Moe, industry relieved about new trade deal

Agriculture generally pleased, but steel exports still face tariffs

REGINA For Saskatchewan’s ranchers, news of a trade deal with the United States came in the nick of time.

The fall run is starting; Canadian cattle are heading down to American feedlots. The danger of losing duty-free access to the U.S. — the destination for three-quarters of Canada’s beef exports — was a scary prospect.

“We’re coming into our busy time of year,” said Chad Macpherson, general manager of the Saskatchewan Stock Growers Association.

Macpherson said he’s heard about disclaimers in contracts that could render them “null and void” in the case of market disruption. That’s why he’s relieved to see a new agreement, especially one that reminds him a lot of NAFTA.

“The main crux of it is that we maintain what we had, and we didn’t lose anything,” he said.

Industry groups sent out a wave of press releases Monday, celebrating Sunday’s news that the U.S. and Canada had reached an agreement. There were buoyant statements from chambers of commerce and wheat producers, who said provisions to recognize cross-border wheat varieties were even better than the status quo.

Premier Scott Moe joined the chorus. He said he’s happy to see the deal done, and commended the hard work of Canada’s bargaining team.

“We are pleased with the way the negotiations have come out, to allow us access for our agriculture, manufacturing, our energy industry as well as our mining industry products to flow across North America,” he said.

“This preserves the free and fair trade opportunities that we have across the continent.”

But Moe warned there’s still work ahead. While the deal preserves the market access most exporters enjoyed under NAFTA, it doesn’t bring any relief to the steel industry.

In March, U.S. President Donald Trump announced 25-per-cent tariffs for Canadian steel exports, and 10 per cent for aluminum. On Monday, he confirmed they will remain in effect despite the new deal, known as the United Statesmexico-canada Agreement (or USMCA).

Moe said that leaves him with concerns.

He said he has repeatedly raised the matter with the federal government and has worked closely with Evraz, which runs a steel mill in Regina.

The tariffs are keeping workers there under a lot of stress, according to USW 5890 president Mike Day.

He said it feels like they’ve been “sold out for a deal.”

“The employees out at Evraz are thinking, ‘What’s our government done for us?’ ” he said.

Prime Minister Justin Trudeau has visited Evraz twice in recent months to speak with workers there. Foreign Affairs Minister Chrystia Freeland has said she will continue to push for the lifting of the tariffs.

Day said the mill sends much of its large-diameter pipe to customers in the United States. It’s facing the tariffs the president announced in March, as well as additional duties of 24.38 per cent that started in August.

Day said he’s not holding his breath for a change.

But Moe said he hopes the tariffs will be “short-term challenges.”

Steve Mclellan of the Saskatchewan Chamber of Commerce believes they’ll soon be gone.

He called the new deal a “sign of good faith” that could help convince the U.S. to reverse course on steel.

“If I were a betting man, I would predict that the tariffs will be dropped in the next weeks or months,” Mclellan said.

Mclellan said he’s still reviewing the fine print in the new deal, which includes 34 chapters, four annexes and 12 side letters. But he said he’s pretty sure there isn’t anything revolutionary for most Saskatchewan businesses.

“There is some tweaking, no question, but (it’s) very close to the original NAFTA.

“For that, we are quite thankful,” he said.

He said the main benefit of the agreement comes from lifting the cloud of uncertainty hanging over the economy. “Businesses, to make investment decisions, they need certainty. They need to be able to say this is for sure, that access to that market is guaranteed.

“We think this is going to bring closure to that and, as well, make the whole trading environment a lot more predictable,” he continued.

But Canada had to compromise to get the deal, including on a few issues that affect Saskatchewan.

American farmers will get more access to Canada’s supplymanaged sectors: dairy, eggs and poultry.

While Ontario and Quebec will be hit hardest, some Saskatchewan farmers will still be affected.

Moe said he wasn’t surprised to hear the U.S. got its way on that point, given that Canada has made similar concessions in other agreements.

The U.S. will also get longer patent protection for its pharmaceutical products. Moe said that’s a point where Canada has “given to some degree.”

He acknowledged that it will have an impact on Saskatchewan’s health sector.

“There will likely be, to some degree, some costs to that,” he said, noting the Ministry of Health still has to figure out exactly how much.

But Canadian negotiators held their red lines on other key matters, including the all-important Chapter 19 of the previous NAFTA deal.

Much maligned by President Donald Trump, the section allows either country to refer disputes to an independent tribunal — rather than making do with the U.S. court system.

Macpherson said that was a big deal for the Saskatchewan beef industry.

“From time to time, there’s trade disruptions — disputes — so having a fair resolution process is needed to help address those situations,” he said.