Mexico’s government is openly venting its frustration with Ottawa, warning that Canada’s cost and bureaucracy are discouraging Mexican companies from doing business here despite federal talk of a renewed bilateral partnership.Blacklock's Reporter says in a blunt report filed with the Senate foreign affairs committee, the Mexican Embassy said firms from Mexico have repeatedly approached diplomats about expanding into Canada but were often deterred by what they described as excessive requirements, high costs and layers of red tape.“Mexican companies have approached the Embassy to inquire about establishing their business in Canada,” the report said, citing interest across construction, financial services, food processing and real estate. “Nevertheless, many of them have expressed concern about excessive requirements, cost or red tape.”Diplomats said Ottawa’s systems are so fragmented that even basic investment data is difficult to obtain. Canada lacks a national registry of foreign direct investment, unlike Mexico, which maintains a public registry listing all foreign firms operating in the country and Mexican companies with foreign investment..“It is difficult to present a full picture of foreign direct investment originating in Mexico,” the embassy wrote, noting that Canadian companies are often registered provincially and that requests for information are frequently denied under privacy rules.The report cited a 2024 visit to Mexico by Ontario Economic Development Minister Vic Fedeli, who claimed 88 Mexican companies had spent in Ontario. Embassy officials said follow-up requests for details produced no additional information.Dated December 10, the embassy submission came just months after Prime Minister Mark Carney declared a “new era of cooperation” with Mexico during a September 18 meeting with President Claudia Scheinbaum. “Canada and Mexico are entering a new era of cooperation,” Carney said at the time. “We are elevating our partnerships.”Mexican officials remain unconvinced. .Roberto Velasco Alvarez, Mexico’s undersecretary for North America, told senators at a November 26 hearing that Canada is not top of mind for Mexican investors. “Mexican companies have grown used to simply looking at the United States when they look north,” he said.While the embassy report did not list specific regulatory hurdles, Parliament has repeatedly promised to cut red tape with little effect. In 2015, MPs passed the Red Tape Reduction Act, requiring any new administrative burden on business to be offset by removing an existing regulation.A Treasury Board internal review in 2022 concluded the law failed to deliver meaningful relief. Of 248 regulations repealed under the act, 87% had no impact on administrative burdens faced by businesses.“There is therefore no direct link between the number of repealed regulations and the control or reduction in administrative burden,” the review said, adding that regulators themselves acknowledged the disconnect.
