Prime Minister Mark Carney and Mexican President Claudia Sheinbaum agreed to deepen ties between their two countries as both grapple with the uncertainty of a second Donald Trump presidency in the U.S.
Trumpets sounded as Carney arrived Thursday at the National Palace, the seat of Mexico's government and Sheinbaum's official residence in Mexico City. The historic building on the capital's main square sits on grounds as old as the Aztec empire.
Canada-Mexico diplomatic relations are far younger, dating back about 80 years, but officials are keen to deepen those ties — not just by preserving the Canada-U.S.-Mexico Agreement (CUSMA) but by striking what's being billed as a "comprehensive strategic partnership."
Carney said the new agreement would "elevate an already strong relationship."
"Today, we're beginning a new era of elevated co-operation," Carney said during a news conference with Sheinbaum on Thursday evening.
"We are both undertaking massive transformations of our economy … our efforts will be strengthened by working together."
Sheinbaum, meanwhile, said she expects the agreements made between herself and Carney would bear fruit in the near term.
"Mexico and Canada will continue walking together, with mutual respect and with a certainty that co-operation is the path to overcome any challenge," Sheinbaum said in Spanish.
WATCH | Carney arrives at Mexico's National Palace: Prime Minister Mark Carney takes part in a welcome ceremony at the National Palace in Mexico City on Thursday, the kickoff to his two-day visit to the country.Through this new partnership, the two leaders agreed to develop further trade and security relationships, invest in infrastructure and work together on climate and conservation initiatives.
Sheinbaum has been openly discussing her desire for Canada to build up its infrastructure, including ports, to create trade and energy corridors — a wish that would align with Carney's push to build major projects.
The new partnership comes as CUSMA is facing a review next year.
Canada is expected to announce it's launching formal consultations ahead of the review within the next week, after the Trump administration kicked off its own consultations on Tuesday.
During Thursday's news conference, both leaders touted the importance of the North American trade deal.
Sheinbaum said North America was the economic "envy" of the world when it comes to trade, while Carney said Thursday's agreement complements the trilateral trade pact.
Thursday's meeting comes after some Canadian leaders — Ontario Premier Doug Ford chief among them — had called for Canada to ditch Mexico and strike a bilateral agreement with the U.S. early into Trump's second term.
WATCH | Carney says Canada 'absolutely committed' to working with both Mexico and U.S.: Prime Minister Mark Carney says that Mexico, the U.S. and Canada will ‘move forward together’ on trade ‘without question.’ Carney ended his first of two days in Mexico‘s capital where he is meeting with Mexican President Claudia Sheinbaum.When asked if co-operation between Canada and Mexico could falter if one could strike a better deal with the U.S., both Carney and Sheinbaum pushed back.
"Canada is absolutely committed to work with both our partners [in CUSMA]," Carney responded.
"We'll move forward together, without question."
Sheinbaum initially responded to the question saying "we're here," in English before saying in Spanish that the CUSMA agreement between three countries is the best scenario for all parties.
WATCH | U.S. ambassador 'disappointed' in Canadians: U.S. Ambassador to Canada Pete Hoekstra, speaking to the Halifax Chamber of Commerce on Thursday, says the Canadian election campaign was an 'anti-American campaign.'Carney was also asked about comments Pete Hoekstra, Trump's ambassador in Ottawa, made regarding a potential deal with Canada.
Carney and Trump have been negotiating — sometimes directly — a trade deal that would see U.S. tariffs on Canadian goods removed. A deadline was set for Aug. 1, but it passed without a new agreement being reached.
Now that the countries are gearing up for the CUSMA review, Hoekstra said Tuesday the Trump administration had hoped to reach a "much bigger" deal with Canada.
In response to a question about Hoekstra's comments on Thursday, Carney said he's still optimistic a deal could be reached. But he said one currently "is not on the table."
"We have the ambition but a deal is a deal, and a deal has to go for both sides. And Canada will agree to a deal that's in the best interests of Canadians. That should not surprise anyone, including the U.S. ambassador, who's doing a very good job for America," the prime minister said.
Carney has previously said he's hoping to reach smaller sectoral deals with the U.S. president to de-escalate the ongoing trade war, and to draft a new economic and security partnership.
Carney tapped Canada-U.S. Trade Minister Dominic LeBlanc to lead a trade mission to Mexico and named Adam van Koeverden, the federal secretary of state for sport, as Canada's "sherpa" for the upcoming FIFA World Cup — which will be hosted by Canada, Mexico and the U.S.
Carney also promised $9.9 million for UN-led "migrant integration initiatives" in Mexico. The funding will also go toward combatting fentanyl production and trafficking.