Leaders of United States, Mexico and Canada officially sign new tri-country trade deal in ceremony at G20 summit
Trudeau tried hard to have levies on steel and aluminum removed before signing Friday
BUENOS AIRES, ARGENTINA — Signing on to a revamped NAFTA alleviates the serious economic uncertainty that lingered throughout the negotiating process, Prime Minister Justin Trudeau said Friday while flanked by U.S. President Donald Trump and outgoing Mexican President Enrique Pena Nieto at a highly anticipated formalizing of the trade pact in Buenos Aires.
Uncertainty would have only worsened and caused additional economic damage had the deal not been reached, Trudeau added.
“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,” he said. “That’s why I’m here today.”
The signing ceremony at a packed hotel in Buenos Aires on the sidelines of the G20 summit did not come without a fight.
The U.S.’s punitive tariffs on steel and aluminum from other countries remain in place, along with stiff countermeasures from Canada and Mexico.
As negotiations to remove those tariffs dragged on in the past few weeks, Canadian officials and emissaries insisted Canada would not take part in a fanfare-filled signing affair until the levies were lifted.
All that changed this week, said one insider: “At the end of the day, removing the uncertainty from the rest of the economy is too important to pass up.”
During his remarks, Trudeau made a point of nudging Trump to remove the tariffs.
“There’s much more work to do in lowering trade barriers and in fostering growth that benefits everyone,” Trudeau said.
“As a result, the tariff-free access NAFTA guaranteed for more than 70 per cent of Canada’s total exports is secure. That’s essential for businesses, families, jobs, entrepreneurs, and hardworking people in every corner of our country. “
Trudeau raised the tariff issue before the three leaders emerged together for the signing ceremony, said officials in the Prime Minister’s Office.
A Canadian official also said earlier Friday that the big advantage of signing onto the agreement now is a side letter on the auto industry exempting Canada of potential tariffs on exports of up to 2.6 million vehicles — well above current levels.
The signing of the three-way trade pact is largely ceremonial because it still needs to be ratified by all three countries before it can formally take effect. U.S. lawmakers have already indicated they don’t expect to tackle the USMCA — or CUSMA, as Ottawa now calls it — until after the new Congress is sworn early next year. The deal sets new rules for the auto sector, including rules requiring 40 per cent of car parts be made by workers paid at least $16 an hour.