Leaders Commit to Closer Ties
Canada and Mexico have agreed to strengthen their partnership on trade and security, seeking unity as both economies face rising pressure from U.S. tariffs.
At a joint press conference in Mexico City, Prime Minister Mark Carney and President Claudia Sheinbaum emphasized that their cooperation would also benefit the broader North American partnership.
Carney said:
“We complement the United States, we make them stronger, and we are all stronger together.”
Reset After Diplomatic Strains
This was Carney’s first official visit to Mexico as prime minister, aimed at resetting ties after tensions in 2024.
At the time, Canadian officials were accused of seeking a separate U.S. trade deal, prompting Sheinbaum to say Mexico “must be respected.” The tone this week was warmer, with the leaders exchanging gifts and affirming unity.
Canadian officials said trade between the two countries reached C$56 billion ($40.5 billion) in 2024.
Focus on Trade, Crime, and Security
Carney and Sheinbaum discussed:
- Expanding bilateral trade under the USMCA framework
- Strengthening border security
- Combating organized crime and trafficking
Observers say both leaders want to avoid being pitted against each other in upcoming negotiations. Political scientist Sebastián Vallejo Vera described it as “a subtle dance” to show unity without appearing to gang up on Washington.
U.S. Tariffs Driving Policy Shifts
Both countries continue to face sector-specific U.S. tariffs:
- Canada: Steel (50%), vehicles (25%), oil & gas (10%)
- Mexico: Pharmaceuticals (25%), fentanyl tariff (25%)
Carney recently dropped Canada’s retaliatory tariffs in an effort to revive talks with Washington. However, Canada’s exports to the U.S. have been harder hit than Mexico’s in 2025.
Trump paused new tariffs on Mexico until October but warned of further measures if no new deal is reached.
Trade Outlook and Strategic Gains
Experts note Canada may gain more from stronger Mexico ties than the reverse, given its weaker export performance this year.
Still, both countries remain committed to the USMCA, which comes up for review in 2026. Early consultations are already underway in Washington.
Professor Vera said these are “unprecedented times” forcing Canada and Mexico to redefine their relationship as they prepare for renewed talks with the U.S.
