After the announcement today that the US, Mexico and Canada have signed an updated NAFTA agreement, now called United States-Mexico-Canada Agreement (USMCA), several steel industry associations issued reactions.
Thomas J. Gibson, president and CEO of the American Iron and Steel Institute (AISI), said the association especially appreciated the measures that ensure North American steel continues to be used in automobile production.
“We are pleased that the agreement is trilateral, as the relationship between our three countries has been extremely beneficial for the steel industry and resulted in robust trade and investment in the region over the past 25 years,” Gibson said. “This new agreement is significant as it will keep our manufacturing supply chains strong throughout North America.”
The Steel Manufacturers Association noted in a statement that Section 232 tariffs will remain in place on steel imports from Canada and Mexico, as well as retaliatory tariffs from those countries. Senior Trump administration officials indicated there would be further negotiations aimed at resolving those issues, but did not say when.
SMA President, Philip K. Bell stated, “We are pleased with the changes in the rules of origin and automotive content requirements. We believe this is a key part of the modernization of the agreement and these new provisions will help promote the production and use of domestic steel.”
However, the Canadian branch of the United Steelworkers union (USW) said it was disappointed that Section 232 tariffs were not addressed in the trade deal.
“The Canadian government struck a deal with the US that fails to remove the senseless and damaging tariffs on Canadian steel and aluminum imposed by the Trump administration,” said Ken Neumann, United Steelworkers (USW) Canadian Director. “Canadians expected that an agreement on NAFTA would result in the US lifting the bogus national-security tariffs on Canadian steel and aluminum.”
The US-based headquarters of the USW said in its own statement that efforts to achieve fair trade between the three countries is “far from over.”
“There are provisions in the draft agreement between the United States and Mexico that represent improvements over NAFTA, but there are also provisions that must be removed. Further, we have not evaluated what changes resulted from the just-concluded agreement to include Canada,” said United Steelworkers International President Leo W. Gerard
Gerard also said that provisions related to Section 232 are critical to a final agreement. “From the beginning, the USW has made it clear that Canada should not have been subject to Section 232 measures,” Gerard said. “Our economies are integrated, and our national security interests are intertwined, as are our steel and aluminum markets. The US has no stronger or more reliable economic and national security partner. The impacts of any provisions in this area are key concerns not only on a bilateral basis, but for the USW, whose members work in this sector in both countries.”