The breakdown in trade discussions between Ottawa and Washington could lead U.S. negotiators to pursue a strong agreement with Mexico, according to a former Mexican trade negotiator. Kenneth Smith Ramos, Mexico’s former chief technical negotiator during the initial Canada-U.S.-Mexico Agreement (CUSMA) talks, anticipates the U.S. aiming to establish a preliminary deal with Mexico soon, deferring more complex issues to a later time, such as potential restrictions on Mexican agricultural exports.
Smith Ramos, now a partner at Mexico City’s Agon, a consulting and legal services firm, expressed the likelihood of the U.S. seeking a framework agreement with Mexico in the near future, akin to its approach with the European Union.
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Both Canada and Mexico have been engaging separately with the U.S. to address specific trade disputes, aiming to resolve issues before engaging in trilateral discussions to amend and extend CUSMA.
Negotiations between Canada and the U.S. broke down on August 21, with Prime Minister Mark Carney recalling the Canadian team due to last-minute demands from the U.S. on cultural, automotive, and sovereignty issues that Canada found unacceptable.
The collapsed talks aimed to prevent the U.S. from imposing 50% tariffs on approximately $27 billion worth of Canadian goods.
In response, Canada has imposed counter-tariffs on over 700 U.S. imports, effective September 8.
Smith Ramos noted that the Canada-U.S. trade conflict has indefinitely postponed trilateral discussions on advancing CUSMA.
On July 1, the U.S. announced its decision not to extend the CUSMA agreement, opting for renegotiation, contrary to the desires of Canada and Mexico, who view the trade pact as beneficial for all three nations.
Mexico’s Secretary of Economy, Marcelo Ebrard, emphasized the need for Canada and the U.S. to resolve their disputes for the benefit of Mexico and the North American region’s economic integration.
Ebrard expressed hope for an agreement between Canada and the U.S., citing their close proximity to a deal before the breakdown in negotiations.
Mexican President Claudia Sheinbaum also commented cautiously on the Canada-U.S. trade tensions, noting the importance of finding common ground and moving forward for the region’s benefit.
Regarding Mexico’s ongoing trade talks with the U.S., Sol
