Region offers support for end to U.S. trade dispute
Niagara businesses will be hard hit by the escalating trade dispute with the U.S., unless a mutually beneficial resolution can be found warned Welland Mayor Frank Campion.
“I can identify very quickly three companies that are affected by this on both sides of the borders,” Campion told regional councillors, Thursday.
“These are companies that own facilities in Canada and have sister corporations in the United States, and they’re both being affected. It’s causing chaos on both sides of the border,” he said.
“This is an issue that is critical to our success because we’re so tied in and we’re so close to the U.S border. I don’t know how it’s going to be resolved, but it needs to be resolved quickly.”
Regional councillors voted to waive Niagara’s procedural bylaw to allow Fort Erie Coun. Sandy Annunziata to introduce a motion, offering the Region’s support to the federal and provincial governments — hoping for a mutually beneficial end to the trade dispute, that continues to escalate after the U.S. began imposing tariffs on Canadian steel and aluminium.
“If Ontario is the economic engine of Canada, then certainly Niagara is the drive shaft,” Annunziata said.
“With the FTZ (Foreign Trade Zone) now in place, it means that much more.”
Although he called the motion “symbolic in nature,” Annunziata added that it also “sends a strong message that we support our provincial and federal counterparts” as they work towards developing a mutually beneficial trade agreement.
Campion said Canada and U.S. industries are too interconnected to separate.
“There is a web or network that crosses the border. In business, particularly in the auto-sector, steel industry, they’re connected. You can’t tear them apart,” he said.
For instance, he said Canadian steel might be shipped to the U.S. to be processed, shipped back to Canada to be manufactured, and finally shipped back to the U.S. for its end use.
For that reason, he said the trade dispute “is going to cause a lot of costs, a lot of confusion, and ultimately a lot of jobs, not just in Canada, but in the United
States.”
‘‘ ‘They’re connected. You can’t tear them apart’ CAMPION
Campion said he was in Ottawa last week, meeting with representatives of the Federal Economic Development Agency, discussing the need to support business in Canada, as well as partner businesses in the U.S.
“This isn’t good for either one of us,” Campion added. “We need to take a very strong approach to this.”
St. Catharines Coun. Brian Heit also pointed out the potential impact on the St. Lawrence Seaway.
“We just read in the paper that they’re hoping for a better year this year,” Heit said. “Well guess what, it won’t be a better year if they stop transporting steel from Hamilton through the canals. Canada Steamship, Algoma Central that are located with their head office in St. Catharines. It will affect all of them.”
During his opening remarks, Regional Chair Alan Caslin said businesses that could be impacted by the tariffs are responsible for about 4,000 direct and indirect jobs in Niagara.
“Regional staff will be monitoring this closely and providing updates as they are available,” Caslin said.
Pelham Mayor Dave Augustyn called the issue “extremely important” to Niagara, as well as the province and country.
For that reason, Augustyn suggested amending the motion to ask municipalities across Ontario to also endorse the resolution. Niagara Falls Mayor Jim Diodati suggested forwarding the motion to the Federation of Canadian Municipalities to be distributed across the country.
“Certainly, the broader the circulation the better,” Annunziata said.