Alberta’s premier agrees with Ontario’s Doug Ford’s pitch to explore kicking Mexico out of the trade agreement. Danielle Smith says that with Mexico out of the picture, a bilateral agreement with the U.S. could avoid tariffs (especially now that Trump is back).
Alberta Premier Danielle Smith says she agrees with Ontario Premier Doug Ford’s suggestion that Canada and the U.S. look at cutting Mexico out of the North American trade agreement.
Smith was asked by Power & Politics host David Cochrane if she agrees with Ford’s suggestion that Mexico be dropped from the agreement if it doesn’t tighten up restrictions on Chinese products.
“A thousand percent,” she replied. “I’m very much in sync with what he has to say.
“The real issue we have is that Mexico has not been that equal partner with the United States. In addition to that, they’re inviting China to engage in investment in Mexico.”
On Tuesday, Ford floated the idea of returning to a Canada-U.S. bilateral trade pact like the one that predated the enactment of NAFTA in 1994.
He said Mexico has become “a backdoor for Chinese cars, auto parts, and other products into Canadian and American markets.” He said that if Mexico won’t match Canadian and American tariffs on Chinese imports, “they shouldn’t have a seat at the table or enjoy access to the largest economy in the world.”
Alberta premier joins pitch to cut Mexico from North American trade pact
Alberta Premier Danielle Smith says Canada can’t ‘sacrifice’ its relationship with the U.S. if Mexico is a ‘trade irritant.’ She says she and the Ontario premier are ‘in sync’ on his pitch to pursue a bilateral deal with the U.S.
The current trilateral pact, known in Canada as CUSMA (the Canada-United States-Mexico Agreement), must be reviewed in 2026. U.S. President-elect Donald Trump promised on the campaign trail to renegotiate the agreement.
Washington is concerned about Chinese-owned car plants popping up in Mexico. Chinese EV maker BYD has been scouting locations in Mexico for a factory that could supply the U.S. market.
Ford referred to those plants in a media statement and said that “free trade needs to be fair.”
Smith said that Chinese investment in Mexico is “hollowing out the manufacturing sector in both America as well as Canada. And so that’s why I think we need to take a bilateral approach.”
“If we can get a bilateral agreement, I think that would allow for us to be able to avoid tariffs and have a really constructive relationship with the United States,” Smith added.
Canadian officials at all levels are concerned about Trump’s vow to impose a minimum tariff of 10 per cent on all imports entering the United States. Sources have told CBC News that Trump’s allies have offered no assurances of a reprieve for Canada.
On Wednesday, Deputy Prime Minister Chrystia Freeland said she’s heard concerns from American partners about whether Mexico “is fully aligned when it comes to its policies vis-a-vis China.
“I think those are legitimate concerns for our American partners and neighbors to have. Those are concerns that I share.”
Freeland did not say clearly whether she supports Ford’s idea of a bilateral agreement with the U.S. and instead insisted that Canada is “aligned” with the U.S. on China and trade.
On Thursday, Mexico’s President Claudia Sheinbaum said in Spanish that Ford’s proposal “has no future” and that Mexico stood up for Canada during the last round of NAFTA negotiations.
Source: CBC
