“Markets like Korea and Japan could open up to us and then as those trade relationships improve, that has a tendency to influence the remaining neighboring countries that may not be part of TPP, but they know what’s going on. We feel that will have a very significant impact on how we could open up more markets.”
Voss adds if we could finalize a deal on NAFTA it would be a big outcome and we could keep moving the whole industry forward in a free trade orientation.
He says one of the biggest impacts of not having an agreement is that manufacturers are seeing an uncertainty around steel tariffs.
“The tariffs and the countervailing tariffs that were put in place are not helpful; they don’t do anything favorable for Americans or Canadians. All it does is put uncertainty into the supply chain. Every time the U.S. or Canada talks about no free trade agreement, it just means that everyone freezes and stops moving ahead on business.”
Voss says they (Morris Industries) generally buy most of their steel from Canadian suppliers but those suppliers may buy their raw materials from a U.S. steel mill. If a supplier feels they could be impacted by the steel tariffs they raise their prices.
He says the general commodity price of steel has jumped 40 to 60%, which is then reflected in the cost of machinery.
Source : Steinbachonline