A significant trade mission from Mexico commenced in Toronto on Thursday, aiming to bolster economic ties as both nations prepare for a pivotal review of the North American free trade agreement. This event marks Mexico’s largest delegation to Canada in recent history, featuring over 240 companies and facilitating more than 1,800 business meetings in Toronto and Montreal over the course of two days.
A Strategic Economic Engagement
Mexico’s Secretary of Economy, Marcelo Ebrard, is at the forefront of this initiative, engaging with executives from major corporations such as Air Canada, Bombardier Inc., Brookfield Corp., and Canadian National Railway. Beyond these discussions, Ebrard will oversee meetings that connect Mexican firms with Canadian investment entities, including the Ontario Teachers’ Pension Plan, one of the globe’s largest pension funds.
This mission is not merely a series of meetings; it’s a strategic effort to deepen economic collaboration amid a critical juncture for North American trade dynamics. The Canada-United States-Mexico Agreement (CUSMA), or USMCA, is due for review this year, with apprehensions surrounding U.S. President Donald Trump’s potential withdrawal from the trilateral pact.
Common Goals and Shared Values
Dominic LeBlanc, Canada’s Minister responsible for Canada-U.S. trade, opened the event with a call for unity, stating, “We can make North America the most competitive, dynamic and resilient region in the world.” He underscored the long-standing relationship between Canada and Mexico, rooted in shared values and economic aspirations that have yielded significant prosperity over the decades.
LeBlanc highlighted that the collaboration between Canada and Mexico is essential as they prepare for a “robust and joint review” of the USMCA. He expressed optimism about the opportunities that this partnership could yield, reinforcing the need to adapt the agreement to meet contemporary realities and the challenges that lie ahead.
Navigating Trade Dynamics
The trade mission illustrates the evolving economic landscape and the importance of co-operation, particularly as Mexico and Canada approach the negotiations with differing strategies towards the U.S. While Mexico has been proactive in its engagements with the Trump administration, Canada’s approach has been more measured and cautious.
As these two countries work together publicly, their underlying strategies may diverge. This divergence highlights the complexities of international trade, especially in the context of North America’s intricate supply chain relationships developed over decades of free trade.
Fernando Lerdo de Tejada, deputy CEO of Grupo Bimbo, a major Mexican baking enterprise, reflected on the benefits of this relationship. He noted that the company has invested over $1.6 billion in Canada since 2014, operating 17 bakeries across seven provinces and employing over 4,000 individuals. The company plans to invest an additional $200 million in Canada by 2028, demonstrating the tangible benefits of effective trade relationships.
The Balance of Trade
Currently, Mexico ranks as Canada’s third-largest source of imports, trailing only the U.S. and China. In 2024, Mexico exported goods worth $47 billion to Canada, primarily consisting of automobiles, electronics, and consumer items. However, Canadian exports to Mexico remain relatively low at around $8.6 billion, especially when compared to the staggering $600 billion exported to the U.S. the same year.
Scott Thomson, CEO of Bank of Nova Scotia, highlighted the significance of the Mexican market for the bank, which accounts for approximately 10 per cent of its overall earnings. “The question now is whether we treat that advantage as a given, or whether we strengthen it deliberately,” he cautioned. Scotiabank has established itself as the only Canadian bank operating in Mexico, now ranked as the fourth-largest bank in the country.
Why it Matters
This trade mission underscores the critical nature of international cooperation and economic resilience in an era of uncertainty. As Mexico and Canada navigate the complexities of trade negotiations and global market shifts, their commitment to strengthening bilateral ties could serve as a model for other nations. The developments in this partnership have the potential to reshape the economic landscape of North America, promoting stability and shared prosperity amid global challenges.
