Commonwealth_ Alberta Premier Danielle Smith has voiced her strong support for the idea of removing Mexico from the trilateral free trade agreement between Canada, the United States, and Mexico. In an interview on CTV’s Question Period, Smith discussed her alignment with the notion of renegotiating the North American trade framework, particularly in favor of a bilateral agreement between Canada and the U.S. Smith emphasized that Mexico’s recent shift in policy direction and its increasing economic ties with China have created tensions with the United States, which is seeking fairer trade relations. “Mexico has gone in a different direction,” she said. “It’s pretty clear that the Americans have indicated that they want to have a fair trade relationship, and Mexico is not in a position to be able to offer that, especially with the investment they have from China.”
Her remarks come amidst growing concerns about Mexico’s economic relationship with China, particularly in sectors like vehicle manufacturing, which some critics claim undermines the interests of American and Canadian workers. Smith further stressed that Canada’s top priority is to maintain strong trade ties with the U.S., especially in energy exports, which make up the bulk of Alberta’s trade. She also reiterated the necessity of pursuing a bilateral agreement to safeguard these relationships.
Trade Relations: A Complex and Evolving Issue
Former President Donald Trump’s administration renegotiated the 1994-signed North American Free Trade Agreement (NAFTA) in 2018, creating the United States-Mexico-Canada Agreement (USMCA). Trump’s efforts to revise the agreement included a call for future reviews, with the next scheduled for 2026. Ontario Premier Doug Ford also echoed similar sentiments recently, suggesting that a bilateral agreement between Canada and the U.S. might better serve the two countries’ interests.
Smith’s stance resonates particularly in light of Alberta’s $188 billion trade relationship with the U.S., compared to just $2.9 billion with Mexico. She highlighted that maintaining strong economic ties with the U.S. should be the primary objective, especially given the challenges posed by competing economic interests in the region. In particular, Ford has criticized Mexico’s role as a potential conduit for Chinese exports into North America, claiming that this practice undermines the region’s economic integrity and job market.
While the U.S. and Canada grapple with concerns about China’s influence in the Western Hemisphere, Prime Minister Justin Trudeau and Deputy Prime Minister Chrystia Freeland have emphasized the broader geopolitical context. Trudeau acknowledged that many democratic nations, including Canada, have expressed concerns about China’s overproduction in key sectors.
Divergent Views on the Issue
Not everyone agrees with the notion of cutting Mexico out of the trade pact. Derek Burney, former chief of staff to Prime Minister Brian Mulroney during the NAFTA negotiations, criticized the suggestion, calling it “childish.” He argued that Canada should prioritize its own relationship with the U.S., focusing on areas of mutual interest like energy and critical minerals, rather than concerning itself with Mexico’s internal issues. Burney also pointed out that Mexico is already facing significant challenges in its relations with the U.S., and Canada’s involvement in those disputes could complicate the situation further.
Broader Implications for Canada-U.S. Relations
The debate surrounding Mexico’s role in the trilateral trade agreement comes at a time of significant political change in both the U.S. and Canada. As the Trump administration prepares for a possible return to power, issues like trade imbalances, labor protections, and the role of foreign investment in North America will continue to dominate discussions. Smith’s comments reflect Alberta’s ongoing efforts to protect its energy sector while advocating for a more tailored trade agreement that prioritizes its economic needs.
