Home Money & Business Business Provincial leaders in Canada seek a trade agreement with the US that doesn’t include Mexico.

Provincial leaders in Canada seek a trade agreement with the US that doesn’t include Mexico.

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Provincial leaders in Canada seek a trade agreement with the US that doesn’t include Mexico.

TORONTO — The premier of Canada’s largest province announced on Wednesday that all provincial and territorial leaders have united in their request for Prime Minister Justin Trudeau’s government to pursue a trade agreement exclusively with the United States, leaving Mexico out of the negotiations.
Ontario Premier Doug Ford coordinated a conference call with the 13 premiers, emphasizing the need for a direct bilateral trade deal with the U.S., which is Canada’s primary trading partner.

Ford’s remarks and the leaders’ collective stance come as both provincial and federal administrations in Canada anticipate potential upheaval stemming from a possible return of Donald Trump to the presidency.
“There’s a clear consensus that everyone agrees that we need a bilateral trade deal with the U.S. and a separate bilateral trade deal with Mexico,” he stated to reporters in Toronto following the discussions.
Ford highlighted concerns about Mexico’s practices, alleging that Mexican manufacturers are importing inexpensive components from China and rebranding them as domestically produced goods before shipping them to the U.S. and Canada, contributing to job losses in both countries. “We want fair trade,” he asserted.

The provincial leaders have expressed their desire for a meeting with Trudeau’s administration to further address this topic.
The federal government, on Tuesday, acknowledged it was open to the possibility of excluding Mexico from future trade negotiations. Deputy Prime Minister Chrystia Freeland expressed her alignment with U.S. concerns regarding Mexico acting as a conduit for cheaper Chinese products entering the North American market, especially as a review of the U.S.-Mexico-Canada Agreement (USMCA) approaches.

Freeland mentioned that individuals from both the outgoing Biden administration and associates of President-elect Trump have voiced serious apprehensions regarding this situation, which Canada takes very seriously.
To address these issues stemming from a potential Trump presidency, Freeland is heading a specialized Cabinet committee focused on U.S.-Canada relations and has been meeting with leaders from various sectors across Canada.

During previous negotiations with Trump, Canada implemented a “Team Canada” approach that transcended party lines. Trudeau reached out to Trump following his electoral victory to discuss the trade deal they crafted—the USMCA—which replaced the North American Free Trade Agreement (NAFTA).

Furthermore, Canada will soon need to prepare for the scheduled overhaul of the trade agreement in 2026.
In the recent U.S. election campaign, Trump proposed tariffs ranging from 10% to 20% on imports, occasionally suggesting even steeper rates, but has not indicated if Canada would be exempted from these tariffs.

Contrastively, during Trump’s earlier term, his efforts to renegotiate NAFTA and possible considerations of a 25% tariff on automotive products were perceived as existential threats to Canada at that time.
As one of the most trade-reliant nations globally, Canada directs 75% of its exports, which include vehicles, to the U.S.

Ford also mentioned that provincial and territorial leaders will convene in Toronto in mid-December to discuss their trade apprehensions regarding the U.S. Additionally, he brought attention to an upcoming gathering of U.S. governors in February, expressing their intent to participate.
“I just feel that we need to work with our number one trading partner,” he emphasized.
He noted that Ontario engages in C$40 billion (US$29 billion) in bilateral trade with Mexico, though Ontario exports only C$3.5 billion (US$2.5 billion) while importing C$36.5 billion (US$26.1 billion) worth of goods from Mexico.