The Canada-U.S.-Mexico Agreement (CUSMA) is a win for Canadian businesses, labour, families and consumers. On behalf of Associated Equipment Distributors (AED), I encourage its swift ratification.
AED is the international trade association for companies that sell, rent, service and manufacture construction, mining, farm, energy, forestry and industrial equipment and related supplies. The Canadian equipment distribution industry, which is dominated by small- and medium-sized, family-owned businesses, has more than 420 locations that employ over 27,000 workers and account for at least $8 billion in annual economic activity.
Prime Minister Justin Trudeau and Deputy Prime Minister Chrystia Freeland should be commended for crafting an accord that strengthens ties between Canada’s top trading partners and for the inclusive process throughout. Stakeholders have had years to engage and weigh-in on the government’s negotiating positions. The final agreement strikes the right balance between protecting Canada’s interests and ensuring the free flow of commerce and goods in North America.
Canada’s equipment industry currently faces an array of barriers in the movement of goods. Rail blockades are delaying shipments and causing re-routing to job sites, which is driving up costs and limiting predictability in project planning. Equipment, parts and supplies arriving from China, for example, follow a supply chain with new challenges as illness has caused personal losses and a society-wide response.
Avoiding delays, bottlenecks and inefficiency has been the goal of free trade for businesses in all three member countries of CUSMA. Of the challenges facing the equipment supply chain, ratifying the agreement by passing legislation is the easiest to solve, and possibly the fastest.
AED has members headquartered in the United States and Canada. Our members have engaged members of parliament and other decision makers to ensure a good deal was struck. We promoted the benefits of a deal in Ottawa and Washington, D.C., to ensure both countries were aware of the difficulties that would be come from a bad deal, or a drawn-out process. In the equipment sector, either outcome would be difficult. Uncertainty can cause as much difficulty as regulatory misalignment and quotas if businesses aren’t able to make adjustments to new operating conditions.
We now have a deal that has been ratified by the United States and Mexico, and that would have to be reopened if any amendments are put forward. Businesses cannot afford more negotiation. Stakeholders from across industries have been broadly supportive of the concessions made in Canada and in the U.S. to arrive at the deal being pushed through the House of Commons.
AED has written to the prime minister, deputy prime minister and other political leaders to encourage ratification as fast as possible in Parliament. It is our hope that politicians in the House of Commons and Senate of Canada will listen to the many businesses and workers who are asking for the issue to be resolved. Now is not the time to score political points. It is the time for parties to work together to ensure one of the biggest clouds hanging over the equipment sector for the past three years is lifted.
The equipment industry depends on cross-border cargo transport, open and fair business dealings and harmonized regulations. All stem from the foundation of free trade, which CUSMA protects and all parties should continue to promote. On behalf of AED members, I urge Canada to join its American and Mexican counterparts and ratify CUSMA without delay.
Brian P. McGuire is president and CEO of the Associated Equipment Distributors. Send comments and Industry Perspectives Op-ed ideas to editor@dailycommercialnews.com.
Recent Comments
comments for this post are closed