Canada, Mexico Pledge Coordination On Trade Pact Review With US

The leaders of Canada and Mexico committed to close coordination ahead of next year’s high-stakes review of their trade pact with the US as President Donald Trump’s tariff threats put the accord at risk.

At a joint press conference in Mexico’s ornate national palace, Canadian Prime Minister Mark Carney and his Mexican counterpart Claudia Sheinbaum touted advances they argued can boost the competitiveness of North America, home to a tightly integrated auto industry plus significant cross-border trade in energy and agriculture, among other sectors.

Carney’s embrace of Sheinbaum during the pair’s first summit in Mexico City follows a recent push to build stronger ties after disputes over competing approaches to trade talks with the US, with both Canada and Mexico seeking to convince Trump to lower import duties on goods including steel, cars and farm products.

The meeting presented Canada and Mexico as a united front after a sometimes frosty relationship first emerged between former Prime Minister Justin Trudeau and Sheinbaum’s predecessor, Andres Manuel Lopez Obrador.

Carney pledged to “move forward together, without question” with Mexico, while also emphasizing the value of the USMCA’s three-party strength.

“North America is the economic envy of the world,” he said. “Part of the reason for that is the cooperation between Canada and Mexico, both of us and the United States. We complement the United States. We make them stronger. We are all stronger together.”

Carney and Sheinbaum announced what they dubbed “the new Canada-Mexico Action Plan” while stressing opportunities to grow bilateral trade in infrastructure, energy and agriculture, according to a statement from the Canadian leader’s office ahead of the press conference.

“The action plan opens a phase in which we can further strengthen our economic ties,” Sheinbaum said.

The pair also promised frequent meetings among their ministers, while also discussing next year’s World Cup soccer tournament, to be hosted by all three North American nations.

The visit came just days after Sheinbaum’s government announced it’s plans to impose tariffs of as much as 50% on cars, auto parts, steel and other goods it imports from China, among other mostly Asian exporters. It’s a decision largely in line with Canada’s position, as it last year hiked its own tariffs on imports of Chinese electric vehicles to 100% while adding levies on Chinese steel and aluminum.

During his two-day visit, Carney planned to meet with business leaders and attend an event to highlight Canadian wheat trade with Mexico. Carney’s visit is the first bilateral meeting for a Canadian prime minister in Mexico since Trudeau met former Mexican President Enrique Peña Nieto in 2017.

In 2023, Trudeau returned to Mexico for the so-called “Three Amigos” summit with then-US President Joe Biden and López Obrador. Earlier this year, Carney and Sheinbaum met at the Group of Seven leaders summit in Kananaskis, Alberta.

Source: Bloomberg Europe