Mexico, Canada Deepen Agri-Food Ties Amid US Decline

Mexico and Canada are moving to expand agri-food trade, facilitate meat exports and establish new sanitary protocols, as both governments report near full compliance with bilateral agreements reached in October 2025.

Julio Berdegué, Agriculture Minister, met with Heath MacDonald, Canadian Agriculture and Agri-Food Minister during a visit by a delegation of Canadian officials and business representatives. “We evaluated compliance with the agreements reached at our October 2025 meeting and have practically fulfilled all of them 100%,” Berdegué said. 

According to the Mexican Ministry of Agriculture (SADER), the bilateral agenda includes specific actions to streamline Mexican meat exports to Canada. “At the same time, we agreed on the steps to establish sanitary protocols that will allow us to receive new Canadian products in Mexico in the short term,” Berdegué said. 

Both governments also committed to working with companies from both countries to increase Mexican fruit and vegetable exports to Canada and to launch new digital systems to facilitate agri-food trade.

MacDonald expressed the interest of Canadian companies in investing in and financing projects in Mexico, describing the relationship as strategic. “The relationship between Mexico and Canada is exemplary; we have set objectives that have been addressed within short timeframes, following the instructions of Mexico’s president, Claudia Sheinbaum, and Canada’s prime minister, Mark Carney,” the Mexican official concluded.

The discussions follow directives from President Claudia Sheinbaum and Prime Minister Mark Carney, who in September 2025 agreed to strengthen bilateral economic cooperation. Moreover, the meeting comes ahead of the upcoming review of the USMCA, with both governments seeking to expand markets and consolidate joint projects. 

Bilateral trade between Mexico and Canada reached US$56 billion in 2024, reflecting sustained growth since the implementation of free trade in North America. 

In agri-food trade, Mexico’s exports to Canada include berries, strawberries, avocados, mangoes, guava, grapes, bananas, lettuce, tomatoes, onions, lemons, cauliflower, broccoli, chili peppers, bell peppers, beef, cocoa preparations and cookies; while the northern country ships to the Mexican market canola oil, beef and its derivatives, cookies, cocoa and cocoa-based products, among others.

Responding to US Market Declines

One of the objectives of strengthening Mexico-Canada agri-food relations is to expand their shared market and help offset declining sales in the United States across key products, such as beef, where exports from both countries have fallen over the past two years despite tariff-free access under the USMCA, as suppliers including Australia, Brazil and Uruguay have expanded their market share, according to Tegra Consultant.

Data from the Mexican consultancy show that Canada’s beef shipments to the US fell 23.56% between 2023 and 2025, while Mexico’s exports declined 11.50% over the same period. In 2023, Canada led beef exports to the United States with 362,182 t and Mexico ranked second with 262,118 t. By 2025, volumes had dropped to 276,840 t for Canada and 231,984 t for Mexico.

Tegra Consultant noted that Canadian producers present a significant contraction, losing relative participation due to market diversification and high price competition in the United States market. Although Mexico and Canada continue to benefit from zero tariffs under USMCA and maintain advantages in geographic proximity, product freshness and sanitary compliance, both countries have lost ground to competitors.

Competitor Growth in US Beef Market

Australia has consolidated its leadership as a supplier of beef to the United States, nearly doubling exports from 233,118 t in 2023 to 462,927 t in 2025, an increase of more than 98%. The consultancy linked Australia’s growth to greater exportable supply, a strong position in hamburger beef and a competitive advantage amid limited domestic US supply.

Brazil also expanded its presence, increasing beef exports to the United States by more than 135% over two years to reach 221,404 t in 2025, despite tariffs imposed by President Donald Trump. Brazilian producers have taken on a role as alternative suppliers of frozen beef and price-sensitive segments in the US market.

Uruguay’s exports to the United States rose more than 99% between 2023 and 2025, while Costa Rica recorded an 87.58% increase. Argentina expanded shipments by 59% and Nicaragua by 16% over the same period.

The gains by these countries have offset the declines from Mexico and Canada, reshaping supplier dynamics in the US beef market. While North American exporters retain tariff advantages, the current trend reflects intensified competition driven by pricing, volume and product segmentation.