Source: Steel Times International
Ahead of today's vote by the House of Representatives on the United States-Mexico-Canada Agreement (USMCA) Thomas J Gibson, president and CEO of the American Iron and Steel Institute (AISI) has made an announcement claiming that the new deal will benefit steel producers by improving on the terms of NAFTA is several key respects.
"By incentivising the use of North American steel in the production of automobiles, auto parts, welded pipe and tube, and a number of other goods made primarily from steel through strengthened rules of origin and enhanced regional value content requirements, this agreement helps keep the steel industry manufacturing supply chain in North America strong. The USMCA also includes important provisions to promote increased co-operation and information sharing among the three North American governments to address circumvention and evasion of trade remedy orders. Such increased co-operation is essential to address more effectively the repeated surges of dumped and subsidised imports of steel products that have injured domestic steel producers in recent years.
Gibson has urged all members of the House to pass the implementing legislation to approve the USMCA and called on the Senate to pass the legislation as soon as possible.
But not everybody is of the opinion that the USMCA will be good for business. An online report by Forbes quotes Adam Crisafulli, founder and president of Vital Knowledge Media, who said: "It's better than not having anything, but worse than NAFTA, from a growth perspective."
It is argued that the USMCA is a net negative for all three economics, according to the Peterson Institute for International Economics, which claims that the deal's regulatory mandates, especially in the auto trade, 'will restrict trade and hurt US industry.'