Mexico Denies That China Is Using It as a Gateway to Ship Products to the U.S.
President Claudia Sheinbaum rejected on Friday the notion that China is using Mexico to send its products to North America. This comes amid growing concerns from regional partners, the United States and Canada, regarding trade ties between Mexico and the Asian giant.
This relationship is set to be a central topic during the review of the US-Mexico-Canada Agreement (USMCA) scheduled for 2026, especially since the U.S. and Canada have been expressing concerns for months about Chinese imports and investments in Mexico. "The idea that Chinese products are entering the U.S. through Mexico is wrong," the president stated at a press conference, responding to questions raised by Canadian Prime Minister Justin Trudeau about the future of the trilateral agreement. Trudeau expressed on Thursday that Canada wants the USMCA to continue but may explore other alternatives depending on the decisions Mexico makes. Additionally, he revealed that he had shared his concerns about Chinese investments in Mexico with Sheinbaum. "We will protect jobs and growth in Canada in the long term. Ideally, we would do this as a unified U.S. market, but depending on the decisions Mexico makes, we might have to consider other options," the Prime Minister added. During the recent G20 Summit in Brazil, Sheinbaum met not only with Trudeau and U.S. President Joe Biden but also with Chinese President Xi Jinping. She indicated that her administration plans to replace Chinese imports with products sourced from Mexico. The products that would replace purchases from China would include those manufactured by Mexican companies as well as those from North American or European firms operating in Mexico, she clarified. For his part, Secretary of Finance Rogelio Ramírez mentioned that Mexico's trade deficit with China currently stands at $80 billion and is on the rise, so the government is evaluating options to mitigate this situation. The U.S., whose imports from Mexico in February surpassed those from China for the first time in 20 years, could toughen its stance toward both nations when Trump takes office in January, if the Republican follows through on his promise to raise tariffs. Furthermore, the Biden administration has been working to prevent Chinese automakers from establishing factories in Mexico to avoid circumventing high U.S. tariffs on Chinese vehicles. The Chinese electric vehicle company BYD, which hopes to open its first plant in Mexico soon, has indicated that its production will be primarily aimed at the local market.
It is important to stay attentive to how these trade dynamics could impact the Mexican economy in the long term. The pursuit of replacing imports with local products could strengthen the domestic economy, but it is also essential that these measures are implemented carefully so as not to compromise the country's competitiveness in international markets. The relationship with the U.S. and Canada under the USMCA will be crucial for maintaining sustainable and balanced growth.
