But Canada can say the same about Mexico, since merchandise purchases made from that country barely represent 2% of Mexican imports.
In the trade balance, Canada is not favored, since Mexico has a surplus (the difference between exports and imports), last year it amounted to almost 5,000 million dollars; In the accumulated period from January to September 2024, it already registers 4,288 million dollars.
In addition to these figures, something that does not go unnoticed by Canada is that while Mexico is gaining a little more share in the United States import market, they have stagnated, that is, they are not benefiting from the trade war against China.
Data from the United States Census Bureau indicates that in 2018, Canada’s share of imports from the neighboring country was 12.5%, in the first nine months of 2024 it is 12.8%.
It is clear that the figures play in favor of Mexico among the T-MEC countries.
And that Canada benefits more from the United States than from Mexico, it sells 309,337 million dollars to the former, and 9,600 million to the latter; These figures are those recorded between January and September 2024, according to figures from the United States Census Bureau and Banxico.
Ontario and Alberta light the fuse
These Canadian provinces allude to the fact that Mexico is the back door for Chinese products to evade tariffs, this is how they enter their country and the United States, particularly in the area of vehicles, which is why it must toughen its measures against the Asian giant, otherwise It should be left out of the USMCA, adopting the same speech as Donald Trump.
Ontario Premier Doug Ford began the ambush against Mexico by stating a few days ago that he had a call with his counterparts in the provinces of Canada, who supported him on this, and that it would be better to have a bilateral agreement with the United States.
“If Mexico does not combat transshipment, at least by equalizing Canadian and US tariffs on Chinese imports, it should not have a place at the table or enjoy access to the largest economy in the world,” were Ford’s words.
Added to this was the Prime Minister of Alberta, Danielle Smith, who accepts that Mexico does not give them the same benefits as the United States, “it is not an equal partner.”
Figures from the T-MEC monitor, from the Ministry of Economy, place Ontario as the largest importer from Mexico, representing around 77% of the purchases made by Canada; Quebec follows, with 7%, and then Alberta, with 5.2%.
Chrystia Freeland, Deputy Prime Minister of Canada, also joined the claim of these ministers, because while they were aligned with the United States on the issue of China, the same could not be said of Mexico.
The Prime Minister of Canada, Justin Trudeau, initially spoke out in favor of continuing together in the relationship with the T-MEC; However, it also left the door open for other options.
But not until recently, in 2016, Canada and China were seeking a free trade agreement.
Against integration
For the trade policy advisor at the Canadian Embassy in the United States, Julie Poirier, what was said by the ministers of Ontario and Alberta does not reflect the “very high” level of integration between the three countries, of their industries, mainly in the automotive sector. , which is very important, for example, for the province of Ontario.
Porier recalled that the same day that the Prime Minister of Ontario put the exclusion of Mexico from the T-MEC on the table, the Canadian Auto Parts Association commented that this was not possible.
“The Canadian auto parts industry would not survive without a treaty with Mexico,” the advisor told foreign trade businessmen.
Data from the Ministry of Economy indicates that Mexico’s main purchase is auto parts and vehicle accessories, they represent 15% of the imports it makes from Canada, with a value of almost 2,000 million dollars.
Poirier said that without a doubt the issue of China will have to be discussed to reach an agreement as has been done before, “to reach a common vision of our region and how to strengthen it.”
The president of Mexico, Claudia Sheinbaum, disqualified the idea that Chinese products are entering through Mexico to take them to the United States and Canada. “It’s not correct” he pointed out.
From the agency headed by Marcelo Ebrard, it is said that the narrative that is being built between Mexico and China has to do with a fight in the markets, and it is not minor, everyone wants to reach the United States, the economy with the highest consumption in the world. .
Although the figures between Mexico and Canada do not seem to be higher, the Secretary of Economy affirms that it is a big business for everything and anything that is done against that flow and that integration of the three economies will have a high cost, “there are hundreds or thousands of companies and millions of jobs, and repercussions on your competitiveness.”
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