[ferro-alloys.com]The US agreeing to drop the Section 232 tariffs on imports of steel and aluminum from Canada and Mexico is a big step forward toward ratification of a new trade agreement between the three countries, Canadian Prime Minister Justin Trudeau said Friday.

"The steel and aluminum tariffs were really the greatest obstacles to ratification -- both for us and the US -- when it comes to the new NAFTA agreement, but now we will be working with the Americans on the ratification process," Trudeau said during a televised press conference at Canadian steelmaker Stelco's mill in Hamilton, Ontario. "We will see what the next steps are and there is no doubt we have just made a huge step forward."

Trudeau said he was optimistic the three countries will be able to move forward with ratifying a trade agreement in the coming weeks. Leaders of the three countries signed off on the US-Mexico-Canada Agreement in October 2018; however, the deal must still be approved by the countries' legislatures.

Trudeau said there was no one breakthrough moment in getting the tariffs removed, just steady conversations over the course of the past year. Canada and Mexico have been in negotiations with the US regarding the removal of the metals tariffs since they took effect for the countries in June 2018.

"There was an understanding that these tariffs were harming workers and consumers on both sides of the border," he said. "As we looked at moving forward with the new NAFTA, it didn't make a lot of sense to continue to have tariffs on steel and aluminum between our countries."

Under the agreement announced Friday, Canada and Mexico have committed to work with the US to address the issues of dumping and subsidization in the global steel market, Trudeau said. The countries will also establish an agreed-upon process for monitoring steel and aluminum trade between them, however details on how North American imports will be monitored going forward were not immediately available.

(S&P Global Platts)

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