Canada should pursue bilateral trade agreements with U.S. and Mexico, says Alberta premier - Action News
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Canada should pursue bilateral trade agreements with U.S. and Mexico, says Alberta premier

Alberta Premier Danielle Smith says Canada should be looking at bilateral trade agreements with the U.S. and with Mexico as all three countries prepare to review and potentially renegotiate the Canada-United States-Mexico Agreement in 2026.

Danielle Smith questions trilateral deal, cites trade imbalance between the countries

A woman with brown hair speaks into a microphone on a podium
Alberta Premier Danielle Smith, shown in Halifax in July, says the federal government should consider bilateral trade deals with the United States and with Mexico, to replace the current trilateral agreement between the three countries. (Darren Calabrese/The Canadian Press)

Alberta Premier Danielle Smith says Canada should be looking at bilateral trade agreements with the U.S. and with Mexico as all three countries prepare to review and potentially renegotiate the Canada-United States-Mexico Agreement in 2026.

"I think there's always been an imbalance between these three partners," Smith said on Rosemary Barton Live, which aired on Sunday. "Canada and the U.S. have always had more balanced trade."

According to the United States Census Bureau, Canada had a trade surpluswith the U.S. of about$64 billion US in 2023. That means the U.S. bought more of Canada's goods than Canada imported from south of the border.

In comparison, Mexico had a trade surpluswith the U.S. of about$152.5 billion in 2023.

Smith said that one thing Canada needs to understand about the incoming Trump administration is that "they really want us to buy as much stuff from them as they buy from us," and if there's a trade imbalance, it will"identify that those are problematic areas."

WATCH | Two provinces pitch cutting Mexico out of future trade deal with U.S.:

Doug Ford, Danielle Smith join calls to turn North American trade pact into bilateral deals

22 hours ago
Duration 2:18
Alberta Premier Danielle Smith and Ontario Premier Doug Ford have both said Mexico should be cut out of the North American trade agreement and Canada should sign a bilateral deal with the U.S., proposals that would curry favour with U.S. president-elect Donald Trump.

The Alberta premier also criticized Mexico over "their increasing invitation to the Chinese to invest [in the country]."

Washington is concerned about Chinese-owned car plants popping up in Mexico. Chinese electric vehicle maker BYD has been scouting locations in Mexico for a factory that could supply the U.S. market.

"The question is: Why would we support continuing in a trilateral agreement if it's going to be imbalanced that way?" Smith told host Rosemary Barton. "We really should be looking at two bilateral agreements."

The United States"can have its own agreement with Mexico," she said. "I think we would end up with very constructive outcomes that way."

Photo of Doug Ford
Ontario Premier Doug Ford attends the signing of a memorandum of understanding with Illinois Gov. J.B. Pritzker, at the U.S.-Canada Summit in Toronto on June 11. (Chris Young/The Canadian Press)

Smith's comments come days after Ontario Premier Doug Ford pitched that Canada explore a bilateral pact with the U.S. He also criticized Mexico, saying the country has become a "backdoor for Chinese cars" and should match Canadian and American tariffs on Chinese imports.

The current trilateral pact, known in Canada as CUSMA, must be reviewed in 2026. U.S. president-elect Donald Trump promised on the campaign trail to renegotiate the agreement.

On Saturday, Prime Minister Justin Trudeau said Mexico was a "solid partner" during the last round of trade negotiations and acknowledged concerns over Chinese investment in Mexico.

"Standing up for Canadian jobs, Canadian opportunities is the fundamental job of a Canadian prime minister, and that's what we're going to continue to do," Trudeau said. "But I'm hopeful that we're going to be able to do it within the context of trilateral negotiations."

Steelmaker CEO not concerned about tariffs

Looming over the trade discussions is Trump's vow to impose a minimum tariff of 10 per cent on all imports entering the U.S.Sources have told CBC Newsthat Trump's allies haven't offered assurances of a reprieve for Canada.

Lourenco Goncalves, president and CEO of U.S.-based Cleveland-Cliffs Inc., which recently acquired Hamilton-based steelmaker Stelco Holdings Inc., said on Rosemary Barton Live that the tariffs are"not a concern" for him.

"But it is something that we will continue to work on, because I don't believe that [Trump] will put tariffs just for tariffs' sake," he said.

"I absolutely have the full conviction that the relationship between Canada and the United States is way beyond any temporary situation, any disturbance that may or may not occur in trade."

WATCH | Canada-U.S. trade relationship will remain strong, says CEO of U.S. steelmaker:

Canada-U.S. trade relationship will remain strong, says CEO of U.S. steelmaker

1 day ago
Duration 8:15
Chief political correspondent Rosemary Barton speaks with Lourenco Goncalves, CEO of Cleveland-Cliffs, about the American steelmaker acquiring Stelco, his recent meeting with Deputy Prime Minister Chrystia Freeland and the threat of tariffs from the incoming Trump administration.

Goncalves said he believes thatthe "co-dependency" between Canada and the U.S. will "enhance during the Trump administration."

As for Mexico, he said that Trump and his former trade representative, Robert Lighthizer,who is reportedly going to play a role in the new administration, "prefer" bilateral agreements instead of multilateral agreements.

He also said that a Canada-U.S. bilateral trade agreement could serve as a "model" for future agreements the United States decides to pursue with other countries.

Smith said that a global tariff like the one Trump has pitched would be "devastating" for Canada and that if the federal governmentcan take a bilateral approach and "avoid tariffs altogether, I think that should be the goal."

With files from Alexander Panetta