Calling the US-Mexico-Canada Agreement (USMCA) a win for the North American aluminium industry, Tom Dobbins, President and CEO of Aluminium Association said that the new rules of origin incentivize regional sourcing of aluminium for auto parts and vehicles.
In a press release issued by the Association, Dobbins said this trade agreement will boost the demand for US aluminium manufacturers in future and increase trade within North America.
This agreement ensures robust, fair and rules-based trade of aluminium and aluminium products between the US, Mexico and Canada as they will be able to address the issues faced by global aluminium industry due to overcapacity in China, he added.
Mid-downstream production and processing provide 97pc jobs of US aluminium industry. These jobs depend on domestic and imported primary aluminium from countries like Canada.
The US President Donald Trump exempted Canada from section 232 tariffs last year.
Justin Trudeau, Prime Minister of Canada had said if the US imposes tariffs on Canadian aluminium, it will only increase its manufacturing investment, consumer cost and will cause damage to the US economy. The punitive taxation will harm the economies of both countries.
The Canadian Deputy PM Freeland said this new agreement will help North America recover from the current crisis.