Canada's investments in Mexico reach US$10bn

Canadian investments in Mexico are worth some US$10bn, according to the president of the Canadian Chamber of Commerce in Mexico (CanCham), Enrique Zorrilla, who called for transcending the bilateral trade relationship and building a stronger and more reliable one.

“There are major projects and investments in front of us of between around US$7bn and US$10bn,” he said during CanCham Day 2023 in Mexico City, without providing details.

Zorrilla highlighted that Canada's accumulated FDI is the second highest in Mexico, with more than US$52bn since 1999. He said funds went to sectors such as mining, energy, logistics and infrastructure.

The USMCA trade deal, with the US as third partner, which replaced Nafta in July 2020, is a central element of trade policy and ensures legal certainty for investors and consumers in North America, he said.

Despite the issues the trilateral relationship faces, the USMCA represents the process of economic integration in North America, which is “irreversible” and “deepening,” according to Zorrilla, who added that the challenge remains to make relations "strong and reliable between allies."

Canada's ambassador to Mexico, Graeme C. Clark (pictured), told the event that the bilateral relationship is “absolutely extraordinary,” with eight times more investments than there were 30 years ago when Nafta was signed.

Clark called for further integration. “The three countries must respect the rules of the USMCA. We have signed this agreement and we have to respect it,” he said.

He highlighted that Mexico has “an extraordinary opportunity” with nearshoring and “has to take advantage of this historic moment for its economy … We must take advantage of this special moment in the history of the world.”

According to economy ministry figures, first-half inbound FDI amounted to US$29bn, of which 4%, or US$1.22bn, came from Canada.