I never quite understood just how controlled the information flow is inside Canada until about two years ago when we began closely monitoring Canadian positioning for the upcoming USMCA (CUSMA) renegotiation/cancellation.  It quickly became obvious the majority of Canadians have no idea why it is almost a certainty the U.S. would exit the trilateral arrangement and position for a bilateral free trade agreement.

In the two years that have passed, now we see a few Canadians starting to realize the core issues of trade conflict that make any FTA between the U.S. and Canada almost impossible.  The largest issue centers around Canada’s net-zero carbon legislation that now completely disconnects them from aligned North American energy policy between the U.S. and Mexico.

A trilateral agreement requires core alignment on industrial manufacturing, and that requires similar abilities & similar energy policy.  You cannot make steel, iron and aluminum without coal and gas.  You need joules for heavy industrial manufacturing that cannot be achieved without exploiting coal, gas or oil (carbon materials).  Canada’s energy policy no longer aligns with industrial manufacturing. This core issue cannot be resolved at the current level of energy policy in Canada.

There are other issues like Canadian trade deals with China, non-tariff barriers, legislated rules over intellectual property and other points of significant friction that make alignment within North America challenging. However, the energy component makes compatible trade impossible.

In the interview below, U.S. Ambassador to Canada Pete Hoekstra appears on a podcast with David Leis, for a blunt conversation about trade, pipelines, critical minerals, China, and why the U.S. is growing frustrated with Canada’s direction.  At the end Hoekstra even explains why he is doing Canadian podcasts; because information within Canada is restricted by the government control of media – and that explains why most Canadians are clueless about the issues.

I’ve prompted the interview to the point that gets into the details. If you are interested to be fully understanding of what is coming, this is a solid reference point. Also, if you have financial investments associated with Canada or any system that is connected to the economic relationship between the U.S. and Canada, you need to watch this interview to proactively defend your financial interests.  VIDEO PROMPTED:

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Watch it or listen to this roughly 30 minutes (prompted) as you cook, drive or go about your day. But listen to it and see the disconnect between Canada and the USA as outlined.  Things are going to get much worse in this relationship as the finality of it all suddenly starts to sink in north of the border with the average Canadian.

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An interesting arrest that might warrant some background material prior to today’s events.  Keep in mind there are several indicted individuals from Venezuela and Mexico now said to be cooperating with the DOJ and federal law enforcement.

In addition to former Venezuela dictator Nicolas Maduro in the Southern District of New York, we should also note three Mexican officials connected to the Sinaloa cartel previously turned themselves in to U.S. federal officials and are said to be cooperating.

Earlier this month, Gerardo Mérida, a retired Mexican army general who served as public-security secretary in northwestern Sinaloa state surrendered in Tucson, Arizona. Enrique Inzunza Cazárez, who is also facing drug trafficking and weapon charges, was taken into custody in San Diego by the DEA. Sinaloa businessman Enrique Diaz Vega – another name from the SDNY indictment – also turned himself into U.S. authorities in Arizona.

As you read this story, also keep in mind the Defense Counterintelligence and Security Agency, falls under the authority of the Office of the Director of National Intelligence, Tulsi Gabbard, and that agency oversees a background check program, known as “continuous vetting.”

According to NBC News a 20-year veteran manger within the CIA named David Rush has been arrested on suspicion of embezzlement and theft.  The CIA operative was reported to have been referred to the FBI by CIA Director John Ratcliffe.

(VIA NBC) WASHINGTON — A former CIA senior officer with top secret-level clearance has been accused of secretly stashing millions of dollars in gold bars in his home that he said he needed for “work-related expenses,” according to court documents and two people familiar with his employment history.

David Rush, who held a management position, was charged with criminal theft of public money in a complaint filed last week in the Eastern District of Virginia. His lawyer didn’t respond to a request for comment.  He was also accused of lying to his employers about his background for nearly two decades.

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It’s not Mexico that needs a trade deal with Europe, it’s the opposite.

For almost two decades Europe has been investing heavily inside Mexico, particularly noted in the auto industry, as they positioned themselves to take advantage of NAFTA and later the USMCA as an entry to the U.S. market.

European auto companies spent billions on assembly plants in Mexico, where they could ship EU manufactured component goods to be assembled into NAFTA/USMCA compliant vehicles.  As President Trump and USTR Greer begin focusing on eliminating the USMCA trade agreement in favor of two bilateral deals (U.S-Canada and U.S-Mexico), Europe now needs to protect prior investment.

The prior Mexico-EU trade agreement has existed since 2000 (NAFTA timeframe).  In 2025 they agreed to a revised Free Trade Agreement (FTA) and finalized the terms and conditions yesterday.

MEXICO CITY, May 22 (Reuters) – Mexico and the European Union signed a long-stalled free trade agreement on Friday as they seek to decrease dependence on the U.S. and partially insulate themselves from U.S. President Donald Trump’s tariffs.

The accord, which they reached broad agreement on in 2025 but have delayed signing, expands a Mexico-EU trade accord from 2000, which covered only industrial goods. The new pact adds services, government procurement, digital trade, investment and farm produce.

Mexico’s President Claudia Sheinbaum, European Commission President Ursula von der Leyen and European Council President Antonio Costa are to sign the deal in Mexico City in their first summit in over a decade.

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This is not good news for Canada who appears to be hoping that leftists in congress will support the Canadian position on retention of the USMCA trade deal.  However, the position of the United Auto Workers and their President Shawn Fain works perfectly with the position of President Trump and U.S. Trade Representative Jamieson Greer.

The UAW leadership supported Kamala Harris in 2024, and they carry a lot of sway with Democrats in congress.  In fact, it is entirely possible the 20 Democrat Senators who wrote a letter to USTR Greer about getting tough on Mexico and Canada, may have been responding directly to what UAW President Shawn Fain is demanding.

The UAW rank and file align with President Trump and their leadership, despite their roots of alignment with Democrats, support the trade tariff approach by President Trump.  All of that nuanced interest now begins to assemble quickly, and the political leverage plan of Canadian Prime Minister Mark Carney looks weaker by the day.

Wall Street Journal – As North America’s trade treaty approaches renewal or renegotiation this summer, United Auto Workers President Shawn Fain slammed the deal and called on the U.S. to upend it—or scrap it altogether.

Fain’s position pits the 400,000-member union against both the American and foreign-based automakers that are calling on the U.S. to preserve the U.S.-Mexico-Canada trade treaty, or USMCA.

[…] Fain blamed USMCA and its predecessor, the North American Free Trade Agreement, for the loss of millions of American auto manufacturing jobs over the last several decades.

“Where it didn’t eliminate jobs entirely, it slashed wages and benefits,” said Fain, wearing a “Kill NAFTA” T-shirt on a video call. “There is no future for the U.S. working class that doesn’t address the free-trade disaster.”

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Somewhere along the path to the inevitable dissolution of the USMCA trilateral trade agreement, reality will set in for Canada.  Until then, denial is the preferred course of action from Prime Minister Mark Carney.  Not since COVID-19 have we witnessed an intellectual disassociation happening over such a large sector of a population.

According to the latest media reports, Prime Minister Mark Carney is set to announce a new Canadian Trade Advisory Council that will strategize the best moves within each sector of the Canadian economy to deal with the United States USMCA renegotiations.  Even at this latest date, the Canadian government is still under the belief they can negotiate themselves into a position where their status within the USMCA (CUSMA) will be retained.

Simultaneous to this announcement, the one best hope the Canadians have relied upon is also evaporating.  However, before discussing that aspect, let’s first look at the advisory council.

CANADA – Prime Minister Mark Carney is expected to unveil a new advisory council focused on Canada-US trade relations as Ottawa attempts to salvage Canadian-US trade amidst Donald Trump’s aggressive tariffs. According to reports, the council will bring together major business leaders, labour representatives and former politicians to advise the federal government ahead of the scheduled review of the Canada-United States-Mexico Agreement (CUSMA).

[…] While the entire list of figures present on the council has yet to be announced, the Government of Canada first announced the advisory committee in April 2026, and released a partial list of members. Members reportedly include Conservative leader Erin O’Toole, former Quebec premier Jean Charest, and other representatives from sectors such as energy, manufacturing and forestry. There are also multiple high-level Canadian executives present on the list released by the Prime Minister’s office on April 21. The committee will be chaired by Dominic LeBlanc, who currently serves as minister responsible for Canada-U.S. trade and intergovernmental affairs. According to the Prime Minister’s Office, the council’s role will be to provide strategic advice and industry expertise as Canada prepares for negotiations under the umbrella of Donald Trump’s renewed tariff threats.

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It is always a good idea to make note of things, put them into referenceable context, and then later tell the full story from background details that will surprise everyone else.

Two significant events have taken place within the last few days against the backdrop of Sinaloa government officials beginning to turn themselves in to U.S. federal authorities.

The first event is the Mexican government freezing the bank accounts and financial assets of those who have been named in the U.S. federal indictment.  Mexican President Claudia Sheinbaum says the seizures are out of her control, merely a process that takes place, yet the motives for her defensive protestations are more than a little transparent.

MEXICO – On May 18, President Claudia Sheinbaum confirmed that Mexico’s Financial Intelligence Unit froze the accounts of Sinaloa Governor Rubén Rocha Moya, his children, and senior aides. The action followed U.S. federal charges alleging they aided the Sinaloa Cartel through drug trafficking, weapons possession, and accepting multimillion-dollar bribes. Sheinbaum stressed the freeze was a technical, preventive step triggered by U.S. arrest warrants, not a domestic criminal finding.

The freezes come amid heightened U.S.-Mexico tensions over cartel corruption claims that have already strained security cooperation and political trust. Washington has broadened its anti-cartel strategy to target politicians accused of enabling organized crime, while Mexico remains sensitive to perceived foreign interference. Analysts warn the case could further erode institutional trust and complicate cross-border collaboration on security, trade, and migration.  (more)

The second event happened very quietly.

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Things are happening rather quickly in the storyline of Sinaloa political leadership and the indictments by U.S. Dept of Justice officials.

In the latest development, following the Tucson, Arizona, capture of Gerardo Mérida, a retired Mexican army general who served as public-security secretary in northwestern Sinaloa state, today Sinaloa Senator Enrique Inzunza Cazárez, who is also facing drug trafficking and weapon charges, was taken into custody in San Diego by the DEA.

Both Merida and Cazarez were named in the lengthy indictment that included current Sinaloa Governor Rocha Moya, who, if ground reports are accurate, appears to be hiding while protected by the Mexican national guard.

Here’s where it gets really interesting.  According to the New York Post reporting, businessman Enrique Diaz Vega – another name from the indictment – also turned himself into U.S. authorities in Arizona last Friday.  That means four of the ten men named are currently in custody, with Governor Rocha Moya hiding out in Mexico.

However, it gets even more interesting when highlighted with this section:

… “Inzunza Cázares’ lawyers reportedly held talks with the Department of Justice for his voluntary surrender and to become a government witness, Mexican newspaper El Universal reported May 2.”… {link} “A drug trafficker who surrenders and offers information primarily falls under the category of a cooperating witness,” a Department of Justice source told the outlet.

However, Inzunza Cázares shut down the report the same day.  “Utterly false,” he wrote on X.

So, three days after the primary indictment was announced, Inzunza Cazares is reported to be working with the DEA and DOJ. He denies cooperation while in Mexico, and then two weeks later turns himself in to the DEA in San Diego.

It sounds like each of the men turning themselves in to U.S. authorities were facing a rather dangerous Hobson’s choice.

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It was reported yesterday that Mexican President Claudia Sheinbaum and U.S. President Donald Trump had a cordial conversation about ongoing trade and security discussions. {link} The phone call likely took place as President Trump was aboard Airforce One returning from China.

Previous to this phone call, “Gerardo Mérida, a retired Mexican army general who served as public-security secretary in northwestern Sinaloa state, was detained on Monday in Tucson, Ariz., court records show. Mérida is one of 10 current and former Sinaloa officials, including Gov. Rubén Rocha, indicted last month in the U.S. for allegedly taking bribes from Sinaloa cartel leaders to protect their billion-dollar drug empire. U.S. prosecutors say that the Sinaloa cartel is one of the world’s top producers and smugglers of fentanyl into the U.S.” {link}

The Trump administration is not slowing down on the intention to remove Mexican drug and human smuggling cartels, despite the reported domestic protestations from within the Mexican government.  There appears to be a rather unusual dynamic at play.

Inside Mexico the federal government is publicly criticizing the U.S. position; however, simultaneously Mexican President Sheinbaum is promoting a working relationship with President Trump and the U.S. position.

According to the New York Times, Acting Attorney General Todd Blanche has now shifted the prosecutorial focus to charge the designated Mexican cartel targets as terrorists.

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The White House has published the official 2026 Counterterrorism Strategy with a foreword by President Trump. [SEE HERE]

Within the outline the White House breaks down the threats and strategies for each region.  It is well worth reviewing the entire document which is written in plain language that avoids any misinterpretations.

[READ HERE]

Regionally, the White House outlines specific threats and policies.  Given the current situation with drug and human trafficking cartels as well as regional conflict in the Middle East and vulnerabilities in Europe, each of these points of material interest should be highlighted (emphasis mine).

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Last week the DOJ indicted Mexican Governor Ruben Rocha Moya along with nine current and former Mexican officials for participating “in a corrupt and violent drug trafficking conspiracy with the Cartel to import massive amounts of fentanyl, heroin, cocaine, and methamphetamine from Mexico into the United States.” {GO DEEP} This has put Mexican Governor Claudia Sheinbaum in a precarious position.

Both President Sheinbaum and Governor Rocha Moya are from the Moreno political party in Mexico.  Following the indictment, Sheinbaum said she would not assist in any extradition effort of Governor Rocha and denounced the U.S. indictment; however, she said the federal government within Mexico would launch their own independent investigation.

Mexican President Claudia Sheinbaum denounced the U.S. prosecution of a sitting Mexican governor and other officials on drug trafficking charges as “political,” and said Thursday that Mexico would not comply with Washington’s demands that the accused be arrested and extradited to the United States.

“We are not permitting a foreign government to say what is the future of Mexico,” said a defiant Sheinbaum, who repeatedly assailed U.S. “meddling” in the incendiary case. (more)

There is considerable support within Mexico to eliminate the corrupt activity of the Cartels who many admit are in control of large sectors of their regional and federal government.  As a consequence, many Mexicans support the position of President Trump and the Dept of Justice in prosecuting Governor Rocha Moya if there is evidence to support it.

Today, Sinaloa Governor Rocha Moya said he would step down from his position as the federal investigation of the claims get underway.

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