[ferro-alloys.com]Ahead of signing an updated trade agreement between the US, Canada and Mexico on Friday, Canadian Prime Minister Justin Trudeau again called on US President Donald Trump to remove the Section 232 tariffs on Canada's exports of steel and aluminum to the US.

Trump, Trudeau and outgoing Mexican President Enrique Pena Nieto signed the new US Mexico Canada Agreement (USMCA), a replacement for the North American Free Trade Agreement, at a ceremony in Buenos Aires Friday on the sidelines of the G-20 Summit.

During his remarks, Trudeau reiterated that Canada should not be included among the countries subject to the 25% US tariff on steel imports and 10% tariff on aluminum imports under Section 232, according to a transcript of the event. Canada and Mexico were granted a temporary exemption from the US tariffs when they took effect in March, however, the US lifted the temporary reprieve June 1.

Canadian officials have repeatedly called their country's inclusion in the US metals tariffs insulting because the US applied a national security justification for the import restrictions. Under Section 232 of the 1962 Trade Expansion Act the US executive branch is granted the authority to investigate whether imports of certain products impair national security in addition to giving the president the authority to enact remedies.

Noting General Motor's announcement Monday that it plans to close three automobile assembly plants -- two in the US and one in Canada -- Trudeau said it has become even more important to have the tariffs removed.

"As I discussed with President Trump a few days ago, the recent plant closures by General Motors, which affects thousands of Canadian and American workers and their families, are a heavy blow," Trudeau said. "Make no mistake, we will stand up for our workers and fight for their families and their communities. And, Donald, it's all the more reason why we need to keep working to remove the tariffs on steel and aluminum between our countries."

One aspect of the USMCA cheered by the US steel industry has been the inclusion of new automotive rules of origin. The updated rules require 75% of auto content to be made in North America, and a new labor provision stipulates that 40-45% of auto content be made by workers who earn a minimum of $16 hourly.

"NAFTA has provided significant benefits for the American steel industry by promoting the development of manufacturing supply chains in North America, especially with key customer groups like the automotive industry," American Iron and Steel Institute CEO Tom Gibson said in a statement. "The new agreement builds on this success by establishing new rules of origin that will further incentivize the use of North American steel in the manufacturing of automobiles and other steel-intensive goods in North America."

The agreement also improves upon the original NAFTA by creating new rules to address currency manipulation and state enterprises, and by promoting increased cooperation and information sharing amongst the three North American governments to address circumvention and evasion of trade and customs laws, Gibson added.

"We believe these enhancements provide valuable improvements to the text of the original NAFTA that will help keep our manufacturing supply chains strong throughout North America," Gibson said.

（S&P Global Platts）

• [Editor:王可]