Prime Minister Mark Carney is headed to Mexico on Thursday in an effort to diversify trade as the two countries prepare for a review of the three-way free trade deal with the United States.

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Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

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Prime Minister Mark Carney is undertaking a diplomatic mission to Mexico City, where he will meet with Mexican President Claudia Sheinbaum. The visit comes amid ongoing trade and tariff tensions initiated by the United States, with both Canada and Mexico seeking to reinforce their partnership and prepare for the upcoming renewal of the North American trade agreement, known as Kusma.

Carney's agenda includes discussions on a new Canada-Mexico comprehensive partnership agreement and the launch of a security dialogue addressing issues such as transnational crime and drug smuggling. The trip also serves to repair relations strained by previous comments from Canadian premiers about Mexico, and to signal Canada's commitment to trilateral North American cooperation. Business leaders are accompanying Carney to explore opportunities for increased trade and investment between the two countries.

Carney heads to Mexico to repair strained ties, boost trade

We begin this hour with Prime Minister Mark Carney set to embark on a major trade and security mission this morning He's going to take off from Ottawa next hour for Mexico City and there he will meet with the leader of Canada's other North-american trading partner of course President shine by Shane bomb Both countries are trying to navigate the trade and tariff war launched by US President Trump So Carney and President Shane bomb are expected to talk trade investment and strengthening bilateral relationship Both countries are preparing for the renewal of the trade agreement with the United States Kusma as we call it here This visit is also expected to produce a new Canada Mexico Comprehensive partnership agreement and to launch a security dialogue focused on issues like transnational crime and drug smuggling We're going to hear about all of those issues with the reporter who was traveling with the prime minister and covering this summit in Mexico And Evan Dyer joins me live on the tarmac before he gets on that plane as well Evan good to see you and Antis and really anticipating your reporting on these key issues You were saying on the national last night that part of the job for the prime minister is to mend some fences Because comments from Canadian premiers last year because of the Donald Trump tariff war Really landed a really sour note for those in Mexico What did they say and what has the impact been that the prime minister is going to have to contend with Yes, that's right and these comments go back actually to before Donald Trump's inauguration but president-elect Trump at the end of 2024 was already making it very clear that he had an agenda of Tariffs and that once again, he was going to put Kusma the North American free trade arrangement under pressure And we saw some Canadian premiers particularly Doug Ford of Ontario and Daniel Smith of Alberta Respond by suggesting that perhaps one alternative or one solution for Canada would be to try to make a sort of a separate piece With the United States ignoring Mexico and even to cut Mexico entirely out of NAFTA and there were some other remarks particularly from from Doug Ford about how Canada should not be compared to Mexico or put in the same category that got quite a bit Of play in Mexican media and caused a reaction. Let's listen to some of what Doug Ford had to say back then What I'm proposing to the federal government We do a bilateral trade deal with the US and if Mexico wants a bilateral trade deal of Canada God bless them, but I'm not going to be drawn down with these cheap imports taking men and women's jobs from hard-working Ontarians So Of course already in the first term of Trump there had been I wouldn't say necessary tensions between Canada and Mexico but diverging interests You know the two countries from the beginning when Trump first came along in 2016 talked about cooperating and having a common front But at the same time they were negotiating separately and they do have different interests And of course the Trump administration is always keen to drive a wedge between them And so we did see some of those tensions going right back to the first term. So there's a there's a fence-bending mission here It's already begun really Claudia Shanebaum the president of Mexico came to Canada for the G7 We've seen a visit there by Canada's foreign minister and finance minister Francois-Philippe Champagne in August So there's already been some progress on this front But this trip is about sending a message that Canada really is committed to Three-way North American integration and wants to cooperate with Mexico And that the federal government really has no interest in throwing Mexico under the bus So when you speak of three-way negotiation, they'll be probably discussing the ultimate renewal of Kusma, but on the bilateral front There's a lot more that can be done to improve that relationship and build on the economic relationship between the two countries Evan What is Canada and Prime Minister Carney? What are the outcomes that Canada is hoping for? Well, you're quite right to split it into those two focuses if you like the the one of preserving North American free trade Including the United States as free as possible under the circumstances But also the second one of advancing the alternative to that trade with the United States, which is to diversify Canada's own trade and I think most economists would agree that both for Canada and Mexico NAFTA first and since then the new arrangements that have replaced it have really been about trade with the United States after all that is the Neighbor the immediate neighbor for both Canada and Mexico which are separated from one another by this large country in between them it's also of course by far the biggest market and as a result perhaps Canada Mexico haven't focused as much as they Should have and could have on developing trade between the two of them And so there is talk of a Canada Mexico trade corridor that would of course be primarily a sea corridor To diversify Canada's trading relationship and investment relationship with Mexico and to that end We see a number of CEOs on this trip of some of Canada's biggest companies Heading down there But of course there's also that negotiation coming up off Kuzma which Canada and Mexico both very much want to preserve in as close a form as possible To the old NAFTA the real free trade arrangement and the tariff-free Kuzma that was originally negotiated with the Trump administration And so that we can also expect to see a lot of talk about how to confront that Negotiation together how to have common positions and strategies not to let the Trump administration divide and rule as well as several other issues around Security transnational drug trafficking and so on that of course also feed into this trade dispute with the United States Thank you very much Evan and again. We'll look forward to the reporting as you cover the Prime Minister's Mexico trip

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Carney heads to Mexico to repair strained ties, boost trade

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