In a joint statement released today, six North American steel associations issued recommendations for updating the North American Free Trade Agreement (NAFTA).
The associations include the American Iron and Steel Institute (AISI), the Canadian Steel Producers Association (CSPA), Canacero, the Committee on Pipe and Tube Imports (CPTI), and the Specialty Steel Industry of North America (SSINA).
In the statement, the associations said NAFTA has provided significant benefits to US, Canadian and Mexican steel industries in the 23 years since the agreement was implemented, including strengthened North American manufacturing supply chains, increases in exports and investments, and assistance in keeping the North American steel industry globally competitive.
However, the associations stated that while NAFTA has been a success, it can still be modernized and strengthened. The ultimate goal of the agreement, the statement said, should be to grow consumption of steel in North America while increasing intra-NAFTA trade and market share for NAFTA producers. As such, the associations listed the following recommendations for updating the agreement:
However, the associations stated that while NAFTA has been a success, it can still be modernized and strengthened. The ultimate goal of the agreement, the statement said, should be to grow consumption of steel in North America while increasing intra-NAFTA trade and market share for NAFTA producers. As such, the associations listed the following recommendations for updating the agreement:
• Strengthen Rules of Origin (ROO) and Enhance Regional Value Content (RVC) Requirements.
• Promote trade enforcement cooperation and coordination, including defining importation of unfairly traded steel in any NAFTA country as injuring all North American steel producers, workers and local economies.
• Strengthen existing procedures and create new procedures to address circumvention and evasion of antidumping and countervailing duty orders, while also facilitating the implementation of third-country dumping actions where appropriate.
• Establish enforceable currency disciplines, as currency manipulation undermines some of the economic benefits of free and fair trade.
• Establish disciplines on the conduct of State-Owned Enterprises (SOEs), which often receive non-market advantages that create market distortions and lead to anti-competitive practices, creating an un-level playing field for market-based competitors.
• Improve customs procedures operation and coordination, including upgrading border infrastructure and streamlining existing customs procedures to ensure the free, fair and fast flow of commercial goods between nations.