NATURAL GAS SUPPLY ASSOCIATION

805 15th Street N.W., Suite 510
Washington, D.C. 20005

FOR IMMEDIATE RELEASE
DATE: June 16, 1997

CONTACT: Charlotte LeGates

PHONE:202/326-9316

FAX: 202/326-9334

NGSA Is Part of Group Advocating Immediate Elimination of Mexico's Natural Gas Import Tariff

Washington, DC -- The Natural Gas Supply Association has signed a petition filed June 13 with the U.S. Trade Representative seeking elimination of the 6 percent Mexican tariff on imported natural gas. Following are the petition's "Reasons for Immediate Elimination of Mexican Natural Gas Import Tariff":

"Mexico's import duty on natural gas is the only such tariff among parties to the North American Free Trade Agreement. As such, it discourages competitive access to the Mexican natural gas market by [U.S.] gas producers at the very time gas demand is expected to rise in Mexico. There is no such barrier to competition by . . . Pemex, which sells natural gas to United States customers.

"Elimination of the tariff on natural gas is especially important since the Mexican Government's 1993 decision to reduce air pollution in major urban areas by mandating use of natural gas for electricity generation and industrial use by 1998. Mexico's current supply of natural gas may be inadequate to meet expanded domestic needs over the next five to seven years, and removal of the import duty will help ensure that additional competitively priced natural gas supplies will be available during any potential shortfall period. Continuation of the duty also disadvantages Mexican gas consumers who would otherwise have access to lower-cost U.S. supplies. And, removal of the import duty, coupled with increased demand for U.S. gas, can help ensure that adequate investment continues to be made in expanding and upgrading natural gas pipeline interconnections along the border between Mexico and the United States.

"Accelerated elimination of Mexico's duty on imported natural gas . . . ensure[s] the greatest possible opportunity for [U.S.] companies to sell natural gas competitively in Mexico. . . . [It] is broadly supported among all sectors of the U.S. natural gas industry and is non-controversial."

The filing is available from the NGSA receptionist, 202/326-9300 and was also signed by the Domestic Petroleum Council (DPC), the Mid-Continent Oil & Gas Association, the American Petroleum Institute (API), and the Independent Petroleum Association of America (IPAA).

This page was last updated August 31, 1997.