Canada and Mexico Renew Ties Amid Tariff Struggles

MEXICO CITY, Mexico (Reuters) – Canadian Prime Minister Mark Carney is working to rebuild relations with Mexico, strained since late last year after Canadian officials indicated they favored negotiating a trade deal with the Trump administration alone.

Carney made a goodwill effort with Mexican President Claudia Sheinbaum during a phone call in July, complimenting an indigenous-made soccer ball she had given him previously, and expressing hopes to visit Mexico soon. Sources familiar with the conversation outlined this attempt to repair the relationship, which has suffered amid public criticisms from Canadian officials.

Canada and Mexico have historically been allies, benefiting from 31 years of trilateral trade deals with the U.S. including the North American Free Trade Agreement established in 1994, and the U.S.-Mexico-Canada Agreement introduced in 2020. However, allegations of betrayal and grievances stemming from past negotiations with the Trump administration have created a rift.

The tensions escalated last November when then-Prime Minister Justin Trudeau hinted at a bilateral agreement with the U.S. without involving Mexico. This led to a halt in communication as Sheinbaum’s officials stopped engaging with Canadian representatives, at least until after Trudeau’s departure.

Canada’s position weakened further after Trump imposed higher tariffs on Canadian goods while granting Mexico a pause on new tariffs. In response, Canadian officials are now striving to mend relations, underscoring the necessity of maintaining the trilateral agreement.

During a recent visit to Mexico, Foreign Minister Anita Anand confirmed these efforts, stating, “It is extremely important for Canada to have a resilient relationship with Mexico.” Sheinbaum expressed a similar sentiment on social media, asserting the two countries are working to strengthen their bond.

Experts agree that a solid partnership is crucial for negotiating effectively with the U.S. Kenneth Smith Ramos, a former trade negotiator, expressed skepticism about the current level of communication between Canada and Mexico.

In the wake of these developments, Sheinbaum and Anand, along with Canadian Finance Minister Francois-Philippe Champagne, are set to discuss various cooperative efforts, such as economic growth and shared security, during their meetings in Mexico City.

The future of the trilateral trade agreement is paramount, as failing to renew it by 2036 could lead to significant economic repercussions for Mexico.