Canada Links Trade-Deal Approval to Steel Tariffs
25 March 2019 - 9:20PM
Dow Jones News
By Paul Vieira
Canada's foreign minister indicated Monday the government might
delay ratification of the revised North American free-trade deal
until the Trump administration lifts its tariffs against Canadian
steel and aluminum.
The remarks in Washington by Chrystia Freeland, the Liberal
government's lead official on the renegotiated North American
Free-Trade Agreement, now called the USMCA, suggest the metals
tariffs pose yet another roadblock toward implementation of the
deal, which was finalized in the fall.
"The existence of these tariffs for many Canadians raises some
serious questions about ratification," said Ms. Freeland, in
Washington to meet with U.S. Trade Representative Robert Lighthizer
and members of Congress. Based on conversations with Canadians, she
said "they would be really troubled with moving forward with
ratification while tariffs are still in place. For Canadians, that
doesn't make sense."
This marks some of the strongest language to date from Canada
linking ratification of the U.S.-Canada-Mexico Agreement to the
removal of tariffs. The tough tone also emerges as Prime Minister
Justin Trudeau's government is under fire at home over a political
crisis that has weighed on its public support months ahead of the
next election in October.
In retaliation against U.S. metals tariffs, imposed on
national-security grounds, Canada slapped a 25% tariff on steel
imports from the U.S. and a 10% tariff on aluminum and a range of
other U.S. goods, including some food and household products.
Canada has called the U.S. tariffs illegal and absurd, and has
repeatedly called for their elimination.
Mr. Lighthizer, who led the negotiations on a new North American
trade deal, is working with Canada and Mexico to roll back tariffs
on steel and aluminum from those countries.
Canada is the top exporter to the U.S. of both steel and
aluminum. Canadian steel accounted for roughly 19% of all U.S.
steel imports, according to the Commerce Department.
Lawmakers in Canada are scheduled to sit in Parliament for up to
nine weeks before the session ends for the summer break, and party
members begin campaigning in earnest for election. Given the
scandal-fueled political atmosphere and other pieces of legislation
on the agenda, Canadian political watchers have said getting the
trade deal ratified before summer would prove difficult -- and
politically unwise given the steel and aluminum tariffs and general
animosity in Canada toward President Trump.
Ratification of USMCA in Congress also faces headwinds, with
Democrats demanding the administration include provisions to the
pact that ensure Mexico enforces environmental protections and
allows its workers to form unions freely.
Mexican President Andrés Manuel López Obrador said he discussed
the revised North American trade pact with White House senior
adviser Jared Kushner, who is Mr. Trump's son-in-law, during a
private meeting last week in Mexico City, and reaffirmed Mexico's
commitment to ratify the pact.
Anthony Harrup in Mexico City contributed to this article.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
March 25, 2019 17:05 ET (21:05 GMT)
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