Canada signs onto new NAFTA despite the persistence of steel and aluminum tariffs

U.S.’s punitive tariffs on steel and aluminum from other countries remain in place, along with stiff countermeasures from Canada and Mexico

Signing on to a revamped NAFTA alleviates the serious economic uncertainty that lingered throughout the negotiating process, Prime Minister Justin Trudeau said Friday while flanked by U.S. President Donald Trump and outgoing Mexican President Enrique Pena Nieto at a highly-anticipated formalizing of the trade pact in Buenos Aires.

Uncertainty would have only worsened and caused additional economic damage had the deal not been reached, Trudeau added.

“The new North American free trade agreement maintains stability for Canada’s entire economy, stability that’s essential for the millions of jobs and middle class families across the country,” he said. “That’s why I’m here today.”

The signing ceremony at a packed hotel in Buenos Aires on the sidelines of the G20 summit did not come without a fight.

The U.S.’s punitive tariffs on steel and aluminum from other countries remain in place, along with stiff countermeasures from Canada and Mexico. As negotiations to remove those tariffs dragged on in the past few weeks, Canadian officials and emissaries insisted Canada would not take part in a fanfare-filled signing affair until the levies were lifted.

All that changed this week, said one insider: “At the end of the day, removing the uncertainty from the rest of the economy is too important to pass up.”

During his remarks, Trudeau made a point of nudging Trump to remove the tariffs.

“There’s much more work to do in lowering trade barriers and in fostering growth that benefits everyone,” Trudeau said.

“As a result, the tariff-free access NAFTA guaranteed for more than 70 per cent of Canada’s total exports is secure. That’s essential for businesses, families, jobs, entrepreneurs, and hardworking people in every corner of our country. “

Trudeau raised the tariff issue before the three leaders emerged together for the signing ceremony, said officials in the Prime Minister’s Office.

A Canadian official also said earlier Friday that the big advantage of signing onto the agreement now is a side letter on the auto industry exempting Canada of potential tariffs on exports of up to 2.6 million vehicles — well above current levels.

At the beginning of his remarks, Trump also acknowledged the process to negotiate the United States-Mexico-Canada agreement has been “a battle.”

“Battles sometimes make great friendships, so it is really terrific,” Trump said.

READ MORE: 5 of the weirdest items affected by the Canada-U.S. trade war

READ MORE: Americans #ThankCanada as tariff spat continues

Friday marked an important deadline for the trade pact because a new Mexican president takes over Saturday who might not honour the tentative deal struck by his predecessor.

Trump acknowledged that Friday was Pena Nieto’s last day in office and congratulated him on the achievement of signing on to the deal.

The signing of the three-way trade pact is largely ceremonial because it still needs to be ratified by all three countries before it can formally take effect.

U.S. lawmakers have already indicated they don’t expect to tackle the USMCA — or CUSMA, as Ottawa now calls it — until after the new Congress is sworn in early next year.

The deal — 32 chapters, 11 annexes and 12 side letters — sets new rules for the auto sector, including a higher threshold for North American content and rules requiring 40 per cent of car parts be made by workers paid at least $16 an hour.

It preserves a contentious dispute-resolution system the U.S. dearly wanted gone, extends patent protections for biologic drugs and allows U.S. farmers a 3.6-per-cent share of Canada’s famously guarded market for poultry, eggs and dairy products — a concession that dismayed Canadian dairy producers.

Earlier this month, a coalition of no fewer than 40 Republicans in Congress wrote to Trump urging him not to sign the agreement, expressing disdain for “inappropriate” and “insulting” language that commits the three countries to supporting and protecting sexual orientation and gender identity rights.

Separately, a smaller group of Republican senators even tried to convince the White House to hit the gas pedal on ratification efforts, fearful that the new influx of Democrats in the new year would render congressional approval of the deal “significantly more difficult.”

And just this week, Democrats whose regions were hit hard by deep job and production cuts at General Motors took their frustrations out on an agreement they thought was supposed to foster North American growth in the auto sector.

“If we’re going to see more plants going to Mexico, I’m not going to support NAFTA 2.0,” said Michigan Rep. Debbie Dingell. “These are peoples’ lives; these are people who work in my district and I’m working hard to keep those jobs here.”

– With files from James McCarten in Washington

Kristy Kirkup, The Canadian Press

 

Just Posted

Kaslo bus fueled by vegetable oil to begin service next month

Mountain Man Mike’s will run routes to Vancouver and eventually Edmonton

Grand Forks woman lays wreath at grave of local soldier buried in England

Cpl. Alfred Gyde Heaven lied about his age to enlist in the Canadian army in 1916

Grand Forks fire chief on paid leave amid bullying, harassment allegations

Fire Chief Dale Heriot on leave until investigations concluded

The quirks and perks of living in England

From Grand Forks to Great Britain: Kalyeena Makortoff on becoming a U.K. permanent resident.

One year later, I know we’ll be okay

‘Collectively, we can’t afford to be complacent, nor can we afford for our leaders to be.’

Kelowna RCMP interrogation video brings home reality in ‘visceral way’: former TRC chairman

Video of Mountie interrogating young Indigenous woman disclosing sexual abuse under fire

Update: Mother dead, child in critical condition after carbon monoxide poisoning at Shuswap campground

The woman was found unresponsive insider her tent and the youth was taken via air ambulance to hospital

Canada’s parole officers say correctional system has reached breaking point

About half of Canada’s federal parole officers work inside penitentiaries and correctional institutions

Montreal researchers create audible hockey puck for visually impaired players

Three years ago, Gilles Ouellet came up with the idea for a puck that makes a continuous sound

Former B.C. Greyhound bus drivers head to Penticton for goodbye party

Big bash runs until Sunday, funded by drink cans left behind on busses over the years

Boy, 12, arrested after allegedly pulling a knife on another child at a Surrey park

The child was later released into his parents’ custody as Surrey RCMP continue their investigation

Full-scale search underway for missing kayaker on Okanagan Lake

Kelowna Paddle Centre member Zygmunt Janiewicz, 71, failed to return from his ‘daily kayak’ on the lake

ICBC urging drivers to slow down this May long weekend

Speed is number one cause of car crash fatalities: ICBC

Bucks hammer Raptors 125-103 to take 2-0 playoff series lead

Toronto heads home in a hole after second loss to Milwaukee

Most Read