Concerns about Mexico’s trade policies toward China ‘legitimate’: Freeland

Chrystia Freeland said she shares concerns about Mexico not putting tariffs on Chinese vehicles, which has sparked calls to cut Mexico out of free trade talks with the U.S.

Deputy Prime Minister Chrystia Freeland said Wednesday she shares what she called “legitimate” concerns about Mexico’s trade policies regarding China, and that North American countries should be aligned on Chinese vehicle tariffs.

Freeland, who chairs the newly revived cabinet committee on Canada-U.S. relations, wouldn’t say if she agrees with Ontario Premier Doug Ford’s call this week to cut Mexico out of free trade talks over the issue, but said she has “some sympathy” with his concerns, which have also been raised by U.S. president-elect Donald Trump.

“I have been hearing for some time from people close to the incoming Trump administration, but also from other American business leaders and indeed from members of the outgoing Biden administration, some concerns that Mexico is not acting the way that Canada and the U.S. are when it comes to its economic relationship with China,” she told reporters after the committee’s latest meeting.

“I think those are legitimate concerns for our American partners and neighbours to have. Those are concerns that I share.”

Trump and Ford have accused Mexico of allowing Chinese companies to bypass rules in the Canada-United States-Mexico Agreement and export vehicles and parts into the U.S. and Canada through Mexican-built manufacturing plants.

Canada joined the U.S. earlier this year in slapping 100-per cent tariffs on Chinese imported electric vehicles and 25-per cent levies on Chinese steel and aluminum. Ottawa is undergoing further consultations on whether to expand the tariffs to other Chinese imports. Mexico has not followed suit with any tariffs on Chinese vehicles or components.

Ford said Tuesday that unless Mexico imposes similar tariffs, Canada and the U.S. should simply negotiate its own bilateral free trade agreement without Mexico.

“If Mexico wants a bilateral trade deal with Canada, God bless them,” Ford said. “But I’m not going to be drawn down with these cheap imports, taking men and women’s jobs from hardworking Ontarians.”