A significant trade mission from Mexico commenced in Toronto on Thursday, aiming to enhance business relationships between Canada and Mexico ahead of an upcoming review of the North American free trade agreement. This mission, touted as Mexico’s largest to Canada in recent history, includes over 240 companies and is set to facilitate more than 1,800 business meetings across Toronto and Montreal over two days.
Key Meetings and Strategic Partnerships
Leading the delegation is Mexico’s Secretary of Economy, Marcelo Ebrard, who is scheduled to engage with senior executives from notable firms such as Air Canada, Bombardier, Brookfield, and CN Rail. Ebrard will also oversee discussions between Mexican businesses and major investment entities, including the Ontario Teachers’ Pension Plan, one of the globe’s largest pension funds.
This visit arrives during a critical juncture for North American trade relations, with the Canada-United States-Mexico Agreement (CUSMA), also known as the USMCA, poised for review this year. Concerns loom regarding U.S. President Donald Trump’s potential departure from the trilateral agreement, prompting both countries to solidify their economic alliances.
A Call for Enhanced Cooperation
During the opening remarks in Toronto, Dominic LeBlanc, Canada’s Minister responsible for Canada-U.S. trade, emphasized the importance of collaboration. “We can make North America the most competitive, dynamic and resilient region in the world,” he declared. LeBlanc highlighted the shared values and economic ambitions that have historically fostered prosperity between Canada and Mexico.
He further noted that Ottawa is gearing up for a robust review of the USMCA, aiming to underscore the advantages of the agreement for all three nations while adapting it to meet contemporary challenges. The Canada-Mexico action plan, unveiled earlier this year by Prime Minister Mark Carney and Mexican President Claudia Sheinbaum, serves as a framework for expanding business ties.
Mexico’s Long-term Vision
Ebrard spoke of the mission as a part of Mexico’s broader strategy to cultivate enduring relationships with nations that share similar values and economic frameworks. “We are looking for new opportunities. We want to work very closely with Canada, not just in this year, but the next 10, 20 or 50 years,” he asserted.
The emphasis on collaboration indicates a strategic shift, as both nations strive to present a united front ahead of their discussions with the United States. However, underlying tensions are evident, as Mexico appears to be engaging more proactively with the Trump administration compared to Canada’s cautious stance.
The Economic Landscape
The trade mission also highlighted the deep integration of Canadian and Mexican supply chains, a consequence of decades of free trade. Fernando Lerdo de Tejada, deputy CEO of Grupo Bimbo, one of Mexico’s largest baking firms, revealed that the company has invested over $1.6 billion in Canada since 2014, operating 17 bakeries across seven provinces and creating more than 4,000 jobs. Bimbo plans to inject an additional $200 million into Canada by 2028.
In terms of trade volume, Mexico stands as Canada’s third-largest source of imports, sending goods worth $47 billion in 2024, primarily in automobiles, electronics, and consumer products. However, Canadian exports to Mexico have lagged, totalling around $8.6 billion in 2024. In stark contrast, Canadian exports to the U.S. reached approximately $600 billion, while exports to China were around $30 billion.
Scott Thomson, CEO and President of Scotiabank, acknowledged the significance of Mexico as a key market, representing about 10 per cent of the bank’s overall earnings. “The question now is whether we treat that advantage as a given, or whether we strengthen it deliberately,” he stated, noting that Scotiabank is the only Canadian bank operating in Mexico and ranks as the fourth-largest bank in the country.
Why it Matters
This trade mission underscores the evolving dynamics of North American trade relations, particularly as Canada and Mexico navigate the complexities of the USMCA review. The commitment to strengthening economic ties and fostering collaboration between the two nations holds the promise of not only enhancing trade but also reinforcing stability in a rapidly shifting global economy. As both countries position themselves strategically, the outcomes of these discussions could significantly influence their economic landscapes for years to come.
