105) Likewise, in the case of Canadian oil exports to California, the LCFS acts to make it difficult for Canada--and all other countries where oil producers do not qualify to use the CARBOB baseline figure--to penetrate the Californian market.
Such is the case with Mexican oil, which qualifies to use the CARBOB figure of 95.
Regardless, Canada could also argue that in providing local producers with the advantage of using the CARBOB figure while denying Canadian producers its use, the U.
That being said, it is reasonable to assume that the higher cost of exporting oil to California for Canadian producers vis-a-vis domestic producers and foreign producers that qualify for the CARBOB figure would significantly distort trade flows.
Under the current regime, Mexican oil producers qualify to use the CARBOB figure of 95.
Quite simply, a country qualifying for the 2006 baseline (and thus eligible to use CARBOB irrespective of its actual carbon intensity) has little incentive to curb its actual GHG emissions.