Toronto. Canada’s representative to manage U.S.-Canada relations said Tuesday that she shares U.S. concerns about the possibility that Mexico could become a backdoor for China to export cheaper goods to the North American market, as a review looms. of the Treaty between Mexico, the United States and Canada (T-MEC).
Canada’s Deputy Prime Minister Chrystia Freeland said members of US President Joe Biden’s outgoing government and supporters and advisers of President-elect Donald Trump have expressed “very serious” concerns about the issue, which Canada shares.
“We are perfectly aligned with the United States, and that means we are not a backdoor for unfairly traded Chinese goods,” Freeland said during a news conference. “The same cannot be said about Mexico.”
Canada announced this year that it would impose a 100 percent tariff on imports of electric vehicles made in China, matching tariffs imposed by the United States, for what they consider to be subsidies from China that give their industry an unfair advantage.
Canada has also imposed a 25 percent tariff on Chinese steel and aluminum. Mexico does not have similar tariffs.
“We believe China’s intentional overcapacity is unfair and a threat to Canada’s key industrial sectors. “It is a threat to Canadian jobs and that is why we have imposed 100 per cent tariffs on Chinese electric vehicles, and 25 per cent on Chinese steel and aluminum,” Freeland said.
Mexico’s Ministry of Foreign Affairs did not immediately respond to a message seeking comment.
Canadian Prime Minister Justin Trudeau called Trump after his election victory and the two discussed the trade deal Trump reached during his first term with Canada and Mexico, the USMCA, which replaced the North American Free Trade Agreement. (NAFTA).
Canada will soon have to focus on a scheduled review of the agreement in 2026.
Doug Ford, the premier of Canada’s most populous province, Ontario, hinted this month that Canada should move forward on a bilateral trade deal with the United States if Mexico does not crack down on Chinese car imports entering North America.
During the recent US election campaign, Trump proposed tariffs of 10 to 20 percent on foreign goods, and in some speeches he has mentioned even higher percentages.
Freeland chairs a special cabinet committee on U.S.-Canada relations that is designed to address concerns about another Trump presidency. He spoke to reporters Tuesday after a committee meeting.
During Trump’s first term, his efforts to renegotiate NAFTA and reports that he was considering a 25 per cent tariff on the auto sector were considered an existential threat in Canada at the time.
Canada is one of the most trade-dependent countries in the world, and 75 percent of its exports, which include automobiles, go to the United States.
Freeland called this a “grave moment for our country” and urged Canadian business leaders and leaders to close ranks.
1. Could you please provide us with your perspective on the current state of relations between Canada and the United States regarding trade matters, particularly in the context of the impending review of the USMCA and the potential threat of China using Mexico as a backdoor for cheaper goods to enter the North American market?
2. Your statement regarding Canada not being a backdoor for unfairly traded Chinese goods aligns with the concerns raised by the US government. How does your country plan to address this issue moving forward, and what measures are being taken to ensure compliance with fair trade practices?
3. Given the complementary nature of the Canadian and US economies, how do you think the ongoing trade tensions with China may impact domestic industries and job markets in both countries?
4. What steps is the Canadian government taking to encourage Mexico to address the issue of Chinese imports and uphold the standards set forth in the USMCA?
5. As the premier of Ontario, Canada’s most populous province, Doug Ford has suggested moving towards a bilateral trade deal with the United States if Mexico fails to take action on Chinese imports. What are your thoughts on this proposal, and how does it fit within the broader strategic objectives of the Canadian government?
6. During the recent US election campaign, there were reports of President Trump considering tariffs on the auto sector. As the current representative for US-Canada relations, can you share any updates or insights on this issue and how it may affect the bilateral relationship moving forward?
7. In light of Canada’s heavy reliance on trade with the US market, what strategic measures is your government taking to diversify its trade partnerships and reduce its vulnerability to potential trade disruptions?
8. as we move into a new presidential administration, what key lessons have been learned from the past four years of navigating complex trade relationships with the United States, and how will these experiences shape Canada’s approach to future negotiations?
