Canada and Mexico Are Negotiating Together
Canada and Mexico are presenting a unified position in the ongoing renegotiation of the Canada-United States-Mexico Agreement (CUSMA), Mexican President Claudia Sheinbaum confirmed this week. The coordinated stance marks a significant diplomatic development as both countries navigate pressure from the United States on trade terms.
Sheinbaum stated publicly that the two nations have aligned on key priorities heading into the talks, suggesting a joint strategy rather than each country negotiating independently with Washington. The move reflects a calculated effort by both governments to strengthen their leverage at the bargaining table.
What's at Stake with CUSMA
CUSMA — known as USMCA in the United States — is the trilateral trade agreement that replaced NAFTA in 2020. It governs the flow of goods, services, and investment across North America and is critical to Canada's export economy, particularly in sectors like automotive, agriculture, and energy.
The agreement includes a built-in review clause requiring a joint assessment by 2026, which has opened the door for the current round of renegotiations. The US has signalled interest in revisiting several provisions, putting pressure on both Canada and Mexico to respond.
Why a Common Front Matters
By coordinating with Mexico, Canada avoids the risk of being picked off individually in bilateral side deals — a concern that trade experts raised during the original NAFTA renegotiations under the Trump administration. A united Mexico-Canada bloc gives both countries more bargaining power, especially when facing demands around tariffs, labour standards, and rules of origin for key industries.
For Canada, the trade relationship with the US is enormous — the United States is by far Canada's largest trading partner, accounting for the vast majority of Canadian exports. Disruptions to CUSMA could have significant ripple effects across the Canadian economy.
What Comes Next
Negotiations are expected to continue in the coming months, with the 2026 review deadline creating urgency on all sides. Canada's federal government has emphasized its intention to defend Canadian interests, including supply management in dairy and poultry, and protections for Canadian cultural industries.
The Canada-Mexico alliance — if it holds — could shape the outcome of talks considerably. Both countries share an interest in maintaining the free flow of goods and resisting any provisions that would undermine the current agreement's framework.
Follow-up meetings between Canadian and Mexican officials are expected as the formal review process advances.
Source: CBC Top Stories — Mexico, Canada have formed a common front on CUSMA talks, says Sheinbaum
