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Momentum Builds in Canada to Kick Mexico Out of North America Trade Deal

Ontario Premier Doug Ford on Wednesday joined all other provincial leaders in supporting his push for a bilateral trade deal with the United States under the second Trump administration, rather than a continental deal that also included Mexico. said they are united.

“I just finished a call with all the prime ministers and we all clearly agree that we need a bilateral trade agreement with the United States and a second bilateral trade agreement with Mexico,” Ford said. ” he said. said at a press conference Wednesday afternoon.

Ford's enthusiasm for the bilateral deal appears to stem from President-elect Donald Trump's criticism that Mexico provides cheap products to China to avoid high U.S. and Canadian tariffs. .

ford said On Tuesday, the existing trilateral agreement United States-Canada-Mexico Agreement (USMCA), which began in 2020 as a successor to the controversial 1992 North American Free Trade Agreement (NAFTA) and is scheduled for review in 2026, will allow Mexico to sell “Chinese automobiles, auto parts, and other products.'' Acts as a backdoor for exporting products to Canada. And the American market. ”

“If Mexico does not counter transshipment by at least matching Canadian and U.S. tariffs on imports from China, it should not have a seat at the table and enjoy access to the world's largest economy,” he said. It shouldn't be done.”

“Instead, we must prioritize the closest economic partnership on earth by directly negotiating a bilateral U.S.-Canada Free Trade Agreement that puts American and Canadian workers first.” insisted.

Mr. Ford said Wednesday that he was able to get all 10 of Canada's prime ministers and three territorial leaders to support his proposal in a successful call. He said his next step would be to meet with left-leaning Prime Minister Justin Trudeau and get him on board, then head to Washington and perhaps find a friendly audience with the new U.S. administration.

Prime Minister Trudeau may not be a difficult figure to defeat. He has criticized China's unfair trade practices and its regime. slapped In October, 100% tariffs will be imposed on electric vehicles (EVs) and hybrid vehicles in China.

Prime Minister Trudeau wants a better trilateral agreement with the United States and Mexico, but he and his ministers have expressed sympathy for Mr. Ford and Mr. Trump. On Tuesday, Deputy Prime Minister Chrystia Freeland said: said Her government shares the United States' “very serious” concerns about China.

“We are fully aligned with the United States, which means we are not a backdoor into unfair Chinese trade goods. The same cannot be said for Mexico,” Freeland said.

“We believe that China's deliberate overcapacity is unfair and a threat to Canada's key industrial sectors. It is a threat to Canadian jobs and therefore China's EV has a % tariffs and 25% tariffs on Chinese steel and aluminum,” he added.

Meanwhile, Mexican President Claudia Sheinbaum said On Wednesday, Trudeau told her “unequivocally” that he “does not agree” with kicking Mexico out of the trilateral trade agreement.

“They are also using these themes as part of their campaign because they have their own elections coming up soon. But the prime minister does not agree.” Sheinbaum said this, implying that Trudeau and Freeland are lying to maintain their declining poll numbers.

Sheinbaum was confident that when the USMCA is reviewed in 2026, it will only be a “revision” and “not even a renegotiation.”

Separate from Pardo's comments, Prime Minister Trudeau said on Thursday that he had discussed “real and general concerns about Chinese investment in Mexico” with Mexico's president, and that while he wanted to keep the USMCA, he was open to considering “other options.” He said there is.

As for President Trump, he called NAFTA “disastrous” and “the worst trade deal in American history” on Wednesday when he selected former Michigan congressman Pete Hoekstra to be ambassador to Canada.

“We brought trade with Mexico and Canada to a level playing field for our great farmers and working families. In my second term, I look forward to helping Pete put America First again. He'll help,” Trump said. saidwith my usual enthusiasm for capital letters.

Not everyone in Canada wants 30 years of trilateral trade controls to end. Dennis Darby, president of the Canadian Manufacturers and Exporters Association, said Wednesday he hopes Ford's bilateral proposal is a tough negotiating tactic to get a better trilateral agreement with Mexico.

“I hate negotiating with myself. A lot of Canadian companies have investments in all three countries, so it's not in anyone's interest to start saying, 'Let's get rid of Mexico,' at this point.” I think so,” Darby said.

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