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Canada-Mexico Relations Strained Over Border and Trade Disputes

Diplomatic Tensions Escalate
Mexican President Claudia Sheinbaum criticized Canada’s handling of border and drug issues, labeling Canada’s fentanyl problem as “very serious” during a press conference on Monday. This came after U.S. president-elect Donald Trump proposed a 25% tariff on goods from both Canada and Mexico, citing inadequate efforts to curb illegal drugs and migration into the U.S.

In response, Canadian Foreign Affairs Minister Mélanie Joly emphasized diplomacy, stating, “Many conversations, when it comes to diplomacy, are always better when they remain private.” Joly underscored Canada’s positive relationship with Mexico and vowed to work collaboratively while safeguarding Canadian interests.

Trade Relations Under Pressure
Amid heightened tensions, some Canadian premiers have called for renegotiating trade agreements directly with Washington, bypassing Mexico ahead of the 2026 review of the Canada-U.S.-Mexico Agreement (CUSMA). Prime Minister Justin Trudeau expressed concerns about Chinese investments in Mexico, suggesting they conflict with economic-security goals shared by Canada and the U.S.

Sheinbaum rebuffed these criticisms, asserting Mexico’s cultural and historical richness. She accused Canadian politicians of leveraging Mexico for electoral gains, stating, “Mexico should not be used as part of (Canadian) electoral campaigns.”

Historical Weakness in Canada-Mexico Ties
Christopher Sands, director of the Canada Institute at the Woodrow Wilson Center, noted that Canada-Mexico relations have historically been the weakest link in North American diplomacy. During NAFTA renegotiations, limited communication between Ottawa and Mexico City exacerbated tensions. Sands suggested Trump’s approach to divide the countries could undermine trilateral cooperation.

Future of North American Cooperation
As the 2026 CUSMA review approaches, Canada and Mexico must navigate their strained relations while maintaining trilateral ties with the U.S. Sheinbaum hinted at further correspondence with Trudeau, although the contents of her letter remain undisclosed.

Despite the friction, Joly reiterated Canada’s commitment to fostering constructive dialogue with Mexico, aiming to preserve the integrity of the North American trade framework while addressing domestic and continental challenges.

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