International trade lawyer William Pellerin says that Toyota's decision to move production from Mexico to the United States is a warning sign that other companies may follow suit and leave Canada. The comments come ahead of the July 1 deadline for the Canada-United States-Mexico Agreement (CUSMA) review.
Toyota's shift and its implications
Toyota announced it will relocate some manufacturing operations from Mexico to the U.S., a move that Pellerin says reflects the changing trade landscape. “This is not an isolated incident,” Pellerin said. “We can expect others to leave Canada as companies seek to align with U.S. trade policies.”
CUSMA deadline looming
The July 1 deadline for CUSMA review has heightened tensions. Pellerin noted that the agreement’s provisions could lead to more production moving north or south of Canada. “Canada needs to be proactive to retain investment,” he added.
