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T H E A L L I A N C E

Opportunities and Challenges with the new USMCA Agreement as viewed by Ports to Plains. Local to Global Forum March 8, 2019 Medicine Hat, AB. T H E A L L I A N C E. Mission Statement.

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T H E A L L I A N C E

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  1. Opportunities and Challenges with the new USMCA Agreement as viewed by Ports to Plains.Local to Global ForumMarch 8, 2019Medicine Hat, AB

  2. THE ALLIANCE

  3. Mission Statement Ports-to-Plains is a grassroots alliance of communities and businesses whose mission is to advocate a robust international transportation infrastructure to promote economic security and prosperity through North America’s energy and agricultural heartland including Mexico and Canada.

  4. A Corridor of National Significance • A Congressionally-Designated High Priority Corridor • An Energy Corridor • An Agricultural Corridor • An International Trade Corridor • A Jobs and Economic Development Corridor • A Connectivity Corridor • A Congestion Relief Corridor (For I-25 and I-35)

  5. International Trade Corridor A 50% Increase

  6. International Trade Corridor A 92% Increase • Compared to 50.00% National Increase

  7. International Trade Corridor A 114.1% Increase

  8. International Trade Corridor A 132% Increase • Compared to 114.1% National Increase

  9. UNITED STATES-MEXICO-CANADA AGREEMENT (USMCA) Over 1800 pages Most Public Understanding based on a series of 140 character tweets

  10. Big Changes for Cars • Starting in 2020, to qualify for zero tariffs, a car or truck must have 75 percent of its components manufactured in Canada, Mexico or the United States • Substantial boost from the current 62.5 percent requirement.

  11. Big Changes for Cars • Starting in 2020, cars and trucks should have at least 30 percent of the work on the vehicle done by workers earning $16 an hour. • That gradually moves up to 40 percent for cars by 2023.

  12. Big Changes for Cars • Winners -- Upside • Union Labor • Increased Wages Help North American Workers • Losers - Downside • Consumer • Increased Vehicle Costs

  13. Milk Market • Canada opens up its milk market to U.S. farmers • Canada to eliminate the pricing scheme for what are known as Class 7 dairy products. That means U.S. dairy farmers can probably send a lot more milk protein concentrate, skim milk powder and infant formula to Canada (and those products are relatively easy to transport and store)

  14. Milk Market • Also imposes some restrictions on how much dairy Canada can export, a potential win for U.S. dairy farmers if they are able to capitalize on foreign markets.

  15. Milk Market • Winners -- Upside • U.S. Dairy Farmers • Losers - Downside • Canada Dairy Farmers

  16. Chapter 19, Special Dispute Process • Stays Intact • Allows Canada, Mexico and the United States to challenge one another’s anti-dumping and countervailing duties in front of a panel of representatives from each country.

  17. Chapter 19, Special Dispute Process • Winners -- Upside • Canada • Losers - Downside • United States???

  18. Steel and Aluminum Trade • Steel and Aluminum tariffs stay in place (for now) • The 25 percent tariffs on steel and 10 percent duties on aluminum are staying put for now.

  19. Steel and Aluminum Trade • Winners -- Upside • U.S Steel and Aluminum Producers • Losers - Downside • Canada Steel Producers • U.S. Consumers • Stumbling Block to Ratification

  20. Ratification • United States • Agriculture Pushing Congress • Mexico • Steel and Aluminum Tariffs are a Stumbling Block • Canada • Steel and Aluminum Tariffs are a Stumbling Block

  21. What Happens if Ratification Fails? • Trade between U.S., Canada and Mexico will continue • Consumers in the U.S., Canada and Mexico will pay the price

  22. Thank You Joe Kiely Vice President of Operations

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