(Washington) The Canada-Mexico relationship has long been the weakest link in the “North American triangle,” and foreign policy experts say strengthening those ties will be essential if the continent is to realize its true economic potential .
Canadian Senator Peter Boehm, who is a former Deputy Minister of Foreign Affairs and Canadian Ambassador, was one of the participants from the three countries on Friday at a virtual roundtable to take stock of the summit of North American leaders in last week in Mexico City.
“The (trilateral) relationship is essentially characterized, in my view, by an isosceles triangle,” Mr. Boehm illustrated: the two longer and equal sides represent the most important and long-standing ties that the United States has with their two closest neighbours.
“And then, this very short side represents the Mexico-Canada relationship, which I believe needs to develop. And it can develop in several ways,” he argued during this round table organized by the Americas Society and the Council of the Americas.
The Mexico City summit revealed several areas where this rapprochement is already happening, said Louise Blais, a retired Canadian diplomat who is now a senior adviser at the Business Council of Canada and diplomat-in-residence at Université Laval.
Mme Blais, who was in Mexico City during the summit, said Friday that Mexican President Andrés Manuel López Obrador surprised the Canadian delegation by echoing the sentiment that the three countries would be stronger if they were better able to function as a single North American entity.
His position on that front was “not something that had been really clarified, especially not for the business community in Mexico,” Mr.me Blais. “We feel that he really believes in it. »
Mr. López Obrador, whose strategy of preferring Mexican energy suppliers was to be a sticking point at this summit, also signaled a willingness to discuss the matter further, added Mr.me Blais. “We shouldn’t be naïve, but there is a feeling that there is maybe 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 such as Venezuela, Nicaragua and Cuba, added Senator Boehm, who chairs in Parliament the Standing Senate Committee on Foreign Affairs and International Trade.
Trudeau in seduction mode
The final day of Prime Minister Justin Trudeau’s visit to Mexico City was devoted entirely to strengthening ties with Mexico, beginning with a speech to business leaders, which presented Canada as a champion of free trade and a wise place to invest.
Already, foreign direct investment in Canada over the past year has fueled the growth of electric vehicle manufacturing and the development of critical minerals, which have created some 17,000 jobs, Trudeau told his audience.
Trade between Canada and Mexico has increased ninefold since 1993, when Canada was second to Spain last year on the list of top sources of foreign investment in Mexico, the prime minister added.
We are a reliable partner, with an abundance of talent, a very attractive investment climate and an excellent quality of life. There is huge 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 secretary under President Enrique Peña Nieto, said on Friday that the two countries “must do more” to expand their relationship, for the sake of the larger vision of making the whole of the continent more globally competitive.
“I think that relationship is underdeveloped, undervalued, and as important as Canada is to Mexico and as much potential as Mexico is to Canada, we’re not doing as much as we are. should,” Mr. Meade said.
For the three countries, especially the United States, realizing the continent’s true economic potential will require a commitment of time and effort to cultivate their trilateral ties, he added.
“I think the most important challenge to overcome is that leaders are willing to spend the time necessary to nurture the relationship, and really through that education, to identify opportunities and bring them to fruition. »
Automotive rules of origin
Roundtable participants also pointed out that the trilateral relationship will depend critically on how the United States responds to an auto parts panel ruling that sided with Canada and Mexico, much to Washington’s chagrin.
This key decision of the Automobile Rules of Origin Dispute Tribunal was officially released shortly after the Mexico City summit, although the three parties were well aware of its contents.
The panel, which is part of the dispute settlement mechanism established under the Canada-United States-Mexico Agreement (CUSMA), concluded that the United States erred in its interpretation of how the he free trade agreement dealt with the essential parts when calculating the national content of a vehicle.
So far, the United States has been silent on how it plans to respond to this ruling, which among other things determines whether a vehicle qualifies for duty-free treatment under CUSMA.
“I think it will be very, very revealing to see if the Americans comply with this ruling,” said Mr.me Blais, who recalls that the CUSMA will have to be reviewed by the three signatory countries in 2026. I think that will set the tone for this review which will take place in less than three years from now. »