Canada's Foreign Minister, in Washington for Talks, Declines to Predict When Steel, Aluminum Tariffs Will Be Resolved
Canadian Foreign Minister Chrystia Freeland, speaking May 15 at the U.S. Capitol after meeting with the head of the Senate Finance Committee and the House Trade Subcommittee chairman, declined to predict when the U.S. and Canada might reach a resolution on Section 232 tariffs and Canada's retaliatory tariffs because of them. Treasury Secretary Steven Mnuchin testified earlier in the day in the Senate, and said there that "I think we’re close to an understanding with Mexico and Canada" on the tariffs.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
Freeland, who held a press conference, also met with U.S. Trade Representative Robert Lighthizer earlier in the day, and said it was a "good conversation." She said she had talked with him about the tariffs on the phone the previous day and Sunday, May 12, as well. She declined to talk about the details of the conversations, saying keeping them private helps build confidence between negotiators.
Freeland continues to say that Canada wants the tariffs lifted fully, with no quotas to replace them. She declined to respond to a question from a reporter who referred to media reports that Mexico has essentially agreed to a quota deal, but is waiting for Canada to catch up before announcing it. Lighthizer has said that without a quota, Canada could become a back door for Chinese or other countries' dumped metals.
"We are glad we have achieved an agreement on NAFTA, and we very much feel that free trade in steel and aluminum should be part of that agreement," she said. "We are very grateful for the strong and clear and principled position [Finance Committee Chairman Sen. Chuck Grassley] has taken on [Section] 232, and we agree with him," she added. "We think that lifting the tariffs is an important part of getting to ratification of NAFTA."
Grassley, R-Iowa, has said repeatedly that in order to get the deal through the Senate, the tariffs -- and the retaliation on agriculture that followed -- must be lifted. Freeland said ratification in Canada would be "very, very problematic" if the tariffs were still in place.
Ratification of the new NAFTA must begin in the House, and Democrats have the discretion to move it or not. Freeland said that when she talked with Trade Subcommittee Chairman Earl Blumenauer, D-Ore., they spoke about Mexican labor reform "at some length." Canada strongly supports union rights, she said, and is willing to be a partner to Mexico as it works its way through unraveling 700,000 protection union contracts. "We think this is really significant moment for Mexico and for North America, and Canada is ... excited to support it."