CSPA Calls for Strengthened US-Canada Trade Alignment Following US Presidential Inauguration
On January 21, 2025, Catherine Cobden, President and CEO of the Canadian Steel Producers Association, responded to the inaugural address of the newly sworn-in US President with a statement that underscored the shared challenges faced by the steel industries in both Canada and the United States. The CSPA echoed key priorities mentioned in the President's trade policy statement, emphasizing the necessity for a unified approach to addressing global steel overcapacity and unfair trade practices, particularly from China and other countries with similarly aggressive trade practices.
Shared Challenges in the Steel Sector
The CSPA’s statement highlighted that many of the issues raised by the President regarding the steel industry resonate deeply with Canada's steel sector, workers, and communities. The Canadian steel industry faces significant challenges related to global overcapacity driven by unfair trade practices, especially from China. CSPA stressed that these problems are not contained by national borders. The overcapacity and pricing challenges triggered by global dumping of steel products threaten both US and Canadian steel industries equally.
Canada's steel sector is highly integrated with that of the United States, with annual bilateral trade valued at approximately $20 billion. Given this high level of interdependence, the CSPA emphasized that addressing these challenges together is crucial for ensuring the health and sustainability of the entire North American steel industry. Any failure to combat unfair trade practices would put steelworkers and their families in both countries at risk.
Aligning Trade Policies for Stronger Action
In recent months, Canada has worked to better align its trade policies with those of the United States, especially by imposing a 25% tariff on Chinese steel. This action is in full alignment with the US Section 301 steel tariffs, reflecting the shared understanding that tackling unfair trade practices requires a joint effort between the two countries. The CSPA supports further alignment of trade policies and the use of various trade remedy tools, such as monitoring and Country of Melt reporting, to ensure that no discrepancies exist between the US and Canadian approaches to addressing steel trade issues.
The Canadian steel industry advocates for stronger harmonization of trade policies to avoid creating "daylight" between the two countries within the North American market. This united stance would ensure that both nations face fewer barriers and challenges in their steel industries, ultimately protecting jobs, communities, and markets on both sides of the border.
The Need for a Unified Approach to CUSMA
The CSPA also addressed the ongoing review of the Canada-United States-Mexico Agreement (CUSMA), expressing hope that this process would serve as an opportunity to further harmonize trade relations between the US and Canada. By working together on steel trade policies, both nations could avoid trade disputes and strengthen their economies. A more collaborative approach would also ensure that the two countries remain each other's largest trading partners, fostering mutual resiliency and secure supply chains.
The CSPA emphasized that it is essential to avoid the imposition of trade barriers or tariffs between allies who share common goals and trade interests. This mutual collaboration is seen as vital to the continued success and competitiveness of North America’s steel industry.
The Role of Canadian Steel Producers in North America's Economy
The CSPA represents Canada's primary steel producers, as well as the pipe and tube industry, and is committed to ensuring a competitive and sustainable business environment for its members. The association advocates for policies that support the steel industry's economic contribution, which is vital to Canada's overall economy. Canadian steel is a critical supply chain input for key industries, including automotive, energy, construction, and transportation.
As the national voice for Canada’s steel producers, the CSPA is focused on promoting policies that ensure a level playing field for Canadian manufacturers while addressing global challenges such as unfair trade practices, market overcapacity, and trade imbalances.
