What's Happening?
Canada and Mexico are working to enhance their agri-food trade relationship in response to challenging trade dynamics with the United States. Officials from both countries, including Canada's Minister
of Agriculture and Agri-Food Heath MacDonald and Mexico's Secretary of Agriculture and Rural Development Julio Berdegué, met to discuss bilateral relations and strengthen cooperation. The meeting resulted in Mexico agreeing to ease import requirements for Canadian apples and accepting a new certification for Canadian pet food with bovine ingredients. Additionally, both countries will use electronic certification for plant products like canola and wheat. This meeting is part of the Canada-Mexico Action Plan 2025-2028, which aims to develop a dynamic bilateral agenda over the next three years. The US currently imposes tariffs on Mexico and Canada, citing the need to address illicit drug flows.
Why It's Important?
The strengthening of trade ties between Canada and Mexico is significant as it highlights the shifting dynamics in North American trade relations. With the US imposing tariffs on both countries, Canada and Mexico are seeking to bolster their economic partnership to mitigate the impact of these tariffs. This move could lead to increased trade and economic growth between the two nations, potentially reducing their reliance on the US market. The collaboration also underscores the importance of regional partnerships in maintaining economic stability and growth in the face of protectionist policies. The outcome of these efforts could influence future trade negotiations and policies within the region.
What's Next?
The US Trade Representative plans to review the US-Mexico-Canada Agreement (USMCA) in July 2026, which could lead to changes in trade policies affecting all three countries. Canada and Mexico's efforts to strengthen their trade relationship may serve as a strategic positioning ahead of this review. Additionally, the ongoing collaboration between the two countries could lead to further agreements and initiatives aimed at enhancing trade and economic cooperation. Stakeholders in the agri-food industry and related sectors will likely monitor these developments closely, as they could impact market access and competitiveness.
