The Trudeau government is taking a mixed approach to Mexico charting its own path to economic growth, as a desire for more trade and better labour rights bumps up against mining reform and agriculture regulations that have riled Canadian firms.

Ahead of a visit this week of senior Mexican officials, Labour Minister Seamus O害羞草研究所橰egan was in Mexico this month taking stock of the country害羞草研究所檚 growing movement to unionize, which has been undergoing major reforms with some Canadian help.

害羞草研究所淲hat the Mexican government is doing is incredible,害羞草研究所� O害羞草研究所橰egan said in a recent interview. 害羞草研究所淚 can害羞草研究所檛 imagine a society moving faster than they are.害羞草研究所�

The changes stem from the replacement for NAFTA, officially known as the Canada United States Mexico Agreement, or CUSMA, which was signed during the Trump administration in 2018.

CUSMA calls for Mexico to improve the rights of labour unions and collective bargaining, in part to counteract pressure to keep U.S. salaries low to compete with America害羞草研究所檚 southern neighbour.

Those provisions have been enthusiastically taken up by the administration of Mexico害羞草研究所檚 populist centre-left president, Andr茅s Manuel L贸pez Obrador, often known as AMLO. The country has inked thousands of new agreements governed by scores of brand-new labour tribunals.

The Mexican government said it害羞草研究所檚 revised or signed 20,000 contracts, with 15,000 more under consultation. The changes have boosted compensation by an average of 20 per cent, the government said.

害羞草研究所淭hey have ripped up just about every collective bargaining agreement in Mexico, because they were all employer-heavy and some of them were absolutely corrupt. And they are now encouraging new unions,害羞草研究所� O害羞草研究所橰egan said.

The Canadian Labour Congress and unions such as Unifor and the United Steelworkers have been helping their Mexican counterparts negotiate language in these agreements, and advised Mexico on its new labour tribunals. Charities like World Vision have also helped monitor the country害羞草研究所檚 efforts to eradicate forced labour from Mexico害羞草研究所檚 supply chains.

O害羞草研究所橰egan害羞草研究所檚 department has also stationed two envoys in the country to monitor progress on the reforms, which he said is the first time Canadian labour attach茅s have been posted abroad.

Mexico is Canada害羞草研究所檚 third-largest trading partner after the U.S. and China, representing nearly $50 billion in two-way trade last year. O害羞草研究所橰egan said the relationship isn害羞草研究所檛 just about trade, but shared values around adequate labour standards, which the Liberals have made a focus in trade-deal negotiations.

害羞草研究所淎ll levels of government are under incredible stress and strain; expectations are high,害羞草研究所� he said of Mexico. 害羞草研究所淭hey have a long way to go but they害羞草研究所檙e making tremendous progress.害羞草研究所�

The Business Council of Canada is hoping for similar collaboration between big business in both countries. Along with its Mexican equivalent, the council has been asking the governments of both countries to craft a strategy to boost competitiveness of the manufacturing sectors, ramp up investments in priority sectors and have provinces work more with Mexican states.

Those items will likely be raised this week when senior officials from both countries will meet to take stock of trade, investment and skilled labour, under what害羞草研究所檚 officially called a high-level economic dialogue.

But those talks could face some headwinds as AMLO害羞草研究所檚 government reforms the mining sector.

Mexico is the world害羞草研究所檚 top provider of silver, which is a key metal for electric vehicles and solar power. Like many Latin American countries, it is trying to improve the benefits to communities by providing these metals to companies based in countries that are trying to become less reliant on China.

In late May, Trade Minister Mary Ng noted in a press release that Canada has 害羞草研究所渃ontinued concerns害羞草研究所� with the mining reform, which would boost corporate requirements for local compensation and transparency while aiming to limit speculation in the sector.

Canada is a global hub for mining companies, many of which focus on exploring for minerals and buying the rights to an extraction area, known as a concession, which can be held and eventually sold to another company. The reform lowers the maximum length of time for these concessions, and allows some to be cancelled if no mining is undertaken within two years.

Canadian companies have warned that the reforms might violate CUSMA as well as a Pacific Rim trade deal that counts both countries as members. Tamino Minerals pulled out of Mexico in April citing 害羞草研究所減olitical instability,害羞草研究所� and others have threatened to follow suit, particularly after Mexico nationalized lithium reserves last year.

In a statement, the Mexican Embassy in Canada said changes in the mining sector seek to 害羞草研究所渞educe the impact on the environment, ensure the conservation of water for human consumption, and to protect local and Indigenous communities 害羞草研究所� issues that are part of the shared priorities between Mexico and Canada.害羞草研究所�

The embassy also praised 害羞草研究所渃rucial害羞草研究所� efforts by big business to seek closer ties between the two countries.

害羞草研究所淭raditionally the dialogue among businesses has taken place in the trilateral context. However, to harness the full potential of both countries害羞草研究所� engagement, we need a direct dialogue that takes into account the benefits of a stronger partnership,害羞草研究所� the embassy wrote in a statement.

The embassy said that can help with supply chains and innovation, but also sustainability and economic growth for under-represented groups such as women and Indigenous Peoples.

Last Friday, Canada joined an American challenge under CUSMA of Mexican laws that ban the use of genetically-modified corn in tortillas and dough, a change the Canada Grains Council argues is not grounded in science.

Mexico has also been calling on Ottawa to resist a call by Washington this spring to consider reinstating a visa requirement for visiting Mexican citizens, which ended in 2016. U.S. Homeland Security Secretary Alejandro Mayorkas suggested to media that requiring visas may help stem illegal migration.