Still miffed by the U.S. imposed tariffs on steel and aluminum, a somewhat reluctant Prime Minister Justin Trudeau signed the USMCA trade agreement — the new NAFTA — at the G20 Leaders’ Summit in Argentina last Friday. The agreement provides some additional assurances for the auto sector.
“The new North American Free Trade Agreement maintains stability for Canada’s entire economy — stability that’s essential for the millions of jobs and middle-class families across the country that rely on strong, reliable trading relationships with our closest neighbours. That’s why I’m here today,” said Trudeau, at the signing ceremony along with his counterparts U.S. President Donald Trump and outgoing Mexican President Enrique in Buenos Aires, Argentina.
But Trudeau also signalled that there is: “much more work to do, in lowering trade barriers and in fostering growth that benefits everyone.”
There were some rumblings that Trudeau wasn’t going to attend the signing, as a protest against ongoing U.S. protectionist efforts that are damaging to Canada, but in the end he attended along with Chrystia Freeland, Canada’s Foreign Affairs Minister.
To read the inside story of what went on behind the scenes reaching the USMCA deal, and the auto industry reaction, including an exclusive interview with Minister Freeland, click here.
Apart from providing more certainty to businesses in all three countries, a side letter on the auto industry that exempts Canada on potential auto import tariffs on exports of up to 2.6 million vehicles is an added bonus. That level is well above current import levels.
Now that the ink is dry on the agreement, it will be up to the legislatures of all three countries to ratify the agreement before it takes effect.
Just when you thought you were getting used to the term USMCA to replace the old NAFTA, Canada now wants to rebrand the agreement CUSMA, or the Canada-U.S.-Mexico Agreement.
Canadian auto dealer will continue to follow this story closely in the months ahead.
