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The United States produces more with its neighbors that with any other countries in the world. More than two million dollars of trade crosses the US-Canada and the US-Mexico borders each minute.
The North American idea that, unlike the European Union concept, acknowledges the three sovereign nations, while reinforcing their collaboration in the “spirit of community based on interdependence.” This approach still makes a lot of sense and good progress can be made now.
When put together, Canada, Mexico and the US have all the right ingredients to be a competitive source of manufacturing to serve North America.
Undoubtedly, one of the greatest lessons that the pandemic has left is the importance of connectivity to keep economic activities running.
The opportunities are glaringly clear for near-shoringnear shoring in Mexico the production of electric vehicles, electronic products, textiles, and many other forms of manufacturing.
More than a grand vision for North American integration, what is needed now on the economic front is for Canada, Mexico, and the US to is to comply with the letter and spirit of the USMCA. Pacta sunt servanda – agreements must be kept!
By implementing well USMCA and then linking it with CAFTA, we have an opportunity to boost our own prosperity as well as that of our neighbors, while at the same time blunting China’s efforts to undermine our prosperity and drive wedges between us and our regional allies.
Enforcement of labor rights cannot rely solely on an improved dispute resolution mechanism -even if it was entirely reciprocal. We need to reinvigorate processes of detection, monitoring and remediation that could take place in the shadow of dispute resolution.
How often do we need to remind Americans that 12 million American jobs are supported by trade between the US, Mexico and Canada.
To meet the moment, North America needs to be a regional, political vision to buttress its integrated production capacities, shape fair and efficient markets, and tackle shared problems.
We can expect to see continued nearshoring, “friend-shoring,” and new opportunities for Mexico to promote active economic development.
Canada, Mexico, and the U.S.—individually and collectively—possess assets that can contribute to a significantly more competitive North America.
