The North American Project

🌎 A Path Towards a

more prosperous and the most competitive

Region in the World

Trade agreements among the three North American countries have been a source of development, openness, certainty, and trust, attracting investments to the region. As supply chains and investments tend to relocate from Asia, Europe, and Latin America, the three countries - Mexico, the United States, and Canada - benefit. However, how can North America make the most of this opportunity?

‍In this context, the three countries have the capacity to combine their individual efforts and transform them into a joint development plan. The objective is clear: to make North America the most prosperous and competitive region in the world.

‍It is essential to recognize the factors that set it apart from other regions: the growing regional interconnectedness in economic, social, and cultural spheres provides a unique opportunity to collaborate on joint projects, establish shared visions, clear goals, and promote narratives that strengthen regional identity.

A shared success story

The process of trade and economic integration in North America, which began thirty years ago with the entry into force of the North American Free Trade Agreement (NAFTA) in 1994, has witnessed systemic changes in the world. Throughout these three decades, Mexico, the United States of America (USA) and Canada have shared challenges and opportunities.

As the sextennial review of the treaty approaches in 2026, our success story can be told from:
‍
1. The commercial trade;
2. The creation of jobs and opportunities stemming from growing economic exchange, labor mobility and talent attraction;
3. The regional stability built on common rules;
4. A renewed political, social, and industry dialogue.

Mexico, United States, and Canada: current partners with a shared future

We have 40 years of experience in regional trade openness.

Between 2003 and 2022, trilateral trade in goods increased from 632 billion USD to 1.5 trillion USD annually, with an average annual growth rate of nearly 5%.

This treaty encompasses three G20 countries with diversified economies and membership in the Organization for Economic Cooperation and Development (OECD).

·The share of the three North American economies accounts for 29% of the global GDP.

All three countries are among the world's 15 largest economies, possess abundant natural resources, a skilled workforce, and a culture of innovation.

Charting a Shared Path to a Promising Future

By collaborating and setting specific goals in key areas, North America can achieve greater economic growth and enhanced competitiveness and global influence through the creation of quality jobs and the attraction of talent. These actions open the door to strategic planning among Mexico, Canada, and the United States, fostering improved communication between the public, private, and civil society sectors in all three countries. The result will be greater regional relevance and a brighter future for North America.

Goal 1. Shared Prosperity and Job Creation,
Goal 2. Economic Growth,
Goal 3. Intraregional and Global Trade,
Goal 4. Sectoral, Strategic, and Infrastructure Investment,
Goal 5. Labor Mobility and Talent Attraction.

💡

North America
in Four Ideas

One

The USMCA (T-MEC/CUSMA) is North America's greatest competitive advantage

Thanks to the USMCA (T-MEC/CUSMA), Mexico and Canada have become the United States' main trading partners.

·Mexico and Canada are the two largest trading partners of the United States, and the United States is the largest trading partner of Mexico and Canada.
·The United States and Canada account for 85% of all exports that Mexico makes to foreign markets.
·In 2023, Mexico imported 323 billion USD from the United States, a figure surpassing the combined imports from the United Kingdom, Japan, Germany, South Korea, and India to Mexico in the same year.

Mexico is Canada's third-largest trading partner, followed only by the United States and China, surpassing countries such as Germany and Japan. It also serves as Canada's most significant export market in Latin America.

·Trade between Mexico and Canada amounted to 28 billion USD in 2022.
·More than 1700 Canadian enterprises export products to Mexico on a daily basis.

Canada and the United States traded $793 billion USD in 2022.

·Canada exported almost 21 times more products to the United States than to China, 78 times more than to Germany and 33 times more than to Japan.

Two

Regional trade generates millions of jobs throughout North America

In the productive sectors linked to the trade of manufactured goods (wholesale trade, transportation and storage, manufacturing, and financial and insurance services), currently there are 55 million jobs across the entire North American region:

·In Mexico, there are 14.5 million jobs in the wholesale trade; transportation and storage; manufacturing, and financial services and insurance sectors, representing 24% of total employment in Mexico in 2023
·In the United States, the number of jobs in these sectors is 34 million; and in Canada, there are 6 million jobs in 2023.

Three

The stability and rule of law in North America allows companies to plan and invest for the long term

Mexico, Canada and the United States are among the world's leading recipients of investment.

·In 2022, the United States was the top global destination for foreign direct investment, receiving $285 billion USD, while Canada ranked seventh with $53 billion, and Mexico ranked eleventh with $35 billion USD.
·Nearly half of the investments Mexico received in 2022 came from its North American partners (UNCTAD).

The rule of law and legal certainty are key factors in attracting foreign investment.

·The USMCA (T-MEC/CUSMA) allows economic operators to plan for the long term, and to locate their capital optimally.

Four

USMCA (T-MEC/CUSMA) promotes supply chain resilience

The USMCA (T-MEC/CUSMA) promotes North American market integration through nearshoring. As production chains are undergoing a transformation and geopolitical risks become more acute, companies are seeking to bring their production centers closer to their consumers. To harness the benefits of nearshoring, North American countries have implemented initiatives to attract even more investment.

·The United States passed the Creating Helpful Incentives to Produce Semiconductors (CHIPs Act) and the Inflation Reduction Act (IRA). Both laws collectively allocate an unprecedented sum of $125 billion USD ($52.7 billion in the CHIPs Act and $72 billion in the IRA) to promote electromobility and semiconductor production in the region.
·Mexico has begun to make historically high investments in infrastructure to connect the Gulf of Mexico with the Pacific Ocean and the Caribbean, and further facilitate trade (Interoceanic Corridor).
·Canada has granted similar support to companies producing batteries for electric cars and is also leveraging the potential of the USMCA (T-MEC/CUSMA) by launching a new Critical Minerals Strategy (2022) with an initial budget of $4 billion USD.

The USMCA (T-MEC/CUSMA) provides certainty in an uncertain world

The USMCA (T-MEC/CUSMA) is a modern trade instrument, capable of responding to the demands of society and providing resilience to supply chains in a changing world.

·Through its committees and working groups, the USMCA (T-MEC/CUSMA) promotes the participation of civil society, businesses, labor unions, academia, lawmakers, and other public officials.
·The USMCA (T-MEC/CUSMA) complements a wide variety of bilateral and trilateral dialogue and coordination mechanisms such as the High Level Economic Dialogues and the North American Leaders' Summit.

Where do we want to go?

These achievements have paved the way toward a more integrated and resilient region. It's time to think about how it will look in the year 2050 and what goals should be set to reach that point in the next 27 years, in view of the first round of periodic reviews in 2026 and in a world with very ambitious decarbonization and sustainability targets. Additionally, the enormous task of bringing new trade and investment opportunities to those regions that have not benefited as much as the better-connected areas within global production chains remains pending.

Creating employment and prosperity opportunities for communities and becoming the most competitive region in the world are two central goals for North America.

North America 2050:
The Path to Shared Prosperity

To bring these countries closer, create more jobs, and continue to be competitive internationally, it is necessary to further deepen economic integration. For decades, the regional concept behind North America has been based on trade exchanges.

As the economic and trade future of the world is being redefined, the future of the region demands that the foundations of integration continue to be strengthened.

Economic and trade strengthening doesn't benefit each of the three countries individually but makes the region as a whole more resilient. Trust, geographic proximity, and competitive advantages allow for reduced risks and the utilization of regional assets.

It is important to strengthen supply chains, making North America the world's largest manufacturing and value creation center, while also ensuring an adequate supply of quality food at affordable prices for our countries' populations.