Canada and Mexico Pursue Joint Continuation
In August 2024, Finance Minister François-Philippe Champagne, National Revenue Minister Anita Anand, and Foreign Affairs Minister Anita Anand embarked on a two-day mission to Mexico, marking Prime Minister Mark Carney's first official visit to the country since his election.
During the visit, the Canadian delegation met with President Sheinbaum to discuss the strengthening of economic ties between the two nations. As of 2024, trade between Canada and Mexico was approximately $56 billion, making Mexico Canada's third-largest trading partner.
The focus of the new partnership is on building ports, railways, and energy corridors, launching a new bilateral dialogue on security, creating new commercial outlets, and strengthening cooperation on climate and conservation. This partnership is part of Mexico's Mexico Plan, a six-year, $277 billion investment strategy to strengthen its manufacturing sector and reduce Chinese imports.
Canada aims to implement an action plan until 2028 to quickly realize this new partnership. One of the first major national interest projects announced by Prime Minister Carney in Canada is the expansion of the Port of Montreal to Contrecoeur.
The revision of the USMCA (United States-Mexico-Canada Agreement) is set to begin in 2026, and a group of experts recommended in July 2024 that the federal government establish a consensus with Mexico before the start of negotiations. Former Minister Perrin Beatty, a member of the expert group, observed that the challenge will be to convince Donald Trump that it is in the interest of the United States to have a strong North America.
Prime Minister Carney and President Sheinbaum have advocated for the maintenance of a trilateral free trade agreement with the United States. In 2023, trilateral merchandise trade totaled $1.9 trillion. The Canada-US-Mexico Agreement (CUSMA) is set to be reviewed in 2026.
In addition to economic cooperation, the new global strategic partnership covers various sectors, including foreign affairs, trade and investment, agriculture, natural resources, energy, finance, health, environment, and public security.
Furthermore, the Canadian government has announced $9.9 million in funding for projects led by the United Nations to support migrant integration in Mexico and combat fentanyl production and trafficking. Prime Minister Carney also invited President Sheinbaum to the G7 Summit in June 2024.
This bilateral visit by a Canadian prime minister since Justin Trudeau met with Enrique Peña Nieto in 2017 marks a significant step forward in strengthening the relationship between Canada and Mexico. Both leaders are optimistic about the future of their partnership and the benefits it will bring to their respective nations and North America as a whole.
