Expanding Mexico-Canada Trade: Turning Crisis Into Opportunity

The following quote, often attributed to Albert Einstein, is particularly relevant to today’s global trade disruptions, especially in light of the ongoing tariff threats from President Donald Trump, which affect nearly all countries, including Mexico: “In the midst of every crisis lies great opportunity.” Amid this trade turmoil, while diplomatic and political efforts are underway to make the US government aware of the damage these tariffs are inflicting on both the US economy and its businesses, Mexico faces a unique opportunity: to truly diversify and open new markets.

Where should Mexican companies begin their search for expansion? While the answer depends on a company’s specific product or service, target audience, and strategic goals, it is worth considering countries where Mexico already has established commercial relationships, as these can help businesses expand more quickly. Such relationships should include trade agreements that simplify market access and make investment easier. Moreover, Mexican businesses should target countries with economic stability, a favorable business environment, strong physical and digital infrastructure, and a consumer base that can benefit from their presence. In this context, Canada stands out as an ideal partner for Mexican companies. Not only does it meet all of these criteria, but it also represents a long-standing strategic partner for Mexico, with over 80 years of diplomatic relations and numerous bilateral cooperation instruments, many of which remain underutilized.

For decades, both Canada and Mexico have primarily focused on their trade relationship with the United States, limiting the full potential of their bilateral relationship. Currently, 83% of Mexico’s exports and 78% of Canada’s exports are directed to the United States. This heavy dependence on the US market should not mean withdrawal but rather expanding trade horizons. While the United States will remain an essential and strategic market, Mexico and Canada need to invest time and resources into deepening their trade relationship and reducing over-reliance on the United States. It is more important than ever for both countries to collaborate more closely from a business standpoint, increasing trade across all sectors and benefiting companies of all sizes. This can be achieved by capitalizing on trade agreements such as the USMCA and CPTPP, the latter not only offering access to each other’s markets but also to dynamic Asia-Pacific markets.

Mexican and Canadian entrepreneurs need to understand that, given the current trade crisis with the United States, their goal should not just be to buy or sell more products and services to each other. They should focus on establishing long-term partnerships, integrating into global supply chains, and exploring new markets together. By doing so, they can capitalize on their geographic proximity, cultural affinity, and shared values, such as a commitment to democracy, the rule of law, human rights, sustainability, economic cooperation, and multilateralism. Export Development Canada, a key organization promoting Canadian exports globally, recently highlighted the importance of increased Canada-Mexico trade cooperation to address shared challenges and achieve mutual goals.

At CMX Partnerships, we have been fostering business opportunities between Canadian and Mexican companies since 2016, gaining valuable insights into the growing need for mutual capacity-building. Each year, we organize trade missions and business forums that bring together companies from diverse industries, ranging from food and manufacturing to services and digital technologies, while promoting ongoing bilateral dialogue. These initiatives have offered valuable platforms to highlight business opportunities for companies across all industries and sizes. In light of the current global challenges, we invite Mexican companies to participate in the 10th edition of our Trade Mission to Canada. Our goal is to contribute to trade and investment diversification for the benefit of both countries and their companies, transforming the current crisis into a genuine opportunity, one company at a time.