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

Paule Moore, formerly known as Paule Seeger. (TNG Legal Services)
Kelowna lawyer to face disciplinary hearing over alleged misappropriated funds

Paule Moore, née Seeger, is accused of withdrawing client trust funds a number of times when she was not entitled to do so

A power outage on Westside Road affected thousands of residents Thursday morning. (BC Hydro map)
UPDATE: Power restored for thousands on Westside

Outage sparked early this morning due to equipment malfunction

A dirt bike crash on May 18 left Kelowna’s Steven Margetts paralyzed and without work. (GoFundMe)
Kelowna man paralyzed in dirt bike crash makes plea for help

GoFundMe launched for Steven Margetts, who shares a harrowing recap of his life-changing crash

Ecole Kelowna Senior Secondary School is facing changes as enrolment is beyond the school’s current student capacity. (Contributed)
French Immersion shake-up for Central Okanagan School District

Planning and facilities committee makes recommendations for school board

The Winnipeg-based app released its 2020 findings thus far showing the people of Vernon jumped at the opportunity to support its local favourites amid the COVID-19 pandemic. (SkipTheDishes photo)
Pandemic pushes 50% more Vernon eateries on SkipTheDishes

‘Vernon is a trendsetter,’ delivery app says after revealing city’s favourite takeout foods

A coal-fired power plant seen through dense smog from the window of an electric bullet train south of Beijing, December 2016. China has continued to increase thermal coal production and power generation, adding to greenhouse gas emissions that are already the world’s largest. (Tom Fletcher/Black Press)
LNG featured at B.C. energy industry, climate change conference

Hydrogen, nuclear, carbon capture needed for Canada’s net-zero goal

Access to a Bastion Road property in Sunnybrae was blocked with officers on scene on Wednesday, Jan. 8, 2020. (File photo)
Report clears RCMP actions that led to fatal shooting of Shuswap suspect

Independent Investigations Office of BC releases findings on Jan. 7 incident in Tappen

An RCMP officer confers with military rescuers outside their Cormorant helicopter near Bridesville, B.C. Tuesday, Dec. 1. Photo courtesy of RCMP Cpl. Jesse O’Donaghey
Good Samaritan helped Kootenay police nab, rescue suspect which drew armed forces response

Midway RCMP said a Good Samaritan helped track the suspect, then brought the arresting officer dry socks

People line up at a COVID-19 assessment centre during the COVID-19 pandemic in Scarborough, Ont., on Wednesday, December 2, 2020. Toronto and Peel region continue to be in lockdown. THE CANADIAN PRESS/Nathan Denette
COVID-19 vaccine approval could be days away as pressures mount on health-care system

Many health officials in regions across the country have reported increasing pressures on hospitals

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

(Needpix.com)
Pandemic has ‘exacerbated’ concerns for B.C. children and youth with special needs: report

Pandemic worsened an already patchwork system, representative says

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Most Read