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With Trump headed to White House, Canada has its eyes on Chinese investment in Mexico

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Deputy Prime Minister Chrystia Freeland said Tuesday she shares the “legitimate” concerns of U.S. officials about Mexico becoming a back door for China to wedge its way into the North American trading regime.

Minister of Finance and Deputy Prime Minister Chrystia Freeland speaks at a press conference in Ottawa on Tuesday, Nov. 19, 2024. THE CANADIAN PRESS/ Patrick Doyle

“We are not a backdoor to Chinese unfair traded goods,” Freeland said Tuesday. “However, the same cannot be said of Mexico.” Canada moved earlier this year to match U.S. tariffs on Chinese-made electric vehicles, steel and aluminum products, accusing China of overproduction and unfair trading practices.

While Ottawa bristles at Mexico by way of diplomatic blandishments, by far the boldest words are coming from two of Canada’s premiers. “What I’m proposing to the federal government: We do a bilateral trade deal with the U.S., and if Mexico wants a bilateral trade deal with Canada, God bless ‘em,” he said. Alberta Premier Danielle Smith echoed that sentiment. While on the national TV talk circuit, she said she’s “a thousand per cent” in agreement with Ford.A report by the United States Trade Representative earlier this year warned U.S.

China has become Mexico’s fastest-growing source of foreign investment, according to a Federal Reserve Bank of Dallas report from last year, and China’s top EV maker BYD, a global leader in electric vehicle sales, has been eyeing setting up shop in Mexico.This discussion is happening ahead of a mandatory renewal of the Canada-United States-Mexico Agreement that must happen by July 1, 2026.

 

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