US steel industry groups on Thursday welcomed the Senate's approval of the United States-Mexico-Canada Agreement, as steelmakers see the updated trade pact as a benefit to the North American steel industry.
The Senate passed legislation implementing the USMCA by a vote of 89-10 Thursday, sending it to President Donald Trump's desk for ratification. Following Trump signing USMCA, the agreement only needs Canada's approval to take effect.
"For the steel industry specifically, the USMCA improves upon the original NAFTA by strengthening the rules of origin for steel-intensive goods, incentivizing the use of North American steel in manufactured goods and bolstering our manufacturing supply chains with customers in the automotive, auto parts, pipe and tube, and machinery industries, among others," Thomas Gibson, CEO of the American Iron and Steel Institute, said in a statement.
Nearly 90% of US steel mill product exports go to Canada and Mexico, so securing unfettered access to those markets is critical for domestic steelmakers, Gibson added.
"This agreement provides strong provisions on new automobile manufacturing, rules of origin content requirements, trade enforcement, labor and the environment," Philip Bell, president of the Steel Manufacturers Association, said. "The stronger definition of what constitutes North American steel will help ensure that more steel is made within the region."
The USMCA will also be a benefit to the US steel industry by promoting increased cooperation and information sharing among North American governments to address the circumvention and evasion of trade remedy orders, Gibson said.
"These measures will help the steel industries of our three countries continue to work together to address the repeated surges of dumped and subsidized steel imports that have plagued the North American market in recent years," he said.
