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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