Canada and Mexico have created a deal to deepen ties as they vow closer cooperation on trade and security to grapple with rising economic pressure from the U.S.
The agreement came after Canadian Prime Minister Mark Carney met with Mexican President Claudia Sheinbaum in Mexico to discuss economic and security ties.
In a joint press conference, the leaders said they were committed to deepening their ties and maintaining their three-way trade partnership with the U.S.
“Mexico and Canada will continue walking together, with mutual respect and with a certainty that cooperation is the path to overcome any challenge,” Sheinbaum said.
Carney claimed that North America was the “economic envy of the world”, partly due to trade cooperation between Canada and Mexico.
“I have full confidence, and so does the president [Sheinbaum], that we can find the adjustments needed to reinforce competition and competitiveness in our region,” he said.
"Our agreement today will expand and deepen the partnership, so that the next 30 years hold even greater promise than the last 30 years have delivered.”
This comes as both Canada and Mexico were slammed with U.S. tariffs. These tariffs include 50% on Canadian steel, 25% on some Mexican pharmaceuticals, as well as U.S. Donald Trump is levying a 25% “fentanyl tariff” on Mexico, citing border security.
These levees proved difficult for Canada and Mexico’s economies due to their reliance on the United States-Canada-Mexico (USMA) free trade agreement established in 1994.
Canada faces a 35% U.S. tariff; however, due to most goods being exempt under the USMCA, Carney said the average sits at around 5.6%
Canadian officials told reporters that the country plans to boost trade with Mexico. Before the meeting, trade between the countries was valued at C$56 billion.
