In the midst of escalating tensions in trade talks between Canada and the United States, the Trump administration has criticized Canada’s assertive stance. Canadian officials are now actively seeking to establish new partnerships, notably with Mexico, one of their closest neighbors.
Efforts to strengthen Canada-Mexico relations began at the G7 summit in Kananaskis, Alta., where Prime Minister Mark Carney invited Mexican President Claudia Sheinbaum for a private meeting, according to Foreign Affairs Minister Anita Anand in Mexico City. Anand, accompanied by Finance Minister François-Philippe Champagne, is in Mexico to enhance the bilateral economic ties between the two nations.
Although Canada has traditionally focused on alliances with France and the UK, Mexico holds more significance as a trade partner, stated Laura Macdonald, a political science professor at Carleton University. Macdonald highlighted Canada’s historical reluctance to engage deeply with Mexico but noted that Anand and Champagne’s visit signals a shift in approach.
During their meeting with Sheinbaum, both ministers expressed positivity about the discussions, although Sheinbaum clarified that a separate bilateral trade agreement was unnecessary, pointing to the existing trade deal involving the U.S., Canada, and Mexico. Anand and Champagne are engaging with Mexican business leaders to explore new opportunities and reinforce strategic partnerships.
To overcome the challenges in the Canada-Mexico relationship, Macdonald emphasized the need for concerted efforts, citing Canadian businesses’ inclination towards U.S. partnerships and the misconceptions between the two nations. She stressed the importance of viewing Canada as a solution to Mexico’s socioeconomic issues and moving past the historical trade dynamics entrenched in NAFTA and CUSMA.
Stuart Bergman, the vice-president and chief economist at Export Development Canada (EDC), advocated for strengthening trade ties with Mexico due to the underutilized potential. The Business Council of Canada echoed this sentiment, highlighting the limited trade and investment interactions between Canada and Mexico compared to other regions.
Looking ahead, both countries aim to collaborate on building resilient supply chains, enhancing trade routes, and focusing on sectors like artificial intelligence, agri-food, and energy security. While rumors of a trade corridor bypassing U.S. tariffs surfaced, experts remain skeptical about its feasibility and practicality.
In closing, the diplomatic efforts between Canada and Mexico signify a shift towards deeper cooperation and economic collaboration, aiming to unlock the untapped potential in their trade relationship.