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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Construction in Oak Bay is nearly all focused on rebuilding new single-family homes and without secondary suites. (Black Press Media File Photo)
Oak Bay nears regulation of secondary suites

Preliminary report hints there’s no preferred option

Sidney Jon Blair said he would have died if a van and car had collided at the intersection of corner of Resthaven Drive and Brethour Avenue in early December. (Wolf Depner/News Staff)
Sidney senior urges motorists to slow down on Resthaven Drive

Jon Blair said community must become more pedestrian-friendly

Bob Joseph, author of 21 Things You May Not Know About the Indian Act, will be available for a Q&A through the Vancouver Island Regional Library Jan. 28. (Courtesy of Vancouver Island Regional Library)
Q&A on the Indian Act with Bob Joseph open to Greater Victoria residents

Bob Joseph is the author of 21 Things You May Not Know About the Indian Act

Tarpaulin-covered tents sit next to one of the ponds in Beacon Hill Park. The location of the Meegan community care tent has still not been nailed down, as Victoria council rejected the recommendation offered by city staff. (Don Descoteau/News Staff)
Location of care tent for Victoria’s Beacon Hill campers still not settled

Council roundly rejects Avalon Road site, road’s edge on Cook Street appears the top alternative

Coaches with the Juan de Fuca Minor Hockey association have had to get creative during their weekly practices to keep players interested and improving their skills without physical contact. (Damian Kowalewich photo)
West Shore minor hockey coach shares what it’s like on the ice without parents, fans

Most practices consist of relay races, goalie shots and passing drills

A scene from “Canada and the Gulf War: In their own words,” a video by The Memory Project, a program of Historica Canada, is shown in this undated illustration. THE CANADIAN PRESS/HO - Historica Canada
New video marks Canada’s contributions to first Gulf War on 30th anniversary

Veterans Affairs Canada says around 4,500 Canadian military personnel served during the war

A 17-year-old snowmobiler used his backcountry survival sense in preparation to spend the night on the mountain near 100 Mile House Saturday, Jan. 16, 2021 after getting lost. (South Cariboo Search and Rescue Facebook photo)
Teen praised for backcountry survival skills after getting lost in B.C.’s Cariboo mountains

“This young man did everything right after things went wrong.”

Conservative Leader Erin O’Toole holds a press conference on Parliament Hill, in Ottawa on December 10, 2020. THE CANADIAN PRESS/Sean Kilpatrick
No place for ‘far right’ in Conservative Party, Erin O’Toole says

O’Toole condemned the Capitol attack as ‘horrifying’ and sought to distance himself and the Tories from Trumpism

A passer by walks in High Park, in Toronto, Thursday, Jan. 14, 2021. This workweek will kick off with what’s fabled to be the most depressing day of the year, during one of the darkest eras in recent history. THE CANADIAN PRESS/Chris Young
‘Blue Monday’ getting you down? Exercise may be the cure, say experts

Many jurisdictions are tightening restrictions to curb soaring COVID-19 case counts

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
COVID-19: Provinces work on revised plans as Pfizer-BioNTech shipments to slow down

Anita Anand said she understands and shares Canadians’ concerns about the drug company’s decision

Tourists take photographs outside the British Columbia Legislature in Victoria, B.C., on Friday August 26, 2011. A coalition of British Columbia tourism industry groups is urging the provincial government to not pursue plans to ban domestic travel to fight the spread of COVID-19. THE CANADIAN PRESS/Darryl Dyck
B.C. travel ban will harm struggling tourism sector, says industry coalition

B.C. government would have to show evidence a travel ban is necessary

(Phil McLachlan - Capital News)
‘Targeted’ shooting in Coquitlam leaves woman in hospital

The woman suffered non-life threatening injuries in what police believe to be a targeted shooting Saturday morning

Everett Bumstead (centre) and his crew share a picture from a tree planting location in Sayward on Vancouver Island from when they were filming for ‘One Million Trees’ last year. Photo courtesy, Everett Bumstead.
The tree-planting life on Vancouver Island featured in new documentary

Everett Bumstead brings forth the technicalities, psychology and politics of the tree planting industry in his movie

JaHyung Lee, “Canada’s oldest senior” at 110 years old, received his first dose of the COVID-19 vaccine on Thursday, Jan. 14, 2021. He lives at Amenida Seniors Community in Newton. (Submitted photo: Amenida Seniors Community)

Most Read