NAFTA Renegotiated but Steel and Aluminum Tariffs RemainOctober 2nd, 2018 by Jordan Scott
The U.S., Canada and Mexico have come to an agreement on trade after months of renegotiating the 24-year-old North American Free Trade Agreement (NAFTA). Tariffs on Canadian steel and aluminum, however, were not resolved.
The updated trade deal, now called the United States-Mexico-Canada Agreement (USMCA), must undergo a 60-day review period in Congress before the President can sign it. Mexican President Enrique Peña Nieto leaves office December 1, which made yesterday the deadline to begin the 60-day period without having to restart negotiations with a new Mexican administration.
In a news conference yesterday, the President said the 34-chapter deal governs $1.2 trillion in trade. While the USMCA deal did not lift tariffs on Canadian aluminum and steel, those discussions will happen separately.
The Window and Door Manufacturers Association (WDMA) released a statement regarding the revised NAFTA agreement.
“WDMA is encouraged that the United States, Canada and Mexico were able to agree on a trilateral agreement to replace NAFTA,” says WDMA president and CEO Michael O’Brien. “WDMA is reviewing the details of the draft released over the weekend and are hopeful that the agreement’s terms promote open markets for the window, door and skylight industry, and contribute to a robust economy.”
The Plastics Industry Association (Plastics) also released a statement regarding the agreement.
“The North American plastics industry works best when it works together, and we applaud negotiators for their hard work to modernize a trade agreement that will benefit the economies of the U.S., Mexico and Canada,” says Plastics president and CEO William R. Carteaux. “U.S. plastics companies and manufacturers across the country depend on Canada and we applaud them for joining. After working together on this issue for nearly two years with the other North American plastics industry trade groups—the Canadian Plastics Industry Association (CPIA) and Asociación Nacional de Industrias del Plástico A.C. (ANIPAC)— Plastics welcomes this new trade pact, which will support the growth and development of our industry, which employs millions of men and women. We look forward to reviewing the agreement in more detail, and hope it serves as a cornerstone in a new era of positive trade relations with our northern and southern neighbors.”
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