A significant trade mission from Mexico commenced in Canada on Thursday, aimed at bolstering business relationships between the two nations as they navigate the complexities of the upcoming review of the North American free-trade agreement. This mission is unparalleled in scale, bringing over 240 Mexican enterprises to key Canadian cities, Toronto and Montreal, for an extensive series of more than 1,800 one-on-one business meetings over two days.
Key Meetings and Strategic Partnerships
Leading this ambitious initiative is Mexico’s Secretary of Economy, Marcelo Ebrard, who is scheduled to engage with high-profile executives from major Canadian corporations, including Air Canada, Bombardier Inc., Brookfield Corp., and Canadian National Railway Co. Furthermore, Ebrard will facilitate discussions between Mexican businesses and Canadian investment entities, such as the Ontario Teachers’ Pension Plan, one of the globe’s largest pension funds.
This mission unfolds at a crucial juncture for North American trade relations. The Canada-United States-Mexico Agreement (CUSMA), also referred to as the USMCA, is set for its review this year, with apprehensions lingering about potential shifts in U.S. policy under President Donald Trump.
“We can make North America the most competitive, dynamic and resilient region in the world,” stated Dominic LeBlanc, Canada’s Minister responsible for Canada-U.S. trade, during the event’s opening address in Toronto. He underscored the importance of the Canada-Mexico partnership, built on shared values and economic aspirations that have fostered substantial prosperity for both nations over the decades.
A Collaborative Approach to Trade Review
LeBlanc reiterated Canada’s commitment to a “robust and joint review” of the USMCA in conjunction with both Mexico and the United States. He emphasised the immense prospects this collaboration presents, not only to reaffirm the benefits of the trilateral agreement but also to adapt it to the evolving realities and global challenges of the future.
The recent trade mission is part of a broader strategy to enhance bilateral relations at a time when the global economic landscape is shifting rapidly. Ebrard noted, “We are looking for new opportunities. We want to work very closely with Canada, not just this year, but for the next 10, 20, or even 50 years.” Both nations have publicly committed to cooperation leading up to the negotiations, presenting themselves as steadfast trading allies.
Diverging Strategies with the U.S.
While both countries publicly advocate for a united front, subtle differences in their approaches to Washington are becoming apparent. Mexico has been more proactive in engaging with the Trump administration, demonstrating a readiness to expedite discussions and leaning into Trump’s distinctive style of negotiation. In contrast, Canada has maintained a more tempered stance.
The trade mission underscores the deep interconnection of Canadian and Mexican supply chains that have developed over years of free trade. Fernando Lerdo de Tejada, executive vice-president of Grupo Bimbo, a leading Mexican baking company, highlighted that his firm has invested over $1.6 billion in Canada since 2014, operating 17 bakeries across seven provinces and employing over 4,000 people. He further revealed plans for an additional $200 million investment in Canada by 2028.
This dynamic exemplifies the practicalities of a robust trading relationship. Lerdo de Tejada remarked, “The economic and productive relationship between Canada and Mexico is naturally complementary.”
Trade Imbalances and Future Prospects
Mexico ranks as Canada’s third-largest source of imports, following the United States and China, with $47 billion worth of goods exported to Canada in 2024. This trade was primarily driven by automobiles, electronics, and consumer products. However, Canadian exports to Mexico have not kept pace, amounting to around $8.6 billion in the same year. In stark contrast, exports to the U.S. totalled approximately $600 billion, while exports to China reached around $30 billion.
Scott Thomson, CEO of Scotiabank, noted Mexico’s significance as one of the bank’s key markets, representing roughly 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 stated. Scotiabank, being the only Canadian bank operating in Mexico, has established itself as the fourth-largest bank in the country, and Thomson urged that North America is among the most reliable regions for business, advocating for a bolder utilisation of this platform.
Why it Matters
The trade mission not only reflects the ongoing commitment of Canada and Mexico to enhance their economic relationship but also serves as a critical reminder of the volatile nature of international trade dynamics. As both nations prepare for an important review of the USMCA, the outcomes of this mission could have lasting implications on their economic futures. The ability to strengthen ties amidst contrasting approaches to the United States may well dictate the resilience of North American trade in the years to come.
