Canada and Mexico Forge Strategic Partnership to Deepen Economic and Security Ties

Historic Agreement Signed in Mexico City

Mexican President Claudia Sheinbaum and Canadian Prime Minister Mark Carney officially signed a comprehensive strategic partnership agreement on September 18, 2025, during a ceremony in Mexico City. This landmark accord is set to deepen economic ties, enhance trade, and foster greater cooperation on security and environmental initiatives between Canada and Mexico.

The agreement marks a significant step in bilateral relations, with Prime Minister Carney stating, 'Today, we're beginning a new era of elevated co-operation with a comprehensive strategic partnership.' Both leaders emphasized that the deal will 'complement' the existing Canada-United States-Mexico Agreement (CUSMA), aiming to strengthen North America's position as a competitive and dynamic economic region.

Key Pillars of Cooperation

The newly signed strategic partnership encompasses a wide array of sectors, reflecting a shared commitment to mutual growth and stability. Senior government officials indicated that the agreement covers:

• Infrastructure Development: Plans include building vital infrastructure such as ports, rail, and energy corridors.
• Trade and Investment: Efforts to expand bilateral trade, which reached almost $56 billion in merchandise trade in 2024, and direct investment, totaling $46.4 billion in Mexico, are central to the agreement.
• Security: Enhanced cooperation on security, including combating drug and firearm trafficking and other organized crime activities, is a key component. The agreement allocates $9.9 million for United Nations-led projects to combat drugs and support migrant integration.
• Environmental Protection: Joint initiatives to protect the environment are included, with President Sheinbaum highlighting the importance of Canadian mining companies complying with Mexico's environmental regulations.
• Other Areas: The partnership also extends to health, agriculture, and emergency preparedness.

Economic and Political Context

The signing comes as both Canada and Mexico navigate a complex global trade landscape, including preparing for the renegotiation of the continental trade deal with the United States. President Sheinbaum, who took office on October 1, 2024, has prioritized expanding short-term work visas and ocean trade routes between the two nations. Prime Minister Carney, who assumed office on March 14, 2025, has underscored the importance of diversifying Canada's trade relationships.

As part of the agreement's implementation, Canada's Minister of Agriculture and Agri-Food, Heath MacDonald, is scheduled to visit Mexico next month to explore agricultural trade opportunities. Following this, Canada-U.S. Trade Minister Dominic LeBlanc will lead a trade mission to Mexico to capitalize on immediate trade and investment prospects.

Future Outlook

The strategic partnership is anticipated to foster stronger ties and create new opportunities for both countries. During a joint press conference, President Sheinbaum expressed optimism about the future, noting that 'all three countries want to maintain (the trade deal), but we want to strengthen trade with Canada.' This agreement underscores a mutual commitment to collaboration and economic resilience in North America.