Mexico, Canada and the US together form one of the most economically, socially and culturally representative economic blocs in the world, with a combined potential market of 494 million consumers*, and although the differences in per capita income of the inhabitants are important, this does not detract from the strength of the North American bloc as a whole.
In March 2021, Mexico and Canada celebrate 76 years of bilateral relations. This has been a very multifaceted relationship, full of challenges, respect and mutual collaboration, it is undoubtedly one of the two great strategic relationships that Mexico has developed in modern times with total success. According to official figures from the Mexican government, in the period between 1999 and the second quarter of 2020, Canada has invested 44.2 million dollars, making it the third country that invests the most in Mexico. 37.5% of Canada’s direct investment was directed to the mining sector, and in the energy sector it accumulated 7.3% of FDI, mainly concentrated in 5 states: Mexico City, Chihuahua, Coahuila, Sinaloa and Zacatecas. For Canada, Mexico continues to be the third most representative trading partner in trade in goods, being the fifth most important destination for Canadian merchandise exports.
In 2020 the commercial exchange between both nations was 19.5 million dollars, Canada exports to Mexico mainly; Aero parts, toys, vaccines, wood, engines, fertilizer, etc., while Mexico exports to Canada; plastic, auto parts, electrical equipment, vehicles, airplanes, etc. It is estimated that there are more than 2,500 Canadian companies investing and producing in Mexico.
For their part, Mexico and the United States of America will celebrate 145 years of diplomatic and economic relations in 2021, which is considered the most mature and stable of all the relations that Mexico maintains with the world, and since the signing of NAFTA in 1994, it has increased exponentially, and served the world as an example in terms of trade agreements, which will enhance the economic development of these countries. The US is Mexico’s number one trading partner, and Mexico is the third largest trading partner for the US In 2020 alone, trade between the two nations amounted to 506,993 million dollars.
In 2019 foreign direct investment from the United States to Mexico was placed at 12.7 billion dollars, of this more than 50 percent was directed to the manufacturing sector, just over half was channeled to transportation, beverages, chemicals and tobacco, 13 percent was directed to the automotive sector, representing more than half of the FDI that Mexico receives in this sector, 93 percent of FDI in convenience stores comes from the US, and the main states that receive such investments are; CDMX, Chihuahua, State of Mexico, Nuevo Leon, Baja California, Tamaulipas, Jalisco and Coahuila. The main products that the US exports to Mexico are: natural gas, yellow corn, assemblies, jet fuel and propane gas, and the main products that Mexico exports to the US are: vehicles, memory or mass data storage units, tractors, vehicles for transporting merchandise, and flat screens.
It is estimated that there are around 30,000 US-based companies in Mexico.
As can be seen, relations between the North American economic bloc are very important and continue to grow stronger every day. The recent update of NAFTA to USMCA, is a clear example of the importance of keeping trade agreements as updated as possible to continue growing in importance and relevance for the development of the three countries.
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