Canada should pursue bilateral trade agreements with U.S. and Mexico, says Alberta premier

Alberta Premier Danielle Smith says Canada should be looking at bilateral trade agreements with the U.S. and with Mexico as all three countries prepare to review and potentially renegotiate the Canada-United States-Mexico Agreement in 2026.

"I think there's always been an imbalance between these three partners," Smith said on Rosemary Barton Live, which aired on Sunday. "Canada and the U.S. have always had more balanced trade."

According to the United States Census Bureau, Canada had a trade surplus with the U.S. of about $64 billion US in 2023. That means the U.S. bought more of Canada's goods than Canada imported from south of the border.

In comparison, Mexico had a trade surplus with the U.S. of about $152.5 billion in 2023.

Smith said that one thing Canada needs to understand about the incoming Trump administration is that "they really want us to buy as much stuff from them as they buy from us," and if there's a trade imbalance, it will "identify that those are problematic areas."

The Alberta premier also criticized Mexico over "their increasing invitation to the Chinese to invest [in the country]."

Washington is concerned about Chinese-owned car plants popping up in Mexico. Chinese electric vehicle maker BYD has been scouting locations in Mexico for a factory that could supply the U.S. market.

"The question is: Why would we support continuing in a trilateral agreement if it's going to be imbalanced that way?" Smith told host Rosemary Barton. "We really should be looking at two bilateral agreements."

The United States "can have its own agreement with Mexico," she said. "I think we would end up with very constructive outcomes that way."

Smith's comments come days after Ontario Premier Doug Ford pitched that Canada explore a bilateral pact with the U.S. He also criticized Mexico, saying the country has become a "backdoor for Chinese cars" and should match Canadian and American tariffs on Chinese imports.

The current trilateral pact, known in Canada as CUSMA, must be reviewed in 2026. U.S. president-elect Donald Trump promised on the campaign trail to renegotiate the agreement.

On Saturday, Prime Minister Justin Trudeau said Mexico was a "solid partner" during the last round of trade negotiations and acknowledged concerns over Chinese investment in Mexico.

"Standing up for Canadian jobs, Canadian opportunities is the fundamental job of a Canadian prime minister, and that's what we're going to continue to do," Trudeau said. "But I'm hopeful that we're going to be able to do it within the context of trilateral negotiations."

Looming over the trade discussions is Trump's vow to impose a minimum tariff of 10 per cent on all imports entering the U.S. Sources have told CBC News that Trump's allies haven't offered assurances of a reprieve for Canada.