Prime Minister Mark Carney is set to travel to Mexico on Thursday with dual objectives that are interconnected. His primary aim is to collaborate with Mexico to safeguard free trade across North America, particularly in light of the current protectionist stance of the U.S. administration. Additionally, he seeks to establish a bilateral trade relationship with Mexico that is not influenced by White House policies, ensuring its resilience irrespective of the fate of the Canada-U.S.-Mexico Agreement (CUSMA) during future renegotiations.
During the trip, an agreement is anticipated to be reached on a new comprehensive partnership between Canada and Mexico, alongside a security dialogue focusing on issues like transnational crime and drug trafficking. Carney emphasized the emphasis on enhancing partnerships in trade, commerce, security, and energy to bolster supply chains, create new opportunities for workers, and enhance prosperity and stability for both Canadian and Mexican citizens.
The relationship between Canada and Mexico has faced challenges, particularly amid the first term of U.S. President Donald Trump. The trip aims to foster trust between the two countries to avoid any instances of abandonment. Despite past concerns and remarks from Canadian officials hinting at the exclusion of Mexico from trade discussions, recent efforts have been made to mend fences and solidify the partnership.
The trade relationship with Mexico has shown growth, with a notable increase in Mexican imports to Canada. Canadian investments in Mexico have diversified, with the automotive sector witnessing significant activity. Recent data indicates a shift in car imports to Canada from Mexico surpassing those from the U.S., reflecting evolving trade patterns influenced by tariff considerations.
Both Canada and Mexico have explored avenues to expand free trade beyond CUSMA, yet progress has been limited. Efforts are required to capitalize on opportunities and strengthen the partnership further, avoiding past instances where Mexico was disregarded in trade discussions. Opportunities for collaboration in producing goods for emerging markets exist, leveraging their membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Overall, there is potential for Canada and Mexico to enhance their trade relationship and collaborate on various economic fronts, provided they navigate the geopolitical landscape with discretion and strategic alignment, focusing on mutual benefits without overtly antagonizing external actors.
