Trade Chat: Kentucky & Canada - USMCA, Tariffs, and Covid-19
Canada and Kentucky - The future of USMCA, Aluminum Tariffs, and post-covid
Canada remains a top destination for Kentucky exporters. In 2018, Canada was the #1 trade partner for Kentucky with over 7 Billion in exports. The new United States-Mexico-Canada Agreement (USMCA) implemented on July 1st, 2020 will better serve the interests of American workers, farmers, ranchers, and businesses and support mutually beneficial trade leading to freer markets, fairer trade, and robust economic growth in North America.
The Province of Quebec produces 2.8 million metric tons of primary aluminum, or 60% of total North American production. Quebec is the United States 11th largest trading partner. Recently, the U.S. Administration has re-imposed tariffs on aluminum that will took effect on August 16, 2020. As in 2018, Canada has imposed countermeasures on U.S. exports to Canada. For Kentucky, roughly $129M of aluminum products are facing a 10% countermeasure. Canadian raw aluminum exports to the US account for more than 160,000 U.S. jobs, or roughly 97% of US aluminum industry jobs, in mid-and-downstream production and processing. What are the impacts to Kentucky business, and trade for these two partners? Tariffs negatively impact a greater number of US aluminum industry jobs, disrupt long standing supply chains, and hinder economic recovery. Changes in product mix are a normal market reaction to economic downturns, but the aluminum market has already as of July begun to return to normal, so there is no surge in Canadian exports to the United States. As previous tariffs have shown, it will raise costs for consumers, raise costs for U.S. manufacturing, make U.S. manufacturers less competitive and ultimately increase costs on everything from cars and trucks and auto parts to soft drinks and beer, and even medical supplies that we all need to fight Covid-19.
Please join the World Trade Center Kentucky with representatives from Canada, Quebec, and Kentucky for an important Trade Chat to discuss USMCA, Aluminum Tariffs, and trade post-covid.
Greetings from Craig McKinney, Director for International Affairs, Kentucky Cabinet for Economic Development (BIO) (Think Kentucky - website)
- Catherine Loubier, Delegate General of Québec in New York (BIO)
- Joe Comartin, Consul General of Canada in Detroit (BIO)
- Mike Kilby, President & CEO, Dajcor Aluminum Ltd (BIO)
- Krzysztof Fidler, Senior Manager, Trade Compliance, Toyota Motor North America (BIO)
- Jean Simard, President and Chief Executive Officer, Aluminium Association of Canada (BIO)
To join the effort online go to https://cabc.co/rebound/.
ABOUT TRADE CHATS: Whether a specific topic like importing PPE, working within the EU, or mitigating risk, or an open ended talk about whatever is an issue your company is currently facing, our Trade Chat is a chance to come together with experts and industry professionals in an informal setting to get the answers you are looking for. These Chats are free for members!
*This seminar is an approved STEP Grant reimbursement. If you have not applied for the STEP (State Trade and Export Promotion), please visit the Kentucky Export Initiative website for more information: Click here to learn more about the STEP Grant.