Mexico Fears Loss of US-Canada Trade, Scrambles to Replace Chinese Parts [Video]

Mexican officials fear that rising tensions with the United States and Canada, in which they allege are serving as a conduit for Chinese parts and products into North America, could jeopardize their nation’s inclusion in the U.S.-Mexico-Canada Agreement (USMCA) as Mexico scrambles to replace the Chinese auto parts and products.

What Is USMCA?

The USMCA, signed in 2020 during Trump’s first term, is the president-elect’s replacement of the 25-year-old North American Free Trade Agreement (NAFTA) negotiated by President George H.W. Bush and pushed through Congress by President Bill Clinton in the mid-1990s. In his 2016 White House bid, Trump slammed NAFTA and promised to negotiate a better trade agreement.

When signed, the deal required more car parts to be manufactured by workers in one of the three countries, which is a 13 percent increase from the previous rule.

However, Mexico’s concerns have been exacerbated by President-elect Donald Trump winning a second term and a politically struggling Canadian Prime Minister …