Us Canada Steel Agreement

The Canadian government considered it necessary to improve the monitoring capacity of Canada`s steel imports by adding a reporting and registration requirement to general import permits 80 and 81 for steel production. A U.S. watchdog criticizes the Trump administration`s circumvention of taxes on imported steel and aluminum and says a lack of transparency in tariffs imposed in March 2018 is evidence of “appropriate influence.” With respect to global steel trade conditions, the Canadian government has imposed final safeguards in the form of tariff quotas for two categories of steel products – strong sheet metal and stainless steel wire. The final safeguards came into force on 13 May 2019 and will remain in force until 24 October 2021. TRQs are managed by Global Affairs Canada through shipping-specific import licenses. All additional quantities of food products may continue to be imported into Canada, but they are subject to the corresponding tax. You will find detailed information on the products and countries covered by trQs, how TRQs are managed and how to request a specific shipping authorization in communication to importers, serial number 983. The revised pact fulfills a central campaign promise for Mr. Trump by updating NAFTA, which has been around for a quarter of a century, with increased worker protection and new rules to promote auto production in North America. It also contains a provision that is expected to strengthen the continent`s metal production by requiring at least 70 percent of the steel and aluminum purchased by a automaker to obtain its origin in North America. August 27, 2018 – After weeks of negotiations, Mexico and the United States announce their bilateral trade agreement. Foreign Affairs Minister Chrystia Freeland cancels a trip to Europe and leads to Washington, D.C. where she begins a month of intense negotiations on Canada`s inclusion in the agreement.

The U.S. decision to lift tariffs on steel and aluminum from Canada and Mexico was therefore surprising good news. Canada also announced the lifting of tariffs on U.S. imports of steel and aluminum, which it introduced last year in retaliation for the Trump administration`s taxes. “The government`s enforcement actions have stabilized domestic industry to the point of believing that alternative agreements can be reached with Canada and Mexico. Domestic production and capacity utilization have increased, more than 12,000 new jobs have been announced and import penetration has declined. Steelmakers are investing billions of dollars in their U.S. facilities,” AAM President Scott Paul said in a statement. The Coalition of American Metal Manufacturers and Users also welcomed the agreement and called for further action. “We call on the Trump administration to end the remaining steel and aluminum tariffs on our other trading partners as soon as possible,” spokesman Paul Nathanson said in a statement.

But at a congressional hearing last week, Trump`s top trade official hinted that the U.S. was preparing challenges in areas where it thought Canada and Mexico might disagree with the new agreement, including dealing with Labor issues and biotech products.