A new report from the Mexican Embassy in Ottawa has delivered a stark warning: Canada's reputation for bureaucratic complexity and high costs is actively discouraging Mexican companies from investing here. This assessment comes despite recent high-level promises of a "new era" in bilateral relations.
Diplomatic Report Details Investor Frustrations
The report, submitted to the Senate Foreign Affairs Committee earlier this month, states that Mexican firms from diverse sectors—including construction, financial services, food processing, and real estate—have approached the embassy about expanding into the Canadian market. However, many were ultimately deterred by what they described as "excessive requirements, cost or red tape."
The document, first reported by Blacklock's Reporter, paints a picture of a system that is not only daunting for potential investors but also opaque to foreign diplomats. It notes a significant challenge in even obtaining basic data on Mexican investment in Canada due to the lack of a centralized federal registry.
A "Dysfunctional" System and Data Blackout
The embassy's criticism extends to the fundamental difficulty of navigating Canada's decentralized system. The report calls the situation "dysfunctional," highlighting that investment records are often held at the provincial level. Requests for this information by Mexican officials were reportedly denied based on privacy guidelines, preventing a clear analysis of existing economic ties.
"It is difficult to present a full picture of foreign direct investment originating in Mexico," the report states, contrasting Canada's system with Mexico's publicly available National Registry of Foreign Investment.
Contrast with High-Level "New Era" Promises
This critical assessment stands in sharp contrast to the optimistic rhetoric from political leaders. In September 2025, Prime Minister Mark Carney visited Mexico City and signed a new agreement with President Claudia Sheinbaum. The deal, aimed at deepening economic and security ties, included plans for joint infrastructure projects like ports, rail corridors, and energy initiatives.
At a press conference during that two-day visit, Carney heralded a "new era of elevated co-operation with a comprehensive strategic partnership." The embassy report suggests that on-the-ground realities for businesses do not yet match this lofty diplomatic vision.
The findings underscore a persistent challenge for Canada in attracting and retaining foreign investment. While the federal government promotes international trade agreements and partnerships, potential investors from key allies like Mexico are encountering significant procedural and financial hurdles that threaten to undermine those efforts.
