The U.S., Canadian and Mexican governments have reached an agreement that would lift tariffs on aluminum and steel imported into the U.S. and retaliatory tariffs on U.S. exports. The deal removes an obstacle to passing of the United States Mexico Canada Agreement (USMCA) that updates the North American Free Trade Agreement (NAFTA).
In a joint statement, the U.S. and Canada agreed to drop the aluminum, steel and retaliatory tariffs within two days, as well as end pending litigation in the World Trade Organization relating to the tariffs, set up measures that would prevent the importation of aluminum or steel unfairly subsidized or sold at dumping prices and prevent the transshipment of the metals made outside of the U.S. or Canada to the other country, and establish a process to monitor the aluminum and steel trade between the countries. In a separate statement, Mexico said that it would also take steps to prevent unfair trading practices in the aluminum and steel markets and monitor the metals’ trade.
The governments of Canada and Mexico, and U.S. lawmakers had been pushing for the removal of the tariffs, so that approval of the USMCA could go through.
The conclusion of the trade dispute with Canada and Mexico comes as the United States Trade Representative (USTR) publishes its fourth action pursuant to the Section 301 investigation. The fourth list of Chinese imports subject to additional tariffs has been published in a Federal Register notice. This list encompasses all products imported from China that are not currently subject to additional Section 301 tariffs. The Federal Register notice includes instructions for providing feedback to the USTR’s office related to the latest tranche of tariffs. The USTR will hold a public commenting hearing at its office in Washington, D.C. on June 17, 2019, which is also the deadline for public comments to be received.
