Prime Minister Mark Carney and Mexican President Claudia Sheinbaum shook hands at the National Palace in Mexico City on Thursday after announcing a new agreement to strengthen economic ties between Canada and Mexico. Getty Images
Prime Minister Mark Carney and Mexican President Claudia Sheinbaum signed a major new agreement on Thursday in Mexico City. The goal is to grow economic and security ties between the two countries. This move comes just before important trade talks with the United States.
New plans for trade, safety and the environment
The agreement includes new plans to build shared infrastructure. Projects include ports, rail lines, and energy routes. Both leaders also promised to fight organized crime and protect the environment.
“Today, we’re beginning a new era of elevated co-operation with a comprehensive strategic partnership,” Carney said at a joint press conference.
Sheinbaum said the deal adds to the current trade pact known as CUSMA. Both leaders believe the agreement will help all three North American economies stay strong.
More trade and job opportunities
Carney announced that Agriculture Minister Heath MacDonald will visit Mexico next month to talk about new farm trade. After that, Trade Minister Dominic LeBlanc will lead a larger business group to Mexico. Their aim is to find fresh opportunities for trade and investment.
The agreement also gives $9.9 million to United Nations projects in Mexico. The money will help stop drug trafficking and support migrants.
Business leaders show support
Canadian business leaders welcomed the deal. A senior official from the Canadian Chamber of Commerce said Mexico should be a top partner as Canada looks to grow trade around the world.
“Mexico is already in our top three trading partners,” said Catherine Fortin-LeFaivre. “We should be building on that.”
The Chamber plans to send a business group to Mexico in early 2026 to build on this momentum.
Visas and ocean trade routes discussed
Sheinbaum said she and Carney talked about improving short-term work visas and growing ocean trade. She confirmed both sides agreed to keep the visa program running. Their labour ministers will keep working together.
Building stronger ties
Some experts say Canada and Mexico have not paid enough attention to each other in recent years. Both have been focused on dealing with the United States.
“We are seeing each other more like competitors than friends,” said Solange Marquez, a professor and diplomacy expert.
The automotive sector is a big reason. Both countries want to expand car manufacturing, but the U.S. is trying to bring more of that business home using tariffs.
Mexico still wants Canadian firms to follow rules
Sheinbaum said her country wants to strengthen ties with Canada, not weaken the North American partnership. But she also asked Canadian mining companies to better follow Mexico’s environmental laws.
Trade between Canada and Mexico continues to grow. In 2024, they traded almost $56 billion in goods. Canada also invested over $46 billion directly into Mexico.
What’s next for North American partners?
The three countries haven’t met for a leaders’ summit since January 2023. Canada was supposed to host in 2024, but elections and political changes delayed the meeting.
Sheinbaum said they’ll wait for the trade review before setting a new date. Carney believes all three leaders will meet again during the 2026 FIFA World Cup.
Canada named Adam van Koeverden as its official representative for the tournament. He will work with U.S. and Mexican officials to help plan the event.
