Canada and Mexico Strengthen Trade Ties Amid US Trade War

Canada and Mexico are seeking closer collaboration in multiple sectors, including supply chains, digital economy, and energy security, as Ottawa aims to leverage Mexico's role in the global economy to benefit the Canadian domestic economy. The two nations are "free traders" and agreed to build a work plan to enhance their cooperation.

Canada and Mexico have agreed to enhance their trade cooperation in multiple sectors, including supply chains, digital economy, and energy security, according to recent statements from senior ministers. This move comes amid ongoing trade tensions with the United States, particularly in the wake of US tariffs.

Canadian Foreign Affairs Minister Anita Anand and Finance Minister Francois-Philippe Champagne met with Mexican President Claudia Sheinbaum during a visit to Mexico City. The ministers discussed a comprehensive work plan that covers resilient supply chains, port-to-port trade lines, artificial intelligence, the digital economy, and energy security. Anand emphasized the importance of Mexico’s role in the global economy and the potential benefits for Canada’s domestic economy [1].

The collaboration aims to leverage Mexico’s strengths in critical sectors while offering opportunities for Canada, particularly in areas like critical minerals and energy security. The ministers also highlighted the importance of the United States-Mexico-Canada Agreement (USMCA) as a key element of North American competitiveness, despite ongoing negotiations to potentially renegotiate the pact [1].

Public safety was also a key topic in the discussions, with Anand noting that both nations are subject to US tariffs under the pretext of national security. The US has imposed special tariffs on Canada and Mexico due to the trafficking of drugs over US borders, with recent adjustments to the tariffs affecting Canada [1].

Meanwhile, Canadian National Railway (CN) has reported record grain volumes during the 2024-2025 crop year. CN’s 2025-2026 Grain Plan outlines the company’s commitment to high-performance service through disciplined planning, targeted infrastructure investments, and proactive supply chain collaboration. The plan aims to move 27.0 to 29.5 million metric tonnes (MMT) of grain and processed grain products during the 2025-2026 crop year, reflecting CN’s long-standing support for Canada’s agriculture sector [2].

The strengthened ties between Canada and Mexico are part of a broader strategy to bolster economic resilience in the face of US trade policies. As the two nations continue to navigate the complexities of international trade, the focus on supply chains, digital innovation, and energy security underscores their commitment to mutual growth and competitiveness.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-06/canada-and-mexico-to-cooperate-as-free-traders-facing-us-tariffs
[2] https://finance.yahoo.com/news/cn-releases-2025-2026-grain-200000963.html