Here is the rewritten article:
Deputy Prime Minister Chrystia Freeland said she shares what she called "legitimate" concerns about Mexico’s trade policies regarding China, and that North American countries should be aligned on Chinese vehicle tariffs.
Freeland, who chairs the newly revived cabinet committee on Canada-U.S. relations, wouldn’t say if she agrees with Ontario Premier Doug Ford’s call this week to cut Mexico out of free trade talks over the issue, but said she has "some sympathy" with his concerns, which have also been raised by U.S. president-elect Donald Trump.
"I have been hearing for some time from people close to the incoming Trump administration, but also from other American business leaders and indeed from members of the outgoing Biden administration, some concerns that Mexico is not acting the way that Canada and the U.S. are when it comes to its economic relationship with China," she told reporters after the committee’s latest meeting.
"I think those are legitimate concerns for our American partners and neighbours to have. Those are concerns that I share."
Trump and Ford have accused Mexico of allowing Chinese companies to bypass rules in the Canada-United States-Mexico Agreement and export vehicles and parts into the U.S. and Canada through Mexican-built manufacturing plants.
Canada joined the U.S. earlier this year in slapping 100-per cent tariffs on Chinese imported electric vehicles and 25-per cent levies on Chinese steel and aluminum. Ottawa is undergoing further consultations on whether to expand the tariffs to other Chinese imports. Mexico has not followed suit with any tariffs on Chinese vehicles or components.
Freeland said Wednesday that Canada’s actions on Chinese imports "makes us the only country in the world which is fully aligned with the United States today when it comes to economic policy vis-a-vis China."
Trump has said he wants to renegotiate CUSMA when it comes up for a scheduled review in 2026 to address the concerns with Mexico.
Chinese automakers such as BYD — one of the largest in the world — are seeking to build manufacturing plants in Mexico, where a number of American companies are already building their vehicles at a lower cost. The fear is that those Chinese companies can then take advantage of CUSMA’s duty-free import rules and flood the North American market with Chinese cars while avoiding the U.S. and Canadian tariffs.
CUSMA’s rules of origin clause requires higher levels of North American parts in vehicles sold in the three countries compared with NAFTA, which Trump has said China is also trying to exploit by bringing Chinese components through Mexico.
Trump has vowed to impose 25 per cent tariffs on all Mexican imports if it doesn’t stem the flow of migrants arriving at the U.S. border.
During the presidential campaign, Trump said he would impose tariffs of at least 200 per cent or more on all vehicles imported from Mexico — which would hurt American automakers in the short term — and suggested levies on Chinese companies who operate in Mexico and bypass CUSMA rules as high as 1,000 per cent.
Mexico has vowed to retaliate with its own tariffs on American imports if Trump follows through with his threat, which the country’s economic minister warned would bring economic harm to North America.
Conclusion
The dispute over China’s trade policies with Mexico is a complex issue that involves multiple countries and industries. While Canada and the U.S. have imposed tariffs on Chinese imports, Mexico has not followed suit. The issue is likely to continue to be a topic of discussion and negotiation in the coming months and years.
Frequently Asked Questions
Q: Why are Canada and the U.S. imposing tariffs on Chinese imports?
A: Canada and the U.S. are imposing tariffs on Chinese imports as a result of concerns over China’s trade policies and the impact they have on the North American economy.
Q: Why has Mexico not imposed tariffs on Chinese imports?
A: Mexico has not imposed tariffs on Chinese imports, which has led to concerns that Chinese companies may be able to take advantage of Mexico’s lower labor costs and avoid paying tariffs on their exports to the U.S. and Canada.
Q: What is the impact of Trump’s tariffs on Mexico?
A: Trump’s tariffs on Mexico could have significant economic implications for both countries. Mexico has vowed to retaliate with its own tariffs on American imports, which could lead to a trade war.
Q: Will the dispute over China’s trade policies with Mexico affect the Canada-United States-Mexico Agreement (CUSMA)?
A: The dispute over China’s trade policies with Mexico is likely to be a topic of discussion and negotiation in the coming months and years, and could potentially affect the CUSMA.
About The Author
