Canada and Mexico are using a newly signed trade memorandum of understanding to formalize and intensify private-sector dealmaking, with both sides framing it as groundwork for a stronger bilateral pillar before the next CUSMA review and renegotiation pressure builds.
The Business Council of Canada’s senior special advisor for Mexico and the Americas, Shauna Hemingway, said the MOU solidifies a relationship the council has been building with Mexico’s business counterpart, the Coordinating Council for Business, over the last 5 to 8 years.
A CEO dialogue is already “well underway,” and the MOU is framed as a structure to broaden participation and align companies with government-level engagement where needed.
“What we’re seeing this year is an opportunity to ensure we have that public, private sector collaboration that will be critical in terms of building our collaboration going forward,” Hemingway said in a BNN Bloomberg interview.
Most Canada–Mexico trade is described as operating under CUSMA, attributing a major historical step-change to the earlier NAFTA era. Hemingway cites 12-fold growth in two-way merchandise trade since NAFTA was signed, alongside a huge influx of Canadian investment into strategic Mexican sectors intended to strengthen North American competitiveness versus other regions.
Hemingway points to a need for “more growth” in Canadian exports to Mexico, while also calling out a separate opportunity to attract Mexican investors into Canada.
“There’s an opportunity this year, in particular, for us to bring up Mexican investors and have Mexican capital taking advantage of some of the changes and some of the shifts we’ll see in Canada,” she added.
From the Mexico-side demand signal, Hemingway describes Mexican companies as “keen to engage” and says Mexico has been trying to capture Canadian business attention for many years, with incremental progress to date. The pitch for 2026 and beyond is to move faster and take a much more sophisticated look at the Mexican market, rather than treating bilateral strategy as a derivative of the US relationship.
Sector priorities
The Canadian delegation in Mexico included agri-food, with Mexico looking for “quality, more affordable options” that Canada can supply. Agri-tech was also cited as part of the opportunity set, alongside advanced manufacturing, communications technology, and energy.
Energy is framed with a concrete dependency and a concrete constraint. Mexico is described as relying on the US for 70% or more of its natural gas, with Canada positioned as a potential second source to diversify supply.
Separately, Mexico’s storage is described as only 2 to 3 days worth, characterized as a vulnerability for both population resilience and investor confidence.
Hemingway cites a “few hundred” Canadian business leaders visiting Mexico as part of the delegation, with companies reporting “excellent meetings,” and at least a few saying they have plans to bring Canadian investors to Canada as a direct result of the mission.
On the other hand, she also said Mexico’s trade secretary, Marcelo Ebrard, has announced plans to bring a delegation to Canada “later this year.”
CUSMA’s first mandatory joint review is scheduled for July 1, 2026, six years after the agreement entered into force in July 2020. At that review, Canada, Mexico, and the US can recommend changes and must indicate in writing whether they want to extend the pact, which otherwise expires in 2036.
If all three agree, it automatically extends for another 16 years. If any party withholds confirmation, the agreement stays in force but the review repeats every year until there is consensus.
Information for this briefing was found via BNN Bloomberg and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
