Canada-Mexico Economic Relations: A Canadian perspective

Abstract

The free trade agreement between the U.S., Canada and Mexico had essentially the same objectives for the latter two countries : to have broader and securer access to their main market and create a more favorable environment for an outward-oriented economic growth. Canada’s request to officially take part in negotiations between Mexico and the U.S. has been justified as tactical. Canadian authorities sought to improve several of the recently implemented clauses of the Canada US trade agreement such as the dispute-settlement procedure. By taking part in these negotiations, the Canadian government wished to improve the North American rules of origin. The North America Free Trade Agreement (NAFTA) had, however, two positive effects on Canada-Mexico relations. It created more dynamic trade relations between the two countries and it played the role of a cooperation “catalyst”, transforming a friendly relationship into a strategic partnership. Market liberalization and harmonization of necessary regulations in the North American region, which may be qualified as an “emerging regime”, obviously played a great role in this new cooperative relationship. Mexico became, to Canada, a potential strategic partner with which it wished to develop closer economic and diplomatic relations, as well as approaches, if not solutions, to problems of common interest. This relative closeness has also enabled both countries to gain a better understanding of each other and to establish a permanent mutual dialogue that is equally beneficial to both businesses and civil associations, as well as both countries’ population in general. Finally, with its own international policy agenda, Canada possibly intends to use its partnership with Mexico to extend its relations with other countries of Latin America, as well as to assert its own interests and mark its values in the institutions of an emerging community of the Americas.