Prime Minister Mark Carney held a phone discussion with Mexican President Claudia Sheinbaum on Friday, focusing on the impending review of the Canada-U.S.-Mexico Agreement (CUSMA).
Key Topics in Leader Discussions
The leaders agreed to collaborate closely on shared economic priorities and challenges to ensure greater certainty, security, and prosperity for their citizens. Sheinbaum recently met with U.S. Trade Representative Jamieson Greer, setting the stage for official U.S.-Mexico CUSMA talks late next month. Canada has yet to confirm its official start date.
The agreement requires the three nations to approve a renewal or signal an exit by July 1, though officials anticipate negotiations extending up to 10 years beyond that deadline. Both U.S. and Canadian representatives expect discussions to continue past July 1.
Negotiation Strategy Insights
Janice Charette, Canada’s chief trade negotiator, indicated that talks with Greer suggest a mix of bilateral and trilateral elements. “There’s a bilateral piece as well as a trilateral [piece] — my counterpart in the U.S. has described this to me as a kind of snap-on Lego bilateral piece to the underlying framework [of CUSMA],” she stated during a summit in Ottawa.
Bilateral Trade Initiatives
Beyond CUSMA, Carney and Sheinbaum reviewed bilateral relations. A Mexican trade delegation plans a three-city tour of Canada starting in early May, featuring government-to-government trade discussions. This follows a major Canadian trade mission to Mexico City, Guadalajara, and Monterrey in February, which secured over 20 new commercial partnerships.
U.S. Tariffs Spark Tensions
Both nations face U.S. tariffs on steel and aluminum. U.S. President Donald Trump announced tariff relief for Canadian and Mexican producers willing to shift operations to the United States. Greer recently criticized Canadian provinces for delisting U.S. alcohol in retaliation to these tariffs.
Carney pushed back during a news conference, highlighting U.S. measures. “You know what’s an irritant? A 50 per cent tariff on steel and aluminum, 25 per cent on automobiles, all of the tariffs on forest products. Those are more than irritants. Those are violations of our trade deal, OK?” While Greer views sectoral tariffs as separate from the CUSMA review, Canadian officials demand integrated discussions.
Response to Canadian Tourist Death
Carney expressed gratitude to Sheinbaum for her support following the shooting death of a Canadian tourist at one of Mexico’s popular pyramids on Monday. The unidentified victim was among 14 affected, with 13 others injured. The Mexican gunman died from a self-inflicted wound at the scene.
