Deputy Prime Minister and Finance Minister Chrystia Freeland said she shares the U.S. government’s concerns about whether Mexico is “coordinating” with Canada and the United States on trade policy, particularly on China.
Canada and the United States have imposed steep tariffs on electric vehicles made in China to protect North America’s nascent EV industry. However, there are growing concerns in Canada about China accessing the North American EV market through Mexico, the third member of the continental trade agreement known as CUSMA (Canada-United States-Mexico Agreement).
Freeland told reporters Wednesday that he has heard concerns about China and Mexico’s trade engagement from both the administration of current U.S. President Joe Biden and the team of President-elect Donald Trump.
Deputy Prime Minister Chrystia Freeland said she has heard warnings from U.S. officials and business leaders that Mexico is not acting like Canada or the United States in its economic relations with China. Freeland agrees with Ontario Premier Doug Ford’s proposal that Ottawa and Washington sign a bilateral trade agreement if Mexico continues to be a backdoor for imports of cheap Chinese materials. He did not say whether or not.
“I’ve heard that there are real concerns about whether Mexico is fully aligned when it comes to its policy toward China,” Freeland said.
“I think these are legitimate concerns that America’s partners and neighbors have. They are concerns that I share.”
Mexico has stepped up auto manufacturing in recent years, with most of its products going to the United States.
Chinese EV maker BYD is looking for a location for a factory in Mexico that can supply the U.S. market.
President Trump has said he could impose hefty tariffs on Mexico to make it less attractive for automakers to build factories there. Cars imported from the country are subject to tariffs of up to 200%.
“All I’m saying is… we’re going to put a number on it that won’t sell a single car,” President Trump said of Mexico in October, referring to the threat of tariffs. “We don’t want them to harm our car companies.”
Freeland’s comments came a day after Ontario Premier Doug Ford suggested excluding Mexico entirely from future trade deals with Canada and the United States.
Ontario Premier Doug Ford said Mexico is acting as a backdoor for imports from China, squeezing Canadian workers. Ford released a statement on Tuesday hinting at the possibility of a bilateral trade agreement between the United States and Canada.
“Free trade needs to be fair,” Ford said Tuesday.
“Since signing the U.S.-Mexico-Canada Agreement, Mexico has allowed a backdoor for Chinese-made cars, auto parts, and other products to enter Canadian and U.S. markets. They are weakening our communities while putting workers’ livelihoods at risk.” ”
On Wednesday, Freeland was asked directly whether Ford’s ideas regarding a bilateral agreement with the United States should be on the table. He did not say whether he supported the idea, instead insisting that Canada is “aligned” with the United States on trade with China.
“Our economic relationship with the United States is strong and mutually beneficial,” he said.
“We are very much in agreement [Trump’s incoming] “The China issue is a central issue for them.”
