Trudeau Signals Openness to Bilateral Trade Deals Over Mexico’s China Ties
The Canadian Prime Minister emphasized keeping Mexico in USMCA but raised concerns about Chinese investments potentially undermining North American trade rules.
- 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.