Published: Sat, March 10, 2018
Sport | By Stuart Potter

Canada, Mexico could be excluded from steel and aluminum tariffs, Mnuchin says

Canada, Mexico could be excluded from steel and aluminum tariffs, Mnuchin says

"Past negotiations have seen Canada and Mexico categorically reject a host of USA demands, including American calls to scrap the independent dispute settlement process, end Canada's system of supply management for dairy and poultry, hike American and North American content requirements for automobiles and add a sunset clause that would automatically terminate the agreement after five years unless all three member countries agree to extend it".

The administration of Prime Minister Shinzo Abe, however, is looking to continue building a good economic and security relationship with the USA, and the Abe government wants to avoid friction between the two countries.

He said the Mexican government was now analyzing which United States exports it would tax. "It must be that way".

While ministers from Mexico, Canada and the United States met in the Mexican capital to culminate the 7th round of negotiation of the North American Free Trade Agreement (NAFTA), the president was on the offensive.

Trump said the steel and aluminum tariffs are designed for the protection of US workers - and suggested he would welcome a trade war.

- President Donald Trump pressed ahead with the imposition of 25 percent tariffs on steel imports and 10 percent for aluminum on Thursday but exempted Canada and Mexico, backtracking from earlier pledges of tariffs on all countries.

Trade talks are centred on USA demands that range from changes to automotive content origin rules and dispute resolution mechanisms, to imposing a clause that could automatically kill NAFTA after five years. Both have signed on to the Trans-Pacific Partnership, the huge trade pact that Trump pulled the USA out of (for no explainable reason other than TPP has something to do with trade). Canada would be particularly hard hit as the largest foreign supplier to the US of both metals.

Meanwhile, the USA president's imposition of a 25 per cent tariff on steel imports and 10 per cent tariff on aluminum imports, enacted under section 232 of the little used Trade Expansion Act of 1962, exempt both metals coming from Canada and Mexico on national security grounds - for now.

Still, the potential collapse of NAFTA or a global trade war could hurt Canada's economy.

Rams trading LB Ogletree to Giants
That room is likely to be used in part to sign AP Defensive Player of the Year Aaron Donald to a lucrative long-term extension. The Rams made the playoffs previous year for the first time since 2004, finishing the regular season at 11-5.

Canada, the U.S. and Mexico have been carrying out intense negotiations to redraft NAFTA since August 2017 after American President Donald Trump said the deal has been unfair to Washington.

The President later tweeted: "To protect our Country we must protect American Steel!"

On Monday morning, Trump also implied that he wants Mexico to alter some of its behavior if officials there want any chance of relief from the coming tariffs. Annoy the president, which considering his renowned hypersensitivity is easy, and those tariffs are slapped on Canadian steel and aluminum shipped south of the border.

CCA director of government and global relations John Masswohl was on site the first three days for the agriculture session discussions. In a tweet, he said the " acting swiftly on Intellectual Property theft".

Canada is the top exporter to the United States of both steel and aluminium.

South Korea will use Trump's tariffs as an opportunity to seek new markets for its steel, the Trade Ministry said in a statement.

According to the Japan Iron and Steel Federation (JISF), most of Japan's steel exports consist of "high value-added products that USA manufacturers can not make".

"Rio Tinto has recently been growing its market for Kitimat aluminium in the USA, and given that, ironically, our countries are now attempting to renegotiate a new fair trade agreement under NAFTA, this move by the troubling to our members". It's time we adopted a fair trade policy, based on mutually beneficial and multi-lateral trade with the world.

Like this: