Canada and Mexico have an interest in a rapprochement

Canada and Mexico have an interest in a rapprochement, experts say

(Washington) Canada-Mexico relations have long been the weakest link in the “North American Triangle,” and foreign policy experts say strengthening those ties will be vital if the continent is to realize its true economic potential.

Posted at 6:13 p.m

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James McCarten The Canadian Press

Canadian Senator Peter Boehm, former Deputy Secretary of State and Canadian Ambassador, was one of the participants from the three countries at a virtual roundtable on Friday to take stock of last week’s summit of North American leaders in Mexico City .

“The (trilateral) relationship, in my view, is essentially characterized by an isosceles triangle,” Boehm explained: The two longer and equal sides represent the most important and longest-standing ties that the United States has with its two nearest neighbors.

“And then this very short page represents the relationship between Mexico and Canada, which I think needs to be developed. And it can evolve in a number of ways,” he argued during this roundtable organized by the Americas Society and the Council of the Americas.

The Mexico City summit highlighted several areas where this convergence is already happening, said Louise Blais, a retired Canadian diplomat who is now a senior adviser with the Business Council of Canada and diplomat-in-residence at Université Laval.

Ms Blais, who was in Mexico City during the summit, said Friday that Mexican President Andrés Manuel López Obrador surprised the Canadian delegation by repeating the opinion that the three countries would be stronger if they were better able would be to function as a single North American entity.

Her position on that front “hasn’t really been clarified, especially for the business community in Mexico,” Ms Blais said. “We have a feeling that he really believes in it. »

Mr. López Obrador, whose strategy of favoring Mexican energy suppliers should be a sticking point at this summit, also signaled a willingness to discuss the issue further, Ms. Blais added. “We shouldn’t be naive, but there is a feeling that maybe there is hope that we can solve this problem. »

Canada could also play a more active role in working with Mexico to protect against some of the threats to democracy that exist in Latin American countries like Venezuela, Nicaragua and Cuba, added Senator Boehm, who chairs the Senate Standing Committee in Parliament for foreign affairs and international trade.

Trudeau in seduction mode

The final day of Prime Minister Justin Trudeau’s visit to Mexico City was devoted to strengthening ties with Mexico, beginning with a speech to business leaders that introduced Canada as a champion of free trade and a smart place to invest.

Over the past year, foreign direct investment in Canada has fueled growth in electric vehicle manufacturing and critical mineral development, creating around 17,000 jobs, Trudeau told his audience.

Trade between Canada and Mexico has grown ninefold since 1993, when last year Canada was second only to Spain in the list of top sources of foreign investment in Mexico, the prime minister added.

We are a reliable partner with many talents, a very attractive investment climate and an excellent quality of life. There is enormous potential for growth between our countries. So let’s continue this momentum. Let’s continue to do what leaders did a generation ago: hold fast to our belief in open trade and collaboration.

Justin Trudeau, Prime Minister of Canada

José Antonio Meade, Mexico’s former foreign minister under President Enrique Peña Nieto, said Friday that the two countries “must do more” to develop ties in the interests of the larger vision of making the entire continent more globally competitive.

“I think this relationship is underdeveloped, undervalued, and as important as Canada is to Mexico and as much potential as Mexico has to Canada, we’re not doing as much as we should,” Mr. Meade said.

For the three countries, particularly the United States, realizing the continent’s true economic potential will take time and effort to nurture their trilateral ties, he added.

“I think the most important challenge to overcome is that leaders are willing to invest the time necessary to nurture the relationship, and through that education, identify opportunities and realize them. »

Rules of origin of the automotive industry

Roundtable participants also noted that trilateral relations will depend critically on how the United States responds to a decision by the Auto Parts Council, which – much to Washington’s chagrin – sides with Canada and Mexico.

This important decision by the Arbitration Court for Rules of Origin for Automobiles was officially published shortly after the Mexico City Summit, although the three parties were aware of its content.

The panel, which is part of the dispute settlement mechanism established under the Canada-United States-Mexico Agreement (CUSMA), concluded that the United States, in its interpretation of the way the free trade agreement with the essential Parts in the calculation of national bypasses, have made a mistake contents of a vehicle.

So far, the United States has remained silent on how it intends to respond to this ruling, which, among other things, determines whether a vehicle qualifies for duty-free treatment under CUSMA.

“I think it’s going to be very, very revealing to see if Americans comply with this decision,” explained Ms. Blais, who recalls that CUSMA must be reviewed in 2026 by the three signatory states will take place in less than three years. »