Canada drops legal action against U.S. after tariffs eliminated | Power & Politics

Canada drops legal action against U.S. after tariffs eliminated | Power & Politics
Canada drops legal action against U.S. after tariffs eliminated | Power & Politics
We’Ve just reached an agreement with Canada and Mexico and will be selling our product into those countries without the imposition of tariffs. We got so much support from Canadians that we should stay strong and spectacle, lift and work towards a full. If that’s exactly what we did on both sides of the Border, a joint statement from the Trump Administration in the Trudeau government says the punitive tariffs that has loomed over ratification of the new NASA will be gone within. The next 48 hours in Canada has agreed to drop its legal action against the us at the WT, so after months of President Trump touting the tariffs for their effectiveness, what changed the cbc’s Katie Simpson has been on this story since the very beginning she joins me. Now from Toronto, hey Katie are the Canadian government and for the Trump administration, because there’s been a flurry of phone calls high level meeting really lobbying by both sides to try to get to an end here. The first signs that they’re there was some sort of change here in this Converse, because Canadians will remember these tariffs were put in place as when what was widely thought as an after negotiating tactic about a year ago, Donald Trump and tariffs and place was sign that Donald Trump would drop those tariffs. Well, when November, will the end of November rolled around Ottowa was puzzled and frustrated when there was no political will to get rid of the Tariff that has significantly changed and what I’m he told by sources with direct knowledge of the situation. Is that Donald Trump behind the scenes is getting quite and see he’s looking for some sort of win on trade and specifically because right now, things are not going very well when it comes to trade deals with China, talks between the United States and China during two High-Profile phone calls last week, Justin Trudeau leaned into that say, sit that leaned into any insecurities that Donald Trump may have had to say. Listen. Canada is your ally. We want to ratify NAFTA, but as Donald Trump in the Trump Administration was well. We’Re at Canada was quietly threatening to not ratify NAFTA, not ratify that new trade agreement with the US and Mexico. Unless the tariffs on Steel, an aluminum were lifted, that sort of pressure that sort of delivering that message finally seemed to resonate at Donald Trump is very keen to move forward with the New usmca Deal. He is now looking forward to. Hopefully, Congress will approve the usmca quickly and then the great farmers and manufacturers and steel plants will make our economy even more successful than it already is. If that’s, how symbol for nefarious Mister, christer Freeland Finance, Minister Bill Morneau and Canada’s Ambassador in Washington, David McNaughton, had been leading a lobbying campaign that really started at the end of January. To do quietly makes a point: that’s going to be a real problem for Canada. If these terrorists are not removed to ratify this new agreement, listening but the way that the world and the politics of sort of changed and shaped in the past couple of weeks, we are told that Trump is eager for a win, and this will get him one Step closer to a win, so what does that mean for the speed at which Justin Trudeau was spoke about that today? This is something that now that this big irritated remember. This is one of them biggest irritants of the Canada. U.S. relationship talk about that in just a moment. He seemed relieved and listen to this pretty Cooperative. We are going to work with you, mighty United States on timing for ratification, but where optimistic we’re going to be able to move forward, move forward well in the coming weeks in this deal, Canada didn’t want. Any quotas are limits on how much Stila can ship to the United States clearly made by the prime minister’s office today. Alright, thank you. Are the steel Finance Minister of Bill Murray, call Dennis agreement in order to secure that are steel and aluminum completely without any sort of giving up with anything? Just through a series of discussions with the Americans has been going on for a long time really. I would say a breakthrough last week with the calls that the Prime Minister May price of where we we advocated on behalf of complete removal of these tariffs and were able to move forward and get that done. There’S if there’s no. There was no agreement in if any sort of conditions on this saying is it’s important for us to make sure that we track steel coming into arm, and we have a system that that works, but we’ve completely eliminated these tariffs and we’ve done it in a way That ensures that no producers of Steel and the people that use steel and aluminum they are now in a situation where there they’re back to and appropriate market-based approach, a product of a long. Of the sessions. Some of what you’ve heard about some of which you haven’t. But you made a real difference in a relationship with United States and in today’s important proofpoint, particularly, but I think it’s important stuff back we’re not exactly what we want to make sure that we protect our producers from surges of Steel from other countries coming to our Shores, so so there’s nothing here. That was a compromise. This is an agreement. That’S a win is a win in all fronts and it’s it’s something that enables us to continue to move forward and in a very positive way in a relationship with the United States, Mexico. Minister, the tariffs are removed. What happens to the safeguards on other countries? There can still be steel that gets diverted into our market, so we were we’re going to look carefully at that. We’Ve been considering how we ensure that we protect our markets and surges from other places. So that’s ongoing. Work will need to do that because, in order to make sure the market stays appropriate, given, though, the world that we live in, we need to have eyes wide open to those who are the challenges we’re working on that control Imports has changed. A agreed with us is not Pokemon United States, Canada or Mexico. That’S extremely pause, depressing working together with the United States and for that matter with Mexico, but it could still be the case that we get surges of Steel coming from a third country that can’t send their Steel. That’S why we need to make sure that we have a system that works and that’s why we’re going to ensure that we we look at appropriately monitoring and protecting our Market from inappropriate actions from steel manufacturers around. That’S, that’s working. We need to do under any scenario, but again I want to come back to this. This is this is really a very good news story for four Market. I was in a position as Finance Minister, where I was trying to manage your system very difficult to manage. We’Re taking our tariffs off those us good they’re taking their zafar’s, it means that businesses can be much more able to do actually figure out where to make investments without inappropriate are of causing diarrhea. It’S very positive news for for those individuals. I think it will help you be more confident that were in a stable position between Canada and the United States. Freeland has had spoken over the past few months about how the continuation of the new USMC does this now open up the door to ratification, and if so, how soon can Canadians expect that this was from our standpoint. An important step towards ratification is important for candida. Jordan, 4, Mexico. So we are both feeling what we’ve made significant progress, stop process through, and I think watching that with this one, less barrier to completion is A+ all the way around you know, Bashi, we haven’t actually looked at our parliamentary schedule, but but this was the barrier from Our standpoint we negotiated and the doc to an agreement on the new NAFTA that makes sense. The Americans obviously have to go to the ratification. Ours is much more straightforward than they will have to lay it out and decide exactly what the appropriate Way Forward is. This is no longer a barrier, so we have a path from our perspective. That makes sense. I think a lot of Canadians will the kind of utility he saw it Secretary of the Communist, very much movement. Well, you know the way I would say at Bashas, we’ve been working really hard on this for a long, while, certainly My Collie Christopher Williams, had meetings, I’ve had a number of meetings. Many many phone calls on this subject over a period of months and months and months, so we were laying the groundwork for getting this position. We talked about the importance of moving away from the terrorist in totality there was some conservative politicians that wanted to compromise. We didn’t think that the right way to go so last week the prime minister in the president, speaking twice that really was the Breakthrough moment and then the Prime Minister pushed forward on the agenda. We needed to move away from these tariffs and total that would pay the way for the new NAFTA and I’ve got to say that that that was absolutely instrumental. So so we got into a much better place. I think it shows the power of working together with our colleagues in the United States in a way that protects Canadians interests, but working like in our way of getting things done so really pleased to be where we’re at, and it shows with the effectiveness of that Relationship between the prime minister in the president, we did make the commitment to work with United States on watching how the industry is evolving and making sure that we’re not becoming victims of global pressures on her steel industry. But that’s something that it honestly are. Are steel workers have been asking for two made with steel that has quote melted and poured in North America separately from products that are not another name? Meredith Lily is a former trade advisor to Prime Minister Stephen Harper, and a professor at the Norman Paterson School of International affairs. There is a principal at earnscliffe strategy group and former Special Assistant to to u.s. ambassadors to Canada and they’re both with both of you. First, let me say I think it’s generally a good thing: it’s a good day for Canada, especially when the tears are actually removed, but there’s language in the statement that’s been released. That suggest that perhaps we sort of have go by another name, and so I think most problematic is the language that says that, should there be any surge above historic levels from when exporting country into the importing countries, that would be counted as the US. Presumably that the US, the importing Haywood, reserve the right to reimpose those terrorists and Enzo in in some respects. I think that that could be seen as quoted by another name and then the other pieces is the Serta very potentially owner is tracing and and what would that look like and how will it be monitored and and that’s another kind of angle related? They share the viewpoint on Surge and what that means absolutely right now, so I’m sure it will be flushed out in the days to come, will probably get more information next week on what a lot of these things mean. He knows it wasn’t. There wasn’t a way to this without some sort of concession to the United States on giving them some level of the other domestic capacity argument that created the 232 Terrace in the first place, you have to satisfy that some level in order to come to a deal. So I mean this is a necessary evil. I think, to some extent – and I think there is there still an argument for within the WTO. Having different elements are different instruments that you can push back. United States on. I do think the other piece of it that causes me. Some concern is the fact that, if there is, if, if Terrace are placed back on steel and aluminum coming in from Canada to the United States, that Canada would not have the ability to do political retaliatory tariffs, the way that they’ve done this route, so they’re now Restricted to only placing retaliatory tariffs on the items that are being tariffed by the United States, they wouldn’t be able to go after Kentucky bourbon, for example, given the political discussion over the past year, I think I think we could continue to just be in in the Current status quo that were in now, so I think it could very well have been right through our upcoming election and right through the next 20/20 Alexa, the US, with the tariffs on usmca left on, ratified and enter. That is the worst scenario, because the industry is is so split up into different quarters right. So I think if you look at the actual raw data coming out of the steel producers in the United States, this did exactly what President Trump said about to do. Witches increase capacity and increase profits for those steel companies that are that are manufacturing still within the United States. What did exactly what they were looking to do, and so, I think, there’s other aspects of the economy would that it hurt. So it’s like you, say it’s hard to quantify, because it’s please different silos of of the industry that are not necessarily having the receiving the same effects from the terrorist behind what changed China and what was going on with China. What is the China factor in all this? Do you think I think, there’s a lot going on with China. So certainly the fact that that the u.s. really increases trade war with China this week and walked away from the table around the training Stations between us and China definitely played into this. And I think that the requirements that are in the new kennel us statement indicating that we will sort of explore this perimeter approach, North American approach to both ensuring the Risen dumping of Steel, as well as enforcement mechanisms. All of that plays into ensuring that North America is sort of working together to stop primarily China steal from being dumped and end. The way that this is important is that, because there’s so many new tariff lines that have been added on the Chinese side into the US, Canada is an obvious place to try and divert and and send product through Canada, with a gold trying to get it into The Uso, so we were going to have to do something on this anyway, and this very much I think, positions us is working with the Americans against some of those interest in trying and what kind of message does that send Sarah to the American won the Canadiens In the European Union and Japan as well and in Korea as well, have been saying for a long time, but the United States, you don’t have to go this alone, we’re all here we’re suffering from the same policies. China, we’re all on your side. You don’t have to go this alone on China, but this is the way the Administration has chosen to do it. They have a couple of issues because of that one is a bandwidth issue. They need to kind of clear the decks to deal with the extent to which their the Chinese trade and is has kind of become all-encompassing within the ustr office. But the other piece of that is this is a 04 Canada to agree to a lot of these things. You also see that you, the not really lifting but the postponement, Auto tariffs on EU and Japan, which ustr is also looking to advance deals with the EU and which app and they released negotiating objectives with both of those entities. And so there’s a lot going on. In the trade world and in in the administration, but they have to put you in the front and center and if there’s any way that Canada can be seen as an ally in that, I think it’s good for candida to do that cuz. It is not just good for its relationship with the United States. It’S just writ large good for candida associated with this is NAFTA for the future, and there’s no coincidence here so primarily this is an American issue that they need to figure out a way to get usmca to the floor of Congress for a vote, and so this Is clearly part of that and trying to get some in the US in order to get about to pass on the Canadian side, though, it opens the door for us to be able to move ahead with ratifying on our end, because the big stumbling block that Canadian Leadership had indicated was that, while these tariffs are in place, wouldn’t ratify so now that the door is open for us to do that, and do you think that they do that Canada can do that with healthiest ain’t? We all know that Mike Pence, the vice president, is coming on May 30th and explicitly it says to get it ratified as soon as possible move forward, while in advance of the US domestic political situation seems more complicated, they’re actually, and it’s funny cuz. We talked about this, I think in the trade Community a few times about how is there a path forward for Canada, Mexico to ratify the agree for the United States? And what does that say to the Democrats in the in Congress and what kind of pressure does it put on them to actually get the deal in the legislative patch package through the US legislative bodies? And I think that’s a solid argument and I think they’re from a Canadian spectiv. I don’t see this becoming a political, Pawn eyes. I think that this issue everybody’s agreed. We need to get this deal done and if there is a path path forward for Mexico and Canada to do this and give the administration’s and Leverage Democrats in order to get that bit to get it ratified in the US, that’s all good. Do you think, there’s that that’s realistic, I mean the Democrats have Express, especially even at the highest levels. Nancy Pelosi has talked about how her concerns examples. How realistic you think that is still quite realistic. Certainly, the Democrats are going to be looking for something and by nature of the way us politics works, sometimes that something they want is totally unrelated to the trade file at hand. But there are none Democrats who will be sensitive to trade with both Mexico and Canada and for constituency reasons and local job reason, they’re going to want to support the DeLand. And so I think it is realistic. But it’s going to take some work on the and our capacity to influence, that’s fairly limited, that’s true and is working on ways to be to work at 12. I like to watch for thank you very much to go to be really appreciate your time this evening. Thanks to professor emeritus Lilly Ann Circle better last summer to support our industry. We’Re going to continue to look at how the industry can continue to grow and invest manufacturers the 48 hours. But how long will it take for prices to normalize for companies that use steel and how much damage has already inflicted Douglas of research and development? He joins us from Edmonton to great to see you again. Everybody really didn’t serve my purpose in my mind. So over we’re all happy to see them go well, it’s difficult to gauge long-term, because it’s part of that supply chain that we’re getting into on some of the new manufacturing that we’re working on. We don’t really understand the day. What that impact is because of the long-term effects. I got some of the work, but I know a lot of that. Work is being done out of the United States and a lot of itself, East Asia as well for her dark direct competitors. Well, it’s one of the things that we’ve seen even separate from the tariffs. I was able to get permission on everything that I asked for they didn’t say no to anything, because once they got to that next level, they realized that these deals are made in Canada sold. They don’t require the terrorist. That was a long process for me, but the the damage is going to be something that we’re going to measure over a. Of years, and the cost of Steel has gone up significantly separate from Terrace the Racine. Will this lifting of the terrorist and not really impact, do you think the cost? The cost is something the kids out at the border when we import steel, but we’ve seen steel prices go up the. Of the last year before the terrorists were put into place. Some grades of Steel with increased 100 % And it stayed there how many visit Dynamic Market in there’s a lot of things driving it so we’re hoping that with the terrorists lifted, things will come back to normal, but I’m concerned that they won’t come back a pre Tariff price levels, and what is that mean for your company? Explain to our viewers exactly what you do with that steel merely for down-hole drilling tools, but we’re also serving the nuclear industry, we’re working on getting an aerospace which is a long process, but we’re adding a lot of value in making very complex components. Out of very specific grade to steal, this work can be done, lower labor costs, areas of the world, and it often is in a lot of our multinational customers, are working to move it to those areas. We use Automation and our expertise to to compete with that. But major base material cost go update, makes it much more difficult to compete in this deal at. Obviously it’s good news overall, but but there is sort of a caveat in the event that Imports of steel or Aluminum Products surge meaningfully behind Beyond historic volumes of trade. Over a. Of time, the importing country can, we request, consult a the exporting specifically thinking about the recent experiment. Let’S call it with the the safeguards on the number to serial. If you really get down to my level on that you’re considering punishing growth, if we do very well, if I do my job well and we’re competitive and we win a lot of business, we’re going to import more of these grade, this deal that aren’t manufactured here. That’S all there is to it Ariel, William Parkway important, because it’s not made in Canada. So if we succeed and we grow and other people in Canada that are doing similar, things. Also grow, there will be an increase in import. So where do you set that quota? There isn’t really data to do that in and run the risk of punishing success, Living World of specifications, and it has to be black and white. If there’s a specification that the big that it’s open to interpretation and whoever reads it or whoever is in power or whoever is making a decision can interpret it in the way that they see fit not be the same way that I interpreted or somebody else. So it opens up risk for a business and then not anytime, there’s risk. That’S you know that you can be when work and think that you’re being competitive and then take a huge loss. If your material cost you mentioned that safeguards as well. Have they impacted your business? We were fortunate that the group of materials of energy tubulars was, although vague in the the news level definition when you get down to the details, not the tubular products that we use. So it was more of a line pipe things and things that are made in Canada that you can get here from some friends of mine that owned businesses that were affected by that in the pre-painted cheap, physically Russian Roulette at the park cuz. I have no control over when they’re material was imported and whether the quota was going to be reached or not, and whether they have to pay 25 % tariffs, or not so very trying time for small businesses that were succeeding. That could have been punished and caused a huge loss of the result of the Tariff, I’m personally selfishly in for my friend there, the the changes and the things that could have come forward that they decided not to move forward with. I think that was a very good idea to the back away from the unfortunate to not use any of the material for those two okay. Well, thank you very much for spending some time with us insurance. I really appreciate it. Mr. Henry development, at Apollo machine and welding, limited Power & politics, subscribing to the CBC News Channel or click the link for another video. Thanks for watching
Canada and the U.S. have struck a deal to drop all steel and aluminum tariffs on both sides of the border. Canada has also agreed to drop its legal action against the U.S. at the World Trade Organization.
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