Ontario premier floats Mexico’s removal from CUSMA agreement

Ontario Premier Doug Ford has recently made headlines by suggesting the removal of Mexico from the North American trade agreement, known as CUSMA (the Canada-United States-Mexico Agreement). In light of Donald Trump’s presidential election win and the upcoming review of the pact in 2026, Ford expressed concerns about Mexico’s role in allowing Chinese-owned car plants to infiltrate the North American market.

Ford emphasized the importance of fair trade, stating that Mexico has become a gateway for Chinese products to enter Canadian and American markets, jeopardizing the livelihoods of workers in both countries. He called for Mexico to impose tariffs on Chinese imports to prevent them from disrupting the continental supply chain.

The Ontario Premier proposed the idea of negotiating a bilateral free trade agreement between the U.S. and Canada, excluding Mexico from the equation. This suggestion comes amidst growing tensions over Chinese investments in Mexico and concerns about state influence over Mexican oil companies.

While Ford’s proposal may have merit in addressing certain economic challenges, it is not currently Canada’s official policy to pursue a bilateral trade agreement with the U.S. alone. The idea of removing Mexico from the North American trade pact is likely to face opposition from multinational companies with interests in all three countries, as well as political allies who value Mexico’s role in maintaining U.S. congressional support for North American trade.

The intricate web of trade relationships and economic interests in North America makes any major changes to the existing trade agreement a complex and controversial issue. Despite the challenges posed by Mexico’s involvement in the pact, the interconnected nature of the North American economy and the political implications of excluding Mexico will likely shape the future of trade negotiations in the region.