Canada and Mexico Cozy Up with Trade Plan to Bypass U.S.

Canada and Mexico are closing in on a scheme to bypass the US to reduce transhipment tariffs and taxes and boost trade between them, reports PPR Mundial.

There are some big numbers in a video, which explores the benefits for the US neighbours of a new land and sea trade corridor which avoids the US.

The US could lose some $69bn in taxes, $17bn in indirect benefits, and there could also be a $39bn hit to employment, says the article, making a $245bn hit over five years. It could hit the US Midwest economy particularly hard, causing a 2.8% decline.

But there are also longer-term impacts. A border-free, clean energy corridor for containers and data could also attract non-North American trade, and the efficiencies touted in the plan suggest that even if the US returns to rules-based trade, the corridor would be here to stay.

In September, Mexico and Canada are expected to sign an agreement, the North Belt expected to be fully functioning in 2028. An exciting development.

Canada and Mexico are strengthening trade ties with new plans designed to bypass the U.S., a move that could reshape supply chain dynamics across North America. This shift highlights growing regional cooperation as both countries seek to reduce reliance on U.S. markets, potentially altering freight flows and logistics strategies in the long term.

Source: Article