Canada and Mexico Strengthen Ties Amid USMCA Review

Strategic Insights -

Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum held a joint news conference in Mexico City on September 18, 2025, promising to deepen economic and security ties between their countries. The two leaders reinforced their commitment to the US-Mexico-Canada Agreement (USMCA) and expressed optimism about their three-way trade partnership with the US. Carney emphasized that North America is the "economic envy of the world" due to trade cooperation between Canada and Mexico.

Key Takeaways:

  • The USMCA review with Washington is expected to focus on deepening ties and coordinating the approach between Canada and Mexico.
  • The two leaders agreed to expand economic and security ties between their countries, with a shared commitment to cooperation.
  • Trade between Mexico and Canada was valued at $40.5bn in 2024, with Mexico being the US's largest trading partner and Canada as its second-largest.
  • Canadian Prime Minister Mark Carney described North America as the "economic envy of the world" due to trade cooperation between Canada and Mexico.
  • Public consultations on the future of the USMCA began in advance of the review to be conducted by each country next year.
  • The US has threatened tariffs on Canadian steel (50%) and some Mexican pharmaceuticals (25%) as part of a broader trade war.
  • Mexican President Claudia Sheinbaum emphasized that Mexico and Canada will continue to work together with "mutual respect" and "reciprocal respect".
  • The joint news conference marked the first bilateral visit by a Canadian prime minister to Mexico in eight years.

Statistics:

  • Trade between Mexico and Canada was valued at $40.5bn in 2024.
  • Mexico is the US's largest trading partner, while Canada is its second-largest trading partner.
  • The US is the top trading partner for both Canada and Mexico.

*-trade between Canada and the US was valued at $924.4bn compared to $40.5bn between Mexico and Canada.

  • The US has imposed 50% tariffs on Canadian steel and 25% on some Mexican pharmaceuticals.

Sources:

  • (https://www.aljazeera.com/amp/opinions/2025/3/10/canadas-most-consequential-election-is-on-the-horizon)
  • (https://www.aljazeera.com/news/2025/8/8/trump-signs-order-authorising-military-action-against-cartels-reports)
  • Reuters, "Mexican President and Canadian Prime Minister Meet Amid USMCA Review"