Their timely visit comes on the heels of Canadian Ministers Anita Anand and François-Philippe Champagne’s recent visit to Mexico to strengthen the three nations’ economic ties. The negotiations were held in Mexico City. They doubled down on Chamber solicitations to expand important trade relationships and address economic fallout from tariffs, particularly those levied by the United States. The Canadian ministers are certainly keen to consider new trade partners. From day one, they worked directly with Mexican President Claudia Sheinbaum, other Mexican government officials and state and business leaders from both U.S. states.
During their joint visit, Anand and Champagne made clear the importance of the automotive sector. That’s an industry with a major positive impact on integrated trade between Canada and Mexico. Vehicles and auto parts alone represent 20 percent of all of Canada’s exports to Mexico. By comparison, these products account for 21% of the $40 billion in exports that Canada sends to Mexico. This growing dynamic shows the new interdependence of the two economies and the possibilities for even deeper cooperation.
Trade Dynamics and Economic Impact
Canada’s economy is still reeling from the current blow dealt by U.S. tariffs. An astronomical 35% tariff hits on goods that aren’t CUSMA-compliant. In addition, Canadian steel, aluminum, and copper face tariff rates as much as 50%. Canada, too, is being pushed to seek out more reliable trade partners. Mexico has become one of our most important partners in supplying critical commodities such as oil, gas, steel and aluminum.
Mark Carney, a proponent of the broader Canadian economic dialogue, has made frequent mention of our 40-million-population. He beamed as he said that we are the second-biggest investors in the United States—period—in the world. He acknowledged the challenges that tariffs on trade with Canada, though he pointed out that 85% of trade between Canada and the U.S. is still tariff-free. This underscores the importance of maintaining robust trade relations with both neighbors while exploring opportunities to strengthen ties with Mexico.
“Without an agreement, there will be less by definition.” – Mark Carney
This declaration is a testament to the ongoing demand for robust agreements that will maintain and increase trade in the face of a changing global economy.
Future Initiatives and Strategic Goals
Anand stressed the importance of nurturing a strategic relationship that’s resilient to economic ups and downs. She concluded, “We’re creating an important momentum in the Mexico-Canada relationship. We’re going to make sure that this valuable partnership lasts through the ages. Our discussions focused on coming up with a work plan. This plan would put a focus on resilient supply chains, port-to-port trade, artificial intelligence, digital economy, energy, and security.
“What we have agreed is to build a work plan between Canada and Mexico which focuses on a number of factors,” Anand added.
Such initiatives seek to build trust and promote alignment between the U.S. and EU by tackling shared interests on economic resilience and national security concerns.
Along with government officials, Anand and Champagne held discussions with top Canadian and Mexican business leaders. This engagement will build momentum for cross-sector collaboration and sharing of lessons learned on best practices.
Diversifying Trade Relationships
With Canada facing a rapidly evolving global economic outlook, strengthening ties with dependable partners such as Mexico has never been more important. Anand continued, “We are working to bring greater certainty and diversify our export markets. By building stronger relationships through trade, such as the deep partnership we have with Mexico, we can pave a new path forward with our trusted partners.
The ministers’ visit is a pledge from Canada’s leadership that it is serious about building a strong economic base in fast-changing global economic realities. This proactive effort is designed to lower risks associated with existing tariffs. It further lays a useful foundation for ongoing partnership in critical areas.
