MSCI Asks Trump Administration to Modernize NAFTA Without Endangering Its Successes

Today’s submission is in line with MSCI’s strong defense of its NAFTA trading partners in comments filed with the U.S. Department of Commerce’s Section 232 steel investigation into whether the present state of steel imports endangers national security. In those comments, available here, MSCI requested that metal imports from Canada and Mexico be expressly excluded from any trade penalties resulting from the 232 investigation, provided there is no evidence that China or other countries are taking advantage of this policy to circumvent trade penalties rightfully imposed on their products.

MSCI’s NAFTA submission noted that, in 2015, about 48 percent of U.S. manufactured goods imports from Canada and 40 percent of U.S. manufactured goods imports from Mexico were categorized as intermediate goods, parts and components. Trade in these intermediate goods “have helped manufacturers in the United States improve their global competitiveness and grow domestic manufacturing with end products sold both in the United States and overseas,” the testimony said.

MSCI’s testimony also outlined several ways to modernize and improve NAFTA, including:

• Ensuring stronger and more transparent rules that continue to level the North American trade playing field;
• Easing border crossing regulations, wait times, and other restrictions;
• Harnessing the digital revolution to allow for faster, easier, less burdensome and safer cross-border commerce;
• Creating even stronger, more efficient dispute settlement procedures; and
• Renewing the commitment to work collaboratively, while strengthening the rules and mechanisms to hold accountable bad actors that seek to circumvent trade laws.

The testimony concluded, “Addressing and enhancing efficiency at U.S., Canadian and Mexican borders will result in a more competitive industrial metals supply chain and increased global competitiveness for U.S. manufacturers which will result in economic growth and U.S. jobs.”

About MSCI

Founded in 1909, the Metals Service Center Institute is a nonprofit association based in Rolling Meadows, Ill., serving the industrial metals supply chain. It serves more than 330 members in over 1,200 locations in North America. For more information, visit www.MSCI.org, MSCI’s online resource MSCI.org/Edge, like us on Facebook, follow us on Twitter, and connect with us on LinkedIn.

(Article is from a press release from the MSCI)