U.S. lifts metal tariffs on Canada, Mexico
19, May 2019
Prelims level : Mains level :
- President Donald Trump on Friday announced a deal to lift U.S. tariffs on steel and aluminium imports from Canada and Mexico that had created friction between the neighbours and blocked a new North American free trade agreement.
- Mexico confirmed it had reached a similar agreement with the U.S. The steep U.S. tariffs imposed last year 25% on steel and 10% on aluminium became a major stumbling block to ratifying a new North American trade pact negotiated last year by the three countries.
- Canada and Mexico agreed to withdraw all complaints lodged against the U.S. at the World Trade Organization (WTO).
- They also agreed to monitor imports to ensure metals that are sold at “dumped prices” — below the cost of production — are not purchased in or shipped through Canada and Mexico.
- The agreement “provides for aggressive monitoring and a mechanism to prevent surges in imports of steel and aluminium.”