D I P L O M AT I C A | TRADE WINDS
Mexico-Canada: A strategic relationship
By Juan José Gómez Camacho
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Then-Mexican president Enrique Peña Nieto, then-U.S. president Donald Trump and Prime Minister Justin Trudeau sign the new CUSMA agreement during the 2018 G20 summit.
that will increase the dynamism of the commercial relationship while promoting the development of more regional value chains. New chapters in CUSMA bolster the automotive sector, strengthen the environment an d labour compliance mechanisms and establish rules for digital commerce. CUSMA is also a novel instrument because it expands opportunities for SMEs, the youth and companies led by women and Indigenous populations. The empowerment of women and youth has been a particular priority for the Embassy of Mexico in Canada, in close co-ordination with my counterparts in Mexico. While Mexico remains positioned as an attractive destination for investment due to its dynamic internal market, a population of nearly 130 million people and a network of 14 free trade agreements with 50 countries, modernizing its infrastructure is critical to facilitating trade within North America and improving its competitiveness. For example, several commercial rail projects are in the process of consolidating, allowing the transport of goods to be more secure and competitive, with a positive effect for many other economic sectors. There are many opportunities to continue to grow in the automotive, electronics, aerospace, mining and agricultural sectors. We have also continued working with Canada to explore collaboration opportunities in newer sectors such as artificial intelligence, medical device production and the fintech industry.
Mexico is also emphasizing the development of its southeastern states, which presents a unique opportunity for Canadian investors. Infrastructure initiatives, such as the Mayan Train or the Inter-Oceanic Isthmus of Tehuantepec Corridor that will connect and modernize the transport infrastructure between the Pacific Ocean and the Mexican Caribbean, are unique projects with a significant economic upside and important social benefits. Recently, the trade ministers of North America got together for the first session of the Free Trade Commission of CUSMA. Mexico’s objective was to continue building the most competitive region and increase our integrated production capacities as a source of growth and job creation for the three countries. The COVID-19 pandemic has brought many lessons, one of which is recognizing the importance of working together with our partners in the region. To accelerate the post-pandemic economic recovery, Mexico and Canada must work together to promote vaccination, a gradual reopening of the borders and the consolidation of economic ties. Mexico and Canada are friends and partners who share many common goals. We also recognize our shared challenges and have the opportunity to address them to benefit all peoples in North America. Juan José Gómez Camacho is Mexico’s ambassador to Canada. Reach him at by email at aambassadorcan@sre.gob.mx or by phone, (613) 233-2455. WINTER-SPRING 2022 | JAN-JUNE
WHITE HOUSE
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n recent years, the strategic relationship between Mexico and Canada has continued to consolidate, in large part because of the strong business ties and increasing trade opportunities between both countries. With the implementation of CUSMA, which came into effect July 1, 2020, the economic relationship between Mexico and Canada could reach a new level of integration that will benefit each country. Economic ties between Mexico and Canada are robust. In 2019, Canada imported $20.4 billion of goods and services from Mexico. In 2020, due to COVID, Canada imported more than $16 billion worth, making it Mexico’s third most important trading partner. The top Canadian imports from Mexico are autos, electronic and electrical machinery, agricultural products and industrial machinery. On the flipside, Canada exported more than $8.2 billion in goods and services to Mexico in 2019 and $6.9 billion in 2020, a reduction also explained by COVID’s impact on global trade. Canada’s top exports to Mexico include agricultural products, particularly canola and wheat; auto parts; metals and minerals; industrial machinery; chemicals and plastics. The broad range of items shows the relationship is diversified and complementary. From Mexico’s point of view, Canada remains its fifth most important commercial partner and the second destination of Mexican exports. Canada is also the third-largest investor in Mexico, and in 2020, Canadian companies invested more than $28.8 billion in Mexico’s advanced manufacturing, financial, energy and mining sectors. Despite these impressive figures, CUSMA remains a crucial mechanism
