Congressman Arrington: USMCA will impact the 'steel industry in - FOX34 Lubbock

Congressman Arrington: USMCA will impact the 'steel industry in a huge way'

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LUBBOCK, Texas -

Last week the Senate approved the US-Mexico-Canada Agreement, sending the deal to President Trump for final approval. 

President Trump saying the trade deal makes the U.S. stronger and better, including the steel industry. 

"90 percent of the steel from the steel mills in the United States goes to Canada and Mexico," Lubbock Congressman Jodey Arrington said. 

Matt Tucker, Operations Manager for Beck Steel, said since the agreement removed some tariffs, overtime it's helped steady steel costs. 

"So originally prices went up, but in the end they stabilized and now they're actually lower than they have been in quite some time," he said. 

With the 25% tariff on imported structural steel still in place, it's allowed the industry to supply more American-made products. 

"We see less and less foreign material in the warehouses as well," Tucker said. 

Congressman Arrington said part of the agreement sets certain provisions that are a win for West Texas steel. 

"If you're going to make a car 75% of your parts have to come from North America," he said. "The steel in that car 70 percent of it has to be made in North America. That will ensure that we have a robust steel manufacturing industry, auto industry."

Which in turn provides more jobs on the South Plains. 

"Half of the jobs that are trade related in West Texas are connected to Canada and Mexico," Arrington said. 

He added the trade deal allows for a level-playing field with Mexico and reduces the barriers for the U.S. to get its products into Canada. 

"By doing all of the above, we're going to add 70 billion dollars to our economy and a hundred and seventy thousand new jobs," he said. 

President Trump is expected to sign the USMCA Wednesday. The deal cannot take effect until it has been ratified by all three countries. Canada has yet to formally approve it. 

 

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