A significant trade mission from Mexico has commenced in Canada, aimed at fortifying commercial relationships ahead of a crucial review of the North American free trade agreement. This unprecedented initiative features over 240 Mexican companies convening in Toronto and Montreal for two days of extensive business discussions, which include more than 1,800 meetings with Canadian counterparts.
High-Level Engagements in the Spotlight
Marcelo Ebrard, Mexico’s Secretary of Economy, is at the helm of this mission, engaging with key executives from prominent Canadian firms such as Air Canada, Bombardier Inc., and Brookfield Corp. Additionally, he is set to facilitate discussions between Mexican enterprises and Canadian investment funds, notably the Ontario Teachers’ Pension Plan, one of the world’s largest pension funds.
This visit is particularly timely given the current climate of North American trade relations. With the Canada-United States-Mexico Agreement (CUSMA), also known as the USMCA, up for review this year, stakeholders are acutely aware of the potential for shifts in policy, especially with U.S. President Donald Trump’s unpredictable stance toward trilateral agreements.
A Call for Collaborative Resilience
During the opening address in Toronto, Dominic LeBlanc, Canada’s Minister responsible for Canada-U.S. trade, underscored the importance of the Canada-Mexico relationship, highlighting shared values and economic aspirations that have fostered prosperity over decades. He emphasised Ottawa’s readiness for a thorough review of the USMCA in collaboration with Mexico and the United States, stating, “This collaboration offers enormous opportunities not only to reaffirm the benefits of this trilateral agreement for all three countries but to build on its foundations and ensure that it responds to the realities of today and the global challenges of the coming years.”
LeBlanc’s remarks come in the wake of a recently established Canada-Mexico action plan, a strategic initiative aimed at enhancing bilateral business ties, which was announced earlier this year by Prime Minister Mark Carney and Mexico’s President Claudia Sheinbaum.
Diverging Approaches to Trade Negotiations
While both Canada and Mexico publicly project a united front, their strategies in engaging with the U.S. differ notably. Mexico has adopted a more proactive stance, seeking swift resolutions to issues while aligning closely with President Trump’s personal negotiation style. In contrast, Canada has opted for a more restrained approach, preferring to navigate the complexities of trade discussions with caution.
This divergence was illustrated during the trade mission, which also showcased the deep integration of Canadian and Mexican supply chains developed over decades of free trade. For instance, Fernando Lerdo de Tejada, executive vice-president of Grupo Bimbo, noted that the company has invested over $1.6 billion in Canada since 2014, operating 17 bakeries across seven provinces and employing more than 4,000 people. The company plans to inject an additional $200 million into Canada by 2028, reinforcing the symbiotic economic relationship between the two nations.
Economic Dynamics in Trade Relations
As Mexico stands as Canada’s third-largest source of imports—following the U.S. and China—trade figures illustrate both the potential and the challenges ahead. In 2024, Canada imported $47 billion worth of goods from Mexico, predominantly in automobiles, electronics, and consumer products. Yet, the export landscape tells a different story: Canadian shipments to Mexico totalled approximately $8.6 billion in the same year, starkly contrasting with the $600 billion exported to the U.S.
Scott Thomson, CEO of Bank of Nova Scotia, highlighted the significance of Mexico in the bank’s portfolio, which contributes roughly 10 per cent to its overall earnings. “The question now is whether we treat that advantage as a given, or whether we strengthen it deliberately,” he remarked, emphasising that Scotiabank, the only Canadian bank operating in Mexico, is positioned as the fourth-largest bank in the country.
Why it Matters
This trade mission underscores the critical importance of Canada-Mexico relations within the broader context of North American trade dynamics. As both countries prepare for a potentially tumultuous review of the USMCA, the emphasis on collaboration and mutual investment stands to not only enhance economic resilience but also to solidify a united front in the face of challenges from the U.S. This initiative illustrates a proactive approach to fostering long-term partnerships that could redefine trade in North America for years to come.
