Trump Signs USMCA, Ball's in Canada's Court

“Everybody said this was a deal that could not be done. ‘Too complicated, too big. It couldn’t be done.’  We got it done,” said Trump in his remarks. “And today, we’re finally ending the NAFTA nightmare and signing into law the brand-new U.S.-Mexico-Canada Agreement. Very special. Very, very special.”

Trump’s remarks were sprinkled with references to his ongoing impeachment trial, the border wall and the agreement with China. Auto companies were lauded for investment in U.S. plants and Steel Dynamics received a shout out for its planned flat roll steel mill in Texas.

Canada’s House of Commons will now have 21 days to debate the treaty, followed by recommendation for ratification from the Cabinet to the Minister of Foreign affairs.

“Passing the new NAFTA in Parliament is our priority,” said Prime Minister Justin Trudeau on Tuesday. “Millions of Canadians depend on stable, reliable trade with our largest trading partners — from farmers in Alberta and autoworkers in Windsor to aluminum producers in Saguenay and entrepreneurs in St. John’s, to Vancouver.”

The Canadian Steel Producers Association urged Parliament to swiftly ratify the agreement. “Implementation of the CUSMA is critical to strengthening the competitiveness of Canadian and North American steel industries and ensuring market access in the face of persistent global trade challenges and uncertainty,” said the CSPA in a statement

The treaty will enter into force 90 days after Canadian ratification.

U.S. Reaction to Signing

The signing of the treaty was met favorably by metals and manufacturing associations in the U.S. Thomas Gibson, president and CEO of the American Iron and Steel Institute, called the agreement a positive development for the steel industry.

“USMCA will help create jobs and foster investment in manufacturing, including strengthening our steel industry supply chains with key customers by incentivizing the use of North American steel in manufactured goods,” said Gibson. “In addition, USMCA promotes increased cooperation and information sharing among the North American governments to address circumvention and evasion of trade remedy orders. This will enhance the ability of our three countries to continue to work together to address the surges of dumped and subsidized steel imports that have plagued the North American steel market. These are all tremendous positive developments for the steel industry, and I am honored to be part of this historic signing today.”

U.S. Steel President and CEO David Burritt applauded the signing of the agreement and its bipartisan support. “There is nothing I would like better than to see this same spirit of cooperation focused on advancing an infrastructure investment bill that would restore our nation’s preeminent capabilities.”

The United Steelworkers said the USMCA is significantly better than NAFTA, but it is still “far from perfect.” Noted USW International President Thomas Conway, “There is still a great deal of work to do, however, to ensure that corporations stop exploiting workers in their quest for larger and larger profits. For all who supported this agreement, the work is just beginning to ensure it lives up to all its promises.” 

Conway continued, “The new USMCA will only be an improvement if there is a shared commitment to helping workers in all three countries. While this deal does not erase the legacy of NAFTA, it offers us a new starting point in our approach to international trade. We will have to build on it to make certain trade agreements promote, rather than undermine, the interests of working people.”

National Association of Manufacturers President and CEO Jay Timmons thanked the administration and Congress for their work in delivering the agreement. “The USMCA will finally provide manufacturers the certainty they need to keep reaching for new heights and secure the millions of American jobs that depend on North American trade,” said Timmons.

The Association of American Railroads and the American Trucking Association noted the importance of rail and trucking in facilitating international trade. “Thanks to the tireless efforts at both ends of Pennsylvania Avenue, renewed trade ties with our closest neighbors will benefit all three countries for years to come,” said AAR President and CEO Ian Jeffries. “As an industry built on connecting goods and businesses, railroads know that free and fair trade makes both our supply chains and individual economies stronger.”

“Today’s signing ceremony is the beginning of the next phase in our strong and productive relationship with Mexico and Canada,” said ATA President and CEO Chris Spear.

ATA Chief Economist Bob Costello added, “Trucks move 70 percent of all freight in the U.S. and 76 percent of the freight that moves between the U.S. and our closest neighbors, so we expect trucking will see significant benefits from USMCA as the agreement boosts exports to Canada and Mexico and generates a measurable increase in our gross domestic product in the years ahead.”