Thursday, June 1, 2023

Mexico and Canada: a growing relationship

Within North America, Mexico and Canada share a vision that allows them to direct their growth. Mexico is not only a great business partner and partner, but also a great agent in terms of human mobility. With a relationship of more than 75 years, both countries have strengthened their ties for a large number of people.

Next, we will enter into the economic and migration issues that affect both nations.

Economy, strategic exchanges

Its commercial movements are regulated within the T-MEC and in this sense Canada is the second country that invests most in Mexico after the United States. Canada’s ambassador to Mexico, Graeme C. Clark, pointed out that bilateral trade is growing and complementary, but much still needs to be done;

“The bottom line of the dynamic is to strengthen the understanding between the two countries in the context in which we have the great United States in the middle. Sometimes it is difficult to have a perspective of what can happen between Canada and Mexico, but in this negotiation we must continue to improve the relationship, trade, investment , political rapacity, among other things.

It should be noted that the main industrial sectors of Canada that live in Mexico are: mining, industry, automotive and aeronautics.

During the last summit of North American Leaders (CLAN), the leaders of Mexico and Canada reviewed a solid bilateral relationship based on a new Action Plan. This aims to increase bilateral initiatives in various areas, including trade and investment relations.

To achieve it and build a clean economy, a continuous partnership is proposed that supports opportunities for economic cooperation and resistance in the supply chain through T-MEC.

2022, how was the bilateral economic relationship between Mexico and Canada?

According to the T-MEC Trade Monitor, Canada’s share of Mexican exports is 6,928 million dollars. On the other hand, Canada’s share in imports from Mexico is 31 thousand 129 million dollars. This gives a net trade balance between the two countries of twenty-four thousand 201 million dollars.

Mexico is Canada’s third most important partner (3.3%), only after the United States (63.4%) and China (8.5%). Major sales from Mexico to Canada include:

  • Motor vehicle parts and accessories: 38.9%
  • Electronic equipment and parts: 21.5%
  • Consumer goods: 12.4%
  • Machine, tool and industrial parts: 7.6%
  • Agricultural and food products: 6.7%
  • The provinces, which accumulated imports from Mexico, were at 91.8%;

  • Ontario: 69.4%
  • Quebec: 9.6%
  • Alberta: 7%
  • British Columbia: 5.9%
  • On the other hand, the main purchases are from Mexico to Canada;

  • Motor vehicle parts and accessories: 13.9%
  • Chemicals: 10.8%
  • Nao Seeds: 7.38%
  • Crude aluminum: 3.25%
  • Food: 3.13%
  • Countries that focus on purchases made in Canada include:

  • Mexico City: 27.9%
  • State of Mexico: 10.8%
  • Nuevo Leon: 9.81%
  • Jalisco: 9.73%
  • Chihuahua: 7.56%
  • For Foreign Direct Investment (FDI), Canada invested $3.51 million dollars in Mexico during 2022. The countries that received the most FDI from this country were: Sinaloa (564 million), Mexico City (398 million) and Mexico City ( $364 million). On the other hand, the regions that have received the most FDI from Canada since 1999 are: Zacatecas (6,958 million), Mexico City (6,383 million dollars) and Chihuahua (4,755 million dollars).

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    In recent years, the migration of Mexicans to Canada has been more consistent. As of 2020, according to reports from the Ministry of Foreign Affairs (SRE), there were a total of 129,745 Mexicans residing in Canada. The increase is due, in part, to the lack of expenditure that must be concentrated in that country.

    About 70% of population growth in Canada is immigration, specifically the growth of its workforce. Until November 2021, about 1.4 million immigrants are needed to fill vacancies, so that one in four Mexicans will migrate there to work.

    Currently, in order to systematically generate mobilization, temporary employment programs have been created. For example, in the Temporary Agricultural Workers Program (PTAT), Mexico is the main source of regular migration: “The growing lack of labor in Canada makes safe, orderly and controlled migration increasingly important,” the document says.

    The arrival of 8,858 immigrants from Canada to Mexico is recorded. Canadians represent 44.1% of the total population living in Mexico. The main cities in which they live are: Mexico City (1,683), Jalisco (983), Nuevo Leon (570), Mexico City (559) and San Luis Potosí (510).

    The main reasons for their mobilization are:

  • Family members: 33.3%
  • Current: 23.3%
  • Economic: 16.7%
  • Education: 9.9%
  • Labor: 8.8%
  • Personal: 5.8%
  • As emigration from Canada, the number of remittances increased. According to data from the Bank of Mexico, from 2019 to 2022, remittances have grown by 26.6%. At the end of 2022, 750 million dollars were raised, while in 2019 593 million were estimated.

    Nation World News Desk
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