Canadian Prime Minister Mark Carney’s visit to Mexico City aligns with Mexico’s efforts to strengthen economic ties and safeguard the USMCA amid shifting US trade policies and rising regional collaboration.
Canadian Prime Minister Mark Carney’s recent visit to Mexico City, where he met with Mexican President Claudia Sheinbaum, marks a significant moment in North American trade diplomacy as Canada and Mexico seek to present a united front ahead of the 2026 renegotiation of the United States-Mexico-Canada Agreement (USMCA). The meeting underscores growing concerns driven by the unpredictable nature of U.S. trade policy under President Donald Trump and highlights efforts by both nations to preserve and strengthen economic integration in the region.
The USMCA, which replaced NAFTA in 2020, has become a critical framework governing trade between the three North American countries. However, the legacy of tariff threats and protectionist policies under Trump has injected considerable uncertainty into what was once seen as a stable trading bloc. In this context, Sheinbaum’s government has taken tangible steps to improve Mexican trade attractiveness and protect the regional agreement by imposing significant tariffs on Chinese imports, aiming to counter accusations from the U.S. that Mexico serves as a conduit for underpriced Chinese goods circumventing U.S. tariffs.
Sheinbaum emphasized the importance of USMCA, telling reporters, “We want to maintain the USMCA,” reinforcing Mexico’s commitment to deepening free trade ties rather than engaging in retaliatory trade measures. This strategy contrasts with Canada’s earlier posture of confrontation during tariff spats, which led to escalating trade barriers until Carney’s de-escalation move in August. Carney acknowledged the economic interdependence between Canada and Mexico, stating, “North America is the economic envy of the world… part of the reason for that is the cooperation between Canada and Mexico.” This cooperative stance is notable, especially considering the original USMCA negotiations in 2018, when Mexico negotiated separately with the U.S., sidelining Canada.
As the 2026 trade review period approaches, both Canada and Mexico have launched public consultation processes to gather feedback on the USMCA’s effectiveness and alignment with national interests. Mexico commenced a 60-day public consultation, extendable by 30 days, with the goal of reducing uncertainty before the formal review, while Canada’s consultation is scheduled from September to early November 2025. These consultations, agreed upon by all three member countries, aim to refine the trade framework to support economic growth and protect workers and businesses on all sides.
Their joint announcement also introduced the Canada-Mexico Action Plan 2025-2028, designed to increase bilateral trade and investment, particularly in infrastructure such as railways, ports, and airports. Significantly, the plan includes collaborative efforts on security challenges, an area of particular importance given the ongoing issues surrounding cross-border drug trafficking and cybersecurity threats. Sheinbaum expressed satisfaction with Canada’s support for cybersecurity—a key component in Mexico’s national strategy against organized crime.
While avoiding overt criticism of the United States or President Trump, both leaders acknowledged the necessity of maintaining trilateral cooperation. Carney’s visit, the first to Mexico as Canadian Prime Minister in eight years, is seen as a strategic attempt to solidify Canada-Mexico ties at a time when Canada’s trade relationship with the U.S. has endured strain and uncertainty due to tariff threats and political tensions. Although trade volume between Canada and Mexico remains modest compared to Canada-U.S. trade, officials view Mexico as a vital partner for trade diversification and resilience.
The evolving dynamics in North American trade policy reveal a shift from contentious negotiations to a more collaborative approach between Canada and Mexico, recognising the economic weight of the U.S. market while seeking greater regional solidarity. This partnership could be instrumental in managing the complex negotiations ahead and counterbalancing the assertive U.S. stance observed under the Trump administration’s second term, which shows a renewed interest in reshaping America’s trade relationships.
Overall, Carney and Sheinbaum’s discussions and subsequent strategic initiatives signal a new era of cooperation and integration across North America, focused not only on preserving free trade but also on enhancing security, infrastructure, and technological resilience in a rapidly changing geopolitical and economic landscape.
Source: Noah Wire Services
Subscribe to Industry Updates
