Manitoba mining is unlikely to take a hit after a new North American trade deal was reached.
After months of negotiation, representatives from Canada, Mexico and the United States agreed to the United States-Mexico-Canada Agreement (USMCA) on Sept. 30.
The new agreement sets rules and protections for trade between all three countries, with the intention of helping the economies of the countries.
The USMCA is set to replace the existing deal, the North American Free Trade Agreement (NAFTA), once it is ratified.
The Mining Association of Canada has not yet released a public statement regarding the USMCA, but any effects from the new agreement are unlikely to be seen in the Manitoba mining industry.
“As far as I know, it’s pretty much the same,” said Andrea McLandress, executive director of the Mining Association of Manitoba Inc. (MAMI).
“Given the international scope of the market, we can’t attribute any direct effects to Manitoba mining right now.”
Minerals found in northern Manitoba, including zinc, copper and nickel, often rely on international companies and markets, and often have minimal involvement with American-based companies. Almost all major mining operations in Manitoba, including Hudbay’s operations in Flin Flon and Snow Lake and Vale in Thompson, are either run by Canadian companies or Canada-based subsidiaries of international mining conglomerates.
Markets for crucial minerals found in northern Manitoba have remained stable since the USMCA was announced on Sept. 30. Market prices for zinc, copper and nickel have not seen any dramatic movements, with copper seeing a slight increase as of Oct. 4.
Main effects of the USMCA would be seen in the manufacturing and dairy industries.
One section of the new agreement includes protection for recent tariffs levied by the United States toward aluminum and steel from Canada, Mexico and the European Union. Also included: an agreement with Canada and Mexico that the US would not issue additional tariffs on automotive products.
“The tariffs imposed will still be in place, but Canada obtained a side letter from the US providing a 60-day cooling-off period and that the existing US tariffs on aluminum and steel are subject to separate negotiations outside this new agreement,” said McLandress.
