Feds face calls to protect aluminum industry as new NAFTA deal appears close

U.S. labour groups want to tighten the definition of North American steel

President Donald Trump shakes hands with Mexico President Enrique Pena Neto, left, as Canada’s Prime Minister Justin Trudeau, right, looks on after participating in the USMCA signing ceremony, Friday, Nov. 30, 2018 in Buenos Aires, Argentina. A deal on amending the new North American free trade agreement appears close following a busy weekend, with hopes Canada, Mexico and the United States will approve a rewritten deal in the next 24 hours. (THE CANADIAN PRESS/AP-Pablo Martinez Monsivais)

President Donald Trump shakes hands with Mexico President Enrique Pena Neto, left, as Canada’s Prime Minister Justin Trudeau, right, looks on after participating in the USMCA signing ceremony, Friday, Nov. 30, 2018 in Buenos Aires, Argentina. A deal on amending the new North American free trade agreement appears close following a busy weekend, with hopes Canada, Mexico and the United States will approve a rewritten deal in the next 24 hours. (THE CANADIAN PRESS/AP-Pablo Martinez Monsivais)

The federal government faced calls Monday to take a strong stand in defence of Canada’s aluminum industry and its workers as a deal to revise the new North American free-trade agreement appeared close to completion.

The United States-Mexico-Canada Agreement was signed by the three countries last year, but U.S. ratification has been stalled for months as congressional Democrats and organized labour have bickered with Mexico over labour rights as well as the agreement’s treatment of steel and aluminum.

There were concerns the agreement, which aims to update the 25-year-old North American Free Trade Agreement, would not be approved before Congress disperses until 2020 and its focus shifts to next fall’s presidential election.

Deputy Prime Minister Chrystia Freeland was cautious Monday amid chatter of an imminent deal.

“In the lives of ordinary Canadians, there is perhaps no issue in our relationship with the United States that matters more than trade,” she said in question period.

“The prime minister raised the ratification of the new NAFTA and other trade issues in his meeting last week with the president and we have been working intensively, including many conversations over the weekend and this morning with our American partners, on getting the deal finalized.”

READ MORE: U.S. can’t show harm from Canadian softwood industry, NAFTA panel says

The breakthrough appears to have followed Mexico accepting — with a five-year phase-in period — a U.S. demand to tighten the definition of North American steel in a section of the agreement dealing with where cars and their parts can be said to originate.

Products that officially originate in North America get more favourable treatment than ones that originate abroad but come through one of the countries in the agreement.

However, Mexican Foreign Secretary Marcelo Ebrard said his country would not accept the same tighter definition for aluminum because the raw materials are not produced in Mexico.

Mexico also rejected U.S. demands for American inspectors to be sent in to ensure Mexican auto workers are being paid $16 per hour on average, though U.S. officials were said to have accepted Mexico’s offer to allow dispute-resolution panels to review labour-law compliance.

Labour unions in the U.S. were to be briefed on the proposed amendments on Monday with the hope they would agree to the changes, which would pave the way for the Democratic leaders to offer their own approval.

The Trump administration as well as the Canadian and Mexican governments would then be asked to agree formally to the amended deal before introducing legislation to put it into force.

Details of the amendments had yet to be communicated to Canadian industry and labour groups Monday, but those representing the aluminum sector and its workers were upset the deal may not include a tighter definition on what constitutes North American aluminum.

“We’re certainly not happy with this at all because it simply means Mexico wants to keep an open door to foreign metal coming in from China, from the Middle East, from India,” said Aluminum Association of Canada president Jean Simard.

Noting the industry was battered by U.S. tariffs last year, Simard added: “Canada has taken the case of aluminum as much as steel up to now and we certainly expect Minister Freeland and the Canadian government to hold their position on this like they’ve been doing up to now.”

READ MORE: Canada ‘very encouraged’ by progress on US-Mexican NAFTA talks — Freeland

Ken Neumann, national director in Canada of the United Steelworkers union, which represents employees in both the aluminum and steel industries, was also critical of Mexico’s demand for a five-year phase-in period for tightening the definition of North American steel.

“We strongly would anticipate or hope that our government is going to stand up for our aluminum workers,” he said.

“So we’re going to keep our fingers crossed. We’re going to consult with the government of Canada to make sure they’re going to stand up for what’s right for the steel industry and for our aluminum workers.”

Neumann and other members of the United Steelworkers’ leadership team in Canada were scheduled to fly to the U.S. to be briefed Tuesday on details of the proposed amendments.

“At this stage of the game, all eyes are on where organized labour is on Mexico’s newest proposals,” said Dan Ujczo, an Ohio-based trade lawyer with law firm Dickinson Wright and an expert in Canada-U.S. trade. “If they agree, it’s likely House (of Representatives) Democrats will sign off on this.”

Yet while there is a chance that legislation could be introduced this week and passed by Congress before Dec. 20 to bring the deal into force, Ujczo warned there still could be unexpected hurdles.

“Nobody has seen the implementing bill soup-to-nuts,” he said. “So we’re closing Phase 1 of the deal process, then we’re on to Phase 2, which will be we’ll all have to take a look at the implementing bill.”

The new trade pact would replace NAFTA, which came into force in 1994 and eliminated most tariffs and other trade barriers involving the United States, Mexico and Canada.

Critics, including Trump, labour unions and many Democratic lawmakers, branded NAFTA a job-killer for America because it encouraged factories to move south of the border, capitalize on low-wage Mexican workers and ship products back to the U.S. duty-free.

Mexico ratified the new North American deal in June while the Canadian government has said it is waiting to ratify the agreement at the same time as the United States.

—With files from The Associated Press

Lee Berthiaume, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Flashback Freddy performs at Entertainment in the Park on July 7th.
photo submitted
Flashback Freddy to hit the ‘Entertainment in the Park’ stage on July 7th

Held at West Stettler Park, all shows start at 7 p.m.

The Government of Alberta identified 115 new COVID-19 cases Sunday, bringing the provincial total to 3,089.
(Black Press file photo)
Red Deer drops to 71 active cases of COVID-19

Province adds 127 new cases of the virus

Stettler town hall
Town of Stettler well situated for future according to new report

‘It is really reassuring to (see) areas where we can focus to grow better’

kids
Lots of fun and learning to be found at the brand new ‘Market Buds’ program

Activities to run the gamut from outdoor games, treasure hunts and storytelling to seed planting and interactive games

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

This undated file photo provided by Ernie Carswell & Partners shows the home featured in the opening and closing scenes of The Brady Bunch in Los Angeles. Do you know the occupation of Mike Brady, the father in this show about a blended family? (Anthony Barcelo/Ernie Carswell & Partners via AP, File)
QUIZ: A celebration of dad on Father’s Day

How much do you know about famous fathers?

A dose of the Pfizer-BioNTech COVID-19 vaccine is pictured at a vaccination site in Vancouver Thursday, March 11, 2021. THE CANADIAN PRESS/Jonathan Hayward
NACI advice to mix vaccines gets varied reaction from AstraZeneca double-dosers

NACI recommends an mRNA vaccine for all Canadians receiving a second dose of a COVID-19 vaccine

Bruce Springsteen performs at the 13th annual Stand Up For Heroes benefit concert in support of the Bob Woodruff Foundation in New York on Nov. 4, 2019. (Greg Allen/Invision/AP)
Canadians who got AstraZeneca shot can now see ‘Springsteen on Broadway’

B.C. mayor David Screech who received his second AstraZeneca dose last week can now attend the show

A lotto Max ticket is shown in Toronto on Monday Feb. 26, 2018.THE CANADIAN PRESS
No winning ticket sold for Friday’s $70 million Lotto Max jackpot

The huge jackpot has remained unclaimed for several weeks now

Canadian Prime Minister Justin Trudeau is seen during a joint news conference following the EU-Canada Summit, in Brussels, Belgium, Tuesday June 15, 2021. Trudeau says Canada is on track now to have 68 million doses delivered by the end of July, which is more than enough to fully vaccinate all 33.2 million Canadians over the age of 12. THE CANADIAN PRESS/Adrian Wyld
Vaccine deliveries enough to fully vaccinate all eligible Canadians by end of July

Three in four eligible Canadians now have their first dose, nearly one in five fully vaccinated.

Chief Public Health Officer Theresa Tam listens to a question during a news conference, in Ottawa, Tuesday, Jan. 12, 2021. The number of confirmed COVID-19 cases attributed to the highly contagious Delta variant grew in Canada this week. THE CANADIAN PRESS/Adrian Wyld
Canada’s public health agency reports spike in confirmed cases of Delta variant

More than 2,000 cases of the variant confirmed across all 10 provinces and in one territory

The federal government says it wants to ban most flavoured vaping products in a bid to reduce their appeal to youth. THE CANADIAN PRESS/AP-Craig Mitchelldyer
Health Canada proposes ban on most vaping flavours it says appeal to youth

If implemented, the regulations would restrict all e-cigarette flavours except tobacco, mint and menthol

Most Read