Canada quietly moves to resolve steel spat with Mexico

February 15, 2019

Finance Minister Bill Morneau has quietly reversed a controversial decision to slap a surtax on two types of Mexican steel imports.

Effective Feb. 2, up to a new limit, Mexican energy tubular products (such as those used to build pipelines) and wire rod shipments will no longer cost an extra 25 per cent under Canada's emergency 'safeguard' measures.

Steel from other countries that don't have free trade agreements with Canada will continue to face the extra tax.

For Mexico alone, new tariff-free thresholds have been set for the 200-day period to which the temporary surtax applies. The 72,820-tonne quota for tubular products and the 16,776-tonne quota for wire rod are based on an average volume of Mexican imports in recent years, plus a bit of growth, according to Morneau's office.

Surtax already paid by purchasers will be refunded...

This has been excerpted from the 14 February 2019 edition of CBC News.

Topic(s)

Trade Agreements

Information source

Canadian News Channel

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