Ontario Premier Doug Ford suggested Tuesday that Mexico “shouldn’t have a seat at the table” in upcoming free trade talks in North America if it doesn’t match Canadian and U.S. tariffs on Chinese imports — and that Canada and the U.S. should focus A new bilateral agreement instead.
Ford’s statement comes as North America prepares for the return of US President-elect Donald Trump to the White House and the scheduled review in 2026 of the Canada-United States-Mexico Agreement (CUSMA), which replaced NAFTA during Trump’s first term.
Trump, and now Ford, have accused Mexico of allowing Chinese companies to bypass CUSMA rules and export vehicles and parts to the United States and Canada through manufacturing plants built by Mexico.
“If Mexico does not fight transshipment by, at the very least, matching Canadian and U.S. tariffs on Chinese imports, it should not have a seat at the table or have access to the world’s largest economy,” Ford said at a news conference. A statement issued by his office.
“Instead, we must prioritize the closest economic partnership on Earth by directly negotiating a bilateral free trade agreement between the United States and Canada that puts American and Canadian workers first.”
Canada joined the United States earlier this year in imposing 100 per cent tariffs on electric vehicles imported from China and 25 per cent duties on Chinese steel and aluminum. Ottawa is consulting further on whether to expand tariffs to include other Chinese imports. Mexico did not follow suit.
Chinese automakers such as BYD – one of the world’s largest – are seeking to build factories in Mexico, where a number of American companies already build their cars at a lower cost. The fear is that those Chinese companies could then take advantage of CUSMA’s duty-free import rules and flood the North American market with Chinese cars while avoiding US and Canadian tariffs.
CUSMA’s rules of origin require higher levels of North American parts in vehicles sold in the three countries than NAFTA, which Trump said China is also trying to exploit.
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Speaking to reporters at an unrelated news conference in Barrie on Tuesday, Ford expanded on his statement and pointed to a trade imbalance between Ontario and Mexico, which he claimed exports the vast majority of the $40 billion in annual two-way trade with his province.
“If Mexico wants to reach a bilateral trade agreement with Canada, God bless them,” Ford said. “But I will not give in to these cheap imports, which will take the jobs of hard-working Ontarians.”
Asked about Ford’s comments during a news conference with New Brunswick Premier Susan Holt, Prime Minister Justin Trudeau said there are “varying degrees of concern” about Chinese excess capacity and unfair trade practices, and suggested continued cooperation is the best way to confront them.
“We will continue to work with partners like the United States, and hopefully Mexico as well, to make sure that we are united in our desire to protect good jobs” as well as environmental and labor concerns, he said.
Canada has sought to follow the Americans’ lead on trade issues when it comes to China, especially Chinese electric vehicles. Last week, Deputy Prime Minister and Finance Minister Chrystia Freeland said a unified position would give Canada a “solid foundation” in upcoming U.S. trade negotiations.
It could also help get Canada to avoid Trump’s promise to impose a blanket 10 per cent tariff on all foreign imports into the United States.
Trump has targeted Mexican imports in particular regarding the issue of Chinese cars, as well as immigration. At a rally in North Carolina earlier this month, Trump said he would impose a 25% tariff on everything imported from Mexico “if they don’t stop this onslaught of criminals and drugs coming into our country.”
Mexican Economy Minister Marcelo Ebrard suggested on Monday that the Mexican government “will have to” retaliate with tariffs on US goods if Trump follows through, which he said would bring “a huge cost to the North American economy.”
Last month, Trump pledged to impose tariffs of at least 200% or more on all vehicles imported from Mexico — which would hurt U.S. automakers in the short term — and said he could impose tariffs on Chinese companies operating in Mexico and exceeds CUSMA rules with the highest prices. Like 1000 percent.
Trump likely does not need Congress to impose these tariffs, as was evident in 2018, when he imposed them on steel and aluminum imports from Canada and other countries without going through lawmakers by citing Section 232 of the Trade Expansion Act of 1962. That law, according to the service Congressional research gives the president the power to adjust tariffs on imports that could affect U.S. national security, an argument made by Trump.
Much of Trump’s anger toward CUSMA has focused on protecting the American auto industry and ensuring that China cannot exploit the rules of origin requirement and the benefits to North American imports.
but Mexico could further threaten its position within CUSMA If Mexican President Claudia Sheinbaum passes policies of her predecessor Andrés Manuel López Obrador to eliminate independent regulatory and oversight bodies, laws that the U.S. government says could reduce the independence of the judiciary — both of which are required under the trade agreement.
López Obrador suspended relations with the US and Canadian embassies in Mexico after both countries criticized judicial reforms.
&Copy 2024 Global News, a division of Corus Entertainment Inc.
