Washington, D.C. – The Steel Manufacturers Association (SMA) issued the following statement in response to today’s announcement from the president’s announcement that the U.S. and Mexico had reached an agreement in principle on NAFTA renegotiation:
We are pleased to see this preliminary agreement between the U.S. and Mexico. “NAFTA has been a net positive for domestic steelmakers. It has increased consumption of steel produced in the region and U.S. steel exports between Mexico and Canada. It has also created an atmosphere where U.S., Canadian and Mexican steel producers and governments can work together to address common issues such as global excess capacity and transshipment.
Like any agreement that is almost 25 years old, it makes sense to revisit, reevaluate and rework NAFTA so that it is modernized and relevant to today’s markets. In particular, the SMA supports stronger rules of origin for autos that will further incentivize the use of U.S. and North American steel in automotive production throughout the NAFTA region. We applaud the administration’s efforts to get to this stage and hope that Canada is able to join the talks soon to create a new trilateral agreement that supports 21st century steelmakers.
SMA is North America’s largest steel industry trade association, and the primary association for electric arc furnace steel producers. SMA’s 27 producer member companies account for almost 70 percent of total domestic steelmaking capacity. SMA members have operations in 43 states and 115 congressional districts. For more information visit SMA’s website at www.steelnet.org or our Facebook page.