Canada is moving the pieces ahead of a commercial battle in North America

Ontario Premier Doug Ford, the leader of Canada's most populated province, is asking Prime Minister Justin Trudeau to renegotiate a new trade deal with the US that excludes Mexico.

Ford phoned the leaders of all other Canadian provinces and said they agreed that Canada should withdraw from the US-Mexico-Canada Agreement (USMCA) in favor of a new US-exclusive deal.

The Ontario Premier accused Mexico of importing "cheap" Chinese auto parts, "slapping Made in Mexico stickers on," and trading them with its North American partners.

Prime Minister Trudeau said his priority is the North American deal. Still, only if Mexico pushes for a more uncompromising commercial stand against China, the Spanish newspaper El País said.

According to the newspaper, Mexico's President Claudia Sheinbaum said that she had a conversation with Mr. Trudeau during the G-20, and they both agreed that keeping the current treaty would be best.

The Mexican President said Mr. Trudeau asked about a Chinese company's plans to build an auto parts plant in her country. She clarified that the plant does not currently exist.

She also said that both countries agreed to prepare information on how the treaty benefits all three countries ahead of negotiations to renovate the USMCA next year.

According to CBC, the only Chinese auto plant in Mexico, operated by Giant Motors, assembles JAC brand vehicles. However, there is no evidence that they export to the US or Canada.

Still, despite Prime Minister Trudeau's claims that he prefers a three-nation deal, the Canadian government has not ruled out expelling Mexico from future trade agreements.

According to AP News, Canadian Deputy Prime Minister Chrystia Freeland said her country and the US share concerns about the commercial relations between Mexico and China.

Ms. Freeland said Biden officials and advisors to President-elect Trump have shared "very grave" concerns with Canada. She pushed for conditions on Mexico in a new potential deal.

The news agency said Ms. Freeman chairs a special Cabinet committee on Canada-US relations to address all potential issues and concerns as the US transitions to a new government.

Canada is one of the most trade-dependent countries in the world, the AP said. Around 75% of its exports go to the US, so the country is also preparing to preserve that market ahead of USMCA negotiations.

USMCA replaced the previous deal, NAFTA (North American Free Trade Agreement), during President-elect Trump's first term. The deal will expire in 2026.

Negotiations will come in an electoral year in Canada and after Mr. Trump promised high tariffs as a central policy of his new government. So, the elements for a tough battle are on the table.

Mexico is also preparing. After the G-20 meeting, the Mexican Finance Minister told the press that the country would announce a plan to reduce Chinese deals and encourage more North American production.

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