The investment, centered in Hidalgo<\/a>, was announced during Mexico\u2019s largest trade mission to Canada in recent years, where officials from both countries signed agreements focused on pharmaceutical production, critical minerals, and manufacturing projects across several Mexican states.<\/p>\nThe announcement reflects Mexico\u2019s effort to expand domestic pharmaceutical manufacturing capacity while positioning itself as a strategic destination for Canadian investment and nearshoring initiatives. It also comes as both governments seek to diversify trade flows and reduce dependence on US transit and supply chains.<\/p>\n
\u201cThis is an unprecedented working visit aimed at expanding our investment and trade flows with Canada,\u201d says Marcelo Ebrard, Minister of Economy. \u201cWith Canada, we already have significant trade and investment. With this mission, we want to accelerate that and above all open markets for many Mexican companies, particularly small and medium-sized ones.\u201d<\/p>\n
Pharmaceutical Production Takes Center Stage<\/p>\n
Mexico\u2019s Ministry of Economy, Ministry of Health and the Federal Commission for Protection Against Sanitary Risks (COFEPRIS) formalized a strategic agenda with the Canadian trade mission to strengthen health sovereignty and pharmaceutical production in North America.<\/p>\n
As part of the meetings, officials signed seven agreements related to the production of critical pharmaceutical inputs. The central announcement involved a memorandum of understanding between Canadian company Solar International Core Canada and the government of Hidalgo for the construction of an active pharmaceutical ingredients (API) plant in the Zapotlan Development Hub.<\/p>\n
According to the Ministry of Economy, the company will initially allocate US$70 million for land acquisition tied to the project, which authorities described as a first step toward the broader US$2 billion investment estimate for Hidalgo\u2019s pharmaceutical sector.<\/p>\n
The project aligns with Mexico\u2019s strategy to increase domestic production of pharmaceutical supplies after the disruptions experienced during the COVID-19 pandemic exposed vulnerabilities in global supply chains and the country\u2019s dependence on imported active ingredients. Mexican authorities framed the investment as part of a broader effort to relocate supply chains within North America and strengthen regional manufacturing capacity in strategic industries, particularly healthcare and pharmaceuticals.<\/p>\n
The pharmaceutical announcement was made during a trade mission that brought together 240 Mexican companies for more than 1,800 business meetings with about 200 Canadian firms across Toronto and Montreal. The delegation included companies from sectors such as agroindustry, manufacturing, pharmaceuticals, electric mobility, education, innovation, and investment services.<\/p>\n
Alongside Ebrard, the Mexican delegation included Deputy Minister for Industry and Commerce Ximena Escobedo, Deputy Minister for Foreign Trade Luis Rosendo, Mexico\u2019s Ambassador to Canada Carlos Gonz\u00e1lez, and consular representatives in Toronto and Montreal.<\/p>\n
Trade Mission Expands Beyond Pharmaceuticals<\/p>\n
The Hidalgo pharmaceutical project was one of several investment initiatives discussed during the mission. Authorities also confirmed that Canadian company Inte Modular is evaluating a potential investment of up to US$360 million in Chiapas for a modular housing plant. In Puebla, Process Research Ortech Inc. is analyzing a US$380 million investment tied to mineral processing for battery-related industries. Meanwhile, Sustainable Agave Holdings Ltd. is considering a US$100 million project in Jalisco focused on agave pulp production.<\/p>\n
The announcements reflect a diversification strategy that extends beyond traditional trade sectors such as automotive manufacturing and mining, areas that have historically dominated the Mexico-Canada economic relationship.<\/p>\n
Bilateral trade between Mexico and Canada exceeded US$56 billion in 2025, according to figures presented during the mission. Canada accounted for 3.35% of Mexico\u2019s total exports and 1.89% of imports last year, while Mexico recorded a trade surplus of US$8.78 billion with Canada.<\/p>\n
The automotive industry continues to represent the largest component of bilateral trade. Mexico\u2019s leading export to Canada in 2024 was passenger vehicles, valued at US$4.87 billion, while auto parts and accessories represented Canada\u2019s top export to Mexico.<\/p>\n
Canadian foreign direct investment in Mexico reached US$3.21 billion in 2024. Since 1999, cumulative Canadian investment in Mexico has totaled more than US$56.8 billion, positioning Canada among Mexico\u2019s largest long-term investors.<\/p>\n
The mission also included meetings between Mexican companies and Canadian investment funds and financial institutions, including the Ontario Teachers\u2019 Pension Plan. Ebrard additionally met with executives from companies such as Air Canada, Bombardier, ATCO, Brookfield, CN Rail, and TC Energy.<\/p>\n
USMCA Review Shapes Bilateral Agenda<\/p>\n
The trade mission took place<\/a> as Mexico and Canada intensify preparations for the 2026 USMCA review, a process both governments view as critical for preserving regional competitiveness and supply-chain stability. Ebrard held meetings with Canadian Trade Minister Dominic LeBlanc to discuss trade coordination and sector-specific priorities tied to the review process. Discussions included issues related to manufacturing integration, critical minerals, energy and transportation infrastructure.<\/p>\nOfficials from both countries have increasingly emphasized diversification strategies that reduce dependence on US logistics routes. Among the projects under evaluation are direct maritime corridors linking Canadian ports with Mexico through both Pacific and Atlantic routes.<\/p>\n
Canadian and Mexican authorities have also identified critical minerals and energy as strategic areas under the Canada-Mexico Action Plan 2025\u20132028. Canada has sought to expand cooperation in sustainable mining, clean technologies, and environmental standards, while Mexico offers access to manufacturing ecosystems and regional supply chains.<\/p>\n
Ambassador Joaqu\u00edn Gonz\u00e1lez said Canadian companies have shown growing interest in expanding operations in Mexico, particularly as businesses across North America reassess supply-chain resilience and regional production strategies.<\/p>\n
The pharmaceutical investment in Hidalgo fits within that broader context, as Mexico seeks to attract manufacturing projects tied to essential industries while strengthening domestic production capacity. The initiative also reflects the increasing role of health-related manufacturing within North America\u2019s industrial integration agenda ahead of the USMCA review next year.<\/p>\n","protected":false},"excerpt":{"rendered":"Mexico and Canada announced a planned US$2 billion pharmaceutical investment in Hidalgo as part of a broader trade…\n","protected":false},"author":2,"featured_media":41177,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[16345,17,13870,17860,3756,7908,17883,2128,17886,17884,17882,17885,4642,15532,388,15818,4408,17881,399,8211,2042],"class_list":["post-41176","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-active-pharmaceutical-ingredients","tag-canada","tag-canadian-investment","tag-cofepris","tag-critical-minerals","tag-economic-development","tag-foreign-direct-investment","tag-health","tag-health-sovereignty","tag-healthcare-manufacturing","tag-hidalgo","tag-industrial-integration","tag-manufacturing","tag-marcelo-ebrard","tag-mexico","tag-nearshoring","tag-north-america","tag-pharmaceutical-industry","tag-supply-chains","tag-trade-mission","tag-usmca"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/41176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=41176"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/41176\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/41177"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=41176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=41176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=41176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}