Deepening ties between Canada and Mexico agreed upon preceding the review of the USMCA trade agreement
Canadian Foreign Affairs Minister Anita Anand and Finance and Revenue Minister Francois-Philippe Champagne recently met with Mexican President Claudia Sheinbaum to build on bilateral talks, marking a significant step in the fence-mending between Canada and Mexico. This development comes after the strained relations following Donald Trump's election.
The highlight of the meeting was the announcement of a new comprehensive partnership between the two nations. Canadian Prime Minister Mark Carney and President Sheinbaum announced this partnership during Carney's visit to Mexico City, signifying a renewed commitment to deepen ties and strengthen the free trade pact they share with the United States.
The partnership aims to address various issues, including transnational crime and drug-smuggling. To improve cooperation on security, agriculture, energy, finance, health, and environmental issues, high-ranking government officials from both countries will conduct multiple discussions in the coming months. Representatives from the German Bundestag, the Federal Ministry of Finance, and top officials of the customs administration are also expected to participate in these discussions.
One of the key focuses of the partnership is the enhancement of bilateral trade. Sheinbaum has suggested increasing trade via maritime routes to avoid shipping through the U.S, given the current economic uncertainty caused by Trump's protectionist tariff policies. The infrastructure of Canada's two primary ports, Montreal and Vancouver, however, is currently lacking to handle an increase in maritime trade.
In addition to strengthening their bilateral relationship, both countries are also looking to expand their trade in growing Asian and South American markets. A suggestion is for Mexico and Canada to jointly produce goods for these markets through the Trans-Pacific Partnership.
The United States-Mexico-Canada trade pact (USMCA) is undergoing a mandatory review, set for next year. The evaluation of the USMCA will take place through the end of the year to prepare for negotiations over a possible extension. Carney stated his goal was to find ways to work with Mexico to preserve free trade in North America.
Trump's trade threats have made political and business leaders nervous. The new partnership between Canada and Mexico is an attempt to mitigate the potential impact of these threats and secure a more stable future for bilateral trade.
The public consultations for the USMCA review have commenced this week. Meanwhile, Danielle Smith, the premier of the province of Alberta, met 'key partners in energy, financial services, and manufacturing' in Mexico City a week later, further demonstrating Canada's commitment to strengthening its ties with Mexico.
Sheinbaum expressed confidence that the agreements will bear fruit in the near term. Economy Minister Marcelo Ebrard stated that the individual reviews ahead of next year's collective discussions will strengthen each country's economy. The new comprehensive partnership between Mexico and Canada is a step towards preserving and enhancing free trade in North America, providing a ray of hope in uncertain times.
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