Mexican Deputy Prime Minister Chrystia Freeland said on Wednesday that she shared what she called “legitimate” concerns about Mexico’s trade policies regarding China, and that North American countries should agree on tariffs on Chinese cars.
Freeland, who chairs a newly revived cabinet committee on Canada-U.S. relations, has not announced whether she agrees with Ontario Premier Doug Ford’s call this week to remove Mexico from free trade talks on the issue, but said she has “some sympathy.” With his concerns, also raised by US 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 certainly from members of the outgoing Biden administration, some concerns that Mexico is not behaving the way Canada and the United States are behaving when they do so,” she told reporters after the committee’s last meeting. : “It is related to its economic relationship with China.”
I believe these are legitimate concerns of our American partners and neighbors. “These are concerns that I share.”
Trump and Ford accused Mexico of allowing Chinese companies to bypass rules stipulated in the Canada-United States-Mexico Agreement and export vehicles and parts to the United States and Canada through manufacturing plants built by Mexico.
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 by imposing any tariffs on Chinese vehicles or components.
Ford said Tuesday that unless Mexico imposes similar tariffs, Canada and the United States should simply negotiate their own bilateral free trade agreement without Mexico.
“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 away the jobs of hardworking Ontarians.”
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Freeland’s comments go further than Prime Minister Justin Trudeau did when asked about Ford’s comments on Tuesday, although Trudeau alluded to efforts to bring Mexico into line with the United States and Canada.
“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.
Freeland said Wednesday that Canada’s actions on Chinese imports “make us the only country in the world that is fully aligned with the United States today when it comes to economic policy toward China.”
Trump has said he wants to renegotiate CUSMA when it is due for a review scheduled in 2026 to address concerns with Mexico.
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 by bringing Chinese components through Mexico.
Trump has pledged to impose 25% tariffs on all Mexican imports if they do not stop the flow of migrants arriving at the US border.
During the presidential campaign, Trump said he would 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 proposed imposing tariffs on Chinese companies that operate in Mexico and bypass rules. CUSMA. Up to 1000 percent.
Mexico pledged to respond by imposing tariffs on US imports if Trump carries out his threat, which the Mexican Economy Minister warned would cause economic harm to North America.
&Copy 2024 Global News, a division of Corus Entertainment Inc.
