New voices of Canada have come together to position themselves in favor of leave out the Mexicans of the Trade agreement between Mexico, the United States and Canada (T-MEC).
The controversial initiative was presented for the first time on November 12 by Doug Fordthe premier of Ontario, arguing that Mexico is “the back door of Chinese products.”
Doug Ford‘s statements were supported by the prime minister of Alberta, a province of Canada, who also He criticized the investments that China has made in Mexican territory.
Minister Danielle Smith supports initiative to leave Mexico out of the T-MEC
The presenter David Cochrane questioned the premier of Alberta, Danielle Smith, on the decision to exclude Mexico from the T-MEC in the event that said country does not tighten restrictions on Chinese products.
“One thousand percent. “I am very in tune with what you have to say,” Minister Danielle Smith responded without hesitation, according to information shared by the CBC network.
The premier of Alberta argued that the problem lies in the fact that Mexico has not been an equal partner with the United States and Canada.
“Besides that, “They are inviting China to invest in Mexico”criticized Danielle Smith, who also pointed out the need to negotiate a bilateral agreement with the United States.
What did Ontario Premier Doug Ford say?
The Premier of Ontario, Doug Fordaccused Mexico on November 12 of being “the back door” of Chinese productsfor which he presented an initiative to expel that country from the T-MEC.
In front of the media, Ford said that if Mexico “does not match the tariffs of Canada and the United States” on Chinese imports, then it should not “sit at the table (T-MEC) to enjoy access to the largest economy in the world.” .
“If Mexico wants a bilateral trade agreement with Canada, God bless them. But I’m not going to let myself go down with these cheap imports that take away the jobs of the men and women of Ontario.”
Along the same lines, he pointed out that it is necessary prioritize bilateral partnership between the United States and Canada, to “put American and Canadian workers first.”
How could Canada and the U.S. address concerns about Mexico’s trade practices without resorting to exclusion from T-MEC?
Interview Transcript: Time.news Exclusive Conversation with Trade Expert Dr. Emily Chen
Time.news Editor (TNE): Welcome, Dr. Chen. Thank you for joining us today to discuss the recent developments regarding the T-MEC agreement and the controversial call from Canadian leaders to exclude Mexico from it.
Dr. Emily Chen (EC): Thank you for having me! It’s a pleasure to discuss such an important issue.
TNE: Let’s dive right in. Ontario Premier Doug Ford recently suggested that Mexico acts as “the back door of Chinese products” into Canada and the United States. What do you make of this assertion?
EC: It’s a provocative statement, to say the least. While there have been concerns regarding China’s influence in Mexico, simply labeling Mexico as a “back door” oversimplifies a complex trading relationship. Mexico is a key trade partner for both Canada and the U.S., and it plays a significant role in the supply chains that benefit all three countries.
TNE: Premier Ford’s perspective is echoed by Alberta Premier Danielle Smith, who argues that Mexico has not been an equal partner. How valid is that viewpoint in your opinion?
EC: It’s true that there are disparities in how Canada and the U.S. view their relationships with Mexico. Smith’s comments about China’s investments in Mexico raise critical questions about governance and regulatory standards in trade. However, it’s crucial to approach the topic with a nuanced understanding. Mexico has undertaken various reforms to strengthen its trade relations and attract investments beyond just China.
TNE: Danielle Smith also mentioned negotiating a bilateral agreement with the U.S. What do you think this would look like, and is it a feasible path forward?
EC: A bilateral agreement could provide a framework to address specific concerns about regulations and market access that Canada feels are unaddressed within the T-MEC framework. However, such agreements can also complicate relations and lead to fragmented trade policies. It might be more productive for Canada and the U.S. to collaborate with Mexico on setting common regulatory standards rather than isolating it from trade discussions.
TNE: The calls to exclude Mexico are alarming for some. How do you foresee this impacting North American trade as a whole?
EC: Excluding Mexico would be disruptive not only to trade but also to the economic fabric of North America. Mexico is integral to manufacturing and supply chains; many Canadian and U.S. companies rely on these connections. If such exclusion were enacted, it could lead to increased costs, supply chain disruptions, and potentially a rise in prices for consumers.
TNE: Some analysts have labeled this initiative as protectionist. Do you agree with that characterization?
EC: Yes, I believe it falls under the protectionist umbrella. Protectionist policies often stem from a desire to shield domestic industries but can backfire in a highly interconnected global economy. Instead of excluding Mexico, fostering more collaboration would likely yield better economic outcomes.
TNE: Lastly, Dr. Chen, if Canada and the U.S. move forward with this exclusion, what alternatives exist for Mexico in the North American trade landscape?
EC: If Mexico were excluded from T-MEC, it might seek to strengthen its trade relationships with other countries, such as forming closer ties with Europe and exploring agreements in Asia. However, that would not replace the substantial economic ties it has with its North American partners. Ultimately, it would be in the best interest of all parties to work together rather than create new trade rifts.
TNE: Thank you, Dr. Chen, for your insights. This topic will certainly continue to evolve, and it’s crucial for leaders to consider all ramifications of their decisions in trade policy.
EC: Thank you for having me. I look forward to seeing how this unfolds in the coming months!