: Canada and Mexico are exempted from the tariffs imposed by US President Donald Trump. File photo/ AFP
President Donald Trump on Friday announced a deal to lift US tariffs on steel and aluminum imports from Canada and Mexico that had created friction between the neighbors and blocked a new North American free trade agreement.
“I’m pleased to announce that we’ve just reached an agreement with Canada and Mexico and will be selling our product into those countries, without the imposition of tariffs,” Trump said at an event in the US capital.
His statement came moments after Canada released the text of the agreement between Ottawa and Washington in which they agreed to eliminate US tariffs on steel and aluminum, and Canada’s retaliatory measures, within no more than two days.
Mexico confirmed it had reached a similar agreement with the United States.
“Trump’s strategy has worked,” US Commerce Secretary Wilbur Ross said in a statement, crediting the tariffs with reviving US steel and aluminum manufacturers.
The steep US tariffs imposed last year — 25 per cent on steel and 10 per cent on aluminum — became a major stumbling block to ratifying a new North American trade pact negotiated last year by the three countries.
Canada and Mexico initially were exempted from the tariffs Trump enforced Using a national security argument, as part of his hardline trade tactics.
Once America’s neighbors were included, the levies drew retaliation with tariffs on a host of US products.
Even after the governments agreed to a revised free trade deal — the US-Mexico-Canada Agreement, or USMCA — the tariffs remained in place, but officials in Ottawa and Mexico City said they would not sign unless Washington removed the metals duties.
Not making sense
Speaking to reporters in Ottawa, Canada’s Prime Minister Justin Trudeau said there was a shared recognition that “these tariffs were harming workers and consumers on both sides of the border” and “didn’t make a lot of sense” in the context of a new free trade deal.
“Obviously these continued tariffs on steel and aluminum and our countermeasures represented significant barriers to moving forward with the new NAFTA agreement,” he said, referring to the 24-year-old North American Free Trade Agreement.
“Now that we’ve had a full lift on these tariffs we are going to work with the United States on timing for ratification but we’re very optimistic we are going to be able to move forward well in the coming weeks,” Trudeau said.
Mexican chief trade negotiator Jesus Seade likewise tweeted that the lifting of tariffs “clears the way towards ratification of USMCA.”
Some key members of the US Congress had said they would not agree to vote for the three-country free trade pact unless the Trump’s metals tariffs ended.
“Hopefully Congress will approve it quickly,” said Trump.
Democratic US Senator Chuck Schumer applauded the decision to remove the metals tariffs, but said there are other concerns about the USMCA.
“It is a good thing these tariffs will be lifted, and we should urge our allies to join US in preventing China’s predatory practices,” Schumer said in a statement.
However, “There are still many other issues that are outstanding before Democrats would support the USMCA.”
According to the agreement, Canada and Mexico will withdraw all complaints lodged against the United States at the World Trade Organization.
The two countries also agreed to monitor imports of steel and aluminum to ensure metals that are sold at “dumped prices” — below the cost of production — are not purchased in or shipped through Canada and Mexico.
In addition, they agreed to a provision to reimpose steep duties if imports of the metals “surge meaningfully beyond historic volumes of trade over a period of time.”
The US Trade Representative’s office said the agreement “provides for aggressive monitoring and a mechanism to prevent surges in imports of steel and aluminum.”
“This agreement is great news for American farmers that have been subject to retaliatory tariffs from Canada and Mexico,” USTR said.
US tariffs on steel and aluminum from Europe remain in place, as does the EU retaliation. Some countries, including South Korea, accepted export quotas to avoid the tariffs.
The United States and Mexico reached an 11th-hour deal late on Friday to crack down on migration from Central America, with President Donald Trump relenting on threats to slap
Washington will impose a five per cent tariff on all goods from Mexico — increasing to as much as 25 per cent — until “illegal migrants” stop coming through the country into the US, President Donald Trump said on Thursday.
Trade talks between the US and China broke up on Friday with no agreement, hours after President Donald Trump more than doubled tariffs on $200 billion in Chinese imports.
Emaar Development , the UAE build-to-sell property development business majority-owned by Emaar Properties, reported on Thursday the financial results for the nine-month ending 30th September 2019.
With electrification and automation emerging as the core of all discussions taking place at this year’s edition of the Dubai International Motor Show, battery-powered cars are taking the motoring industry by storm.
Under the patronage of Prince Salman Bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, Investcorp opened its Investors Conference at a hotel in Bahrain.
Etihad Airways and Pakistan International Airlines (PIA) have relaunched their codeshare partnership to provide their customers with greater access to both airlines’ trunk routes between the UAE and Pakistan, and on Etihad services across its global network.