Canada shares U.S. concerns about Mexican trade with China as possible trade talks loom
Canada’s point person for U
TORONTO — Canada's point person for U.S-Canada relations said Tuesday she shares U.S. concerns about Mexico serving as a back door for China to import cheaper goods into the North American market as a review of the trade pact known as the U.S.-Mexico-Canada Agreement looms.
Deputy Prime Minister Chrystia Freeland said members of the outgoing administration of U.S. President Joe Biden and supporters and advisers of President-elect Donald Trump have expressed “very grave” concerns to her about the issue and Canada shares them.
“We are perfectly aligned with the United States and that means we are not a back door to unfair Chinese traded goods,” Freeland said during a press conference. “The same cannot be said about Mexico.”
Canada announced this year it is launching a 100% tariff on imports of Chinese-made electric vehicles, matching U.S. tariffs imposed over what the countries say are China’s subsidies that give its industry an unfair advantage. Canada has also imposed a 25% tariff on Chinese steel and aluminum. Mexico does not have similar tariffs.
“We believe that China’s intentional overcapacity is unfair and a threat to key Canadian industrial sectors. It is a threat to Canadian jobs and that’s why we’ve imposed 100% tariffs on Chinese EVs, 25% tariffs on Chinese steel and aluminum,” Freeland said.
Mexico's foreign affairs ministry didn't immediately respond to a message seeking comment.
Canadian Prime Minister Justin Trudeau called Trump after his election win 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, or NAFTA.
Ottawa will soon have to focus on a scheduled review
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