Equipment manufacturers hail USMCA trade agreement 'victory'

Major equipment manufacturers have hailed the new USMCA free trade agreement between the US, Canada and Mexico as a 'victory' for the industry.
Loading, Hauling & Excavation / January 31, 2020
By Liam McLoughlin
US President Donald Trump announces the USMCA agreement
US President Donald Trump announces the USMCA agreement

US President Donald Trump signed the USMCA (United States-Mexico-Canada Agreement) during a ceremony at the White House. It will replace the current NAFTA agreement that governs trade in North America. The trade agreement has been negotiated by the governments of the United States, Mexico and Canada.

Dennis Slater, president of US industry group the Association of Equipment Manufacturers (AEM), said that the agreement works for equipment manufacturers across the country.

He added: "The agreement restores certainty to the North American market and secures duty-free access to our industry’s two largest export markets. It will help equipment manufacturers grow in the United States, compete globally, and support millions of family-sustaining jobs across the country. We look forward to working closely with President Trump and Congress to make sure equipment manufacturers can compete and win in the global economy.”

Other senior executives representing the equipment manufacturing industry also hailed the signing of the UMSCA by President Trump.

Rod Schrader, chairman & CEO of Komatsu America, commented: “The strong bi-partisan support of the USMCA indicates how important it was to update our trading rules.

"USMCA will allow American manufacturers to establish more predictable trade relations and helps ensure fair trade for our products with our important trading partners, Canada and Mexico."

Stephen Roy, senior VP North America at Volvo Construction Equipment, said: “USMCA is essential for growth in the manufacturing backbone of the American economy — equipment manufacturers depend on low barriers to trade, especially with our closest neighbours."

Scott Harris, Case IH VP, North America added: "With commodity price stagnation and global market uncertainty, solidifying and expanding the North American market is absolutely critical for the broader agricultural community, our core dealer partners, and customers."

Since the creation of NAFTA two decades ago, the AEM said that equipment manufacturers have benefited greatly from duty-free market access to the industry’s two largest export markets, Canada and Mexico.