NAFTA Replacement Deal Reached
By Metal Center News Staff
on Oct 1, 2018
North America’s three leading economies have reached an agreement on a replacement for NAFTA. The United States-Mexico-Canada agreement was announced in late September by the Trump administration.
The pact follows the bilateral trade deal struck by the U.S. in Mexico last month. This trilateral deal can be sent to Congress for approval. There is uncertainty when Congress will vote on it.
Under the USMCA, steel and aluminum tariffs will remain in place on imports from Canada and Mexico, as well as the retaliatory duties those countries have placed on U.S. agricultural goods and other products. Senior administration officials indicated there would be further negotiations aimed at resolving those issues, but did not say when.
“The SMA appreciates the tireless work and commitment of Ambassador Lighthizer and his team, Canadian Foreign Affairs Minister Freeland, and Mexican Secretary of Economy Guajardo for their efforts to update the NAFTA. The USMCA represents a 21st century approach to trade relations in the region,” said SMA President, Philip K. Bell.
“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. The SMA stands ready to assist the Administration with the conclusion and implementation of this agreement and we encourage swift Congressional approval," Bell said.