In a recent call to action, Canadian Ambassador Cameron MacKay encouraged Mexican businesses to increase their investments in Canada, highlighting a significant imbalance in the flow of capital between the two nations. This appeal comes during a symposium aimed at mobilizing long-term capital for regional development, emphasizing how enhancing this investment relationship could create more opportunities for Mexican citizens and strengthen economic ties.
MacKay noted that while Canadian investments in Mexico have reached approximately US $66 billion, Mexican investments in Canada remain low at only US $3-4 billion. This disparity underscores the potential for growth and cooperation that could benefit both economies. The ambassador highlighted Canada’s unique advantages for investors, including a notably low marginal tax rate of 6.4% for new projects, which he presented as highly competitive compared to the United States and the rest of the OECD countries.
Furthermore, he pointed out the importance of fostering a robust corporate supply chain ahead of the upcoming review of the US-Mexico-Canada Agreement (USMCA). This collaboration is essential for streamlining trade and fostering a stable business environment, especially as free trade dynamics evolve. MacKay acknowledged the challenges that Canadian companies face in Mexico, mentioning specific operational hurdles that could impede investment cycles.
The symposium, organized by the Milken Institute, sought to explore how Mexico can align private investment with governmental priorities, enhancing investor confidence while leveraging the USMCA for better supply chain integration. The discussions aimed to address trade-policy stability and innovative financing frameworks, identifying ways to transform developmental goals into viable projects.
In response, Mexico’s Finance Minister Edgar Amador spoke about the nation’s economic progress, citing a strong labor market and a reduction in inflation as indicators of a positive outlook. While he did not directly address the investment imbalance raised by Ambassador MacKay, his remarks aimed to reassure investors of Mexico’s economic stability and growth potential.