Prime Minister Mark Carney met with Mexican President Claudia Sheinbaum on Thursday, as Canada and Mexico approach a renegotiation of the Canada, United States, Mexico Agreement (CUSMA).
Western University political science lecturer Sebastián Vallejo Vera further observes that the outcome could be significant for London exporters and manufacturers. “The status quo is already damaging the industry that so much relies on, possibly the biggest market in the world, which is the United States,” Vallejo Vera said.
Vallejo Vera noted that Mexico has a cost factor advantage that makes it challenging for Canadian businesses. “If you’re a producer in London and you lose your biggest market, and it’s most probably going to be the United States, Mexico isn’t where you’re going to be most competitive to place your goods,” Vallejo Vera said.
He added that the real test will be whether Canada and Mexico are able to fall in line before the negotiations with Washington. “Being able to have some commonality and standing together could go a long way in preserving an agreement that has been very beneficial for both Canada and Mexico,” Vallejo Vera said.
CUSMA, which replaced NAFTA in 2020, governs over $2 trillion in annual trade between the three countries.
