Canada and Mexico Work to Strengthen Trade Ties as U.S. Pressures Rise

Two of Canada’s most important government ministers are visiting Mexico City this week to meet with top Mexican officials. This move shows that Canada wants to build stronger trade relationships with countries other than the United States. The ministers attending the meeting are Finance Minister François-Philippe Champagne and Foreign Affairs Minister Anita Anand.

The meetings will happen on Tuesday and Wednesday. They are expected to focus on improving trade between the two countries and making their overall relationship stronger.

A Troubled Past Year

In the last year, Canada and Mexico's relationship became tense. Ontario Premier Doug Ford said Canada should work on its own trade deal with the U.S. and leave Mexico out. He also accused Mexico of hurting North American factories by offering cheaper products. These comments created a divide between Canada and Mexico.

Now, Canada is trying to fix this and rebuild a healthy trade partnership with Mexico.

Why This Meeting Matters

Canadian business leaders believe this visit is very important. Catherine Fortin-LeFaivre, a senior official at the Canadian Chamber of Commerce, said that Mexican officials are eager to reset and improve the relationship. This is happening at a time when both Canada and Mexico are dealing with pressure from the United States.

Recently, the U.S. placed a 35% tax (called a tariff) on many Canadian products. Mexico was given 90 more days to keep talking with the U.S. before they face the same increase. This situation has made Canada realize how important it is to have a strong, direct trade connection with Mexico.

Building a Stronger Partnership

Last month, Canadian Prime Minister Mark Carney had a phone call with Mexico’s new President, Claudia Sheinbaum. They both agreed that it’s important to work together and improve trade between their two countries.

Carlo Dade, an expert at the University of Calgary, said that Canada and Mexico having these open talks is a very good sign. If they weren’t speaking at all, that would be a problem, he explained. He also pointed out that Canada has not taken full advantage of how close Mexico is and how developed its economy has become. In fact, Mexico’s per-person income is now higher than China’s.

Canada and Mexico are already connected by the CPKC railroad – a major train system that links the two countries. They also have a trade agreement that helps goods move more easily between them. The only thing missing, according to experts, is more interest and action from Canadian businesses to make full use of these opportunities.

Why Mexico Is Important for Canada

Mexico is already Canada’s third-largest trading partner. In 2024, almost $56 billion worth of goods were traded between the two countries. But even with this large number, only about 1% of Canadian exports went to Mexico.

Export Development Canada has marked Mexico as a high-priority market for trade growth. Experts believe that if the U.S. ever decides to cancel the three-country trade deal (called CUSMA), then Canada will need to have a strong one-on-one deal with Mexico.

Fortin-LeFaivre said that if the U.S. tries to replace the three-way deal with two separate ones, Canada must be ready with a solid connection to Mexico on its own.

Canada Still Supports the CUSMA Agreement

Last Friday, Prime Minister Carney again said that Canada strongly supports the CUSMA deal, which includes the U.S., Canada, and Mexico. He also criticized former President Donald Trump’s recent move to raise tariffs.

What This Means for the Future

This week’s meetings in Mexico City are more than just simple discussions. They are a key step in making sure Canada has strong and stable trade relationships beyond the U.S. In a world where trade rules and political moods are changing quickly, Canada wants to make sure it has more than one strong partner to rely on.

The Canada-Mexico relationship, if rebuilt and strengthened, can offer both countries economic growth, better jobs, and more security in uncertain times.