The Associated Equipment Distributors (AED) used its annual advocacy day to urge the Government of Canada to make free and fair trade with the United States a leading priority in the current review of the Canada-United States-Mexico Agreement (CUSMA) and in renewed negotiations with Washington.
The equipment dealers' association argued that an integrated North American economy is effective and that tariffs on either side of the border increase costs for farmers, contractors, miners and builders, groups Canada relies on for economic growth.
Cross-border costs
Brian P. McGuire, AED president and CEO, said the equipment that builds Canada is built, sourced and serviced on both sides of the border. Many components cross the border several times before a machine reaches a customer, he noted, and each tariff, whether imposed by Washington or Ottawa, adds cost at every crossing. McGuire said those costs are ultimately paid by farmers, contractors and municipalities, and by Canadian families.
AED said it was disappointed in August that the two countries could not reach a trade agreement and has since increased advocacy on both sides of the border. In September, McGuire wrote to U.S. governors in states with significant exposure to Canadian trade, asking them to press for a return to the bargaining table. AED's U.S. members also met with more than 100 members of the U.S. House and Senate, while AED Canadian board member Brian Osterndorff presented the association's case to the Senate of Canada.
Policy recommendations
AED outlined five recommendations for Canadian decision-makers:
- Tariff certainty and sector relief. Work for exemptions and clearer relief for heavy equipment within CUSMA talks, and use diplomatic avenues to head off new duties on machines and parts.
- Do not let retaliation hit equipment. Duties and counter-duties on industrial goods fall first on Canadian farmers, contractors and resource producers, AED said. Any response should be narrowly aimed and avoid penalizing the machinery used to build and produce.
- Create predictable component rules. Engine parts, safety electronics and other specialized inputs often lack a practical supplier outside North America.
- Consult industry and labour. Gauge tariffs' full impact and prepare contingency measures that protect Canadian jobs and investment.
- Strengthen domestic capacity. Move critical infrastructure forward and support skilled-trades training so Canadian industries can invest with confidence.
Purchasing delays
McGuire said that when customers cannot count on stable prices and stable trade rules, they delay purchases. When purchases are delayed, technicians lose work and projects Canada needs, from housing to critical minerals to food production, fall behind, he said.
He added that the sectors governments rely on to build housing, develop critical minerals, strengthen energy security and feed Canadians all depend on reliable access to equipment and integrated North American supply chains. McGuire described the equipment industry as an enabling industry and said AED is ready to partner with government.