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USMCA Takes Effect

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The United States-Mexico-Canada Agreement went into effect on July 1. Steel and aluminum industry trade associations championed the final step in the extensive effort to replace the North American Free Trade Agreement.

The “entry into force of the USMCA represents a significant achievement by the United States, Canada and Mexico that will benefit the North American steel industry and its customers throughout the region.  For U.S. producers of steel, Canada and Mexico are our two most important export markets, together accounting for nearly 90 percent of all U.S. 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,” said Kevin Dempsey, interim president and CEO of the American Iron and Steel Institute.  

“USMCA’s implementation is a historic achievement, and we greatly appreciate the efforts of the U.S., Canadian and Mexican governments in ensuring this trade agreement guarantees robust, fair and rules-based trade of aluminum and aluminum products between the three countries. Furthermore, the new Rules of Origin that incentivize regional sourcing of aluminum for auto parts and vehicles will drive demand for U.S. aluminum manufacturers in the years to come,” according to a release from the Aluminum Association.

AA claims 97 percent of U.S. aluminum industry jobs are in mid-and-downstream production and processing, and these jobs depend on a mix of domestic and imported primary aluminum to meet demand, including from countries like Canada. As manufacturers transition to comply with USMCA, increased trade of aluminum within North America will benefit the U.S. aluminum industry.

The organization representing the trucking industry also expressed support for the deal. “Today’s signing ceremony is the beginning of the next phase in our strong and productive relationship with Mexico and Canada,” said ATA President and CEO Chris Spear. “ATA and our members are proud to have been engaged throughout the process, attending the ministerial conferences and working with the administration and our trucking partners in Canada and Mexico to shape this final outcome.”

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