Mexico, Canada Don't Want Tariff Exemptions Tied to NAFTA

Mexico, Canada Don't Want Tariff Exemptions Tied to NAFTA

Mexico, Canada Don't Want Tariff Exemptions Tied to NAFTA

Prime Minister Justin Trudeau accused China of flooding global markets with cheap steel Monday, saying Canada has already taken steps to prevent "dumping".

"We are ready to take action whenever action is required. we had your backs last week and we always will", Trudeau said after visiting a Rio Tinto Ltd (RIO.AX) (RIO.L) smelter in Alma, Quebec, his first stop on a tour this week of Canada's steel and aluminum regions.

"We have been, and will continue to be, in steady communication with the government of Canada to ensure that no steel diversion is taking place as a result of the tariffs imposed by the United States", said Galimberti.

Canada, the top supplier of steel and aluminum to the U.S. market, and Mexico have been temporarily exempted from the tariffs until trilateral continental trade talks conclude.

Freeland said it was absurd to consider Canadian steel a national security threat and that "as far as Canada is concerned there is absolutely no connection" between the national security reasons cited for the steel tariffs and NAFTA. However, Trump more directly tied Canada and Mexico's exclusion from the tariffs to a successful NAFTA outcome.

Trade actions against offshore steel initiated by the government and brought to the Canadian International Trade Tribunal would likely carry a greater sense of urgency than those brought by industry, Mr. Galimberti said in an interview Monday.

"We will continue working toward securing a definite and permanent exemption from those tariffs", Trudeau said.

"But I accept what the president said", Trudeau added, "that as long as there is a free-trade deal in North America there won't be tariffs".

Trudeau rejected calls by some Quebec union leaders to take a harder line in NAFTA talks and leave the table if Canada can not get a better deal. "That is because the level of integration within our two markets is deep, complex and profitable to both of our countries".

China is Canada's second-largest trading partner after the United States.

Mr. Trudeau also took Canada's case to USA cable channels on Monday with appearances on MSNBC and CNN.

Executives in the steel-processing sector describe the manner in which countries and importers get around tariffs as being akin to a sheet of paper. He's also set to visit Sault Ste. Marie and Regina this week.

Trump signed the proclamation on those tariffs last week and the exemption given Canada was a last-minute victory for the Canadian government.

The Prime Minister told aluminum plant workers in Saguenay, Quebec, he will always have their backs when it comes to fighting US tariffs.

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