Canada is working to reset its trade relationship with Mexico, as former US President Donald Trump threatens both countries with punitive definitions before a planned review of the Free Trade Convention in North America, according to Bloomberg’s report. Prime Minister Mark Carney sent the best diplomat and financial to the city of Mexico in an attempt to fix the tense relations in the previous administration.
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According to the data from the IndexBox platform, Mexico remains the third largest trading partner in Canada, with bilateral trade exceeding $ 49 billion in 2023. However, tensions appeared last year when the leaders of Canadian provinces accused Mexico of confronting Chinese commercial threats insufficiently, which led to anxiety of trade rings in North America.
Foreign Minister Anita Anand and Finance Minister Francois Philippe held discussions with Mexican President Claudia Shinbom and the main officials, and to explore infrastructure investments in ports and railways to facilitate trade. The meetings included Canadian Pacific Kansas City Ltd. Executive Directors. (CP) and TC Energy Corp. (TRP) and Caisse de DePot et placement du québec.
Trump recently raised the customs tariffs on Canadian goods to 35 %, noting that there is no compliance with trade terms, with Mexico given a temporary exemption for 90 days. Analysts suggest that Canada continue to reflect the need for continental coordination before the USMCA review for the next year, although some caution in public offers to build the coalition to avoid provocation of American protectionism.
Source: Indexbox Market Intelligence
