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Doug Ford proposes US-Canada trade deal that excludes Mexico
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Doug Ford proposes US-Canada trade deal that excludes Mexico

Ontario Premier Called Mexico a ‘Backdoor’ for Chinese Goods Entering Canada and the United States in an Article on X

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The premier of Canada’s largest province wants the country to negotiate its own trade deal with the United States unless Mexico aligns with its North American partners on Chinese imports.

Ontario Premier Doug Ford said Mexico should “at the very least” match U.S. and Canadian tariffs on Chinese imports, or “they should not have a seat at the table or benefit from ‘access to the largest economy in the world’.

In an article on X, the prime minister called Mexico a “back door” for Chinese goods to Canada and the United States. “We must prioritize the world’s closest economic partnership by directly negotiating a bilateral U.S.-Canada free trade agreement that puts American and Canadian workers first. » he said.

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Ford’s comments underscore the high stakes for Canada and Mexico as Donald Trump prepares to return to the White House. The president-elect promised customs duties on imported products and a reopening of the trade agreement that binds the three countries.

Ontario, with a population of approximately 16 million, is the heart of Canada’s auto industry. It houses assembly lines owned by Ford Motor Co., General Motors Co., Toyota Motor Corp., Honda Motor Co. and Chrysler parent Stellantis NV, as well as parts manufacturers that serve factories on both sides of the Canadian-American border.

In August, Canada announced it would implement a 100% tariff on electric cars and a 25% levy on steel and aluminum from China, broadly in line with levels proposed by the Biden administration. Prime Minister Justin Trudeau’s government has also opened consultations on possible tariffs on other products made in China, including batteries, their parts and semiconductors.

Mexico says it is already doing its part, imposing tariffs earlier this year intended to curb the flow of steel from China after the United States complained that it was ending up in products shipped north, across the border. Officials under President Claudia Sheinbaum are discussing how to address their own trade imbalance with China and strengthen ties with their North American partners.

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A spokesperson for Mexico’s Economy Ministry did not immediately respond to a request for comment. In July, the Finance Ministry said the country imported about $119 billion from China annually, adding that it would seek to reduce this flow of goods over time. Officials deny that Mexico exports Chinese cars to the United States, emphasizing that no Chinese automaker produces vehicles in the country.

Ford’s comments follow a warning from Trudeau, who said Friday that American workers would suffer the consequences of any tariffs or trade barriers imposed on Canadian products by the new Trump administration.

Any tariff regime would also “have a very serious impact on Canadian jobs,” said Lana Payne, national president of Unifor, the union that represents thousands of Canadian auto workers.

Ontario has argued that its trade with the United States is balanced and that the United States does not need to apply tariffs. Bilateral trade between Ontario and the United States totaled more than $493 billion in 2023 and increased 26 per cent since 2018, according to the provincial government’s latest economic statement. The province was the top export destination for 17 U.S. states last year.

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David Paterson, the Ontario government’s representative in Washington, told Bloomberg News that a tariff regime “would be counterproductive and would punish Americans as much as it punishes Canadians.”

— With help from Laura Dhillon Kane, Maya Averbuch and Alex Vasquez.

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