The United States has agreed to remove punitive tariffs on Canadian steel and aluminum imports. This removes a major obstacle in efforts to ratify the new North American trade agreement between the two countries and Mexico.
The U.S. had imposed a levy of 25 per cent on steel and 10 per cent on aluminum and it took almost one year to have them lifted. “This is pure good news,” said Prime Minister Justin Trudeau at a stop at the Stelco plant in Hamilton, Ontario. He added that tariffs were hurting workers on both sides of the border.
In return, Canada has agreed to drop retaliatory action it has taken at the World Trade Organization. In addition, there will be a process created to monitor the trade, and if imports “surge meaningfully beyond historic volumes of trade” the importing country may reimpose duties of 25 per cent on steel and 10 per cent on aluminum.
‘Key contributors to the Canadian economy’
In 2017, Canada was the world’s 19th largest exporter of steel. While Canada exports steel to over 140 countries and territories, the U.S. and Mexico represent the top markets for it. At the same time, Canada buys about half of the United States’ steel exports.
Canada is the world’s third-largest producer of aluminum. About 84 per cent of primary production is exported to the U.S.
The steel and aluminum industries are important to the Canadian economy. The government says that in 2017, the steel industry accounted for more than 23,000 jobs and contributed $4.2 billion to the GDP. The aluminum industry employed 10,500 people and contributed $4.7 billion to the GDP.
‘Key contributors to the Canadian economy’
In 2017, Canada was the world’s 19th largest exporter of steel. While Canada exports steel to over 140 countries and territories, the U.S. and Mexico represent the top markets for it. At the same time, Canada buys about half of the United States’ steel exports.
Canada is the world’s third-largest producer of aluminum. About 84 per cent of primary production is exported to the U.S.
The steel and aluminum industries are important to the Canadian economy. The government says that in 2017, the steel industry accounted for more than 23,000 jobs and contributed $4.2 billion to the GDP. The aluminum industry employed 10,500 people and contributed $4.7 billion to the GDP.
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