USMCA Review: How CUSMA has benefited the N. American steel sector

Indeed, CUSMA has strengthened North American steel supply chains by encouraging investment through long-term economic stability and stronger North American rules of origin. The agreement has incentivized the use of steel produced within North America rather than imported from jurisdictions with weaker standards or non-market practices. That matters not only for steel producers, but also for the manufacturing sectors that depend on affordable and reliable steel, including automotive, construction, and energy.

The result of free trade has been a strong continental supply chain that supports jobs in steel mills while ensuring the downstream industries have dependable access to high-quality materials. This reliability has become our continent’s strategic advantage, particularly at a time when global supply chains remain vulnerable to political instability and trade disruptions in Asia and the Middle East.

In 2024, prior to the imposition of tariffs between our nations, Canada and the United States were each other’s biggest customers for steel with over Canadian $18 billion of annual steel trade. Canada represented 23% of the US steel imports and the US represented 39% of Canada’s steel imports. Furthermore, over 95% of the steel exported to the US from Canada was “melted and poured” in North America and contained significant US content in its raw materials. 

There are further opportunities that should be explored to build on the success of CUSMA for the North American steel industry. There is a consensus emerging through several North American industries that we should pursue stronger rules of origin and a North American Melt & Pour provision, for example. While there is further work that can be done within the CUSMA framework, this must not be construed as indicative of flaws in the agreement. To the contrary, we believe there is much support for the North American steel industry built into the current CUSMA that we can build upon. 

Crucially, support for CUSMA is not limited to the steel industry. Across Canada, the United States, and Mexico, entire sectors increasingly recognize that a trilateral approach is the best way to protect our industries and compete globally. Business leaders, manufacturers, labor groups, and policymakers recognize the strong integrated businesses that have been developed and deeply understand that North America is stronger when it works together rather than against itself.

That unity is especially important in confronting the challenge posed by China’s steel sector, where state subsidies, overcapacity, and dumped steel have distorted global markets for years. No North American country can effectively address those pressures alone. It takes a partnership to stop the scourge that is Chinese excess steel capacity.

CUSMA has also demonstrated that free trade does not have to be a race to the bottom. Its labor and environmental provisions help establish more comparable standards across our continent, discouraging the unfair practices that define foreign steel markets. This is particularly important given the environmental and labor concerns associated with dumped steel from parts of Asia.

At a moment when many say we should retreat from free trade, North America should recognize the value of a trade agreement that has embraced competitiveness, fairness, and economic security that unifies our approach to fighting global overcapacity.

The lesson over the last 30 years of free trade has been clear: in these uncertain times, strong partnerships matter. CUSMA is a framework that strengthens our continent’s industrial base and positions countless North America sectors to compete in a rapidly changing global economy.

CUSMA has shown that when North America trades together under fair and enforceable rules, its workers, industries, and economies are stronger for it. 

Editor’s note: In Canada, the USMCA agreement is known as the Canada-United States-Mexico Agreement (CUSMA).