TORONTO (AP) — The leader of Canada's most populous province announced that all provincial and territorial governments in Canada are in favor of negotiating 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, expressing the collective desire for a direct trade agreement with the U.S., Canada's primary trading partner.
The consensus among the leaders stems from the anticipation of another term under President Donald Trump and the need to address trade concerns. Ford highlighted the need for separate trade deals with the U.S. and Mexico, citing issues of unfair competition due to the influx of Chinese parts through Mexico.
The provincial and territorial leaders have requested a meeting with Prime Minister Justin Trudeau's government to discuss the proposed bilateral trade deal. However, Mexican President Claudia Sheinbaum indicated that Trudeau is inclined to maintain the trilateral trade agreement between the three countries and strengthen relations.
Despite Mexico's stance, Trudeau's government has not ruled out the possibility of sidelining Mexico in future trade negotiations. Deputy Prime Minister Chrystia Freeland echoed U.S. concerns about China using Mexico as a gateway for cheaper imports into North America, as discussions on the U.S.-Mexico-Canada Agreement loom.
Freeland, who heads a special Cabinet committee on U.S.-Canada relations, has been engaging with various stakeholders across Canada to address concerns related to trade policies. The Canadian government previously adopted a collaborative approach during trade talks with the U.S., transcending party lines.
Canada's trade dependency, particularly with the U.S., has prompted a proactive approach to safeguarding economic interests. With a significant portion of Canada's exports directed towards the U.S., the impending review of the USMCA in 2026 has heightened the urgency for strategic trade decisions.
Amidst Trump's proposed tariffs on foreign goods and past renegotiations of trade agreements, Canada remains vigilant about protecting its trade relationships. The upcoming meeting of provincial and territorial leaders in Toronto aims to address U.S. trade concerns collectively, emphasizing the importance of collaboration with the country's top trading partner.
Ontario's substantial trade volume with Mexico underscores the significance of trade agreements in maintaining economic stability. Ford highlighted the trade imbalances between Ontario and Mexico, underscoring the need for fair trade practices to protect Canadian jobs and industries.
