Overview

• Prime Minister Justin Trudeau stated his preference to maintain the USMCA as a trilateral agreement but left open the possibility of bilateral trade deals if Mexico does not address concerns about Chinese investments.
• Trudeau raised issues regarding Chinese manufacturers allegedly bypassing tariffs by routing goods through Mexico during discussions with Mexican President Claudia Sheinbaum at the G20 Summit in Brazil.
• Ontario Premier Doug Ford and other Canadian premiers are advocating for a U.S.-Canada bilateral trade agreement, citing fears of Chinese influence in Mexico’s auto sector.
• Mexican officials have dismissed claims of significant Chinese investment in their country but acknowledged ongoing efforts to reduce imports from Asia to align with USMCA rules.
• The 2026 review of USMCA, coupled with U.S. President-elect Donald Trump’s protectionist trade agenda, has heightened tensions about the future of the trade pact.