It can be hard to see any light at the end of the trade-dispute tunnel on the NAFTA/USMCA file, but our countries have to keep working on all the other elements on all the various fronts to improve flow of trade in North America, a trade-relations authority says.
Tiffany Melvin, president of the North American Strategy for Competitiveness – NASCO, says President Donald Trump’s recently announced tariffs, to start June 10, on Mexican goods may further complicate the work to get USMCA ratified in the U.S., Canada and Mexico. USMCA is the successor to NAFTA.
Trump is threatening to raise the price of imports from Mexico by 5% on June 10 and then an additional 5% every month until it hits 25% if Mexico does not stem the flow of Central American migrants across the U.S. border. The announcement triggered warnings from Mexico of repercussions, including potential reprisals.
Melvin said it is difficult for business to plan in an atmosphere of uncertainty – there’s no guarantee USMCA will get passed this year, especially with a Canadian election in the fall and then American elections in 2020. Uncertainty is a huge risk to companies wanting to assess the investment climate 10 to 15 years down the road.
Melvin was in Winnipeg for updates with Canadian partners, including Manitoba and Winnipeg. She spoke to a small gathering of business leaders Monday at CentrePort Canada’s invitation.
In the meantime, she stressed, it is important to continue to keep talking and sharing ideas with contacts among the countries. Further, other issues in need of work include border crossings – making flow through more efficient by establishing lanes for companies that have security clearance – workforce issues and the topic of autonomous vehicles.
Melvin said it is particularly important that businesses and political leaders continue to spread the word about how much trade goes on among the three countries – and to show in bold colours on a trade map how many states have Canada as their No. 1 export partner.
Thirty-eight of the nation’s 50 states count Canada as the largest market for exports originating in their states. Melvin also noted that 25 cents of every $1 of goods imported by the U.S. from Canada has ‘Made in USA” content.