This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.nytimes.com/2018/11/21/us/politics/us-canada-mexico-steel-tariffs.html
The article has changed 5 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| U.S. Weighs Steel Quotas, Instead of Tariffs, on Canada and Mexico | U.S. Weighs Steel Quotas, Instead of Tariffs, on Canada and Mexico |
| (35 minutes later) | |
| WASHINGTON — A potential deal to ease President Trump’s metal tariffs on Mexico and Canada is being complicated by the Trump administration’s push to place strict quotas on imported steel from the two trading partners. | WASHINGTON — A potential deal to ease President Trump’s metal tariffs on Mexico and Canada is being complicated by the Trump administration’s push to place strict quotas on imported steel from the two trading partners. |
| Canada and Mexico have been pushing for the removal of Mr. Trump’s 25 percent steel and 10 percent aluminum tariffs ahead of the ceremonial signing of the revised North American Free Trade Agreement this month at the Group of 20 summit meeting in Buenos Aires. While the three countries reached a new trade pact in September, the metal tariffs have remained in place, and Canada and Mexico have been pressing the White House to relax the levies before the United States-Mexico-Canada Agreement is signed. | Canada and Mexico have been pushing for the removal of Mr. Trump’s 25 percent steel and 10 percent aluminum tariffs ahead of the ceremonial signing of the revised North American Free Trade Agreement this month at the Group of 20 summit meeting in Buenos Aires. While the three countries reached a new trade pact in September, the metal tariffs have remained in place, and Canada and Mexico have been pressing the White House to relax the levies before the United States-Mexico-Canada Agreement is signed. |
| The White House could ultimately lift the aluminum tariffs, but the administration still wants to impose limits on foreign steel to prevent a flood of cheap metals into the United States, according to people briefed on the discussions. American trade negotiators are proposing a quota system that would cap the volume of steel Canada and Mexico can export to the United States each year. The countries are also discussing an agreement that would bolster efforts to combat dumping of cheap metals from China, which has been a source of ire for all three nations. | The White House could ultimately lift the aluminum tariffs, but the administration still wants to impose limits on foreign steel to prevent a flood of cheap metals into the United States, according to people briefed on the discussions. American trade negotiators are proposing a quota system that would cap the volume of steel Canada and Mexico can export to the United States each year. The countries are also discussing an agreement that would bolster efforts to combat dumping of cheap metals from China, which has been a source of ire for all three nations. |
| American trade officials have made some progress in securing an agreement with Mexico, which is eager to eliminate the lingering threat the metal tariffs pose to its economy. But United States and Canadian negotiators remain far apart over the potential quotas, with Ottawa insisting on a higher limit and a more flexible system, according to several people briefed on the continuing talks. | American trade officials have made some progress in securing an agreement with Mexico, which is eager to eliminate the lingering threat the metal tariffs pose to its economy. But United States and Canadian negotiators remain far apart over the potential quotas, with Ottawa insisting on a higher limit and a more flexible system, according to several people briefed on the continuing talks. |
| The metal tariffs have proved to be especially frustrating to Canada, a close military ally of the United States that has objected to the Trump administration’s rationale that foreign metals pose a national security threat. Mr. Trump imposed the steel and aluminum tariffs using Section 232 of the Trade Expansion Act of 1962, which gives the president the power to tax imports if they are deemed to be a risk to the country. | The metal tariffs have proved to be especially frustrating to Canada, a close military ally of the United States that has objected to the Trump administration’s rationale that foreign metals pose a national security threat. Mr. Trump imposed the steel and aluminum tariffs using Section 232 of the Trade Expansion Act of 1962, which gives the president the power to tax imports if they are deemed to be a risk to the country. |
| Chrystia Freeland, Canada’s foreign affairs minister, reiterated her view on Tuesday that the tariffs were “illegal and unjustified” and said she hoped that they would be removed in the spirit of good will. | Chrystia Freeland, Canada’s foreign affairs minister, reiterated her view on Tuesday that the tariffs were “illegal and unjustified” and said she hoped that they would be removed in the spirit of good will. |
| “Now is a great moment to lift these absurd tariffs,” Ms. Freeland told reporters in Ottawa. “We could do it this afternoon.” | “Now is a great moment to lift these absurd tariffs,” Ms. Freeland told reporters in Ottawa. “We could do it this afternoon.” |
| Justin Trudeau, Canada’s prime minister, has said that getting the tariffs removed is his primary focus ahead of the treaty’s signing and raised the issue in a polite but pointed exchange with the president when the two met this month during ceremonies in Paris commemorating the 100th anniversary of the end of World War I. | Justin Trudeau, Canada’s prime minister, has said that getting the tariffs removed is his primary focus ahead of the treaty’s signing and raised the issue in a polite but pointed exchange with the president when the two met this month during ceremonies in Paris commemorating the 100th anniversary of the end of World War I. |
| “As I’ve repeated to President Trump, I hope we’re able to resolve in the time before we meet each other in the G-20 in Argentina,” Mr. Trudeau told reporters after the two leaders spoke. | “As I’ve repeated to President Trump, I hope we’re able to resolve in the time before we meet each other in the G-20 in Argentina,” Mr. Trudeau told reporters after the two leaders spoke. |
| Gerónimo Gutiérrez, the Mexican ambassador to the United States, said at a briefing this week that he was hopeful the issue would soon be settled, expressing optimism about reaching a deal just before President Enrique Peña Nieto is to leave office. | Gerónimo Gutiérrez, the Mexican ambassador to the United States, said at a briefing this week that he was hopeful the issue would soon be settled, expressing optimism about reaching a deal just before President Enrique Peña Nieto is to leave office. |
| “It’s the expectation that by the time of the signing either a solution or a very clear track that gives enough certainty that a solution is coming,” Mr. Gutiérrez said. | “It’s the expectation that by the time of the signing either a solution or a very clear track that gives enough certainty that a solution is coming,” Mr. Gutiérrez said. |
| But a Mexican official briefed on negotiations said American officials were trying to insert rigid quotas into the deal as a precondition of removing the tariffs. | But a Mexican official briefed on negotiations said American officials were trying to insert rigid quotas into the deal as a precondition of removing the tariffs. |
| One of Mexico’s top negotiators, Juan Carlos Baker Pineda, has been pressing Washington to soften the quotas to avoid the kind of strict provisions included in a recently signed South Korean trade pact, said the official, who requested anonymity because he was not authorized to speak publicly. In March, South Korea agreed to adhere to a quota of 2.68 million tons of steel exports to the United States a year, which it said was roughly equivalent to 70 percent of its annual average sent to the United States from 2015 to 2017. In exchange, South Korea was exempted from the steel tariffs. | One of Mexico’s top negotiators, Juan Carlos Baker Pineda, has been pressing Washington to soften the quotas to avoid the kind of strict provisions included in a recently signed South Korean trade pact, said the official, who requested anonymity because he was not authorized to speak publicly. In March, South Korea agreed to adhere to a quota of 2.68 million tons of steel exports to the United States a year, which it said was roughly equivalent to 70 percent of its annual average sent to the United States from 2015 to 2017. In exchange, South Korea was exempted from the steel tariffs. |
| And new signs emerged on Wednesday that the tariff talks were not going smoothly. | |
| Ms. Freeland told reporters in Nova Scotia on Wednesday that she has been referring to the U.S.M.C.A. — which Mr. Trump has heralded as brilliant rebranding — as the “new Nafta” because in Canadian documents the treaty is referred to with Canada first, making it the C.U.S.M.A, according to the Canadian Broadcasting Corporation. Last month, however, Ms. Freeland said that she would be referring to the agreement by Mr. Trump’s preferred name. | |
| And the White House’s official Twitter account published two posts in succession touting the benefits of the steel tariffs for American workers. | |
| American officials are more optimistic about their ability to reach an agreement with Mexico than with Canada, which is a large supplier of metals to the American military and has negotiated more aggressively with Robert E. Lighthizer, the United States trade representative, in demanding a permanent suspension of the tariffs. | American officials are more optimistic about their ability to reach an agreement with Mexico than with Canada, which is a large supplier of metals to the American military and has negotiated more aggressively with Robert E. Lighthizer, the United States trade representative, in demanding a permanent suspension of the tariffs. |
| Staff members from the Office of the United States Trade Representative, the Treasury Department and the Commerce Department huddled on Monday to discuss the final push for a deal before the summit meeting that would include the removal of tariffs in exchange for some form of quotas. But negotiators were still unsure of the outcome, citing differences on specific details such as the size and conditions of quotas, as well as the terms of their removal, according to an official briefed on the meeting. | Staff members from the Office of the United States Trade Representative, the Treasury Department and the Commerce Department huddled on Monday to discuss the final push for a deal before the summit meeting that would include the removal of tariffs in exchange for some form of quotas. But negotiators were still unsure of the outcome, citing differences on specific details such as the size and conditions of quotas, as well as the terms of their removal, according to an official briefed on the meeting. |
| Emily Davis, a spokeswoman for the Office of the United States Trade Representative, said, “We have no announcements or comment on this at this time.” | Emily Davis, a spokeswoman for the Office of the United States Trade Representative, said, “We have no announcements or comment on this at this time.” |
| The president has been under pressure from American manufacturers and powerful unions to lift the tariffs, which have raised costs for companies that use foreign metals, such as automakers and food producers. Several of Mr. Trump’s own advisers have also been pressing to lift the levies, including Steven Mnuchin, the Treasury secretary, and Larry Kudlow, the National Economic Council director. | The president has been under pressure from American manufacturers and powerful unions to lift the tariffs, which have raised costs for companies that use foreign metals, such as automakers and food producers. Several of Mr. Trump’s own advisers have also been pressing to lift the levies, including Steven Mnuchin, the Treasury secretary, and Larry Kudlow, the National Economic Council director. |
| Canada and Mexico are still expected to sign the deal even if an agreement on lifting the tariffs is not reached, but they want the issue to be resolved beforehand as a gesture of good will. | Canada and Mexico are still expected to sign the deal even if an agreement on lifting the tariffs is not reached, but they want the issue to be resolved beforehand as a gesture of good will. |
| The impending signing of the United States-Mexico-Canada Agreement does not mean that the new trade pact is final or that it will go into effect. The Trump administration must still push the agreement through the incoming Democratic majority in the House of Representatives, an arduous process that could take months to complete. | The impending signing of the United States-Mexico-Canada Agreement does not mean that the new trade pact is final or that it will go into effect. The Trump administration must still push the agreement through the incoming Democratic majority in the House of Representatives, an arduous process that could take months to complete. |
| Representative Nancy Pelosi, the California Democrat who hopes to lead the House, has said she will not vote for the treaty unless it significantly beefs up protections for American workers and includes an enforcement mechanism to ensure that Mexican auto manufacturers abide by commitments to raise wages, making it harder for them to undercut American labor. | Representative Nancy Pelosi, the California Democrat who hopes to lead the House, has said she will not vote for the treaty unless it significantly beefs up protections for American workers and includes an enforcement mechanism to ensure that Mexican auto manufacturers abide by commitments to raise wages, making it harder for them to undercut American labor. |
| Republicans are anxious about the prospect of resistance by Democrats. On Tuesday, a dozen Senate Republicans sent a letter to Mr. Trump expressing their concern and urging him to help expedite the process for a vote in the lame duck session, before the Democrats assume control of the House, by providing Congress with the full legal text of the agreement. | Republicans are anxious about the prospect of resistance by Democrats. On Tuesday, a dozen Senate Republicans sent a letter to Mr. Trump expressing their concern and urging him to help expedite the process for a vote in the lame duck session, before the Democrats assume control of the House, by providing Congress with the full legal text of the agreement. |
| But a new challenge to the treaty is also rising on the right, with a group of 38 conservative Republicans raising objections to language inserted in the deal that would protect workers in all three countries from “discrimination on the basis of sex, including sexual orientation and gender identity.” That language was inserted at the behest of Canadian negotiators and approved by the United States negotiators. | But a new challenge to the treaty is also rising on the right, with a group of 38 conservative Republicans raising objections to language inserted in the deal that would protect workers in all three countries from “discrimination on the basis of sex, including sexual orientation and gender identity.” That language was inserted at the behest of Canadian negotiators and approved by the United States negotiators. |
| “It is especially inappropriate and insulting to our sovereignty to needlessly submit to social policies which the United States Congress has so far explicitly refused to accept,” the members wrote in a letter sent to Mr. Trump on Nov. 16, calling on the administration to abide by guidance from the Justice Department that sharply limited anti-discrimination enforcement by defining gender narrowly. | “It is especially inappropriate and insulting to our sovereignty to needlessly submit to social policies which the United States Congress has so far explicitly refused to accept,” the members wrote in a letter sent to Mr. Trump on Nov. 16, calling on the administration to abide by guidance from the Justice Department that sharply limited anti-discrimination enforcement by defining gender narrowly. |
| The group, which included many members of the House Freedom Caucus, said the language contradicted the administration’s “cohesive agenda regarding policies surrounding sexual orientation and gender identity.” | The group, which included many members of the House Freedom Caucus, said the language contradicted the administration’s “cohesive agenda regarding policies surrounding sexual orientation and gender identity.” |
| Mr. Trump did not immediately respond to the letter. And it is not clear if the conservatives would be willing — or even able — to block the overhaul of Nafta to make their point. | Mr. Trump did not immediately respond to the letter. And it is not clear if the conservatives would be willing — or even able — to block the overhaul of Nafta to make their point. |
| Asked if Canada would consider renegotiating the trade pact if that provision proved to be a deal breaker with American lawmakers, Ms. Freeland said that it was “an internal political matter” for the United States. | Asked if Canada would consider renegotiating the trade pact if that provision proved to be a deal breaker with American lawmakers, Ms. Freeland said that it was “an internal political matter” for the United States. |