Post: Jul. 24, 2019
Ratification of the USMCA Trade deal, the replacement for the North American Free Trade Agreement, is a priority for manufacturers across the country and especially those in New York State. The Council of Industry, along with hundreds of other business associations across the nation and the state, has signed letters of support for the USMCA encouraging Congress to approve the deal.
In New York, the Albany Times Union reports that “The Business Council of New York State is calling on the state’s congressional delegation to support the passage of the U.S.-Mexico-Canada trade deal, which would replace NAFTA upon ratification. About 800,000 jobs in New York are supported by trade with Mexico and Canada.” https://www.timesunion.com/business/article/Business-Council-of-NYS-urges-Congress-to-pass-14117259.php
Earlier this month Manufacturers from all over the nation came to Washington, D.C to express the urgent need for United States-Mexico-Canada Agreement (USMCA) passage at a series of events with key legislative decision-makers. “The Trump administration continues to show its steadfast commitment to America’s manufacturing workers,” said Emerson CEO David Farr. “Manufacturers in Missouri and across the nation are keeping our promise to grow, invest and hire. This historic agreement will help us sustain this momentum. Congress must act now and ratify this agreement.”
https://www.nam.org/manufacturers-show-up-to-push-for-swift-usmca-passage-5466/?stream=news-insights
Vote is planned for later this Fall.
CNBC is reporting that “the White House plans to send the USMCA to Congress after Sept. 1, setting up a vote by the end of the year. The White House could submit the bill to Congress as soon as this week to start the approval process. House Democrats are meeting in working groups to hammer out issues with the existing agreement.”
https://www.cnbc.com/2019/07/10/trump-white-house-likely-to-send-usmca-trade-deal-to-congress-after-sept-1.html
Post: Jul. 23, 2019
Meet Korey, CNC Apprentice at KDC/One Kolmar in Port Jervis. Kolmar is a contract manufacturer of color cosmetics and personal care products including eye makeup, lipsticks, pressed and loose powders and bath products to list a few. Korey started working at Kolmar in February as a temporary employee cleaning the facility. While working as a temp Korey learned that Kolmar was opening up an apprentice opportunity for current employees and he was quick to apply. By March Korey was enrolled in the program and ready to learn.
Korey currently lives in Port Jervis but grew up in Manhattan, NY. During high school he became interested in the trades and decided to study optics for a few years between high school and college. Studying this trade gave Korey the opportunity to learn something new while getting to work with his hands, two things he told us he loves to do. He later went on to attended John Jay College of Criminal Justice for 2 years in New York City.
When he decided to move up to Port Jervis to be closer to his family, he started out working at Walmart as a stock associate. He spent his time stocking the shelves, assisting customers and helping out wherever possible. Not long after, he took the temp position at Kolmar with the hope that it would grow into something more. Being a CNC Apprentice has given Korey the opportunity to gain hands on experience with lathes, mills, band saws and much more. He now has access to different departments throughout the company and a team of coworkers backing him up and helping him learn.
When we asked Korey what made him want to become a CNC apprentice he told us, “I wanted to be part of the team and to have a purpose. Being in the apprentice program has given me a family at Kolmar and made me feel like I’m part of something.” He works closely with his supervisor and a small group of machinists who have taught him how to read blueprints, make tools and run machines.
Outside of work Korey is also getting related instruction through Tooling-U, an online learning platform specifically for the manufacturing industry. On his own time Korey is taking courses to supplement the experience he’s gaining at work. He told us that after completing each course he sits with his supervisor to review the material and go over any additional questions he might have. This also serves as an opportunity for Korey’s supervisor to relate the material back to his current projects and tasks at Kolmar.
Apprentices in the Council of Industry’s Registered Apprentice Program are required to complete 144 hours of related instruction each year. Many apprentices take advantage of other opportunities outside of Tooling-U including in-house training and courses at local community colleges to complete their hours. SUNY Ulster has also received the SUNY Apprenticeship grant, which allows registered apprentices to take up to $5,000 worth of trade related classes for free.
Korey told us that he’s excited and proud to work at Kolmar and be a registered apprentice. His hard work and eagerness have been instrumental in helping him move up from a temporary position to a full-time apprentice. If you or someone you know is looking to pursue a career in manufacturing, consider joining the Kolmar team. You can easily apply to all available positions online at www.kdc-one.com/careers. Search for jobs based on department, upload a resume and fill in a simple application form to apply today! You can also view other currently available manufacturing positions throughout the Hudson Valley on the Council of Industry’s job board: www.HVMfgjobs.com.
If you are a manufacturing employer or a potential apprentice click here for more information or contact Johnnieanne Hansen at (845) 565-1355 or jhansen@councilofindustry.org to discuss details, requirements and potential opportunities.
Post: Jul. 16, 2019
On Wednesday, July 10, members of the Council of Industry met with John Williams, the President of the New York Federal Reserve Bank for a roundtable discussion of issues affecting Hudson Valley Manufacturers. The event was arranged by the Council of Industry and held at MPI, Inc. It was an opportunity for manufacturing leaders to provide insight on issues such as the skills gap, tariffs, trade, and the overall economy. They also shared steps they have taken along with Council of Industry programs to address these issues.
This event was part of the New York Fed’s tour of the Hudson Valley and Albany in an ongoing effort to assess economic conditions in the Federal Reserve. Williams is one of the key policymakers on the Federal Open Markets Committee that meet eight times a year and attempt to influence the U.S. economy. They review economic and financial conditions, determine the appropriate stance of monetary policy, and assess the risks to its long-run goals of price stability and sustainable economic growth. Williams is a career economist with a doctorate in economics and was previously president of the Federal Reserve Bank of San Francisco.
Williams began the discussion by asking for an open dialogue about each company’s present obstacles and opportunities so he could get a better understanding and perspective of what New York manufacturers, Hudson Valley ones specifically, are facing. The current labor shortage was a clear issue that was addressed throughout the discussion. The aging workforce the absence of vocational and technical training makes it a struggle to find experienced workers.
Williams asked what was being done to address these issues and several members volunteered examples of how they are working with the Council of Industry to help find solutions through a wide variety of initiatives including the apprentice program, the Collaborative Recruiting Program, working with local schools and colleges, and using training programs provided by grants in association with the Council of Industry and the Community Colleges.
One member shared his experience with the Council of Industry’s apprentice program and how it is helping him maintain and further develop the talent he currently has within his company. He believes that investing in his employees will encourage them to stay and grow with the company after the completion of the program. Another member described the relationship his company has cultivated with local P-Tech schools and colleges to find young people with an interest in engineering and manufacturing. There was discussion of technical and supervisory training offered by the Council that members have utilized and how it has been affordable for many of our members because of grant funding provided by the state.
Other topics that were discussed included international trade, the new tariffs, and rare earth materials. There were varying opinions on tariffs and trade. While some members spoke positively about the new tariffs and the hope that it would result in more production within the United States and cut down on intellectual property theft. Others had a slightly different point of view and noted that certain industries rely heavily on the global supply chain, which has been negatively impacted by tariffs. Immigration, especially the H1B Visa program was also discussed.
President Williams thanked the group for their input. The roundtable provided insight on the local economy, business expansion, and workforce development programs in addition to the needs and challenges of advanced manufacturers in the Hudson Valley. While the Federal Reserve Bank cannot address all the challenges discussed, they can leverage their convening power, build connections within the District and utilize their research capabilities to provide support wherever possible.
Council of Industry members that took part in the event included: Bruce Phipps, President, MPI Inc.; Aaron Phipps, VP of Sales & Marketing, MPI, Inc.; Fabio Alvarez, CFO, MPI, Inc.; Elisha Tropper, Principal and CEO, Cambridge Security Seals, Tim Cunningham, VP Manufacturing, Bell Flavors & Fragrances, Julian Stauffer, Chief Operating Officer, PTI – Packaging Technologies & Inspection, Steve Pomeroy, Owner/President, Schatz Bearing Corp., Justin Lukach, President, Micromold Products, Inc., Cedric Glasper, President & CEO, Mechanical Rubber, Neal Johnsen, President, Stanfordville Machines, Steven Efron, CEO, Efco Products, John Yelle, Operations Manager, Pratt & Whitney, Devon Luty, President, Dorsey Metrology, and Diana Tomassetti, President, Pietryka Plastics.
Pictured above: Fabio Alvarez, CFO, MPI Inc.; John Williams, President of the New York Federal Reserve Bank, Johnnieanne Hansen, Director of Workforce Development and Apprentice Coordinator, Council of Industry; Bruce Phipps, President, MPI Inc.; Aaron Phipps, VP of Sales & Marketing, MPI, Inc.
Post: Jul. 12, 2019
On Wednesday, July 10, members of the Council of Industry met with John Williams, the President of the New York Federal Reserve Bank for a roundtable discussion of issues affecting Hudson Valley Manufacturers. The event was arranged by the Council of Industry and held at MPI, Inc. It was an opportunity for manufacturing leaders to provide insight on issues such as the skills gap, tariffs, trade, and the overall economy are impacting their companies. They also shared steps they have taken along with Council of Industry programs to address these issues.
This event was part of the New York Fed’s tour of the Hudson Valley and Albany in an ongoing effort to assess economic conditions in the Federal Reserve. Williams is one of the key policymakers on the Federal Open Markets Committee that meet eight times a year and attempt to influence the U.S. economy. They review economic and financial conditions, determine the appropriate stance of monetary policy, and assess the risks to its long-run goals of price stability and sustainable economic growth. Williams is a career economist with a doctorate in economics and was previously president of the Federal Reserve Bank of San Francisco.
Williams began the discussion by asking for an open dialogue about each company’s present obstacles and opportunities so he could get a better understanding and perspective of what New York manufacturers, Hudson Valley ones specifically, are facing. The current labor shortage was a clear issue that was addressed throughout the discussion. The aging workforce the absence of vocational and technical training makes it a struggle to find experienced workers.
Williams asked what was being done to address these issues and several members volunteered examples of how they are working with the Council of Industry to help find solutions through a wide variety of initiatives including the apprentice program, the Collaborative Recruiting Program, working with local schools and colleges, and using training programs provided by grants in association with the Council of Industry and the Community Colleges.
One member shared his experience with the Council of Industry’s apprentice program and how it is helping him maintain and further develop the talent he currently has within his company. He believes that investing in his employees will encourage them to stay and grow with the company after the completion of the program. Another member described the relationship his company has cultivated with local P-Tech schools and colleges to find young people with an interest in engineering and manufacturing. There was discussion of technical and supervisory training offered by the Council that members have utilized and how it has been affordable for many of our members because of grant funding provided by the state.
Other topics that were discussed included international trade, the new tariffs, and rare earth materials. There were varying opinions on tariffs and trade. While some members spoke positively about the new tariffs and the hope that it would result in more production within the United States and cut down on intellectual property theft. Others had a slightly different point of view and noted that certain industries rely heavily on the global supply chain, which has been negatively impacted by tariffs. Immigration, especially the H1B Visa program was also discussed.
President Williams thanked the group for their input. The roundtable provided insight on the local economy, business expansion, and workforce development programs in addition to the needs and challenges of advanced manufacturers in the Hudson Valley. While the Federal Reserve Bank cannot address all the challenges discussed, they can leverage their convening power, build connections within the District and utilize their research capabilities to provide support wherever possible.
Council of Industry members that took part in the event included: Bruce Phipps, President, MPI Inc.; Aaron Phipps, VP of Sales & Marketing, MPI, Inc.; Fabio Alvarez, CFO, MPI, Inc.; Elisha Tropper, Principal and CEO, Cambridge Security Seals, Tim Cunningham, VP Manufacturing, Bell Flavors & Fragrances, Julian Stauffer, Chief Operating Officer, PTI – Packaging Technologies & Inspection, Steve Pomeroy, Owner/President, Schatz Bearing Corp., Justin Lukach, President, Micromold Products, Inc., Cedric Glasper, President & CEO, Mechanical Rubber, Neal Johnsen, President, Stanfordville Machines, Steven Efron, CEO, Efco Products, John Yelle, Operations Manager, Pratt & Whitney, Devon Luty, President, Dorsey Metrology, and Diana Tomassetti, President, Pietryka Plastics.
Pictured above: Fabio Alvarez, CFO, MPI Inc.; John Williams, President of the New York Federal Reserve Bank, Johnnieanne Hansen, Director of Workforce Development and Apprentice Coordinator, Council of Industry; Bruce Phipps, President, MPI Inc.; Aaron Phipps, VP of Sales & Marketing, MPI, Inc.
Post: Jun. 11, 2019
Forrest has been working as a Sub Assembly Technician 2 at MPI for the past two years. MPI is the worldwide leader in wax-room equipment and has been involved in the investment casting industry for nearly 50 years. Since Forrest is trained in multiple facets throughout the company his job often varies from day to day. In general, it requires the assembling of components to the standards provided by the engineering department. However, he also enjoys helping out and interacting with other departments whenever possible.
Forrest grew up and attended high school in Hyde Park, NY. While attending FDR High School he took advantage of the local BOCES programs. At the time Forrest showed an interest in auto-mechanics and spent a year attending BOCES for hands-on training. However, his interests were diverse and he also discovered a passion for micro-biology. After high school Forrest decided to explore that interest further at Dutchess Community College. There he got his Associates Degree in General Biology and Chemistry.
After college he tried out several jobs in various industries before starting at MPI. He spent some time working for New York State Parks as well as Home Depot and gained some valuable work experience along the way. During his time at Home Depot he learned how to work his way up within a company. Starting out as a part-time employee pushing carts Forrest quickly made his way into the lumber department working full-time before the end of his probationary period.
When it came time for a career change Forrest learned about MPI from an old friend. Taking from his experience at Home Depot, he was able to quickly move up the ranks at MPI as well. He started in the Box Room cutting holes in the electrical boxes for the wires and buttons to later be input. He was able to move into his current position by offering to help other departments whenever he had down time. The knowledge he gained from working directly with other departments allowed him to cross-train himself and become a more valuable asset to the company.
Working in the manufacturing industry is entirely new to Forrest and he’s gained many new skills. Besides skills though, Forrest told us that he’s also learned that “any one worker, no matter how small, can have an impact throughout the world.” Forrest explained to us that MPI has customers from around the world including some in Ireland, China, Korea, and across the United States. He’s played a role in creating machines that will later go into the aerospace and medical industries to name a few. Forrest takes pride in the fact that his job at MPI can indirectly make an impact on people’s lives internationally.
Forrest found out about the NYS registered apprentice program from his supervisor who strongly encouraged him to register. He officially joined the program in January under the Electro-Mechanical Technician trade. He said that the opportunity to earn a nationally recognized accreditation as a journey level worker is what encouraged him to join and continues to motivate him. Forrest hopes to become more valuable as an employee through the experience he’s gaining as a registered apprentice, and he’s excited about the amount of skills and knowledge he’s gained thus far.
Forrest will also be featured in an upcoming video about careers in manufacturing sponsored by Tompkins Mahopac Bank. The Council of Industry’s project, Go Make It, is working with Stage 6 Media to create the video, which will highlight modern manufacturing and the high-quality jobs available. The video will be used to inspire and inform young adults about the manufacturing industry and the opportunities available right here in the Hudson Valley.
The Council of Industry’s Apprentice Program currently offers six registered trades: Machinist (CNC), Electro-Mechanical Technician, Maintenance Mechanic, Quality Assurance Auditor, Toolmaker and Industrial Manufacturing Technician and typically takes two to four years to complete. The program requires apprentices to complete a combination of related instruction as well as on-the-job training hours. Forrest is completing his related instruction hours through Tooling-U, an online learning platform that is available to each registered apprentice. Outside of Tooling-U Forrest is also considering taking advantage of the SUNY Apprenticeship grant, which allows apprentices to take up to $5,000 worth of trade related courses for free at SUNY Ulster.
If you are a manufacturing employer or a potential apprentice click here for more information or contact Johnnieanne Hansen at (845) 565-1355 or jhansen@councilofindustry.org to discuss details, requirements and potential opportunities.
Post: Jun. 6, 2019
Beijing’s latest missive struck a newly measured tone, despite accusing Washington of scuttling negotiations, while Mexico sends a delegation to Washington to discuss immigration issues.
The Wall Street Journal Reports (Subscription Required) that China and Mexico both signaled a willingness to negotiate with Washington over escalating trade issues, while the Trump administration took to the airwaves to defend its use of tariffs to gain concessions from trading partners. “We’re willing to adopt a cooperative approach to find a solution,” Vice Commerce Secretary Wang Shouwen said in Beijing on Sunday.
Mexico, meanwhile, rushed a delegation to the U.S. to discuss immigration issues, following the Trump administration’s threat last week to impose tariffs on all Mexican goods entering the U.S. if the Mexican government fails to take aggressive measures to stem the flow of immigrants through Mexico and into the U.S. Tariffs on all Mexican imports would begin at 5% and rise by 5 percentage points each month before reaching 25% in October.
Meanwhile Bloomberg reports that Beijing has readied a plan to restrict exports of rare earths to the U.S. if needed, as both sides in the trade war dig in for a protracted dispute, according to people familiar with the matter.
Heavy rare earths include dysprosium, used in magnets commonplace in almost all cars and many consumer goods. The group also has yttrium, used in lighting and flat screens, as well as ytterbium, which has applications in cancer treatments and earthquake monitoring.
Post: May. 8, 2019
Bruce has been working at Elna Magnetics in Saugerties, NY for the past 6 months as a Machine Operator. During his time at Elna he’s learned how to use cutting machines, grinders, mills and how to handle ferrite materials. In 1955 Elna was founded as a custom machine shop providing specialized ferrite cores to the electronics industry. Today they continue to provide custom machining services as well as authorized distribution of Ferroxcube, Fair-Rite Products, EPCOS ferrite and much more. Their products can be found on driverless tractor trailers, missile defense and drilling equipment.
Bruce grew up and attended high school in Daytona Beach, FL but eventually made his way back up to New York. He’s enjoyed working with his hands from a young age, and as a kid he spent his time constructing and playing with his Erector Set. After high school he didn’t initially consider going into the manufacturing field, but his career naturally led him down that path and he’s enjoyed it ever since.
Before becoming a machinist Bruce worked in assembly. He didn’t have any prior experience working with CNC machines but was able to work his way up and learned quickly. “I fell into it and I’ve enjoyed it ever since,” said Bruce “making different parts everyday and being able to work with my hands is what I like the most.”
Bruce just recently registered as an apprentice under the CNC Machinist trade. He told us he still has a lot to learn and he’s looking forward to gaining more knowledge about the industry as a whole while in the program.
Elna Magnetics is actively making an effort to invest in their employees and create an environment for growth. The apprentice program has given Elna a formalized way of providing their staff with the tools and resources needed to be successful. “I’m excited to have Elna onboard” said Johnnieanne Hansen, Director of Workforce Development and Apprentice Coordinator at the Council of Industry. “It’s nice to see companies investing in their staff and preparing their workforce for the future.” Elna offered Bruce the opportunity to join the apprentice program after quickly realizing his potential, and they’re currently in discussion with Ms. Hansen on how to offer this program to other members of their team.
Apprentices gain a well-rounded understanding of the trade through a combination of related instruction courses and on-the-job training. Related Instruction courses can be completed online through a free subscription to Tooling-U, or in a classroom. SUNY Ulster currently offers an Advanced Manufacturing Program, which allows apprentices to take up to $5,000 worth of trade-related courses for free.
In just over a year the Council of Industry’s Apprentice Program has reached over 60 registered apprentices, 35 of which are located in the Hudson Valley. The program is currently supporting apprentices in Orange, Ulster, Dutchess and Westchester County, as well as on Long Island. The successful launch of this program has been both exciting and encouraging for everyone involved.
The apprentice program typically takes two to four years to complete, and there are currently six registered trades: Machinist (CNC), Electro-Mechanical Technician, Maintenance Mechanic, Quality Assurance Auditor, Toolmaker and Industrial Manufacturing Technician. If you are a manufacturing employer or a potential apprentice click here for more information or contact Johnnieanne Hansen at (845) 565-1355 or jhansen@councilofindustry.org to discuss details, requirements and potential opportunities.
Post: Apr. 17, 2019
Global NY is Recruiting for MEDTEC China 2019
SEPTEMBER 25–27, 2019, SHANGHAI, CHINA
Global NY is recruiting up to 10 NYS small businesses to participate in an organized trade mission to MEDTEC China 2019 in Shanghai. MEDTEC China, the leading medical device design and manufacturing exhibition in China, will take place on September 25-27, 2019 at the Shanghai World EXPO Exhibition & Convention Centre. It is a premier manufacturing and sourcing event for medical device manufacturers in China. Key industries include: Assembly Equipment & Production Machinery, Materials for Every Application, Packaging, Sterilization & Cleanroom Equipment, Plastics/Disposable Devices & Diagnostics, Outsourcing/Contract Manufacturing, Motors, Pumps & Motion Control, IVD Suppliers, Quality, Precision Technology, Medical Electronics.
Why Export to China?
• China is New York’s #2 Buyer.
• China is currently the United States’ third-largest export market.
• New York exported approximately $12.6 billion in goods to China in 2018.
• China is seeking high-tech products and services from NY Companies.
For eligible companies, Global NY’s STEP grant can reimburse a significant portion of your exhibit, travel and accommodation expenses. You also will be eligible to apply for Global NY’s customized Export Marketing Assistance Service (EMAS) in China.
Application Deadlines and Details:
The deadline for applying to participate in MEDTEC China 2019 is May 31, 2019.
Follow this link to download a PDF with more information
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From The National Association of Manufacturers (NAM)
Trade is important for New York, helping New Yorkers sell more of what they make to more customers around the world. More sales equal more well-paying jobs and a stronger economy across the state. New York’s ability to sell more American-made products to Canada and Mexico is tied directly to tariff-free and rules-based trade in North America.
New York Without the U.S.–Mexico–Canada Trade Agreement: Less Manufacturing and Fewer Jobs
Without tariff-free trade across North America secured by a strong trade agreement, New York’s manufactured goods exports to Canada and Mexico could face a minimum of $192 million to $1.5 billion in extra taxes (compared to zero tariffs today). As a result, many of New York’s manufacturers and the workers and communities they support would lose sales as competitors from Europe and Asia continue to enjoy zero tariffs. The result would be less manufacturing production and fewer well-paying American jobs in New York and throughout the United States.
Find out more with this fact sheet from NAM.
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From The National Association of Manufacturers (NAM)
The North American commercial market is the most important market for manufacturers in the United States. Over one-third of U.S. manufactured exports are sold just to Canada and Mexico, which purchase more from the United States than our next 10 foreign country partners combined.
More than 25 years under the original North American Free Trade Agreement entered into force, the three countries came together to modernize this decades old agreement resulting in the United States–Mexico–Canada Agreement that was signed in November 2018. The NAM strongly supports passage of the USMCA as soon as possible this year to ensure manufacturers can grow with certainty with our most important commercial trading partners—Canada and Mexico.
View the USMCA Fact Sheet
Over half of manufacturing voters said in recent polls that they want their member of Congress to approve the USMCA. But manufacturers need to do more to build understanding of how the U.S.-Mexico-Canada Agreement (USMCA) strengthens the partnership we have with Mexico and Canada to modernize North American trade agreements.
Take Action Now
Link to NAM North American Trade
Post: Oct. 2, 2018
US, Mexico, and Canada Reach agreement to Update NAFTA: Here’s what’s in the “New NAFTA”
After more than a year of intense negotiations, the United States, Canada, and Mexico reached an agreement to update the North American Free Trade Agreement, the 1994 pact that governs more than $1.2 trillion worth of trade among the three nations. Congress and the legislatures in Canada and Mexico have yet to approve it, a process that is expected to take months, so most of the key provisions don’t start until 2020.
Here’s what’s in the “new NAFTA.”
New name. The new deal will be known as the United States-Mexico-Canada Agreement, or USMCA.
Big changes for cars. The goal of the new deal is to have more cars and truck parts made in North America. Starting in 2020, to qualify for zero tariffs, a car or truck must have 75 percent of its components manufactured in Canada, Mexico or the United States, a substantial boost from the current 62.5 percent requirement.
There’s also a new rule that a significant percentage of the work done on the car must be completed by workers earning at least $16 an hour, or about three times what the typical Mexican autoworker makes. Starting in 2020, cars and trucks should have at least 30 percent of the work on the vehicle done by workers earning $16 an hour. That gradually moves up to 40 percent for cars by 2023.
Dairy Canada opens up its milk market to U.S. farmers. Canada has a complex milk and dairy system. To ensure Canadian dairy farmers don’t go bankrupt, the Canadian government restricts how much dairy can be produced in the country and how much foreign dairy can enter to keep milk prices high. In the end, Canada is keeping most of its complex system in place, but it is giving a greater market share to U.S. dairy farmers. U.S. negotiators say they got a major victory by forcing Canada to eliminate the pricing scheme for what are known as Class 7 dairy products. That means U.S. dairy farmers can probably send a lot more milk protein concentrate, skim milk powder and infant formula to Canada (and those products are relatively easy to transport and store).
Dispute Resolution Chapter 19, allowing for a special dispute process, stays intact. Chapter 19 allows Canada, Mexico, and the United States to challenge one another’s anti-dumping and countervailing duties in front of a panel of representatives from each country. This is generally a much easier process than trying to challenge a trade practice in a U.S. court. Over the years, Canada has successfully used Chapter 19 to challenge the United States on its softwood lumber restrictions.
Side Letters Mexico and Canada get assurance the US won’t pound them with auto tariffs. Along with the new trade deal, the administration signed “side letters” allowing the two nations to mostly dodge Trump’s auto tariffs. The side letters say Canada and Mexico can continue sending about the same number of vehicles and parts across the border free of charge, regardless of whether auto tariffs go into effect down the road. Only parts above that quota could face tariffs.
Steel and Aluminum These tariffs stay in place (for now). Canada wanted the US to stop the 25 percent tariffs on Canadian steel. That didn’t happen — yet. The two countries are still discussing lifting those tariffs, but a senior White House official said Sunday that process is on a “completely separate track.”
Improved labor and environmental rights. The USMCA makes a number of significant upgrades to environmental and labor regulations, especially regarding Mexico. For example, the USMCA stipulates that Mexican trucks that cross the border into the United States must meet higher safety regulations and that Mexican workers must have more ability to organize and form unions. Some of these provisions might be difficult to enforce, but the Trump administration says it is committed to ensuring these happen — a reason U.S. labor unions and some Democrats are cheering the new rules.
Increased intellectual property protections. The new IP chapter is 63 pages and contains more-stringent protections for patents and trademarks, including for biotech, financial services, and even domain names. Many business leaders and legal experts believed these updates were necessary given that the original agreement was negotiated 25 years ago.
NAFTA Chapter 11, Is (mostly) gone. Chapter 11 is eliminated entirely for Canada and mostly for Mexico, except for some key industries such as energy and telecommunications. Chapter 11 gave companies and investors a special process to resolve disputes with one of the governments in NAFTA. The idea was that if investors put a lot of money into a project and then the government changed the rules, there was a clear dispute process — outside the court system — where investors could get their problem resolved.
