The Washington-based Institute of Scrap Recycling Industries (ISRI) has joined the United States Chamber of Commerce and more than 200 other business groups and companies to advocate for the ratification of the U.S. Mexico Canada Agreement (USMCA), designed to replace the North American Free Trade Agreement (NAFTA).
Launched on Feb. 26, the USMCA Coalition says it will harness the resources of a broad range of industries, associations, and companies in Washington and around the country to promote the benefits of the agreement and gather support for its swift passage.
For ISRI members, the new agreement is mainly status quo, but there are three key enhancements, according to the association.
For customs clearances, the USMCA provides for more cooperation among the three countries’ customs officials, which should improve the movement of materials across borders, says ISRI.
The agreement also “recognizes the important role that international standards, guides and recommendations can play,” says the USMCA Coalition, which ISRI says should pave the way for ISRI’s scrap specifications to serve as the standard for scrap commodities traded within North America.
Finally, scrap processed in North America will be included as a contribution to the supply chain for automobiles required to meet enhanced “rules of origin” obligations, says ISRI.
The timing for the agreement’s ratification is still uncertain as it requires ratification in all three legislatures, but ISRI says it hopes that by joining the USMCA Coalition, it can work closely with other groups to press for passage as early as possible.
No decision has yet to be made regarding U.S. 232 tariffs on steel and aluminum products from Canada and Mexico, which have been a stumbling block to USMCA passage in those two nations, “but news reports suggest negotiations are underway,” says ISRI.