North American Free Trade Talks: Canada-Mexico Strengthen Ties Amid US Challenges

Canadian Prime Minister Mark Carney met with Mexican President Claudia Sheinbaum to discuss strengthening trade relations amid US tariff threats, during his visit to Mexico. The pair focused on diversifying trade routes, planning to enhance maritime connections between the two countries to bypass US tariffs as US-Mexico-Canada Agreement (USMCA) renegotiations loom in 2026.

The USMCA remains critical as it governs the majority of trade between Canada, Mexico, and the US. Amid shared concerns about US trade policies, there is an emphasis on teamwork rather than competition in upcoming negotiations. Both leaders recognize the potential of increased commerce within the North American free-trade zone.

Sheinbaum also expressed interest in boosting Canadian investment in Mexico while urging compliance with Mexican environmental laws, which she claims have been overlooked by some foreign investors. Carney's visit highlights ongoing efforts to preserve strong trade ties between the two North American partners despite current challenges.

(With inputs from agencies.)