Resist Tariff Pressures, Mexico and Canada Expand Economic Cooperation

Americas - Mexican President Claudia Sheinbaum announced on Wednesday that, facing the additional tariffs imposed by US President Donald Trump, Mexico and Canada hope to expand their economic cooperation. Mexico, the United States, and Canada are partners in the T-MEC free trade agreement, and Trump wants to renegotiate it, as he believes the agreement harms American interests.

Ms. Sheinbaum said the day after meeting with Canadian Finance Minister François-Philippe Champagne and Foreign Minister Anita Anand: "We obviously have the treaty, but we also hope that Canadian companies continue to invest... and expand direct trade between Canada and Mexico."

Ms. Sheinbaum specifically noted that this meeting was a "preparatory session" before Canadian Prime Minister Justin Trudeau's visit to Mexico, the date of which has not been determined. Trump has defended the tariffs on Canada and Mexico, claiming they are not doing enough to curb illegal immigration and fentanyl trafficking within the US.

US President Trump has signed an executive order to increase the tariff on Canadian goods from 25% to 35% starting August 1. Prime Minister Trudeau released a statement at midnight on Friday, saying, "The Canadian government is disappointed with this."

The statement emphasized that the Canada-US-Mexico Agreement (CUSMA), which is the second-largest by trade volume in the world between the US and Canada, still keeps the average tariff rate on Canadian goods among the lowest in the world. The CUSMA covers about 80 to 90 percent of Canadian production, allowing most export goods to cross the border duty-free. However, products outside the agreement, such as wood, steel, aluminum, and automobiles, will be severely affected by the increased tariffs.

Trump postponed his plan to impose a 30% tariff on Mexico by 90 days, until the end of October, following losses suffered by Mexico's automotive and steel industries due to existing tariffs.

Source: rfi

Original: https://www.toutiao.com/article/1839754376189964/

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