Canada and Mexico Meet as U.S. Reviews CUSMA
Prime Minister Mark Carney met Mexican President Claudia Sheinbaum in Mexico City on Thursday. The visit happened while the United States started its review of the Canada–U.S.–Mexico Agreement (CUSMA).
The U.S. Trade Representative opened a 45-day consultation and scheduled a November hearing. Experts believe this means Washington may renegotiate the deal instead of simply reviewing it. As a result, both Canada and Mexico are preparing to defend their trade interests.
Canada Faces Economic Pressure
Canada’s economy shrank 1.6% in Q2 2025 due to U.S. tariffs on steel, aluminum, and autos. Therefore, Carney is turning to Mexico to reduce reliance on the American market.
Mexico is Canada’s third-largest trading partner. In fact, the two countries exchanged $56 billion in goods last year.
A New Strategic Partnership
During his 36-hour trip, Carney and Sheinbaum held one-on-one talks. Later, they joined ministers for a working lunch. They also signed a new strategic partnership to allow regular high-level contact between the two governments.
In addition, Carney toured a Canadian Pacific Railway terminal to highlight wheat exports. He also hosted a reception for Canadian and Mexican business leaders. This was the first Canada–Mexico meeting without U.S. involvement since 2017.
Calls to Align Interests
Goldy Hyder, CEO of the Business Council of Canada, said Canada should align with Mexico during CUSMA talks.
“canada must show itself as a strong place for mining, energy, and port investment,” he explained.
Trade lawyer John Boscariol added that Canada makes up only 5% of Mexico’s trade. However, he argued Mexico is still the “natural next best partner after the U.S.” He highlighted auto parts and potash as key export opportunities.
Obstacles Ahead
Analyst Duncan Wood warned that Canada and Mexico may compete for U.S. attention.
“It will be hard for them to find common ground. Each country wants special treatment from Washington.”
Meanwhile, Wood said Carney and Sheinbaum should align policies on China. On the other hand, if they fail to do so, their bargaining power in Washington could weaken.
“What really matters in Washington is whether Canada and Mexico can help the U.S. in its competition with China.”
