For many years, Canada and Mexico remained economic strangers despite being partners in North American free trade – both deeply tied to the U.S., but with few direct connections to each other.in Mexico this week, which Canadian Prime Minister Justin Trudeau will attend with his counterparts. Canadian companies have in recent years become some of Mexico’s most important foreign investors.
“There’s been steady growth in the Canada-Mexico leg of the triangle,” said Tom Long, a University of Warwick scholar and co-editor of the report, North America 2.0: Forging a Continental Future. It began from a low base and the shift has come in part, he said, because of diminished investment from Spain.
“Geopolitics are definitely laying the ground for more nearshoring in North America,” said Luz María de la Mora, an economist who until recently was undersecretary for foreign trade in Mexico’s Secretariat of Economy.Over the past 12 years, Canadian involvement in Mexico has already eclipsed that of Spain in one important way. Since 2010, reinvested profit made up the large majority of Spanish investment.
But pipeline investments have been among the largest sources of friction with Mexico in recent years. The U.S. and Canada have threatened to call an arbitration panel under the United States-Mexico-Canada Agreement after Mexico’s state-owned electricity utility, Comision Federal de Electricidad, cancelled contracts with private companies, including Calgary-headquartered ATCO Ltd., as part of a broader nationalization effort under President Andres Manuel Lopez Obrador.
“Such a scenario would reinforce investor concerns about contract rights and government favouritism in Mexico, to the detriment of the country’s economic outlook.” The joint hosting of the 2026 FIFA World Cup has been among the most visible demonstrations of the three countries working together as a North American bloc. That co-operation in sport reflects a changing business environment, too, as manufacturing slowly moves away from Asia, in part to meet mandates in the U.S. Inflation Reduction Act and the CHIPS and Science Act for domestic production of electric vehicles and semiconductors.
Tell your editor to have fun at the WEF for me!! I expect pure propaganda in the days to come.
Yeah we’re 3rd world countries now!
But the US is! The US does not support Nazi’s!
Canada is however an economic stranger to Canadians.
not reporting how Biden skipped Trudeau and went right to Mexico
Hey, cooperation instead of constant conflict. So good to see trump gone.
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