USMCA trade agreement enters into force, applauded by steel associations

Wednesday, 01 July 2020 18:38:59 (GMT+3)   |   San Diego
       

The United States-Mexico-Canada Agreement (USMCA), which replaced the previous North American Free Trade Agreement (NAFTA), entered into force today.

Various North American steel associations applauded the new agreement, saying it will enhance the development of North America’s manufacturing sector, particularly steel producers, through strengthened rules of origin and enhanced regional value content requirements.

According to a coalition of associations including the American Iron and Steel Institute (AISI), the Steel Manufacturers Association (SMA), the Canadian Steel Producers Association (CSPA), Canacero, and others, the new agreement also includes important provisions to promote increased cooperation, transparency and information sharing between the three North American governments to address steel circumvention and evasion of trade remedy orders. 

Philip K. Bell, president of SMA, said, “The USMCA contains significant improvements and modernized approaches to rules of origin, automotive content requirements and labor protections for North American Workers.  These and other provisions represent the culmination of efforts to update the 25-year-old NAFTA and will help create jobs and expand market access for steel producers in the region.”

Kevin Dempsey, interim president and CEO of AISI, commented, “For US producers of steel, Canada and Mexico are our two most important export markets, together accounting for nearly 90 percent of all US steel mill exports. By incentivizing the use of North American steel through its enhanced rules of origin, this Agreement will help keep manufacturing supply chains strong for goods made primarily from steel.”

Dempsey continued, “The steel industry is hopeful that entry into force of this important trade agreement will help bolster demand for steel throughout North America. Our steel producers are prepared to supply the steel their auto and other customers need to meet the new regional value content requirements of the USMCA.”


Similar articles

Canada approves USMCA trade agreement

17 Mar | Steel News

AISI applauds signing of USMCA trade deal

29 Jan | Steel News

US ratification of USMCA deal imminent

10 Dec | Steel News

US steel tariffs on Canada and Mexico nearing end

16 May | Steel News

Latest round of NAFTA talks shows progress

29 Jan | Steel News

NAFTA renegotiations may continue into 2019

30 Nov | Steel News

NAFTA partners pledge to modernize the trade agreement in first renegotiation meeting

22 Aug | Steel News

Trade representatives from NAFTA partners meet to discuss excess capacity situation

11 Apr | Steel News

Full-year NAFTA trade data show increase in freight value in 2014

19 Mar | Steel News

US-NAFTA trade reaches near-record levels in March

30 May | Steel News