A New Chapter in the Mexico-Canada Economic Partnership 

As published in Spanish by El Universal

As President Claudia Sheinbaum takes office this week, a new chapter begins for the economic partnership between Mexico and Canada. Sheinbaum comes to power forty years after the Tratado de Libre Comercio de América del Norte (TLCAN) came into force, and two years before the review of its successor agreement, the Tratado entre México, Estados Unidos y Canadá (T-MEC). 

Both TCLAN and T-MEC have enabled an historic increase in trade and investment between Mexico and Canada.  In 1993, the total combined trade and investment between our two countries was $5.1 billion. By 2023, the value of that trade and investment had grown exponentially to $87.2 billion. Thanks to those agreements, we are, today, one of each other’s top trading partners.   

Much of this is due to the development of strong business-to-business supply and value chains which have been forged between Mexican and Canadian companies. Business leaders from both countries, such as Francisco Cervantes Díaz of the Consejo Coordinador Empresarial, have been tireless champions for increased bilateral trade and investment. Governments may negotiate trade agreements, but businesses use them to create prosperity for a country’s citizens. 

As we begin this new chapter in our economic partnership, there are reasons for optimism and opportunities to be seized. Many of these can be found in a joint report the Business Council of Canada (BCC) co-authored with the Consejo Mexicano de Negocios entitled Perfilados rumbo al Creccimiento. Our report contained six specific and actionable recommendations which could further strengthen and safeguard our economic growth. 

First, we should promote investment in priority sectors such as semiconductors, agri-tech, clean-tech, med-tech, and advanced manufacturing. This should also include investments in trade-enabling infrastructure such as increased seaport capacity and modernized land border crossings for both rail and roads which would improve supply chain resilience and facilitate nearshoring. 

The BCC is greatly encouraged that senior members of President Sheinbaum’s team, most recently Altagracia Gómez Sierra, have met and spoken with Canadian business leaders about the need for greater bilateral investment. Economy Secretary Marcelo Ebrard is also highly respected in Canada and his leadership over the upcoming T-MEC review will help to ensure the ongoing success of the agreement. 

Second, we must streamline cross-border workforce mobility. This could include a ‘trusted employer’ program where workers who are already employed by a company with operations in both countries can be fast-tracked for visas or work permits. The employer would be responsible for ensuring the employee returns to their home country at the conclusion of a defined period such as when a project is completed. 

Third, we should collectively develop a joint strategy to promote domestic policies in both our countries to ensure the competitiveness of our respective manufacturing sectors. This would entail identifying trade and investment policies related to manufacturing and innovation in priority sectors including strategic technologies for artificial intelligence and the energy transition. 

Fourth, we must immediately prioritize greater engagement at the sub-federal level. The Mexico-Canada relationship is almost always discussed as being between two national entities, and yet significant economic activity falls within the jurisdiction of Mexico’s 32 states and Canada’s 10 provinces and 3 territories. More must be done between and among governors of Mexican states and premiers of Canadian provinces and territories.  

Fifth, and related, we must increase collaboration between the public and private sectors of our two countries, at all levels of government, to safeguard and secure our integrated infrastructure from cyberattacks and other security threats. Given the evolving global threat environment, increased intelligence sharing between business and government is essential to stop the disruption of key cross-border infrastructure networks. 

Lastly, we should explore the creation of a bilateral virtual centre of excellence for women and minority-led businesses. Both Mexico and Canada are committed to expanding opportunities for women, minority, and Indigenous entrepreneurs. A virtual bilateral centre of excellence could provide information to underrepresented groups on topics such as trade regulations. 

Canadian business leaders are optimistic about this next chapter in our economic partnership with Mexico. Even in an era of immense global change when many countries, including both Canada and Mexico, are experiencing deep political and economic changes, these trends cannot deter us from more ambitious and consequential conversations about trade and investment opportunities.