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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

 

Just Posted

Alberta has 3,651 active cases of COVID-19. (File photo)
432 new COVID cases sets another record Friday

Central zone holds steady at 126 active cases

"We are looking seriously at the spread and determining what our next steps should be," says Alberta’s chief medical officer of health, Dr. Deena Hinshaw, as the daily number of COVID-19 cases continues to climb.
427 new COVID cases is highest in Alberta ever

Central zone has 126 active cases of COVID-19

100 Women Who Care make a donation to Sylvan Lake Food Bank and Bethany Care Centre. Photo By Megan Roth/Sylvan Lake News
100 Women Who Care donate to four Sylvan Lake groups

The Food Bank, Bethany Sylvan Lake, Community Partners and the Library all received a donation

RCMP. (Black Press File Photo)
Calgary man dies in two-vehicle collision near Sylvan Lake

A semi truck collided with a SUV just east of Hwy. 781 on Hwy 11.

Shaelynn Decock and her dog Taco, who has been missing since Aug. 26. Photo Submitted
Sylvan Lake woman looking for closure for her stolen dog

Shaelynn Decock says it has been two months since she last saw her dog Taco

B.C. Liberal leader Andrew Wilkinson, B.C. NDP leader John Horgan and B.C. Greens leader Sonia Furstenau. (Black Press Media)
VIDEO: One day until B.C. voters go to the polls in snap election defined by pandemic

NDP Leader John Horgan’s decision to call an election comes more than a year ahead of schedule and during a pandemic

Comedic actor Seth Rogen, right, and business partner Evan Goldberg pose in this undated handout photo. When actor Seth Rogen was growing up and smoking cannabis in Vancouver, he recalls there was a constant cloud of shame around the substance that still lingers. Rogen is determined to change that. (Maarten de Boer ohoto)
Seth Rogen talks about fighting cannabis stigma, why pot should be as accepted as beer

‘I smoke weed all day and every day and have for 20 years’

Leader of the Opposition Erin O’Toole rises during Question Period in the House of Commons Thursday October 22, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
O’Toole tells Alberta UCP AGM Liberals were ‘late and confused’ on COVID response

He says Alberta Premier Jason Kenney has taken charge and not waited to make things happen

Alberta Premier Jason Kenney arrives for an announcement at a news conference in Calgary, Alta., Tuesday, Sept. 15, 2020. THE CANADIAN PRESS/Todd Korol
Inquiry into oil and gas foes to deliver report next year: Kenney

A lawsuit filed by environmental law firm Ecojustice argues the inquiry is politically motivated

The Canadian border is pictured at the Peace Arch Canada/USA border crossing in Surrey, B.C. Friday, March 20, 2020. More than 4.6 million people have arrived in Canada since the border closed last March and fewer than one-quarter of them were ordered to quarantine while the rest were deemed “essential” and exempted from quarantining. THE CANADIAN PRESS/Jonathan Hayward
Majority of international travellers since March deemed ‘essential’, avoid quarantine

As of Oct. 20, 3.5 million travellers had been deemed essential, and another 1.1 million were considered non-essential

This photo provided by Air Force Reserve shows a sky view of Hurricane Epsilon taken by Air Force Reserve hurricane hunter team over the Atlantic Ocean taken Wednesday, Oct. 21, 2020.   Epsilon’s maximum sustained winds have dropped slightly as it prepares to sideswipe Bermuda on a path over the Atlantic Ocean.  The National Hurricane Center says it should come close enough Thursday, Oct. 22, evening to merit a tropical storm warning for the island.  (Air Force Reserve via AP)
Hurricane Epsilon expected to remain offshore but will push waves at Atlantic Canada

Epsilon is not expected to have any real impact on land

A voter places her absentee ballot in the ballot box, Wednesday, Oct. 7, 2020, at Merrill Auditorium in Portland, Maine. THE CANADIAN PRESS/AP/Robert F. Bukaty
American voters living in Canada increasingly being counted in presidential race

The largest number of Canadian-based American voters cast their ballots in New York and California

A composite image of three photographs shows BC NDP Leader John Horgan, left, in Coquitlam, B.C., on Sept. 25, 2020; BC Green Party Leader Sonia Furstenau, centre, in Victoria on Sept. 24, 2020; and BC Liberal Party Leader Andrew Wilkinson Pitt Meadows, B.C., on Sept. 24, 2020. THE CANADIAN PRESS/Darryl Dyck, Chad Hipolito
British Columbia votes in snap election called during COVID-19 pandemic

NDP Leader John Horgan called the snap election one year before the fixed voting date

Nunavut's provincial flag flies on a flag pole in Ottawa, on Tuesday June 30, 2020. The annual report from Nunavut's representative for children and youth says "complacency and a lack of accountability" in the territory's public service means basic information about young people needing services isn’t tracked. THE CANADIAN PRESS/Adrian Wyld
Nunavut’s young people ‘should be expecting more’ from government services: advocate

‘The majority of information we requested is not tracked or was not provided by departments’

Most Read