The United States, Mexico and Canada have agreed on stricter rules of origin that exceed those of NAFTA 1.0 and the Trans-Pacific Partnership (TPP), including for cars and auto parts and other industrial products such as chemicals, steel-intensive products, glass and fibreglass. Among other things, the agreement brings the regional value of motor vehicles eligible for duty-free imports from 62.5% under NAFTA to 75%. In addition, the agreement provides that at least 40-45% of auto parts are produced by workers earning at least $16 an hour, a provision to close the pay gap between U.S. (and Canadian) workers and their Mexican colleagues. After President Donald Trump reintroduced 10% tariffs on Canadian aluminum, the northern U.S. neighbor is sweating on the possibility of reintroducing tariffs on steel. The United States imposed Section 232 tariffs in 2018. Finally, the United States cancelled it as a result of the agreement between the United States and Mexico-Canada (USMCA). Freeland also referred to recent developments in favour of Canada`s steel and aluminum sectors, including the U.S. abolition of steel and aluminum tariffs on imports from Canada and Mexico: the North American joint steel sector is ready to work with our governments and supply chains to ensure the success of the USMCA and is ready and able to supply North American steel to our customers to meet their needs. Automakers are working to develop lighter, safer and more environmentally friendly vehicles. Our steel solutions ® S-in-motion play a key role in this regard. 1 Available for ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/uniform-regulations.

2 Appendix 4B, Article 6. 3, section 17.2. 4, section 17(4). 5, Section 17(6) (b). 6, Section 17(6) (a). 7, Section 17(6) (b). 8, Appendix 4B appendix, Section 6.2. 9, section 17.8. 10, section 17(11). 11, section 17(11). 12, section 17(10). 13, section 17(9).

14 The full list of vehicle categories covered in paragraph 16, paragraph 1, is: (a) the same range of motor vehicles in the same class of vehicles manufactured in the same plant in the territory of a USMCA country; (b) the same class of motor vehicles manufactured in the same plant in the territory of a USMCA country; (c) the same range or class of motor vehicles manufactured in the territory of a USMCA country; (d) any vehicle manufactured in one or more establishments located on the territory of a contracting party and exported to the territory of one or more of the other USMCA countries: or e) any other category, as the USMCA countries may decide.