John Weekes, Darrel Pearson, Lawrence Smith and Margaret Kim write in Energy Regulation Quarterly on the impact of the new Canada-United States-Mexico Agreement (CUSMA) on Canadian energy stakeholders. They look at the political dynamic of the agreement, the changes it will bring and key takeaways.

Firms should weigh the impact of the CUSMA as they consider how to structure their businesses and investments. These include:

• amendments to rights of investors, including the phase-out of recourse to investor-state dispute settlement between Canada and the United States, and significantly weakened protection for American investors in Mexico;
• revised means of gaining access to government procurement contracts involving the three North American countries;
• elimination of customs duties on imports into the United States of Canadian heavy oil containing diluent; and
• elimination of the proportionality clause on energy trade between Canada and the United States.

Stakeholders should also monitor other trade developments beyond the immediate scope of the CUSMA.