Senators Urge Oil Trade Deal with Mexico

Lencho Rendon, owner of LR Global, provides consulting services to companies with international interests. As such, Lencho Rendon maintains an in-depth knowledge of trade requirements in Mexico.

In mid-February 2015, a group of 21 U.S. senators encouraged President Barack Obama and his administration to authorize a trade of light U.S. oil for heavy crude from Mexico. The request follows a senatorial endorsement of a 100,000-barrel-per-day trade from a Pemex affiliate, which requires case-by-case approval under current trade regulations. After authorization of this individual trade, the senators in question requested that the Department of Commerce approve all similar applications.

The senators in question have also requested that the Obama administration confirm that oil exports to Mexico would benefit U.S. interests. In 1985, then president Ronald Reagan made a similar declaration, thus prompting three decades of oil exports to Canada as an exception to U.S. crude export bans. Interested parties assert that confirming the benefit of U.S. oil trade with Mexico would allow the U.S. to benefit from recent authorizations of Mexican refineries to process foreign crude, though many government officials cite inherent logistical challenges.

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