oil and natural gas exports.
This treaty maintains the market access conditions agreed under the North American Free Trade Agreement (NAFTA).
Thus, all goods originating in the region have a 0% tariff, except for some poultry, dairy products and food preparations containing sugar, whose access to the Canadian market is still restricted.
As agreed, Mexico maintained the access granted to 100% of tariff lines with the United States and 99.2% with Canada; the remaining 0.8% of lines with Canada are still subject to import tariffs.
Mexico does not maintain tariff rate quotas under the Agreement.