As Prime Minister Mark Carney prepares to meet Mexican President Claudia Sheinbaum in Mexico next Thursday, trade is expected to take center stage. According to international trade lawyer John Boscar, three key issues will likely dominate the conversation: tariffs, the future of the Canada-United States-Mexico Agreement (CUSMA), and strengthening bilateral investment.

Both Canada and Mexico have faced challenges under the Trump administration’s tariff policies, but each country has chosen a different path. Canada retaliated with countermeasures on U.S. goods—though many have since been repealed—while Mexico opted against retaliation. With Canada now considering lifting its 100% duties on Chinese electric vehicles, and Mexico preparing to hike tariffs on auto products from Asia, both leaders will be comparing strategies on how to navigate U.S. trade tensions.

The second big item on the agenda is CUSMA. With the U.S. set to review the agreement in 2026, Canada and Mexico will be looking for common ground, especially as Trump pushes for stricter rules of origin in the auto sector. Presenting a united front could prove vital in upcoming negotiations.

Finally, Carney and Sheinbaum are expected to discuss how to deepen trade and investment ties directly between Canada and Mexico. While NAFTA—and now CUSMA—has provided a framework for free trade since 1994, Canadian businesses have historically relied heavily on the U.S. market. The recent tariff disputes have pushed them to look beyond their southern neighbor, opening opportunities for stronger Canada-Mexico economic cooperation.

As Boscar points out, the challenge now is whether both governments can seize this moment to broaden investments and make cross-border business more attractive. For Canada and Mexico, finding common ground could mean not just weathering U.S. trade pressures—but emerging stronger together.