A significant trade mission from Mexico has commenced in Canada, aiming to bolster economic relations as both nations prepare for a critical review of the North American free trade agreement. This visit, the largest of its kind in recent history, brings over 240 Mexican businesses to key Canadian cities, facilitating more than 1,800 business meetings in a bid to enhance bilateral trade and investment.
High-Level Engagements in Major Cities
Mexico’s Secretary of Economy, Marcelo Ebrard, is at the forefront of this initiative, engaging with leaders from prominent Canadian firms such as Air Canada, Bombardier Inc., Brookfield Corp., and Canadian National Railway. His agenda also includes discussions with major investment entities, including the Ontario Teachers’ Pension Plan, renowned as one of the globe’s largest pension funds.
This trade mission unfolds during a sensitive phase for North American trade dynamics, particularly with the impending review of the Canada-United States-Mexico Agreement (CUSMA), which is crucial for all three nations involved. The backdrop of this mission is marked by speculation regarding the potential actions of U.S. President Donald Trump, who may consider withdrawing from this trilateral pact.
Shared Goals Amidst Diverging Strategies
Dominic LeBlanc, Canada’s Minister responsible for Canada-U.S. trade, articulated the importance of the Canada-Mexico relationship during the mission’s opening remarks in Toronto. He emphasised the shared values and economic ambitions that have historically fostered prosperity for both nations.
LeBlanc stated, “We can make North America the most competitive, dynamic and resilient region in the world.” He further assured that Ottawa is gearing up for a “robust and joint review” of CUSMA, highlighting the potential for collaboration to reaffirm the advantages of the agreement and adapt it for contemporary challenges.
Mexico and Canada have publicly presented a united front as stable trading partners. However, their individual tactics regarding Washington differ significantly. While Mexico has adopted a more responsive approach to the Trump administration, indicating a willingness to engage swiftly on various issues, Canada has opted for a more cautious strategy.
The Interconnected Nature of Trade
The trade mission underscores the deep interconnections between Canadian and Mexican supply chains, which have evolved significantly over decades of trade liberalisation. Fernando Lerdo de Tejada, executive vice-president of Grupo Bimbo, a leading Mexican baking company, highlighted the firm’s substantial investment in Canada, exceeding $1.6 billion since 2014. With 17 bakeries operating across seven provinces and plans for an additional $200 million investment by 2028, Lerdo de Tejada noted, “This is what effective trade relationships look like in practice.”
Currently, Mexico ranks as Canada’s third-largest supplier of imports, following the United States and China, contributing $47 billion worth of goods in 2024. However, Canadian exports to Mexico have lagged, amounting to approximately $8.6 billion, a stark contrast to the $600 billion exported to the U.S. that same year.
Scott Thomson, CEO of the Bank of Nova Scotia, affirmed Mexico’s significance to the bank, which represents about 10 per cent of its overall earnings. He mused on the need to either treat existing advantages as inherent or strategically enhance them. Scotiabank, being the only Canadian bank operating in Mexico, stands as the fourth-largest bank in the country, reinforcing the importance of the North American market.
Why it Matters
This trade mission not only highlights the urgent need for Canada and Mexico to fortify their economic collaboration but also reflects the broader implications of the changing landscape of North American trade. As both countries navigate their respective relationships with the U.S., the emphasis on mutual cooperation is vital for ensuring robust economic growth and stability in the face of potential disruptions. Strengthening these ties now will be crucial for both nations as they prepare for future challenges and opportunities in an ever-evolving global economy.
