Carney meets Sheinbaum in Mexico City to deepen economic and security ties ahead of USMCA review

Canada’s prime minister is meeting with Mexico’s president in Mexico City, aiming to tighten economic and security ties before next year’s major review of the United States-Mexico-Canada Agreement.

Prime Minister Mark Carney is scheduled to be at the National Palace for talks with President Claudia Sheinbaum, followed by a joint press appearance. Traveling with him are Canada’s foreign affairs chief and the minister in charge of U.S. trade matters, who will sit down with Mexican counterparts.

Officials in Ottawa say both governments intend to roll out a bolstered economic partnership. The plan would set up a regular schedule for leaders and key ministers to meet more often. A person familiar with preparations said the agenda includes the regional trade pact and coordination for the FIFA World Cup, which the three countries will host next year.

Border security is expected to be a central topic, as mentioned in a Bloomberg report.

According to officials, the sides will address trafficking in drugs and firearms and compare tactics for curbing organized crime. People briefed on the talks also anticipate a joint declaration to step up cooperation on energy, security, transportation, and trade. The document is expected to feature commitments to expand commerce in automobiles and auto parts.

Canada and Mexico unite to pressure Trump on tariffs

Carney is bringing close to a dozen corporate leaders. Among them are Bank of Nova Scotia CEO Scott Thomson, TC Energy Corp. CEO Francois Poirier, Canadian Pacific Kansas City Ltd. CEO Keith Creel and ATCO Ltd. chair and CEO Nancy Southern.

Canada and Mexico approach the meetings with a shared objective of persuading U.S. President Donald Trump to dial back tariffs on key sectors like steel and autos. At the same time, Carney and Sheinbaum want to repair ties after a string of disputes between Ottawa and Mexico City.

Mexico’s irritation flared again last fall after some Canadian politicians criticized Mexico’s trade ties with China and floated the idea of a two-country pact between Washington and Ottawa. Ontario Premier Doug Ford said at the time that comparing Canada to Mexico is “the most insulting thing I have ever heard.”

The visit follows Mexico’s move to prepare tariffs of up to 50% on cars, auto parts, steel and other imports from China and several Asian exporters. Carney is expected to view the step favorably.

Last year, Canada lifted duties on Chinese electric vehicles to 100% and added new charges on Chinese steel and aluminum. Despite the USMCA giving Canada and Mexico advantages amid the ongoing trade tensions, neither Carney nor Sheinbaum has won relief from U.S. tariffs.

Trump set duties of 35% on Canada and 25% on Mexico linked to fentanyl trafficking and unlawful migration, though many items remain exempt under the pact.

Canada Eyes Infrastructure and Energy Projects in Mexico to Boost Bilateral Trade

Over the summer, officials looked at how Canadian firms and investors could support projects in Mexico that would speed two-way trade, such as ports and rail links, according to a person aware of the discussions.

The talks also covered strengthening energy security across both conventional generation and renewables. Sheinbaum has said Carney will spend most of Thursday in a series of meetings at the palace.

Canada holds significant stakes in Mexico’s mining, natural gas and rail sectors. During the two-day visit, Carney will also meet diplomats and business leaders and attend an event marking Canadian wheat shipments by rail to Mexico.

This marks the first stand-alone trip to Mexico by a Canadian prime minister since Trudeau met President Enrique Peña Nieto in 2017. Trudeau returned in 2023 for the “Three Amigos” summit with Joe Biden and Andrés Manuel López Obrador.

In June, Carney invited Sheinbaum to the Group of Seven summit he hosted in Kananaskis, Alberta. She planned to meet Trump there, but the U.S. president left before her arrival due to the Israel-Iran conflict.

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