By David Lawder
WASHINGTON, Might 17 (Reuters) – U.S. Commerce Consultant Katherine Tai mentioned a variety of commerce points with Canadian Commerce Minister Mary Ng on Monday and emphasised the necessity for Canada to implement new North American commerce deal commitments on dairy and e-commerce shipments, her workplace mentioned in a press release.
In a digital assembly on the eve of the primary assembly of the U.S.-Mexico Canada Settlement Free Commerce Fee, Tai additionally raised considerations about Canada’s just lately proposed digital companies tax, USTR mentioned. The commerce company is readying potential tariffs on six international locations whereas worldwide negotiations on the difficulty proceed.
An announcement from Canada’s commerce ministry mentioned Ng additionally raised considerations about U.S. commerce insurance policies however the two agreed on the necessity to strengthen North American provide chains, collaborate on COVID-19 restoration and implement the USMCA’s labor rights provisions.
These included considerations about U.S. “Purchase America” authorities procurement restrictions and an ongoing dispute over U.S. tariffs on Canadian softwood lumber. American residence builders and U.S. lawmakers have requested Tai to raise the 9% duties to ease a provide crunch that has despatched lumber costs hovering.
“Minister Ng reiterated that it was in the very best curiosity of each international locations to achieve an settlement on softwood lumber and raised the impacts of photo voltaic safeguards,” the commerce ministry mentioned.
Ng additionally introduced up a dispute over Michigan Governor Gretchen Whitmer’s order that Canadian pipeline firm Enbridge ENB.TO shut down a crude pipeline over security considerations, a transfer Canada says would violate a 1977 treaty.
The commerce ministry mentioned Ng “famous the significance of the continued protected operation of Line 5” which runs below the Straits of Mackinac within the Nice Lakes.
The USMCA commerce deal allowed for improved entry for U.S. dairy farmers to Canada’s extremely protected dairy market. The Trump administration in December mentioned it was difficult Canada’s allocation of tariff-rate quotas for dairy.
The commerce deal additionally raised the “de-minimis” duty-free threshold for small duty-free shipments of products to C$150 from C$20 beforehand, a transfer anticipated to learn U.S. e-commerce firms reminiscent of Amazon.com AMZN.O and eBay EBAY.O
The assembly of the USMCA Free Commerce Council, which incorporates Tai, Ng and Mexican Financial system Minister Tatiana Clouthier, can even talk about a number of irritants in Mexico’s implementation of the accord, notably on labor rights. Tai has pledged to carry up allegations that labor rights have been denied in a union contract vote at a Basic Motors GM.N truck plant within the central Mexican metropolis of Silao and a union membership drive at an auto elements plant within the Texas border metropolis of Matamoros.
(Reporting by David Lawder; further reporting by Steve Scherer in Ottawa Enhancing by Chris Reese and David Gregorio)
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