Steel Products

USW Proposes Changes to NAFTA
Written by Sandy Williams
September 19, 2017
The United Steelworkers union is calling for the United States to negotiate stronger NAFTA rules of origin. The union charges that the rules negotiated more than 25 years ago do not reflect current economic reality and sourcing patterns.
Increased imported content from China and other nations has been detrimental to U.S. production in North America, claims the union.
“The USW has long supported the renegotiation of NAFTA, but negotiations must advance and protect the interests of North American workers by significantly strengthening regional ‘rules of origin’ requirements to promote production and jobs in the NAFTA region,” said Ken Neumann, USW national director for Canada.
The USW proposes a number of changes to the NAFTA language including closing loopholes for automotive content. “A dramatically strengthened rule of origin should require that only a limited amount of foreign content be allowed in a vehicle to be eligible for trade benefits,” he added.
{loadposition reserved_message}
In light of investment gains by Mexico in the first 25 years of NAFTA, Canadian and U.S. producers should be given preference for components critical to future automotive production regarding fuel economy, emissions control and driverless vehicles, said the USW.
NAFTA should require steel products to be melted and poured in North America, as well as extruded, forged or rolled in the region. The same requirements should apply to aluminum products.
Trade enforcement must be strengthened to ensure the elimination of circumvention, evasion and manipulation of trade laws and existing remedies. Measures to eliminate currency manipulation must be adopted.
“Workers’ rights provisions must also be fundamentally changed so that no workers are exploited,” said the USW.
The proposal also includes cutting Investor State Dispute Settlement (ISDS) from the agreement.
“Existing trade agreements have reshaped the world economy and trade flows,” stated the USW in its proposal. “It’s time to update and reform all our trade agreements to ensure that the workers in participating countries gain the benefits of the agreements their political leaders initiate.”

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products

Active rig counts slipped in US, Canada
Drilling activity slowed in the US and Canada last week, according to the latest oil and gas rig count data released by Baker Hughes.

OCTG producers in Canada take aim at Mexico, US, others
Evraz NA and Welded Tube of Canada have lodged an unfair trade complaint against imports of OCTG, including those from USMCA trading partners Mexico and the US.

Final Thoughts
The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.

CRU: US rebar and wire rod prices rise alongside S232 increase
CRU Senior Steel Analyst Alexandra Anderson discusses current market and pricing dynamics for long steel products in the US.
CRU: Excessive global supply could hit rebar mill investments in US
Following the onset of the war in Ukraine in March 2022, concerns about import availability and expectations of rising demand from President Biden’s Infrastructure Bill pushed US rebar prices to record highs. In response, a flurry of new mills and capacity expansions were announced to meet the rise in demand from growth in the construction […]