Rising tensions over trade expose neocolonial dynamics between the U.S., Canada, and Mexico
Illustration by Sage Blackwell.
Rising tensions between the U.S., Canada, and Mexico over the United States-Mexico-Canada Agreement (USMCA), the imposition of tariffs, and the car industry have emphasized the neocolonial mindset that governs North America.
“To compare us with Mexico is the most insulting thing I’ve ever heard from our friends and closest allies, the United States of America,” said Ontario Premier Doug Ford during a press conference, in response to President Donald Trump’s threats to impose 25 per cent tariffs on goods coming from Mexico and Canada.
Although I agree that countries should always prioritize their own sovereignty and economic stability, Ford’s comments and his insistence on a bilateral treaty between the U.S. and Canada highlight the neocolonial perspective that Mexico and its people are only worth something when they are exploitable.
As of 2023, Mexico has surpassed Canada as the U.S.’s top trade partner. According to the United States Census Bureau and the U.S. Bureau of Economic Analysis, Mexican exports continued to increase by almost six per cent within the first eight months of 2024, setting a record high of US $334 billion.
“We complement each other, and we negotiate as equals,” said Mexican president Claudia Sheinbaum during one of her daily morning briefings, called “mañaneras.” “There’s no subordination here,” she said.
Ford’s claim that Mexico is violating USMCA regulations and acting as China’s “backdoor” is misleading. Neither Canada nor the U.S. have initiated formal action against Mexico under the USMCA’s dispute mechanisms on these grounds, indicating a lack of substantial proof to back these accusations.
In the automotive sector — a cornerstone to the USMCA trade — critics allege that Mexico “steals” jobs from American and Canadian workers while allowing Chinese companies like BYD, Tesla’s largest competitor, to exploit the North American market. However, BYD does not even operate manufacturing plants in Mexico. Do you know who does have BYD manufacturers? California and Ontario. This double standard reveals the neocolonial strategies that the U.S. and Canada implement in their politics.
Is there such a thing as a free market when it is used to exploit and monopolize? The General Directorate of Mining Development of the Ministry of Economy in Mexico reports 166 companies with foreign capital operating in Mexico, of which 73.5 per cent correspond to Canadian capital and 10.2 per cent to American capital. Despite their vast profits, these companies contribute less than one per cent of Mexico’s total tax revenues and only 0.62 per cent of annual guaranteed employment.
Canadian mining corporations operating in Mexico like First Majestic Silver have even pursued arbitration to avoid paying debts, such as a $180 million tax liability. These operations use open-pit mining methods that have devastated communities and ecosystems all under NAFTA, the previous USMCA, which shows that these treaties are shaped to serve Canadian and American interests first.
Ford’s insistence on a bilateral treaty between the U.S. and Canada reflects a neocolonial mindset that views Mexico as a lesser partner, whose value lies primarily in its low-cost labor force and natural resources. Treating Mexico, and by extension other Latin American nations, as suppliers of cheap goods and services while denying them equal footing in political and economic discussions will be detrimental to the North American economy.
Pushing Mexico out of the USMCA will force Mexico to find other economic partnerships. Mexico has already been offered to join BRICS, a similar economic and political agreement between Brazil, Russia, India, China, and South Africa. On top of that, Mexico–Chinese relations have always been strong.
Nevertheless, this possible transition will be devastating for the three economies. Instead of perpetuating double standards and neocolonial practices, the U.S. and Canada must recognize Mexico as an equal partner, and work together to strengthen the North American economy.
