• Canada and Mexico forge a strategic partnership to counter US tariff threats.
• The two nations plan to enhance cooperation in trade, security, and environmental policy.
• Both leaders emphasize the importance of the USMCA ahead of its 2026 review.
• Mark Carney and Claudia Sheinbaum express optimism for future bilateral relations.
• Trade between Canada and Mexico was valued at $40.5 billion in 2024.

In a significant move to bolster economic ties, Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum announced a new strategic partnership during Carney's visit to Mexico City. The agreement aims to deepen collaboration on trade, security, and environmental issues amid rising economic pressures due to tariffs imposed by US President Donald Trump. "North America is the economic envy of the world, and part of the reason for that is the cooperation between Canada and Mexico," Carney stated following the signing of the agreement, highlighting their support for the USMCA ahead of its planned review in 2026, according to BBC and LA Times.

The partnership, termed the "Mexico-Canada Action Plan 2025–2028," outlines efforts to facilitate trade and enhance bilateral cooperation in agriculture, energy, health, and climate action. Carney noted that the agreement's foundation lies in four key pillars: prosperity, security, inclusivity, and sustainability. "This plan opens a new chapter in which we further deepen the economic, social, and cultural ties that unite us," Sheinbaum added, reinforcing the need for a unified approach in the face of US trade policies, as reported by TRT Global and AA.

Both leaders expressed optimism about the future of their trade relations, with Sheinbaum emphasizing that ongoing dialogue with the US government is crucial for maintaining the USMCA. "I fully agree that we are the most important economic region in the world," she said, stressing the shared goal of enhancing North American competitiveness against external challenges, as indicated by information from Al Jazeera and LA Times.

Trade between Canada and Mexico was valued at approximately $40.5 billion in 2024, highlighting the importance of fostering bilateral commerce which has been threatened by Trump's tariff policies. Recent tariff measures have targeted sectors such as Canadian steel, which faces a 50% tariff, and Mexican pharmaceuticals, which are subject to a 25% tariff, contributing to the urgent need for cooperative strategies between the two nations, according to BBC and TRT Global.

This partnership comes at a crucial time, as both countries aim to present a united front in the face of Trump's unpredictable trade strategies. With impending negotiations on the USMCA and ongoing tariffs, Canada and Mexico are working hand in hand to protect their economic interests while reinforcing their need for cooperative dialogue with the United States, as noted by Al Jazeera and AA.