Madam Speaker, reaching an agreement with the United States and with Mexico on the new USMCA is good news for Canada and good news for our workers and consumers. ln fact, the new auto rules of origin components of the United States-Mexico-Canada agreement will level the playing field for our Canadian auto workers. Specifically, because it will require 40% to 45% of a car producer's activities to be carried out by workers who earn at least $16 an hour, our skilled workers will be able to take advantage of the fact that greater volumes will be built in Canada. That is a key component of this new trade deal.
We have also significantly strengthened the labour chapter, including by making it subject to a dispute settlement mechanism. Of note, this now includes provisions to address violence against workers exercising their labour rights, protections against sex-based discrimination and a provision to prohibit the importation of goods produced by forced or compulsory labour.
Another key Canadian objective in the NAFTA negotiations was to obtain an exemption from future potential use of this measure, including against Canada's auto sector. We have successfully done that through the side letter on section 232 tariffs, which is a unique agreement that no other country has been able to arrange with the United States.
This includes a 60-day exemption should any future 232 measures be imposed, which we would use to come to a mutually beneficial outcome through negotiation.
While the section 232 tariffs on Canadian steel and aluminum remain, very unfortunately, their elimination remains an absolute and top priority for our government, the minister and myself. lt is something the Americans have indicated they are more than willing to work on over the next while. We have momentum now, having concluded this deal, and we will be taking advantage of that momentum to intensify our conversations about steel and aluminum tariffs unjustly put against our workers and factories.
ln the meantime, our strong responsive measures to defend our workers remain in place. This includes $16.6 billion in reciprocal measures against U.S. imports and over $100 million in loans that we have provided to small and medium-sized steel and aluminum businesses to ease them in their time of pain and challenge.
We are also challenging these U.S. 232 tariffs under the World Trade Organization rules and under NAFTA. That we can challenge such provisions through NAFTA illustrates just how important it is we have reached an agreement.
Our teams worked tirelessly to ensure we could retain the dispute settlement chapter, specifically chapter 19, as has been tirelessly advocated by my hon. friend. lt is essential to defend our workers, which our government will always do.