Trade Partner Profile: Mexico

Canadian Economics

Mexico is Canada’s fifth-largest trading partner, following the United States, China, Japan, and the United Kingdom. In 2024, Canada exported $8.6 billion and imported $47 billion worth of goods from Mexico.

  • Bilateral trade has expanded steadily over the past three decades, driven by the signing of NAFTA in 1992. Between 2000 and 2024, Canadian exports to Mexico grew at an average annual rate of 4.6 per cent—outpacing the 3.6 per cent average growth in total Canadian exports.
  • Despite the strong growth, Mexico accounts for just 1.1 per cent of Canada’s total exports. Geographic distance has been a barrier to stronger trade ties, with the dominant U.S. market often serving as an intermediary
  • Canadian imports from Mexico are largely composed of manufactured goods, including motor vehicles and parts, machinery, appliances, and agri-food products.
  • Conversely, Canadian exports to Mexico are primarily driven by motor vehicles and parts, machinery and mechanical appliances such as pumps and industrial molding boxes, as well as agricultural products, and ferrous and non-ferrous metals.
  • While Canadian exports to Mexico largely align with what Mexico imports from the world, Canada has had trouble gaining market share given the importance of the U.S. to Mexican imports. The U.S. accounts for 80 per cent of imports, while imports from Asia, and especially China, have seen a growing share.
  • Mexico and Canada are among the most impacted countries in the world from tariff threats by the United States. These threats, and a commitment from both countries to the Canada–US–Mexico Agreement (CUSMA) does provide opportunity for the two countries to use each other as an alternative to trading with the U.S.
  • Canada is well-positioned to fill potential gaps left by U.S. exports to Mexico, particularly in sectors such as animal products, corn, raw mining commodities, and manufactured goods like aluminum, steel, and plastics.
  • Emerging opportunities are also developing in sectors such as clean energy technologies and infrastructure development, which align with both countries’ evolving economic priorities.
  • Trade between Canada and Mexico remains limited, but current agreements under CUSMA provide a solid foundation for future growth. Moreover, the trade uncertainty and volatility brought about by tariff threats highlights the importance of strengthening bilateral ties and expanding direct trade networks between the two countries.

Chart 1

What Canada Exports to Mexico

($CAD, billions)

Horizontal bar chart comparing Canada's major exports to Mexico. They are motor vehicles and parts, pumps and molding boxes, meat, electrical machinery, iron and steel, aluminum, oil seeds, cereals, and plastics.

Sources: Trade Data Online, The Conference Board of Canada.

Chart 2

What Mexico Imports from the World

($US, billions)

Horizontal bar chart showing Mexico's major imports from the world. They are electrical machinery; machinery and mechanical appliances; motor vehicles and parts; oil; iron and steel; optical, photographic, and medical devices; organic chemicals; and aluminum.

Notes: Bars highlighted in red indicate export opportunities for Canada.
Sources: U.N. Comtrade, The Conference Board of Canada.

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