Canadian Prime Minister Justin Trudeau said his government is concerned about trade between Mexico and China, as a likely renegotiation of the North American trade deal looms.

“There are concerns about the level of Chinese investment in Mexico that I think need to be addressed,” Trudeau said at the Asia-Pacific Economic Cooperation summit in Peru on Saturday.

But he called Mexico a “strong partner” in the latest round of free trade negotiations and said he hoped they could work together constructively in the coming months.

The United States-Mexico-Canada Agreement was signed in 2018, replacing the North American Free Trade Agreement, or NAFTA, and a decision on its renewal is expected by July 2026. President-elect Donald Trump has threatened to open the agreement to renegotiation.

Trudeau has not gone as far as some provincial leaders – including Ontario Premier Doug Ford and Alberta Premier Danielle Smith – who have said Canada should strike a bilateral trade deal with the United States due to Mexico’s more open trade with China.

“I hope we can do this in the context of trilateral negotiations and renew and strengthen NAFTA in a way that works for our three countries,” Trudeau said.

Mexico imported $121 billion worth of goods from China in 2023, making the country its second-largest trading partner after the United States, from where it imported $271 billion in the same year, according to data compiled by Bloomberg. Mexico imported $14 billion from Canada.

This summer, Canada followed the Biden administration’s tightening grip on China by announcing a 100% tariff on electric cars and a 25% levy on steel and aluminum from the country Asian.

“Difficult consequences”

Trudeau also said Trump’s return to power “was widely discussed” during his conversations with world leaders at the EC summit.

His government expects the Trump administration to “have a less unfamiliar approach than it was in 2016,” but its decisions could still have “difficult consequences.”

“Trump will focus a lot on what’s good for the United States, but because trade can and fundamentally should be win-win, there are ways to work through serious, frank and open engagements that provide opportunities to the citizens.”

With help from Brian Platt.

This article was generated from an automated news agency feed without modification to the text.