Deeper Mexico-Canada Ties Build a Stronger North America: CANCHAM

Q: What are the main challenges facing the Canada-Mexico bilateral economic relationship today, and how does CANCHAM prioritize its resources to mitigate these?

A: The Mexico-Canada relationship in 2025 has been exceptionally dynamic, driven by commercial situations, particularly under the USMCA framework. While some challenges exist regarding tariffs and rules of origin, which are expected to lead to sector-specific renegotiations, CANCHAM remains strongly optimistic about the future. This dynamic context has spurred both nations to pursue commercial diversification, fostering greater mutual understanding and collaboration as partners.

The recent solidifying of this approach, marked by Prime Minister Mark Carney’s visit and an invitation extended to President Claudia Sheinbaum, culminated in the adoption of a Strategic Plan 2025-2028 in September 2025. This plan outlines clear activities in priority sectors, committing both countries to 90-day progress updates.

The identified challenges are simultaneously viewed as opportunities. The first is the necessity of consolidating the relationship and mutual understanding in commerce and investment, which could be facilitated by creating a Business Task Force within CANCHAM, representing both Canadian and Mexican companies integral to integrated supply chains like automotive and auto parts. The second challenge is to create high-impact initiatives in key sectors. Mining, a sector with major Canadian investment, must be strengthened, coupled with initiatives focused on critical minerals to support the growth of semiconductors and renewable energy. The third focus is on integrating diversification and nearshoring, actively generating more business opportunities across various sectors.

The Strategic Plan prioritizes several key areas: mining; energy, including traditional and renewable sources; automotive and auto parts; aerospace; and innovation and technological development. Agri-business and agrotech present a crucial area of complementarity. Mexico provides a strong primary agricultural sector, while Canada offers the essential infrastructure, know-how, and technology for industrial transformation. Renewable energy is promising as Mexico offers raw materials and Canada provides the know-how. Finally, innovation and technological development is a transversal opportunity where Mexico contributes human capital and sectors for application, complemented by Canada’s established programs. These challenges are significant opportunities given the current political and economic timing.

Q: What other mechanisms can both countries leverage to further strengthen the bilateral relationship? 

A: It is important to note the long-standing Mexico-Canada alliance. Beyond the commercial agreement, which dates back approximately 30 years, there is a foundational alliance, approximately 20 years old, that impacts various areas of social, political, cultural, and economic development in both countries.

This existing bond possesses great inherent strength, and the current political rapprochement between the two nations is reactivating and awakening it. Recently, our Ministry of Foreign Affairs convened the initial meeting for the Alliance's work plan, which will begin in 2026. This mechanism greatly aids the development of the bilateral plan currently shared by both countries.

This is a plan for bilateral strengthening aimed at consolidating regional integration. We at CANCHAM promote the belief that by strengthening the Canada-Mexico relationship, we will further advance the regional integration of North America.

Q: What are the main objectives Canada aims to achieve during its February 2026 trade mission?

A: The private and public sectors are mutually reliant; the business community needs government agreements, and the public sector needs companies to implement them. They cannot be isolated. This makes the Strategic Plan crucial, opening a window of opportunity that CANCHAM is maximizing by encouraging solid bilateral relationships and focusing on priority sectors through its membership.

As a direct result of this Strategic Plan, the Canadian government launched a call for submissions for a large-scale Commercial Business Mission to Mexico in February 2026 between Feb. 15 and Feb. 20. This mission, which is the first of its kind in magnitude for the Canadian government in Mexico, will be held across Mexico City, Guadalajara, and Monterrey. Over 300 companies registered across various sectors are demonstrating immense interest. Following the necessary filtering process, the Canadian Embassy in Mexico expects a final mission size of approximately 150 Canadian companies.

The focus sectors for this mission include: advanced manufacturing, automotive and auto parts, cleantech and agrotech, innovation and technological development, and creative industries, a sector with high potential. This mission is a powerful step toward diversification, strengthening the relationship, and promoting bilateral growth, which will significantly advance mutual knowledge and North American integration.

Q: What can both countries do to further integrate North America? 

A: The North American region is already deeply connected. This integration is visible in logistics and connectivity: we have a functional railway connection extending from Canada to Central Mexico, and impressive air connectivity between major Canadian cities and key Mexican destinations.

Port infrastructure is currently identified as a challenge and an opportunity within the Strategic Plan. Both governments have committed to strengthening this infrastructure, which includes expanding or building new facilities on both the East and West coasts. Mexico holds a highly strategic geographical location, offering a competitive advantage due to its milder climate, which is less prone to the transport disruptions experienced by its northern neighbors for several months of the year. Strengthening port infrastructure will greatly favor commerce and investment between Canada and Mexico.

Q: Beyond USMCA, what are the main domestic risks that delay Canadian capital investment in Mexico, and what is CANCHAM’s role in mitigating this risk?

A: Several key issues affect the traction of Canadian investment in Mexico, which exceeded US$3 billion in 2024, with over 50% concentrated in the mining sector. The common operational challenges reported by Canadian firms investing in Mexico include bureaucratic issues related to permitting and procedures, which often act as obstacles to operation or expansion. This red tape, found in areas like environmental permits and foreign trade, is a constant focus for CANCHAM, which lobbies government authorities for simplification initiatives necessary to attract and retain all international investment.

Another major concern is the ongoing issue of legal certainty, driven by recent legislative reforms that impact the regulatory framework applicable to all businesses in Mexico, making it a topic of continuous dialogue. Finally, tax issues with Mexican authorities also present challenges that vary by company. CANCHAM’s role in addressing these is through facilitation of dialogue, strategic linkage, and the generation of strategic business intelligence and data to support members' positioning before authorities. 

The chamber executes this role through Sectoral Committees, like Mining and Energy, and Thematic Committees focused on horizontal, cross-cutting issues like Inclusion, Diversity, and Equity (IDE), Risk Management, and Fintech. Beyond specific sectors, the chamber emphasizes the need to strengthen talent through formation and training, and to fortify Intellectual Property protection to enable broader digital adoption and the use of AI, where Canada and the United States offer regulatory complementarity. Ultimately, CANCHAM provides aftercare: a permanent, active accompaniment to its members, facilitating dialogue, promoting projects, and linking businesses across all levels.

Q: Could you share an example in which Canadian firms have brought best practices to Mexico? 

A: The adoption of the Towards Sustainable Mining (TSM) initiative by Canadian mining companies in Mexico is a clear example of this. This standard, used in Canada, seeks to expedite permit procedures and guarantee due compliance with Mexican authorities on environmental and sustainability matters. It signifies the commitment of these companies to meet an international standard exactly as it is required globally to ensure efficient operation. Ultimately, this favors the host country where the operations and investment are located, while also setting a strong example that can be adopted by other sectors in Mexico.

Q: What are CANCHAM’s objectives for 2026? 

A: One objective for 2026 is the successful execution of the February Trade Mission. Although this initiative is driven by the Government of Canada, CANCHAM is closely involved, working as part of a Team Canada approach with the Embassy to ensure mutual benefit. By facilitating this increased Canadian presence in Mexico, the goal is to generate more opportunities for Mexican presence and investment in Canada, strengthening bilateral links between companies and investors and growing the entire economic ecosystem. This growth in the ecosystem, involving Canadian, Mexican, and integrated US companies, is expected to increase commercial activity, potentially raising the current US$3 billion in Canadian investment and boosting bilateral exports and imports. 

Another objective for 2026 is to build a stronger, more precise Canada-Mexico relationship by prioritizing clear objectives within the five identified priority sectors. An integral part of CANCHAM's 2026 initiative is the Local Rapprochement objective: facilitating stronger ties between Canadian provinces and Mexican states. We are actively promoting this approach by performing matchmaking between the productive vocations of Canadian provinces, for example.

We want to achieve precision targeting that facilitates complementarity rather than competition. For example, matching Alberta's energy vocation with the productive gas natural regions of the Mexican southeast can lead to business, know-how transfer, and technological exchange, fostering diversification. This Local Rapprochement strategy is already underway with the provinces via their Embassy representation and Mexican states via their Ministries of Economic Development.

Beyond these initiatives, CANCHAM will continue promoting increased mining investment, project expansion in the energy sector, and supporting renewable energy, such as solar projects, given the interest from Quebec-based firms and innovation. 

Next year presents two significant events that will consolidate the relationship: the planned USMCA review in June and the World Cup. The World Cup, as the first such event held by the three nations of the world's most important commercial bloc, is viewed as far more than a sporting event. It will be a powerful demonstration of regional strength, generating significant economic impact beyond tourism, and consolidating regional integration for the entire world to witness.

The Canadian Chamber of Commerce (CANCHAM) is the voice of Canadian businesses in Mexico. It was founded in 1982 to represent Canadian interests in Mexico and to promote trade and investment between both countries.