Dubai Telegraph - Canada, Mexico leaders meet amid US tariff war

Claudia Sheinbaum and Prime Minister Mark Carney of Canada are to meet in Mexico City as Trump pushes to renegotiate the USMCA North American trade pact in place since 2020. It replaced the NAFTA accord signed in the 1990s.

The US president considers the new three- way deal unfavorable to his country, and has lashed out at his neighbors to the north and south over illegal migration and drug trafficking.

Trump has so far spared Mexico much of the threatened punishment, but hit some Canadian goods with 35-percent duties.

Sheinbaum told reporters Thursday that Carney's visit would seek to "strengthen the Mexico-Canada relationship which, in addition to the treaty we already have, is to strengthen trade and economic investments in certain sectors."

The pair will discuss boosting trade via Canadian and Mexican ports instead of roads or trains crossing through the United States.

The leaders will also consider a program of special visas for Mexican workers, as well as cooperation in education, renewable energy, and innovation, Sheinbaum said.

Before the trip, Carney said the two countries maintain "a strong relationship, built on more than three decades of free trade."

He added that "in the face of a shifting global landscape, we are focused on elevating our partnerships in trade, commerce, security, and energy.

"Together, we will build stronger supply chains, create new opportunities for workers, and deliver greater prosperity and certainty for both Canadians and Mexicans."

A review of the USMCA is scheduled for next year.

US tariffs are badly hurting Canada's crucial auto, steel and aluminum sectors, leading to job losses.

Canada retaliated with tariffs on billions of dollars of US imports but, in a gesture aimed at facilitating a deal, Carney has since exempted US goods that fall under USMCA.

Sheinbaum has so far managed to stave off a blanket 30-percent US import tariff, although Mexico's automotive, steel and aluminum sectors -- like those of other countries -- have been hit with higher levies.

The United States has long been the main destination for exports from both Mexico and Canada.

Bilateral trade between Mexico and Canada last year totaled under $32 billion -- more than 20 times less than the trade each has with the United States.

A.Padmanabhan--DT