Mexico City – Canada and Mexico are deepening economic ties amid ongoing trade tensions with the United States, signaling a strengthened partnership as the North American trade agreement, known as USMCA, faces potential revisions next year. The move comes as both nations navigate tariffs imposed by Washington and uncertainty surrounding the future of regional trade relations.
Mexican President Claudia Sheinbaum met with Canadian Prime Minister Mark Carney in Mexico City on , to reaffirm a commitment to closer cooperation on trade and investment. According to a statement released by the Mexican government via social media platform X, the meeting focused on continuing a “framework of understanding” between the two countries. A delegation of over 400 Canadian business leaders is currently visiting Mexico to explore opportunities and strengthen commercial relationships.
“There is confidence in our economy,” Sheinbaum stated during her regular press conference, adding that the purpose of the strengthened relationship is to “strengthen not only trade, but investments.” While emphasizing the importance of the existing USMCA agreement, Sheinbaum acknowledged the possibility of modifications during its scheduled review in . “It will remain,” she asserted, “because it is beneficial for the three countries.”
The deepening ties between Canada and Mexico were formally elevated to a “strategic comprehensive partnership” in , with a bilateral Action Plan centered around four key pillars: prosperity, mobility, wellbeing and inclusion, security, and environment and sustainability. This plan aims to foster greater collaboration across a range of sectors, addressing shared challenges and promoting mutual economic growth.
Following a meeting with Canadian Minister of International Trade Mary Ng, Mexican Secretary of Economy, Raquel Buenrostro, announced that both countries are developing a joint economic action plan. This plan will focus on critical areas such as minerals, investments in ports and infrastructure, and the security of supply chains. The move underscores a proactive approach to mitigating potential disruptions and bolstering economic resilience in the face of external pressures.
The current trade landscape is heavily influenced by the protectionist policies of U.S. President Donald Trump. Tariffs imposed by the United States on Canadian steel (50%) and Mexican pharmaceuticals (25%) have created significant economic headwinds for both nations. Trump has also levied a 25% “fentanyl tariff” on Mexico, citing border security concerns. These actions, coupled with occasional statements suggesting the possibility of allowing USMCA to expire in favor of bilateral agreements, have injected considerable uncertainty into the regional trade environment.
The USMCA agreement, which replaced NAFTA, is scheduled for review in , raising concerns about potential renegotiations or even the dissolution of the trilateral pact. The review process will likely focus on issues such as labor standards, environmental regulations, and dispute resolution mechanisms. The strengthening of ties between Canada and Mexico can be seen as a strategic response to this uncertainty, positioning the two countries to navigate potential changes in the USMCA framework more effectively.
Canada’s Prime Minister Carney, who assumed office in , has prioritized strengthening relationships with key trading partners. His visit to Mexico marks a deliberate effort to reset relations following tensions that arose last year when Canadian officials were accused of seeking a separate trade deal with the United States during tariff negotiations. The warmer tone between Carney and Sheinbaum, evidenced by the exchange of gifts and cordial interactions at a joint news conference, signals a renewed commitment to collaboration.
Trade between Canada and Mexico was valued at C$56 billion (approximately $40.5 billion USD or £30 billion) in , highlighting the existing economic interdependence between the two nations. Boosting trade volumes is a key objective of the strengthened partnership, with both countries seeking to diversify their economic relationships and reduce reliance on the United States.
Beyond trade, Carney and Sheinbaum also discussed border security and “transnational organized crime,” issues that have been prominently raised by the Trump administration as justification for tariffs on both countries. Enhanced cooperation in these areas is seen as crucial for addressing shared security challenges and mitigating potential trade disruptions.
The evolving trade scenario underscores the growing importance of regional partnerships in a world characterized by increasing protectionism and geopolitical uncertainty. The strengthened ties between Canada and Mexico represent a strategic response to these challenges, positioning the two countries to navigate a complex and rapidly changing global landscape.
