Railways already taking steps to make it easier to ship goods directly, cutting out U.S. middleman
Leaders and business groups in Canada are taking steps toward expanding the country’s trading relationship with Mexico amid the economic fallout of tariffs imposed by United States President Donald Trump.
On May 15, Prime Minister Mark Carney and Mexican President Claudia Sheinbaum spoke about building on the two countries’ current trading relationship and pledged to direct their respective officials to deepen bilateral relations, according to a readout of the call.
Provincial governments are also looking for opportunities to build out trade, and some leaders have made trips to Mexico in hopes of strengthening ties.
Major Canadian businesses see opportunity in expanding trade with Mexico as well. Canadian Pacific Kansas City Ltd. (CPKC) is leveraging its rail network to move goods directly between Canada and Mexico. Meanwhile, agriculture industry groups are looking to continue growing market share in Mexico while some business groups say there is reason to be optimistic about expanding trade with the country.
Such moves come at a critical time for Canada’s economy. In April, Canada’s unemployment rate rose 6.9 per cent amid the loss of 31,000 manufacturing jobs and 27,000 wholesale and retail trade jobs. Economists point to labour market weakness as evidence of the negative impact of U.S. tariffs on the economy.
Here’s what you need to know about Canada’s current trading relationship with Mexico, what could be gained by expanding ties and what some are doing to break into the market.
For questions or concerns, please reach out to Chris Bodnar.