The United States-Mexico-Canada Agreement (USMCA), which replaced the previous North American Free Trade Agreement (NAFTA), entered into force today.
Various North American steel associations applauded the new agreement, saying it will enhance the development of North America’s manufacturing sector, particularly steel producers, through strengthened rules of origin and enhanced regional value content requirements.
According to a coalition of associations including the American Iron and Steel Institute (AISI), the Steel Manufacturers Association (SMA), the Canadian Steel Producers Association (CSPA), Canacero, and others, the new agreement also includes important provisions to promote increased cooperation, transparency and information sharing between the three North American governments to address steel circumvention and evasion of trade remedy orders.
Philip K. Bell, president of SMA, said, “The USMCA contains significant improvements and modernized approaches to rules of origin, automotive content requirements and labor protections for North American Workers. These and other provisions represent the culmination of efforts to update the 25-year-old NAFTA and will help create jobs and expand market access for steel producers in the region.”
Kevin Dempsey, interim president and CEO of AISI, commented, “For US producers of steel, Canada and Mexico are our two most important export markets, together accounting for nearly 90 percent of all US steel mill exports. By incentivizing the use of North American steel through its enhanced rules of origin, this Agreement will help keep manufacturing supply chains strong for goods made primarily from steel.”
Dempsey continued, “The steel industry is hopeful that entry into force of this important trade agreement will help bolster demand for steel throughout North America. Our steel producers are prepared to supply the steel their auto and other customers need to meet the new regional value content requirements of the USMCA.”