AED urges Canada to return to trade negotiations after U.S. midterms
November 4 was AED's annual advocacy day in Ottawa
As part of its annual advocacy day, the Associated Equipment Distributors (AED) called on the Government of Canada to make free and fair trade with the United States a top priority in the ongoing review of the Canada-United States-Mexico Agreement (CUSMA) and in the renewed negotiations with Washington.
The association's message was clear: an integrated North American economy works, and tariffs on either side of the border raise costs for the farmers, contractors, miners, and builders Canada is counting on to grow the economy.
"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 ever reaches a customer," said Brian P. McGuire, president and CEO of AED. "Every tariff, whether imposed by Washington or by Ottawa, adds cost at each crossing. Those costs are paid by farmers, contractors, and municipalities, and in the end by Canadian families."
Previous failed trade talks directly affect Canadian contractors and manufacturers
AED expressed disappointment in August that the two countries could not reach a trade agreement and has since stepped up its advocacy on both sides of the border. In September, AED President and CEO Brian P. McGuire wrote to U.S. governors from states with significant exposure to Canadian trade, urging them to press for a return to the bargaining table. AED's U.S. members have also met with more than 100 members of the U.S. House and Senate, and AED Canadian board member Brian Osterndorff recently presented AED's case to the Senate of Canada.
"Our resolve remains strong," said McGuire. "Equipment dealers and manufacturers in both countries agree on one thing: free and fair trade is the best path to prosperity for the sectors we serve. We are here to make sure Canadian decision-makers have the facts about what is at stake, and to encourage every effort to get both governments back to the table."
"When our customers can't count on stable prices and stable trade rules, they delay purchases," McGuire added. "When they delay purchases, our technicians lose work, and the projects Canada needs, from housing to critical minerals to food production, fall behind."
AED outlines the priorities that the Government of Canada should focus on:
- Seek tariff certainty and sector-specific relief. Pursue exemptions and clarified tariff relief for the heavy equipment industry as part of the CUSMA discussions, and use all diplomatic channels to prevent new tariffs on equipment and components.
- Avoid retaliation that targets equipment. Tariffs and retaliatory tariffs on industrial goods hit Canadian farmers, contractors, and resource producers first. Any Canadian response should be carefully targeted and should not penalize the equipment Canadians use to build and produce.
- Establish clear, predictable rules for critical components. Engine parts, safety electronics, and other specialized inputs often have no practical alternative supplier outside North America.
- Work with industry and labour. Assess the full impact of tariffs and develop contingency measures that safeguard Canadian jobs and investment.
- Build resilience at home. Advance critical infrastructure, and support skilled trades training so Canadian industries can invest with confidence.
"The sectors governments are relying 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," said McGuire. "This is an enabling industry, and we are ready to be a partner to government."
