Washington, D.C. – Negotiations have concluded and an agreement has been reached for a new trilateral trade agreement to update NAFTA. The new agreement is called the United States-Mexico-Canada Agreement (USMCA), the Trump administration announced late Sunday night.
The pact comes a month after the U.S. and Mexico struck an initial bilateral trade deal. The USMCA can now be sent to Congress as a trilateral deal. However, due to requirements under TPA legislation and an analysis by the U.S. ITC, it is uncertain when Congress will vote on the agreement.
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.
SMA President, Philip K. Bell stated, “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.”
“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.”
SMA is North America’s largest steel industry trade association, and the primary association for electric arc furnace steel producers. EAF producers account for almost seventy- percent of total domestic steelmaking capacity. SMA’s 27 members have operations in Canada, Mexico, 43 U.S. states and 115 congressional districts. For more information visit SMA’s website at www.steelnet.org or our Facebook page.