Ontario Premier Doug Ford has suggested that Mexico "shouldn’t have a seat at the table" in upcoming North American free trade talks if it doesn’t match Canadian and American tariffs on Chinese imports. He also stated that Canada and the U.S. should focus on a new, bilateral deal instead.
Ford’s statement comes as North America prepares for the return of U.S. president-elect Donald Trump to the White House and a scheduled review in 2026 of the Canada-United States-Mexico Agreement (CUSMA), which replaced NAFTA during Trump’s first term.
Trump and Ford have accused Mexico of allowing Chinese companies to bypass CUSMA rules and export vehicles and parts into the U.S. and Canada through Mexican-built manufacturing plants. Ford said, "If Mexico won’t fight transshipment by, at the very least, matching Canadian and American tariffs on Chinese imports, they shouldn’t have a seat at the table or enjoy access to the largest economy in the world."
Instead, Ford believes that a bilateral U.S.-Canada free trade agreement would put U.S. and Canadian workers first. He pointed to a trade imbalance between Ontario and Mexico, which he claimed exports the vast majority of $40 billion in annual two-way trade with his province.
Ford said, "If Mexico wants a bilateral trade deal with Canada, God bless them. But I’m not going to be drawn down with these cheap imports, taking men and women’s jobs from hard-working Ontarians."
Prime Minister Justin Trudeau said that Canada will continue to work with partners like the United States and Mexico to protect good jobs, as well as environmental and labour concerns. He also stated that the country will continue to seek a unified stance on trade issues with the U.S.
Canada has sought to follow the Americans’ lead on trade issues when it comes to China, particularly Chinese EVs. Deputy Prime Minister and Finance Minister Chrystia Freeland said that a unified stance will give Canada a "firm foundation" in upcoming U.S. trade negotiations.
Conclusion
Ford’s comments have sparked a heated debate on trade policies and the future of North American free trade agreements. The issue highlights the tension between the U.S. and Mexico over Chinese imports and the potential impact on the North American economy.
FAQs
- What is the Canada-United States-Mexico Agreement (CUSMA)?
CUSMA is a trade agreement that replaced NAFTA and aims to promote free trade and economic integration between the three countries. - Why is Mexico under pressure from the U.S.?
Mexico is under pressure from the U.S. because of its perceived failure to match American tariffs on Chinese imports, which has led to concerns over the unfair trade practices and the impact on the North American economy. - What is the significance of the trade imbalance between Ontario and Mexico?
The trade imbalance between Ontario and Mexico highlights the issue of cheap imports and the potential impact on jobs in the province. - How will this affect the North American economy?
The trade tensions and potential tariffs imposed by the U.S. could have a significant impact on the North American economy, particularly in the auto industry.
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