Trudeau raises concerns over Chinese investment in Mexico

Chinese investments in Mexico are a cause for concern for Canada in the sense that the country is becoming a “back door” for China to wedge its way into the North American trading regime, Canadian officials have said.

According to Mexican media outlet Milenio, Trudeau had a conversation with president Claudia Sheinbaum about it at the G20 leaders' summit in Brazil Monday. 

“There are questions and concerns around some of the Chinese investments in Mexico, things that I highlighted directly with the Mexican president,” Trudeau said at a news conference Tuesday in Rio de Janeiro. "But I also know that Mexico is dedicated to continuing in this extraordinarily successful trade deal."

When talking about the “successful trade deal,” Trudeau was referring to the USMCA (United States-Mexico-Canada agreement), signed by the three North American countries in 2018. The treaty is due for review in 2026.

Trudeau expressed the concerns of other Canadian officials such as Ontario’s premier Doug Ford, who even suggested expelling Mexico from the USMCA because, in his view, the country is engaging in unfair competition that destroys jobs in Canada and the United States.

Recently, Ford said that Mexico is "importing cheap products" from China, then "slapping a made-in-Mexico sticker on and shipping it up” into Canada and the U.S.

Chinese investments in Mexico also worry the US. In a letter to Sheinbaum, 20 Democratic lawmakers warned: "The fact that Chinese companies, including the automotive BYD, have announced plans for assembly plants in Mexico increases the possibility that they will try to avoid tariffs by producing in Mexico."

Canada officials are also worried about the incoming Trump administration. Canada’s ambassador to the US, Kristen Hillman told CTV News: “the border, trade and tariffs are major issues currently preoccupying the government.”

“We will work to ensure that trade in North America remains strong and benefits all of our citizens, as well as that the integrity of North American markets is protected,” Trudeau assured as they hope to renew the agreement in 2026.

Finally, Trudeau said he shared those concerns with Sheinbaum “as a partner and friend.” “I look forward to having many conversations next year before we approach the 2026 review,” the prime minister said.

Mexico is Canada's third largest economic partner, and Canada is Mexico's fourth largest trading partner. According to the Canadian government, Canadian trade and investment in Mexico reached nearly $40 billion in bilateral merchandise trade in 2023.

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