Canadian Prime Minister Mark Carney Visits Mexico to Strengthen Trade Relations
TORONTO (AP) — Canadian Prime Minister Mark Carney has embarked on a significant visit to Mexico, aiming to diversify trade relations as both nations prepare for a comprehensive review of their free trade agreement with the United States. The United States-Mexico-Canada trade pact (USMCA) is set for a review in 2026, and with over 75% of Canada’s exports and more than 80% of Mexico’s going to the U.S., the stakes are high.
Strengthening Ties Amid Tensions
During his two-day visit, Carney is expected to hold crucial discussions with Mexican President Claudia Sheinbaum about the current U.S. administration. Canadian Senator Peter Boehm articulated the importance of these conversations, stating, “What are they hearing from the Americans, what we are hearing. It’s an opportunity to talk about how to handle the U.S. administration going forward.”
Carney’s commitment to improving relations with Mexico comes in the wake of controversial remarks from Canadian provincial premiers, who last year suggested excluding Mexico from any new trade deal with the U.S. President Trump had previously equated Canada with Mexico concerning fentanyl smuggling, promising extensive tariffs on both nations.
Concerns and Opportunities
Ontario Premier Doug Ford publicly condemned Trump’s comparisons, labeling them “the most insulting thing I’ve ever heard.” Boehm noted that such comments unsettled Mexico, emphasizing the need for sensitivity when discussing bilateral relations. “The Mexicans are particularly sensitive on these matters, and there was concern about that, no doubt,” he said.
Despite these challenges, there are signs of improving relations. Mexico appreciated Carney’s invitation extended to Sheinbaum for the G7 summit in Alberta this past June, alongside follow-up visits from his foreign and finance ministers.
Trade Landscape
Canada trades more with Mexico than with the entire European Union, a fact Boehm highlights to stress the importance of this relationship. Mexico ranks as Canada’s third-largest trading partner, following the U.S. and China. In return, Canada is the fifth largest trading partner for Mexico.
While the focus remains on U.S. trade, maintaining the USMCA is critical for both nations. The agreement provides a key exemption that shields the vast majority of goods from severe duties, allowing Canadian and Mexican companies to benefit from preferential treatment. However, sector-specific tariffs implemented by Trump, including a 50% tariff on steel and aluminum, complicate these dynamics.
Meeting the Future Together
According to Nelson Wiseman, a professor emeritus at the University of Toronto, the looming presence of Trump is undeniable. He stated, “While both leaders are interested in expanding their countries’ trade with each other, their priority is strategizing on how to deal with Trump and the upcoming USMCA renegotiation.” Boehm echoed this sentiment, suggesting that Carney and Sheinbaum may find collaborative strategies more effective than competing for separate deals.
Both leaders have indicated a desire to enhance bilateral commerce within the North American framework. Sheinbaum mentioned, “What we have discussed is how to strengthen trade between Mexico and Canada as part of the trade agreement.” She also emphasized the importance of adhering to environmental regulations, specifically concerning Canadian investments in Mexico’s mining sector, which account for almost 70% of foreign investments.
Key Meetings and Future Outlook
Carney’s itinerary includes a one-on-one meeting with Sheinbaum, followed by a working lunch with cabinet ministers from both nations. He is also scheduled to visit the Canadian embassy on Friday, closing a pivotal visit focused on fortifying trade relations and strategic partnerships.
This significant diplomatic engagement highlights the ongoing efforts by Canada and Mexico to navigate a complex trade landscape while bracing for future negotiations with the United States.
