Canada, Mexico vow closer ties ahead of trade pact review with US

Speaking at a press conference, Carney and President Claudia Sheinbaum said they had agreed to expand economic and security ties and were committed to their partnership with the U.S.

Carney's visit comes as Canada, Mexico and the U.S. kicked off public consultations this week, ahead of a review of their free trade deal set for next year.

"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," Carney said.

Mexico and Canada are the United States' largest and second-largest trading partners, respectively, while the U.S. is the No.1 trading partner for both of the others.

Carney arrived in Mexico City early on Thursday for a two-day mission designed to improve recently strained ties and seek a common front in crucial trade talks with the United States.

Carney's trip is the first bilateral visit by a Canadian prime minister to Mexico in eight years. Canadian officials briefing reporters on Wednesday described ties as excellent but conceded they could be closer.

"Highest level engagements have been few and far between, so this is an opportunity for us to reaffirm that leader-level engagement," said one official.

The two leaders said they were interested in sharing knowledge on fighting transnational criminal organizations and improving border security, and said it was possible to broaden their agreement to span security and defense.

"We will move forwards together," Carney said, when asked if Canada would consider side-lining Mexico to get a better trade deal with the United States. Sheinbaum said she was optimistic the countries would continue to work together with respect.

Canada, Mexico and the United States renewed a continental free trade treaty in 2018 but talk of solidarity frayed as U.S. President Donald Trump imposed tariffs.

Bilateral relations soured last year after senior Canadian politicians suggested they would be better off negotiating a solo trade deal with the Trump administration.

Brian Clow, a former senior aide who advised then Prime Minister Justin Trudeau on North American affairs, said both nations needed to have open, clear and trusting communications.

"It's not in either country's interest to be fighting each other when they have one single common goal, which is to hold off Donald Trump and his trade threats," he said.

Canada's efforts to strike a new economic and defense relationship with Washington have stalled, underlining the need for closer ties with Mexico.

Carney has also stressed the need for Canada to find new markets. Bilateral goods trade with Mexico in 2024 totaled just C$55.4 billion ($40.2 billion), compared to C$924.4 billion with the United States.

"We would expect much greater amounts of trade and investment to build (between Mexico and Canada) over the coming 30 years than over the last 30 years, because our economies are that much closer, our values are aligned, and our ambitions are greater," Carney said.