Canada, Mexico seek closer ties before U.S. trade review

Mexican President and Canadian PM shake hands in Mexico City, Mexico September 18, 2025.
Reuters

Canada and Mexico on Thursday pledged to deepen ties between their two countries, as well as strengthen the free trade pact they share with the United States, during a visit by Prime Minister Mark Carney to Mexico.

Speaking at a press conference, Carney and President Claudia Sheinbaum said they had agreed to expand economic and security ties and were committed to their partnership with the U.S.

Carney's visit comes as Canada, Mexico and the U.S. kicked off public consultations this week, ahead of a review of their free trade deal set for next year.

"I have full confidence, and so does the president (Sheinbaum) that we can find the adjustments needed to reinforce competition and competitiveness in our region," Carney said.

Mexico and Canada are the United States' largest and second-largest trading partners, respectively, while the U.S. is the No.1 trading partner for both of the others.

Carney arrived in Mexico City early on Thursday for a two-day mission designed to improve recently strained ties and seek a common front in crucial trade talks with the United States.

Carney's trip is the first bilateral visit by a Canadian prime minister to Mexico in eight years. Canadian officials briefing reporters on Wednesday described ties as excellent but conceded they could be closer.

"Highest level engagements have been few and far between, so this is an opportunity for us to reaffirm that leader-level engagement," said one official.

The two leaders said they were interested in sharing knowledge on fighting transnational criminal organisations and improving border security, and said it was possible to broaden their agreement to span security and defence.

"We will move forwards together," Carney said, when asked if Canada would consider side-lining Mexico to get a better trade deal with the United States. Sheinbaum said she was optimistic the countries would continue to work together with respect.

Canada, Mexico and the United States renewed a continental free trade treaty in 2018 but talk of solidarity frayed as U.S. President Donald Trump imposed tariffs.

Brian Clow, a former senior aide who advised then Prime Minister Justin Trudeau on North American affairs, said both nations needed to have open, clear and trusting communications.

Canada's efforts to strike a new economic and defence relationship with Washington have stalled, underlining the need for closer ties with Mexico.

Carney has also stressed the need for Canada to find new markets. Bilateral goods trade with Mexico in 2024 totaled just C$55.4 billion ($40.2 billion), compared to C$924.4 billion with the United States.

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