Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum pledged to fortify economic bonds between their nations on Thursday, directly countering looming US tariff threats from President Donald Trump. The high-stakes meeting, Carney's inaugural visit to Mexico as prime minister, unfolded amid mounting regional tensions, with the duo emphasizing the vitality of the United States-Mexico-Canada Agreement (USMCA) ahead of its critical 2026 review.
Entering the presidential palace hand-in-hand, Carney and Sheinbaum sidestepped Trump's absence while making him the unspoken focal point of discussions. "North America stands as the world's most competitive economic powerhouse, thanks to our unwavering cooperation," Carney declared during a joint press conference. "Canada and Mexico complement the United States, amplifying our collective strength—we thrive together."
The intertwined economies of the three countries underscore the urgency: Over 75% of Canada's exports and more than 80% of Mexico's flow to the US, making the USMCA a linchpin for stability. Trump's erratic trade rhetoric, including threats of sweeping tariffs and lumping Canada with Mexico over fentanyl issues, has rattled leaders and businesses alike. "Trump's shadow dominates this dialogue; both nations now face a shared US peril," observed Nelson Wiseman, professor emeritus at the University of Toronto.
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Carney forecasted a surge in bilateral trade and investment, while Sheinbaum unveiled a strategic plan for a "new era of deepened economic integration," prioritizing sectors like agriculture, energy, and security. They committed to boosting trade via maritime routes to bypass US dependencies and scheduled follow-up bilateral talks on finance, health, environment, and more. "At this pivotal juncture, Canada is enhancing ties with key allies, and Mexico is at the heart of that vision," Carney affirmed.
Tensions had simmered after Canadian provincial premiers last year floated excluding Mexico from future US deals, irking Mexican officials. Senator Peter Boehm, who attended Sheinbaum's inauguration, noted the faux pas strained relations but credited Carney's invitation to the June G7 summit in Alberta for mending fences. Ontario Premier Doug Ford had blasted Trump's comparisons as "insulting," highlighting the diplomatic tightrope.
Despite sector-specific US tariffs—like 50% on steel and aluminum—both leaders stressed optimism and unity. Sheinbaum highlighted the tariff exemptions under USMCA as proof of robust ties but expressed hopes to mitigate impacts on key industries. "The USMCA exemplifies how Mexico, Canada, and the US can forge prosperity, tackle global hurdles, and emerge as the globe's most vibrant region," she stated.
As teams form to strategize USMCA renegotiations, experts like Wiseman suggest a united front against Trump could prove more potent than solo negotiations. With Mexico as Canada's third-largest trading partner (and Canada fifth for Mexico in 2024), preserving trilateral free trade is paramount. The alliance signals a proactive pivot toward diversified commerce, potentially reshaping North American dynamics in the face of uncertainty.
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