As expected the fifth round of NAFTA talks ended on a low point, with “progress made” on several chapters but none closed. The U.S. remains wedded to a “rebalancing” (i.e. lower trade deficit) from the deal. In the absence of progress on automotive rules of origin, the inclusion of an energy liberalization chapter may help. The U.S. “energy deficit” is worth $37 billion annually. While that is due to imports from Canada (which Keystone XL will worsen) an increase in natural gas exports to Mexico will help even after a 58% rise in exports in the past 12 months. Further growth will need ne...