NextFin news, On Thursday, September 18, 2025, Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum convened in Mexico City to sign a comprehensive strategic partnership agreement designed to deepen economic and security ties between Canada and Mexico.
The agreement, announced at a joint press conference, aims to complement the existing United States-Mexico-Canada Agreement (USMCA), which has been in effect since 2020 and is up for review next year. Both leaders expressed strong commitment to maintaining and strengthening the trilateral trade pact, which has been pivotal in making North America an economic powerhouse.
Prime Minister Carney emphasized the importance of unity among the three countries, stating, "In an interdependent world, no country can isolate itself. USMCA is strength together, of the three countries together." President Sheinbaum echoed this sentiment, expressing optimism about the future of the agreement and affirming, "I believe that the USMCA will prevail."
The pact signed on Thursday includes plans to build infrastructure such as ports, rail, and energy corridors, while also addressing crime and environmental protection. It also allocates $9.9 million in funding for United Nations-led projects to combat drugs and support migrant integration.
This development comes amid ongoing trade tensions with the United States, where President Donald Trump has imposed tariffs on certain Canadian and Mexican exports that fall outside the USMCA framework. Trump has also threatened further tariffs if Mexico and Canada do not curb cross-border migration and drug trafficking.
Both Carney and Sheinbaum have been engaging with the US administration to negotiate terms favorable to their countries. They stressed that Canada and Mexico are not in competition but will move forward together to protect their shared economic interests.
Additionally, the leaders agreed to boost bilateral trade by utilizing Canadian and Mexican ports more extensively, reducing reliance on transportation routes through the United States. Bilateral trade between Mexico and Canada was nearly $32 billion last year, significantly less than their trade volumes with the US.
President Sheinbaum highlighted priorities such as maintaining short-term work visas and expanding ocean trade routes between the two countries. Both nations' labor ministries will continue collaboration to support these goals.
Canada and Mexico's economies are highly dependent on trade with the United States, with approximately 75% and 80% of their exports directed to the US, respectively. The USMCA has been instrumental in shaping North America's economic landscape over the past three decades.
Prime Minister Carney announced upcoming initiatives to further strengthen trade relations, including a visit by Canada's Minister of Agriculture and Agri-Food to Mexico and a trade mission led by Canada's Trade Minister to Mexico to explore immediate opportunities in trade and investment.
The Canadian Chamber of Commerce welcomed the agreement, calling it a vital step toward unlocking the untapped potential of the Canada-Mexico relationship. Senior Vice-President Catherine Fortin-LeFaivre noted that as Canada diversifies its trade, Mexico should be a top priority.
While Canada, Mexico, and the US have not held a trilateral leaders' summit since January 2023, Carney expressed confidence that the three leaders would reunite during the upcoming FIFA World Cup tournament in 2026.
The agreement and ongoing cooperation between Canada and Mexico come at a critical time as they navigate complex trade dynamics with the United States and seek to reinforce North American economic integration.
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