Canada-Mexico talks taking place as the country looks outside the US for economic growth

Canada’s finance and foreign affairs ministers are in Mexico City this week holding trade talks focused on economic growth, security, and strong partnerships.Finance Minister François-Philippe Champagne and Foreign Affairs Minister Anita Anand met with government officials and the Mexican President, Claudia Sheinbaum, on Tuesday. They will also hold meetings on Wednesday.“Canada and Mexico are close partners that are united by decades of diplomatic, economic, and security cooperation,” Anand said in a post on X.“These discussions with the president and members of her government advanced key shared priorities in terms of economic growth, security, and trade diversification.”The two countries have more to achieve together in terms of building resilient infrastructure, improving global competitiveness, and boosting bilateral trade, added Champagne in a post on X..Trump says Canada-US trade talk deadline will not be extended .Both Canada and Mexico have been targeted by US tariffs since the beginning of 2025. The US-imposed tariffs are on steel, aluminum, and autos. While many goods remained exempt under CUSMA, these measures introduced trade uncertainty.A 90‑day postponement in July 2025 temporarily eased the burden on Mexico while broader tension continues to linger.After the US, Mexico ranks as Canada’s second‑largest export market.Canada’s top exports to Mexico include motor vehicles and parts, industrial machinery, agricultural products, and metals. Meanwhile, Mexico’s main exports to Canada are manufactured goods, automobiles, auto parts, engines, tractors, electronics, avocados, medical instruments, and entertainment products like TV tech.Canada started looking outside the US for trade partners after US President Donald Trump announced 35% tariffs on exports last week.In response, Prime Minister Mark Carney issued a statement, saying Canada will focus on internal trade, continue to negotiate, and find ways to become less reliant on the US, such as strengthening ties with other trade partners. Carney added that although Trump’s newest tariff announcement excludes all products under the Canada-US-Mexico Trade Agreement (CUSMA), the decision is disappointing..Economist says Canada-US trade deal needs fresh perspective.“We remain committed to CUSMA, which is the world’s second-largest free trade agreement by trading volume,” Carney said.“The US application of CUSMA means that the US average tariff rate on Canadian goods remains one of its lowest for all of its trading partners. Other sectors of our economy—including lumber, steel, aluminum, and automobiles—are, however, heavily impacted by US duties and tariffs.”Economics professor Moshe Lander told the Western Standard a free trade system is the best system."Canada should definitely look to broaden its economic ties with Mexico, as it should with every other country," Lander said."Canada must realize that, without the US on board, transportation between the two countries is by water. The US is unlikely to let goods pass through its territory tariff-free, and any gains from trade will be reduced by those transportation costs.".Carney, Smith respond to Trump's newest tariffs: Here are the implications on the economy

Canada-Mexico talks taking place as the country looks outside the US for economic growth

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