Canada, U.S. and Mexico reach deal to lift Trump administration’s steel and aluminium tariffs – by Adrian Morrow and Lawrence Martin (Globe and Mail – May 17, 2019)

Prime Minister Justin Trudeau and Foreign Minister Chrystia Freeland have scheduled an announcement in Hamilton Friday, where they are expected to announce a deal to lift the Trump administration’s steel and aluminum tariffs on Canada and Mexico.

Mr. Trudeau spoke with U.S. President Donald Trump Friday on tariffs and other trade matters, the Prime Minister’s office said. A Canadian official said Mr. Trudeau and Ms. Freeland will announce the deal today.

The agreement will end the continental trade war that has raged for most of the last year. But sources in industry and government on both sides of the border cautioned that Canada is not out of the woods yet: Canada will likely have to agree to tough new export rules on its metals industry that will benefit the U.S. in exchange for the end of tariffs.

In exchange for getting the tariffs lifted, Canada and Mexico would agree to actions meant to stop steel and aluminium from China and other countries being sent to the U.S. through Canada and Mexico. They would also lift their retaliatory tariffs on the U.S.

Industry sources listed two specific measures: One is a “rules of origin” requirement on Canadian and Mexican-made steel and aluminium that would mandate a specific per centage of the metal had originated in Canada and Mexico – a move meant to discourage, for instance, a Canadian company importing scrap from China and melting it down for sale to the U.S.

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