Illustration: Liu Rui/GT

Canada's point person for US-Canada relations said on Tuesday that she shares US concerns about "Mexico serving as a back door for China to import cheaper goods into the North American market,MKsport" as a review of the trade pact known as the US-Mexico-Canada Agreement looms, the Associated Press reported on Wednesday. Such irrational concerns will not only fail to promote Canada's economic development and the broader North American economy, but will be counterproductive.

Canada, following the lead of the US, said in August it would impose a 100 percent tariff on imports of Chinese electric vehicles (EVs). Mexico does not have a similar tariff. It should be noted that the ongoing pragmatic economic and trade cooperation between China and Mexico is a normal commercial activity conducted by enterprises from both countries, based on international rules and market principles, and no third party has the right to interfere.

China has been Mexico's second-largest trading partner for many consecutive years. Both countries, as important emerging economies, have witnessed continuous development in their economic relations, with bilateral trade surpassing $100 billion for the first time in 2023. China is the only country that covers all industrial sectors listed in the UN industrial classification, enabling it to create a comprehensive industrial and supply chain. 

Meanwhile, Mexico holds an important position in the North American value chain. The complementary strengths of the two nations make their cooperation mutually beneficial and offer significant potential for advancing Mexico's manufacturing sector.

Canada's concerns about Mexico's trade with China stem from protectionism and bias. After Canada imposed high tariffs on Chinese-made EVs, many critics said these actions ignore objective facts and violate WTO rules, reflecting a typical protectionist stance. This not only harms the interests of Canadian businesses and consumers but also undermines Canada's green transition and the global effort to combat climate change. It's Canada, not Mexico, that's the concern.

As the global supply chain undergoes rapid restructuring, the Canadian manufacturing industry is facing both new opportunities and challenges. It's not surprising that Canada is keen to revitalize its manufacturing sector. However, it's important to recognize that the sector still grapples with long-standing issues, such as high production costs and a shortage of skilled workers. 

Relying solely on tariffs and trade protectionism won't effectively enhance the competitiveness of the Canadian manufacturing industry. It could simply shift the burden of tariffs onto consumers, driving up costs, reducing consumption and ultimately harming the economy.

What Canada needs is a pragmatic approach to revitalizing its manufacturing sector, not just the implementation of protectionist trade policies that undermine normal, mutually beneficial trade relations with China. While the former requires more concrete and sustained efforts, Canada should avoid choosing trade protectionism out of convenience, as it could introduce additional risks and uncertainties to the Canadian economy.

China has been Canada's second-largest trading partner for many years, and economic and trade cooperation has played a key role in strengthening bilateral relations. During a meeting with Canadian Trade Minister Mary Ng in Lima, Peru on Saturday, Chinese Commerce Minister Wang Wentao emphasized the importance of collaborating to manage and resolve trade disputes, stating that this would serve the fundamental interests of both countries.

To strengthen the North American manufacturing supply chain, which includes Canada, the US and Mexico, it is crucial to enhance cooperation with other countries, including developing economies such as China, and create favorable conditions to attract foreign investment. This approach will contribute to the overall economic development of the region. 

The US plays a key role as an important consumer market within the North American supply chain. As a result, Canada and Mexico are particularly sensitive to pressure from the US, which is understandable. However, given the rising tide of global trade protectionism, participants in the North American manufacturing supply chain should focus more on intensifying efforts and cooperation to attract more investment, thereby sustaining economic growth, boosting competitiveness and maintaining regional prosperity.

The author is a reporter with the Global Times. [email protected]