Canada courts Mexico as Trump escalates tariff fight
Canada's Mexican charm offensive underscored the imperative for Carney's government to shore up relations with Mexico ahead of the upcoming review of the United States-Mexico-Canada Agreement. Carney insists the pact provides tariff-free trade for 85 percent of Canada's exports to the U.S. despite the 35 percent tariff imposed last Friday.
There are no guarantees Trump will continue to honor the USMCA as tensions rise.
While Anand and Finance Minister François-Philippe Champagne were making the rounds in Mexico, a top White House official accused Ottawa of cozying up to China. Canada and China are the only two among roughly 90 countries to impose retaliatory tariffs on the U.S.
Stephen Miran, chair of the White House Council of Economic Advisers, told CNBC that 'things are looking very promising' for finalizing a trade deal with Mexico after Trump gave the country a 90-day extension.
'Canada needs to get its act together,' Miran said. 'I think Canada has decided it would rather be similar to China and retaliate against the United States.'
Anand dismissed Miran's criticism.
'Negotiations between the United States and any other country are not comparable to Canada's negotiations with the United States,' Anand said. 'You can't take a … playbook from one country and simply apply it across the board to other countries.'
She said Canada-U.S. relations in security and defense remain strong, but she conceded: 'In every relationship, there are hills and valleys.'
Canada Foreign Affairs Minister Anita Anand addresses the United Nations General Assembly on July 28. | Richard Drew)/AP
In Mexico City this week, Anand and Champagne devoted two days to revitalizing two-way collaboration on investment and energy.
Anand said their 75-minute meeting with Sheinbaum on Tuesday opened doors to further talks with several of her senior Cabinet members and additional meetings with top executives from Mexican firms and Canadian companies in Mexico.
Spurring investment in Mexican energy infrastructure projects, including pipelines and ports, was a major topic, Anand told POLITICO. That included finding investment opportunities for Canada's 'Maple 8' pension fund group of companies, which has more than C$2 trillion in assets.
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