The head of Canada’s largest province appears to be venturing into new territory by removing Mexico from the North American trade agreement.
Ontario Premier Doug Ford issued a statement Tuesday as leaders across the continent weigh the impact of Donald Trump’s presidential election victory.
He hinted that Canada would likely face difficulties in reviewing the agreement known as CUSMA (Canada-United States-Mexico Agreement), which would need to be revised starting in 2026 or otherwise expire in 10 years. It will later expire. In its review, Ford cited one of the biggest challenges: U.S. dissatisfaction with the construction of a Chinese-owned auto factory in Mexico.
“Free trade must be fair,” Ford said in a statement.
“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.” ”
Ford has asked Mexico to impose tariffs on Chinese imports to keep auto parts out of the continent’s supply chain.
WATCH | Ford on trade with the US after Trump’s victory:
Following Donald Trump’s victory in the 2024 U.S. presidential election, Prime Minister Doug Ford said his government will fight any potential tariffs and promote closer U.S. trade ties with Canada and Ontario. He said that he would continue to emphasize. CBC’s Lorenda Redekopf has more.
Furthermore, “If Mexico does not counter transhipment in a way that is at least comparable to Canadian and U.S. tariffs on imports from China, it will not have a seat at the table or enjoy access to the world’s largest economy. We must prioritize the closest economic partnership on earth by directly negotiating a bilateral free trade agreement between the United States and Canada.”
The most complex challenge in renewing the continental agreement involves Mexico. There are economic issues at stake that are orders of magnitude bigger than Canada’s dairy tax or U.S. concerns about digital taxes.
In addition to the proliferation of Chinese-owned car factories, the U.S. government is also concerned about the country’s growing influence over Mexican oil companies.
Asked recently about the idea of returning to a Canada-U.S.-only bilateral trade agreement, federal officials told CBC News that this is not Canada’s policy, at least not for now.
Excluding Mexico from the deal would be opposed by large companies with operations in all three countries.
It will also be met with skepticism from some who see Mexico as a political ally in maintaining U.S. Congressional support for North American trade.
The huge flow of commerce across the Mexico-U.S. border and the huge Mexican-American population are generating support for the deal from lawmakers in the southern United States, which has fewer ties to Canada.
