The head of Canada’s largest province appears to be dipping his toe into new territory: talking about removing Mexico from the North American trade agreement.
As leaders across the continent weigh the implications of Donald Trump’s presidential election win, Ontario Premier Doug Ford issued a statement Tuesday.
He alluded to the likely difficult review ahead for the pact known in Canada as CUSMA (the Canada-United States-Mexico Agreement), which must be revised starting in 2026 or it will expire after a decade. Ford referred to one of the greatest challenges in that review: U.S. frustration with Chinese-owned car plants popping up in Mexico.
“Free trade needs to be fair,” Ford said in his statement.
“Since signing on to the United States-Mexico-Canada Agreement, Mexico has allowed itself to become a backdoor for Chinese cars, auto parts and other products into Canadian and American markets, putting Canadian and American workers’ livelihoods at risk while undermining our communities.”
Ford called for Mexico to place tariffs on Chinese imports to keep its car parts from the continental supply chain.
And he added: “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, we must prioritize the closest economic partnership on earth by directly negotiating a bilateral U.S.-Canada free trade agreement.”
Some of the most complex challenges in renewing the continent pact involve Mexico; they include economic issues orders of magnitude larger than U.S. qualms about Canadian dairy and digital taxes.
In addition to the proliferation of Chinese-owned car plants, Washington is also concerned about growing state influence over Mexico’s oil companies.
When asked recently about the idea of returning to a bilateral Canada-U.S.-only trade pact, a federal official told CBC News this is not Canada’s policy — at least not for now.
On Tuesday, a spokesperson for Finance Minister Chrystia Freeland pointed to the tariffs Canada placed on Chinese electric vehicles, steel and aluminum earlier this year.
“Canada firmly believes that action is necessary to level the playing field for Canadian workers in the face of China’s intentional, state-directed policy of overcapacity,” Katherine Cuplinskas, Freeland’s director of communications, said in a statement. “Canada will not be a backdoor to other markets, especially to our most important friend and ally, the United States.”
Booting Mexico from the pact would be opposed by large companies with business in all three countries.
Ontario premier floats Mexico’s removal from CUSMA agreement