Ontario Premier Doug Ford, along with other Canadian premiers, is pushing for Mexico's removal from the Canada-U. S. trade agreement due to concerns that Mexico is acting as a conduit for Chinese goods. Ford argues that if Mexico does not impose tariffs on Chinese imports similar to those in Canada and the U. S. , it should not benefit from access to the North American market. He highlights that Mexico's imports from China surged by 138 percent from 2016 to 2022, leading to significant exports of Chinese goods to the U. S. through Mexico.
Critics worry that this transshipment allows China to bypass tariffs, with Mexican goods sometimes merely assembled with Chinese components before being sold as "Made in Mexico. " This has serious implications, especially for the U. S. auto industry, as many new Chinese auto parts manufacturers are setting up shops in Mexico. Reports suggest that the influx of inexpensive Chinese cars could jeopardize millions of manufacturing jobs in America.
As the U. S. prepares to potentially increase tariffs and enforce strict economic policies after Donald Trump’s recent election, Canadian leaders emphasize the importance of aligning their trade strategies with U. S. interests. This alignment is seen as crucial when the USMCA (United States-Mexico-Canada Agreement) comes up for review in 2026. Ontario’s government faces pressure to protect its auto manufacturing industry, which employs many workers.
Alberta Premier Danielle Smith has echoed Ford’s concerns, warning against economic reliance on China. She underscores that cheap Chinese production has significantly damaged manufacturing sectors in both Canada and the U. S. Overall, the Canadian premiers are attempting to address these trade issues to foster strong economic relations with the U. S.
https://www.zerohedge.com/markets/flood-chinese-goods-north-america-earns-mexico-backdoor-label
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