Canada and Mexico moved to lock in a closer partnership on Thursday in Mexico City, setting out a detailed plan to deepen trade and security ties as both countries navigate tariff threats and policy volatility from President Donald Trump’s second term.
Prime Minister Mark Carney and President Claudia Sheinbaum said the effort is meant to harden North America’s competitiveness while reducing friction ahead of a formal review of the United States-Mexico-Canada Agreement in 2026.
The leaders launched a Comprehensive Strategic Partnership and a Canada-Mexico Action Plan for 2025–2028 that elevates cooperation across trade, energy, infrastructure and security.
Ottawa described the framework as a roadmap for “frequent meetings at the leader and ministerial levels,” with immediate workstreams on ports, rail and energy corridors and a new bilateral security dialogue targeting transnational crime and fentanyl trafficking.
The government detailed the blueprint in a news release and linked action plan.
Carney, speaking alongside Sheinbaum at the National Palace, cast the initiative as both economic strategy and political insurance.
“North America is the most competitive economic region of the world,” he said in a press conference, adding that Canada and Mexico “complement the United States” and are “stronger together.”
Sheinbaum said the pact opens “a new era” in the relationship, with teams already working to keep trilateral free trade intact and to expand direct Canada-Mexico flows.
A near-term test arrives with the scheduled joint review of USMCA on July 1, 2026.
The Office of the U.S. Trade Representative this week opened a public comment process and set a November hearing to gather views on the pact’s operation, a legally required step that will inform Washington’s positions next year.
For companies, the consultation is a first signal that every facet of the deal, from rules of origin to the competitiveness committee, is back under the microscope.
The action plan points to practical hedges against policy shocks. Beyond reiterating support for USMCA, it sets up a working group on maritime connectivity and port-to-port links, aiming to ease bottlenecks and diversify routes.
It commits the two governments to promote investment across energy transition technologies, critical minerals and sustainable mining, and to coordinate on screening foreign investments tied to economic security.
Security cooperation is being tightened as well, the new bilateral dialogue is intended to step up joint work on illicit drug precursors, firearms trafficking, money laundering and cyber threats, with provisions for intelligence sharing and coordinated law-enforcement efforts.
Ottawa also announced targeted UN-led funding to support migrant integration in Mexico and to combat the illicit production and trafficking of fentanyl, positioning those projects as complements to the security track.
Trade remains the anchor, canadian officials argue that deeper commercial integration with Mexico can cushion tariff risk and improve supply-chain resilience, especially in autos and advanced manufacturing.
While Canada’s goods trade with Mexico is still modest compared with the United States, the two governments say closer coordination can accelerate investment and help firms capture near-shoring opportunities that have been reshaping North American logistics since the pandemic.
For investors, the message is twofold: First, political risk around North American trade has risen, and the USMCA review process will add headline pressure into 2026.
Second, Canada and Mexico are trying to channel that uncertainty into concrete projects that could lower costs and expand capacity, particularly in transportation, energy and digital infrastructure.
The success of that strategy will depend on whether Washington chooses to reinforce or challenge the pact’s core rules over the next year.
The leaders avoided direct criticism of Trump, but their choreography underlined a shared priority: presenting a united front while building bilateral insurance.
“We will move forwards together,” Carney said when asked if Canada might sideline Mexico to strike a separate U.S. deal.
The coming months will show whether that unity can withstand the politics of a high-stakes trade review.
