The Mexican and Canadian governments signed a milestone partnership settlement final month to advertise and strengthen financial and safety ties between the 2 nations.
Canada and Mexico are shut financial companions apart from their place within the North American free-trade bloc; bilateral commerce between the nations in 2024 totaled about $56 billion and Canada’s whole international direct funding in Mexico in 2024 was round $46 billion. Canada was Mexico’s fifth largest commerce accomplice and Mexico was Canada’s third largest as of the tip of final yr.
A key driver of the brand new accord is the standing of the trilateral United States–Mexico–Canada Settlement (USMCA), which is up for renegotiation subsequent yr. US President Donald Trump is already questioning its key components in mild of his criticisms that Mexico and Canada are taking a smooth strategy to cross-border criminality within the area, from immigration to drug trafficking, and what he regards as their anti-competitive commerce and funding measures. The brand new bilateral partnership settlement goals to safe the assist of financial integration, whereas the USMCA’s future is much less sure.
Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum highlighted a number of new potential areas of collaboration. The Canadian management is fascinated with extra numerous and resilient provide chains by way of Mexico, whereas the Mexican authorities desires to extend bilateral commerce via direct entry to Canadian ports, making the nation much less depending on present US maritime channels. Collectively, they’re exploring joint manufacturing to focus on the rising Latin American and Asian markets, making the most of the Trans-Pacific Partnership.
The brand new bilateral settlement additionally addresses key safety parts, similar to enhancing safety cooperation to fight artificial opioid trafficking and social integration of migrant staff and associated labor packages. Additional conferences between Mexican and Canadian commerce officers are anticipated within the coming months on a spread of points, from well being to vitality.
In the meantime, public session has begun on the USMCA, which is scheduled for evaluate subsequent yr. Public session is an integral a part of the renewal course of, enabling events to raised put together for the upcoming negotiations. It additionally give the management on all sides a greater understanding of political developments and their views of key financial points.
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