Canada's provincial leaders want a free trade deal with the US that excludes Mexico

[November 21, 2024]  By ROB GILLIES

TORONTO (AP) — The leader of Canada's most populous province said Wednesday that all of the country's provincial and territorial governments want Prime Minister Justin Trudeau's federal government to negotiate a bilateral trade deal with the United States that excludes Mexico.

Ontario Premier Doug Ford chaired a phone call with all 13 provincial and territorial premiers and said they want Trudeau to do a straight bilateral trade deal with the U.S., Canada's top trading partner.

The meeting and Ford's comments come as provincial and federal governments in Canada prepare for the uncertainty of another Donald Trump presidency.

"There’s a clear consensus that everyone agrees that we need a bilateral trade deal with the U.S. and a separate bilateral trade deal with Mexico,” Ford told reporters in Toronto after the call with provincial leaders.

“We know Mexico’s is bringing in cheap Chinese parts, slapping made in Mexico stickers on, and shipping it up through the U.S. and Canada, causing American jobs to be lost and Canadian jobs. We want fair trade," he said.

Ford said they've asked for a meeting with Trudeau's government to discuss the issue.

Asked about the issue at her morning press briefing. Mexican President Claudia Sheinbaum said that Trudeau “does not agree with that” and that he wants to “maintain the treaty between the three countries and strengthen relations.”

She said that during the bilateral meeting they held during the G20 summit, Mexico proposed drafting a document with concrete data on how the treaty benefits each of the three countries because there is a misconception that it only benefits Mexico or Canada.

But Trudeau's federal government did not rule out sidelining Mexico in future trade talks on Tuesday. Deputy Prime Minister Chrystia Freeland said she shares U.S. concerns about Mexico serving as a back door for China to import cheaper goods into the North American market as a review of the trade pact known as the U.S.-Mexico-Canada Agreement looms.

Freeland said members of the outgoing administration of U.S. President Joe Biden and supporters and advisers of President-elect Trump have expressed “very grave” concerns to her about the issue and Canada shares them.

Canada Prime Minister Justin Trudeau responds to a question from the opposition during Question Period in Ottawa, Wednesday, Nov. 20, 2024. (Adrian Wyld/The Canadian Press via AP)

Freeland chairs a special Cabinet committee on U.S-Canada relations that is designed to address concerns about another Trump presidency. Freeland has been meeting with provincial, business and labor leaders throughout Canada.

Canada took a “Team Canada” approach to the previous trade talks with Trump. It crossed all party lines.

Trudeau called Trump after his election win and the two discussed the trade deal Trump reached during his first term with Canada and Mexico, the USMCA, which replaced the North American Free Trade Agreement, or NAFTA.

Ottawa will soon have to focus on a scheduled review of the agreement in 2026.

During the recent U.S. election campaign, Trump proposed tariffs of 10% to 20% on foreign goods — and in some speeches has mentioned even higher percentages. Trump has not said whether his administration would exempt Canada.

During Trump’s first term, his move to renegotiate NAFTA and reports that he was considering a 25% tariff on the auto sector were considered an existential threat in Canada at the time.

Canada is one of the most trade-dependent countries in the world, and 75% of Canada’s exports, which include automobiles, go to the U.S.

Ford said the leaders of provinces and territories will meet in Toronto in person in mid-December regarding their U.S. trade concerns. He also noted there is a U.S. governors meeting in February that he said they'd like to attend.

Later Wednesday, Trump announced has chosen former Republican Rep. Pete Hoekstra of Michigan, who served as ambassador to the Netherlands during his first term, as his upcoming administration’s ambassador to Canada.

“Pete will help me once again put AMERICA FIRST,” the president-elect said in a statement.
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Associated Press Writer Maria Verza in Mexico City contributed to this report.

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