Alberta Premier Danielle Smith says she agrees with Ontario Premier Doug Ford’s suggestion that Canada and the U.S. look at cutting Mexico out of the North American trade agreement.
Smith was asked by Power & Politics host David Cochrane if she agrees with Ford’s suggestion that Mexico be dropped from the agreement if it doesn’t tighten up restrictions on Chinese products.
“A thousand per cent,” she replied. “I’m very much in sync with what he has to say.
“The real issue we have is that Mexico has not been that equal partner with the United States. In addition to that, they’re inviting China to engage in investment in Mexico.”
On Tuesday, Ford floated the idea of returning to a Canada-U.S. bilateral trade pact like the one that predated the enactment of NAFTA in 1994.
He said Mexico has become “a backdoor for Chinese cars, auto parts and other products into Canadian and American markets.” He said that if Mexico won’t match Canadian and American tariffs on Chinese imports, “they shouldn’t have a seat at the table or enjoy access to the largest economy in the world.”
WATCH | Premier Ford urges Canada, U.S. to drop Mexico from trade pact:
The current trilateral pact, known in Canada as CUSMA (the Canada-United States-Mexico Agreement), must be reviewed in 2026. U.S. president-elect Donald Trump promised on the campaign trail to renegotiate the agreement.
Washington is concerned about Chinese-owned car plants popping up in Mexico. Chinese EV maker BYD has been scouting locations in Mexico for a factory that could supply the U.S. market.
Ford referred to those plants in a media statement and said that “free trade needs to be fair.”
Smith said that Chinese investment in Mexico is “hollowing out the manufacturing sector in both America as well as Canada. And so that’s why I think we need to take a bilateral approach.”
“If we can get a bilateral agreement, I think that would allow for us to be able to avoid tariffs and have a really constructive relationship with the United States,” Smith added.
Canadian officials at all levels are concerned about Trump’s vow to impose a minimum tariff of 10 per cent on all imports entering the United States. Sources have told CBC News that Trump’s allies have offered no assurances of a reprieve for Canada.
From left to right, Saskatchewan Premier Scott Moe, Alberta Premier Danielle Smith and Ontario Premier Doug Ford take part in a photo opportunity at the Council of the Federation meetings in Halifax on Monday, July 15, 2024. (Darren Calabrese/Canadian Press)
On Wednesday, Deputy Prime Minister Chrystia Freeland said she’s heard concerns from American partners about whether Mexico “is fully aligned when it comes to its policies vis-a-vis China.
“I think those are legitimate concerns for our American partners and neighbours to have. Those are concerns that I share.”
Freeland did not say clearly whether she supports Ford’s idea of a bilateral agreement with the U.S. and instead insisted that Canada is “aligned” with the U.S. on China and trade.
On Thursday, Mexico’s President Claudia Sheinbaum said in Spanish that Ford’s proposal “has no future” and that Mexico stood up for Canada during the last round of NAFTA negotiations.
Kinew: Provinces can play bigger role in U.S. talks
In an interview with CBC’s The House airing on Saturday, Manitoba Premier Wab Kinew said the federal government is “effectively in a pre-election period” and suggested provinces can play a bigger role in strengthening trade relationships with the United States.
Multiple provinces have been making contact with American lawmakers. Kinew led a delegation to Washington in April while Ontario and Alberta have their own representatives in the U.S. capital.
Kinew told host Catherine Cullen that since provinces control natural resource and energy projects, there’s a “real opening” for them to ensure a good relationship with the United States.
As for Mexico, Kinew said the concern came up when his delegation visited Washington and it’s “actively being looked at in the U.S.”
Kinew also called for Canada to invest in meeting NATO’s military spending target for member nations of two per cent of gross domestic product. He said that’s the “bare minimum” when it comes to engaging with the incoming Trump administration.
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American lawmakers have pressured Canada to meet that target. In July, Prime Minister Justin Trudeau said Canada would meet the benchmark by 2032.
Manitoba also has a relationship with one of Trump’s cabinet nominees — North Dakota Governor Doug Burgum, who has been tapped as secretary of the interior.
Kinew and his NDP government connected with Burgum in preparation for trade talks. The premier said Burgum also offered assistance when a pipeline near Winnipeg was shut down in March.
“I’ll say that it’s certainly going to be a welcome sign if there’s somebody in the White House who can point to Manitoba on a map,” Kinew said.