Mexican President Claudia Sheinbaum touted efforts to substitute Chinese imports with locally produced alternatives and downplayed comments from Canadian policymakers that raised questions over Mexico’s future in a North American trade pact.
"We ... have our own program to strengthen the national economy, to reduce imports, for example, that come from Asia,” Sheinbaum said in a press conference in Mexico City Thursday, according to an unofficial translation of a transcript provided by the Mexican government.
Two premiers from Canada’s conservative opposition party argued this month that Mexico should be excluded from the U.S.-Mexico-Canada Agreement over concerns that the country had become a “backdoor” for Chinese products to enter the North American market. Ontario Premier Doug Ford, in a post on X, said that Mexico’s reluctance to match U.S. and Canadian tariffs on Chinese imports or combat Chinese transshipment should disqualify the country from the free-trade agreement.
“Instead, we must prioritize the closest economic partnership on earth by directly negotiating a bilateral U.S.-Canada free trade agreement that puts U.S. and Canadian workers first,” Ford wrote. Alberta Premier Danielle Smith later agreed with Ford’s comments.
Canadian Prime Minister Justin Trudeau – who faces a tough reelection campaign before October 2025 – said last week that he would prefer Mexico remain part of the USMCA but added that Canada “may have to look at other options” if the country doesn’t address concerns over China.
The pact, which entered into force in 2020, comes up for review in 2026, starting a 10-year clock for the agreement’s expiration unless all parties agree to renewal. President-elect Donald Trump said during the presidential campaign that he plans to renegotiate parts of the deal.
Sheinbaum, who took office in October, downplayed Canadian concerns during her press conference, arguing that the issues were being raised as “part of an electoral campaign.” She added that during a meeting between the two leaders on the sidelines of the G20 Summit in Brazil last week, Trudeau had told her that he did not agree with the two Canadian premiers’ assessments.
Trudeau "does not agree with withdrawing Mexico from the treaty, he told me this very clearly, and we agreed to continue the dialogue,” Sheinbaum told reporters, according to the transcript.
Among the issues raised during the meeting, according to Trudeau, were concerns over Chinese investments in Mexico, particularly in the electric vehicle sector. Both the U.S. and Canada this year announced additional tariffs of 100% on Chinese-made EVs. Some Chinese automakers, however, are reportedly weighing investments in manufacturing facilities in Mexico that would allow them to circumvent the new tariffs and potentially benefit from the duty-free trade provided under the USMCA.
Other members of Trudeau’s cabinet have previously touted the benefits of USMCA and called for preserving the pact when it comes up for renewal. Minister of Export Promotion, International Trade, and Economic Development Mary Ng testified to the House of Commons Standing Committee on International Trade in June during a series of hearings on the upcoming review, calling for the deal to be extended and deepened.
“In my discussions with businesses and workers across Canada and throughout North America, one message stands out: our trade relationship is not just a special one, it is an essential one,” Ng said, according to the hearing transcript.
Sheinbaum, however, acknowledged on Friday that Mexico needs to reduce its dependency on imports from places like China, not just to address USMCA concerns but to bolster the Mexican economy and national development.
The “same as in the case, for example, of grains or other agricultural products,” Sheinbaum said.
The new Mexican government rolled out a framework last month to advance self-sufficiency by expanding production of beans, rice, white corn and other vegetables. Under the plan, the Mexican government would operate stores, create programs to encourage small- and medium-sized producers to grow the products and modernize irrigation infrastructure to expand agricultural production per cubic meter of water.
Mexico has also come under fire for a slate of legal and governance reforms launched by former President Andrés Manuel López Obrador and endorsed by Sheinbaum. U.S. lawmakers have warned that the efforts – which involve making judges stand for election and scrapping some independent regulatory and oversight agencies – could violate the country’s USMCA commitments.
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