MEXICO CITY (AP) — Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum pledged on Thursday to deepen economic cooperation amid growing concerns over potential U.S. trade disruptions. The commitment comes ahead of scheduled negotiations in 2026 over the future of the United States-Mexico-Canada Agreement (USMCA), the cornerstone of North American trade. n nThe meeting marked Carney’s first official visit to Mexico as Canada’s leader and took place during a period of regional economic uncertainty. Though U.S. President Donald Trump did not attend, his influence loomed large over the discussions. Both leaders emphasized unity and mutual support in navigating the shifting trade landscape. n n“North America stands as the world’s most competitive economic region, and a major reason for this strength is the collaboration between Canada and Mexico,” Carney said at a joint press conference. “We complement the United States, making it—and us—all stronger together.” n nThe USMCA, which replaced NAFTA, is set for a formal review in 2026. Decades of integrated supply chains have deeply connected the economies of the three nations: over 75 percent of Canadian exports and more than 80 percent of Mexican exports are destined for the U.S. market. n nHowever, repeated threats from Trump regarding new tariffs have unsettled business and political leaders across the region, prompting efforts to diversify trade routes and strengthen direct bilateral ties. n n“Trump casts a shadow over this visit. Canada and Mexico now face a shared challenge from the United States,” said Nelson Wiseman, professor emeritus at the University of Toronto. n nCarney expressed optimism about expanding trade and investment between the two nations. Sheinbaum confirmed that both countries have agreed on a strategy aimed at ushering in “a new era of strengthened economic relations.” This includes boosting commerce in various sectors through existing free-trade frameworks and increasing the use of maritime shipping lanes to bypass U.S. transit points. n nThe visit also served to repair diplomatic strains. Last year, some Canadian provincial leaders suggested excluding Mexico from future trade talks with the U.S., a proposal that caused offense in Mexico City. Trump had previously grouped Canada with Mexico over fentanyl trafficking issues and threatened broad tariffs on both. Ontario Premier Doug Ford called the comparison “the most insulting thing I’ve ever heard” from a close ally. n nCanadian Senator Peter Boehm, who represented Canada at Sheinbaum’s presidential inauguration, noted that the provincial remarks were inappropriate and damaged trust. “The Mexicans are particularly sensitive on these matters, and there was genuine concern,” Boehm said, adding that relations have since improved. He pointed to Carney’s invitation to Sheinbaum for the G7 summit in Alberta as a positive step. n nThe two leaders announced plans for additional high-level meetings in the coming months and pledged greater coordination on issues including security, agriculture, energy, finance, health, and environmental policy. n n“At this pivotal moment, Canada is reinforcing its ties with longstanding partners,” Carney said. “Mexico is central to this mission.” n nCurrently, Mexico ranks as Canada’s third-largest trading partner, behind the U.S. and China, while Canada is Mexico’s fifth-largest. Despite this, trade with the United States remains dominant for both economies, making the preservation of the trilateral agreement crucial. n nBoth nations are preparing for the upcoming USMCA review, with technical teams already analyzing the pact. Sheinbaum stressed the importance of maintaining free trade among all three countries. n n“Their main goal is to coordinate strategy on dealing with Trump and the upcoming renegotiation. Carney and Sheinbaum now see value in presenting a united front rather than competing for separate deals, though they’re still positioning themselves individually,” Wiseman observed. n nWhile the USMCA has shielded most goods from steep tariffs, sector-specific duties—such as the 50 percent tariff on steel and aluminum imports under Section 232—continue to affect trade. Sheinbaum acknowledged the progress made but expressed hope for relief on steel tariffs in particular. n nDespite tensions, both leaders underscored the importance of North American unity. They avoided direct criticism of Trump, instead emphasizing optimism and cooperation. n n“USMCA proves that when Mexico, Canada, and the United States work together, we can achieve prosperity, overcome global challenges, and position ourselves as the world’s most dynamic region,” Sheinbaum said. n— news from WCAX
— News Original —
Leaders of Canada and Mexico vow closer economic ties in the face of Trump trade uncertainty
MEXICO CITY (AP) — Canadian Prime Minister Mark Carney and President Claudia Sheinbaum promised Thursday to strengthen trade relations in the face of U.S. tariff threats and pushed to keep the most important free trade agreement in the Western Hemisphere alive in the lead-up to negotiations next year. n nTheir meeting came during Carney’s first visit to Mexico as Canada’s leader and at a moment of economic tension for the region. The two leaders shook hands and strode side-by-side into the presidential palace in Mexico City earlier in the day. Despite not being present, U.S. President Donald Trump and wider economic uncertainty were front and center in the visit. n n“North America is the economic envy of the world, is the most competitive economic region of the world, and part of the reason for that is the cooperation between Canada and Mexico,” Carney said in a press conference following the meeting. “We complement the United States. We make them stronger. We are all stronger together.” n nCanada and Mexico strengthen trade at a time of uncertainty n nKey to Carney and Sheinbaum’s meeting was the United States-Mexico-Canada trade pact, or USMCA, which is up for review in 2026. n nDecades of free trade among the three nations has inextricably intertwined their economies: More than 75% of Canada’s exports and more than 80% of Mexico’s go to the U.S. n nTrump’s ongoing and constantly evolving trade threats have put the countries’ political and business leaders on edge, as many scramble for more stable trade alternatives. n n“Trump looms over this visit. Mexico and Canada now share a common threat from the U.S,” said Nelson Wiseman, professor emeritus at the University of Toronto. n nOn Thursday, Carney said he expects “much greater amounts of trade, much greater amounts of investment” between the Mexico and Canada. Sheinbaum said the two countries had agreed to a plan that what would “bring a new era of further strengthening economic ties” between the two nations. n nSheinbaum has said they want to increase bilateral trade in different sectors through the free-trade agreement and do so through maritime routes — which would avoid those goods having to pass through the United States. n nSeeking improved relations n nCarney was also looking to improve relations with Mexico during his two-day visit after some of Canada’s provincial premiers talked last year about cutting Mexico out of any new free trade deal with the U.S. n nTrump lumped Canada in with Mexico on fentanyl smuggling and promised sweeping tariffs on both countries. Ontario Premier Doug Ford said then that Trump comparing Canada to the Mexico was “the most insulting thing I’ve ever heard from our friends and closet allies, the United States of America.” n nCanadian Sen. Peter Boehm, who represented the Canadian government when Sheinbaum was sworn in as Mexico’s president last year, said the comments by the premiers, which he deemed out of their lane, upset the Mexicans. n n“The Mexicans are particularly sensitive on these matters and there was concern about that, no doubt,” Boehm, who has been pushing closer relations between the two governments, said. n nHe said relations recently improved, noting Mexico appreciated Carney inviting Sheinbaum to the G7 summit in Alberta in June. n nOn Thursday, the two leaders promised new rounds of bilateral meetings in the coming months, and greater collaboration on security issues, agriculture, energy, finance, health, the environment and more. n n“At this hinge moment. Canada is deepening our relationships with our long-standing partners,” Carney said. “Mexico is central to those missions.” n nMexico is Canada’s third-largest trading partner after the U.S. and China. Canada was Mexico’s fifth-largest trading partner in 2024. But trade with the U.S. remains paramount for both countries and preserving the free trade pact will be critical. n nTrump looms over visit n nMexico and Canada have had different approaches to manage the negotiations with Trump’s administration but both countries want to increase bilateral commerce within the North American treaty. n nSheinbaum said the countries are already setting up teams and reviewing the agreement with the hopes of keeping trilateral free trade in place. n n“Their priority is to strategize on how to deal with Trump and the coming renegotiation of the USMCA. Carney and Sheinbaum now recognize that tag-teaming Trump may be more effective than competing for separate deals with Trump, although they are still angling for them,” said Wiseman, the professor. n nThat trade agreement has largely shielded the vast majority of Mexican and Canadian goods from the punishing duties. Canadian and Mexican companies can claim preferential treatment under the USMCA. n nBut Trump has some sector-specific tariffs, known as 232 tariffs, that are having an impact. There is a 50% tariff on steel and aluminum imports. Sheinbaum noted that the lack of tariffs on many goods was a sign of the economic ties between the countries, but noted she hoped to offset especially steel tariffs. n nDespite that, Carney and Sheinbaum highlighted the importance of the U.S. and the importance of unity between the three countries. They dodged questions about provocations by Trump and any tensions with the American leader, threading the word “optimism” throughout the press conference. n n“USMCA is a testament to if Mexico, Canada and the United States work together, we can create prosperity, face global challenges successfully and position ourselves as the most dynamic region in the world,” Sheinbaum said.