In a significant move to strengthen their economic and security ties, Canada and Mexico have agreed to deepen cooperation as both nations face growing economic pressure from the United States. Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum met in Mexico City this week to affirm this commitment, signaling a shared strategy in handling the ongoing challenges posed by U.S. tariffs and trade tensions.
This visit marked Carney’s first official trip to Mexico as prime minister, aiming to mend and reset relations after tensions flared last year over perceptions that Canada was seeking a separate trade deal with the U.S. during tariff negotiations. The tone between Carney and Sheinbaum was notably more amiable this time, with the leaders exchanging gifts and emphasizing unity and partnership. Their discussions culminated in a new Comprehensive Strategic Partnership that includes a concrete three-year action plan running through 2028, focusing on enhancing trade, investment, infrastructure, security, and sustainability efforts between the two countries.
The deepening partnership comes as both Canada and Mexico grapple with the impact of tariffs imposed by the U.S. government under the previous Trump administration. Canada is currently facing duties as high as 50% on steel imports, 25% on vehicles, and other levies affecting energy sectors. Mexico has been hit with a 25% tariff on pharmaceuticals and additional tariffs on steel and other goods. Both countries have fiercely defended the United States-Mexico-Canada Agreement (USMCA), a trade deal in place since 2020, which is scheduled for review next year and has already faced threats of renegotiation and further tariff actions from Washington. Carney pointed out that Canada, Mexico, and the U.S. complement each other in the regional economy and emphasized the importance of working together rather than separately. “We complement the United States, we make them stronger, we are all stronger together,” he said during the joint press conference.
The new partnership agreement includes a roadmap structured around four key pillars: prosperity; mobility, inclusivity and well-being; security; and environment and sustainability. Through this framework, Canada and Mexico plan to collaborate on a wide array of initiatives. These include building resilient supply chains, investing in port and rail infrastructure to improve cross-border trade efficiency, and fighting organized crime linked to drugs and firearms trafficking. The agreement also prioritizes climate action and health security measures, reflecting an ambitious approach extending beyond traditional trade issues.
A notable aspect of the Accord is the commitment to increased communication and cooperation at the highest levels of government. The countries plan frequent meetings involving ministers and secretaries from various departments including trade, investment, agriculture, energy, security, and public safety. One immediate follow-up from this agreement is a trade mission to Mexico led by Canada-U.S. Trade Minister Dominic LeBlanc, scheduled shortly after the signing. More than $9.9 million will be directed toward United Nations-led projects aimed at combating drug trafficking and supporting migrant integration efforts.
Mexico, which ranks among Canada’s top three trading partners, has welcomed this move as an opportunity to solidify a mutually beneficial relationship. The bilateral merchandise trade between the two countries was valued at $40.5 billion (C$56 billion) in 2024, demonstrating a significant economic link that both leaders are keen to expand. Mexican President Sheinbaum also highlighted the importance of expanding short-term work visas and ocean trade routes as priorities that will bolster the growing partnership.
The agreement also serves as a strategic front for both countries ahead of the planned USMCA renegotiations. By presenting a united stance, Canada and Mexico hope to influence the terms of the review process more favorably for their own economies, ensuring protections against arbitrary tariffs and promoting a stable North American trade environment. The partnership underscores a clear message: despite external pressures and uncertainties with the United States, Canada and Mexico are committed to working closely together to protect their economic interests and enhance security cooperation for the benefit of their citizens.
This strategic partnership is not just about bilateral relationships; it is about underpinning the future of North American trade and security cooperation at a critical juncture. For Canadian and Mexican businesses, workers, and communities, the hope is that closer ties will mitigate risks posed by tariff disputes and political unpredictability, helping sustain economic momentum in the years ahead.
