Canadian Finance Minister Francois-Philippe Champagne reportedly said that the U.S.-Mexico-Canada (USMCA) is an “essential element of competitiveness in North America.”
Canada is looking to collaborate more closely with Mexico over a range of issues, including security and trade, its senior ministers said on Tuesday, following a meeting with President Claudia Sheinbaum.
According to a Bloomberg report, citing Foreign Affairs Minister Anita Anand, the two countries agreed to “build a work plan” covering “resilient supply chains, port-to-port lines of trade, artificial intelligence and the digital economy, energy security.”
The meeting between Anand, the Canadian finance minister, Francois-Philippe Champagne, and Sheinbaum reportedly lasted over an hour. The two ministers are also expected to meet business leaders while in Mexico.
According to the report, Anand noted that Mexico plays a critical role in the global economy, and Canada recognizes this and wants to leverage it to the advantage of the Canadian domestic economy. While Champagne reportedly said that Canada offers “a lot of opportunities to Mexico when it comes to critical minerals and the supply chain around that,” and energy security, before adding that both nations are “free traders.”
The neighbors are seeking closer ties at a time when their relationship with the U.S. has soured due to President Donald Trump’s tariff salvo. Barring China, the two North American countries are the only ones facing U.S. tariffs on national security grounds for the inflow of drugs into the U.S.
While U.S. government data has shown that only a tiny amount of fentanyl crosses into the U.S. through the Canadian border, Trump raised the tariffs on Canada to 35% earlier this month, citing its failure to curb the flow of drugs, a charge Canadian Prime Minister Mark Carney has denied.
However, Trump and Sheinbaum extended a tariff truce between the two countries for another 90 days. Canada has retaliated against Trump’s tariffs by imposing levies on U.S. goods, while Mexico hasn’t. However, on Tuesday, Carney seemingly softened his stance and hinted at lowering tariffs if required to benefit Canadian industries.
Retail sentiment on Stocktwits about iShares MSCI Mexico ETF (EWW) was in the ‘neutral’ territory, while traders were ‘bearish’ on iShares MSCI Canada ETF (EWC) at the time of writing.
Champagne reportedly added that the U.S.-Mexico-Canada (USMCA) is an “essential element of competitiveness in North America,” with talks about renegotiating the pact slated for next year. The U.S. has so far exempted goods under the agreement from the tariffs.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<