Leaders of Canada and Mexico gather in discussions amid escalating US tariff disputes
In a significant development, Prime Minister Mark Carney of Canada and Claudia Sheinbaum, the head of Mexico City, are scheduled to meet in Mexico City. The meeting comes in response to US President Trump's push to renegotiate the USMCA North American trade pact.
The leaders are discussing potential boosts to trade via Canadian and Mexican ports, an initiative aimed at enhancing bilateral trade between the two countries. Last year, trade between Mexico and Canada totaled under $32 billion, a figure that these discussions hope to increase.
The US-Canada trade relationship, built on more than three decades of free trade, has been strained due to tariffs imposed by the US on certain Canadian goods. Trump has imposed 35-percent duties on some Canadian goods, leading to job losses in the USMCA sectors such as automotive, steel, and aluminum.
However, it is not all gloomy. Canada retaliated with tariffs on billions of dollars of US imports, but Carney has since exempted US goods that fall under USMCA. Similarly, Sheinbaum has so far managed to stave off a blanket 30-percent US import tariff on Mexico.
The leaders are also considering a program of special visas for Mexican workers, a move that could further strengthen the economic ties between the two countries.
The USMCA, which replaced the NAFTA accord signed in the 1990s, remains the United States' main destination for exports from both Mexico and Canada. Despite the current challenges, the trade between the three countries is more than 20 times greater than the trade each has with the other.
In addition to trade discussions, the leaders plan to discuss cooperation in education, renewable energy, and innovation. Sheinbaum stated that Carney's visit aims to strengthen the Mexico-Canada relationship, focusing on trade and economic investments in certain sectors.
The USMCA will undergo a review next year, providing an opportunity for the US, Canada, and Mexico to reassess their trade relations and find solutions to the current challenges. Trump considers the new three-way deal unfavorable to his country, but these meetings could potentially lead to a more balanced and beneficial agreement for all parties involved.
