To: The United States House of Representatives and The United States Senate
Clean Bunker Fuel for NAFTA countries
As part of the USMCA, (NAFTA renewal) Congress should stipulate that Mexico agree to joining the International Marine Organization's (IMO) Marpol Annex VI Emission Control Area (ECA) which limits the use of marine bunker oil to 0.1% sulfur content.
Why is this important?
Mexico has already indicated that they are considering joining the International Marine Organization's (IMO) Marpol Annex VI Emission Control Area (ECA). Canada and the USA are part of the ECA. If Mexico does not join the ECA, it would discounts American ports’ competitive edge with respect to Mexico, as it will be less expensive for ships to deliver to Mexican Ports and to buy fuel from Mexico, and encourage trans-Pacific shipping through Mexico. Marpol will act to clean the air in the U.S., but if Chinese ships just move delivery to the deep water port in Ensenada, 70 miles south of San Diego, the pollution in the area will continue, and trade, including sales of oil, will just be routed through Mexico.
Currently most ships us 3.5% sulfur bunker oil. It is estimated that 16 supertankers using this fuel create as much sulfur dioxide in the atmosphere as all 800,000,000 cars in the world combined. There are 100,000 ships using bunker fuel. The new international standard will lower the amount of sulfur in Marine Oil by 7 times to 0.5%, however, the ECA areas use 0.1%.
By having all of North America part of the ECA, it greatly encourages all shipping in the north Pacific to use use the cleaner, 0.1% sulfur Marine oil in ships. Thus, having Mexico participate, helps shift the cost of global air quality clean-up back onto China, a huge contributor of air pollution at no additional cost to the U.S. tax payer.
The USMCA (America First - Canada last) can allow Mexico a couple of years to get onboard (shipping pun), since the rules go into effect on January 2020, but it should be done as soon as possible. The agreement should be done now, as this is the only time that the Senate is likely to have leverage over the trade agreement.
Currently most ships us 3.5% sulfur bunker oil. It is estimated that 16 supertankers using this fuel create as much sulfur dioxide in the atmosphere as all 800,000,000 cars in the world combined. There are 100,000 ships using bunker fuel. The new international standard will lower the amount of sulfur in Marine Oil by 7 times to 0.5%, however, the ECA areas use 0.1%.
By having all of North America part of the ECA, it greatly encourages all shipping in the north Pacific to use use the cleaner, 0.1% sulfur Marine oil in ships. Thus, having Mexico participate, helps shift the cost of global air quality clean-up back onto China, a huge contributor of air pollution at no additional cost to the U.S. tax payer.
The USMCA (America First - Canada last) can allow Mexico a couple of years to get onboard (shipping pun), since the rules go into effect on January 2020, but it should be done as soon as possible. The agreement should be done now, as this is the only time that the Senate is likely to have leverage over the trade agreement.