March 5, 2014
Mexico’s energy reform initiative will spark competition with Canada in terms of supplying the United States with oil and natural gas, further fueling the major oil producer’s efforts to diversify export markets, Canada’s minister of natural resources said on Tuesday. ”There’s no question that Mexico has embarked on a bold move,” Joe Oliver, Canada’s natural resources minister, told reporters at the annual IHS CERAweek energy conference in Houston.
“They will emerge as another player. We’re focusing on diversifying our market, so that’s perhaps yet another reason to do that. Well, in fact it is,” he said. Last December Mexican president Enrique Peña Nieto signed into law a sweeping energy reform that ends the 75-year monopoly state-owned oil company Pemex held on oil and gas production. Nieto is making the case that Mexico is open for business, underscored by energy reform, the hallmark of his 14-month-old government.
February 26, 2014
World Politics Review, 2/26/14
Last week’s U.S.-Mexico-Canada trilateral summit resulted in a communique that among other things called for increased energy cooperation on the continent. In an email interview, Jed Bailey, managing partner of Energy Narrative, a research and consulting group focusing on Latin America’s energy sector, explained the recent history of and next steps for North American energy integration.
February 25, 2014
LA Times, 2/24/14
The first Honda Fit rolled off the assembly line Friday at a new $800-million factory near Celaya, Mexico, a symbol of the growing might of the country’s auto industry.Honda’s U.S. factories spit out hundreds of thousands of Accords and Civics each year. But when the automaker redesigned the Fit for North America, it turned to Mexico for an increasingly skilled workforce and favorable export rules.
Mexico already accounts for about 18% of North American auto production, but that’s expected to jump to 25% by 2020 as automakers pour billion of dollars into factories, said Joe Langley, an analyst at IHS Automotive. The nation has joined Germany, Japan and the U.S as one of the heavyweights of auto production, he said.
February 24, 2014
The Globe and Mail, 2/22/14
Mexico is being touted as a new frontier for Canada’s oil and gas industry as its government opens the energy sector to foreign investment for the first time in more than 70 years. During a three-day visit to Mexico City and Toluca last week, Prime Minister Stephen Harper and Natural Resources Minister Joe Oliver spoke enthusiastically about new opportunities for Canadian firms. Mr. Harper was in the country for a North American leaders summit with Mexican President Enrique Pena Nieto and U.S. President Barack Obama.
Once the new rules are in force, foreign and domestic companies should be free to bid on contracts and licences, breaking a decades-old monopoly by Pemex, the state-owned petroleum company. The move is aimed at encouraging investment by firms that will be better equipped to tap Mexico’s substantial oil and gas reserves and turn around 10 years of decline.
February 19, 2014
Esta semana la Cumbre de Líderes de América del Norte ofrecerá un contraste fascinante entre una relación bilateral muy saludable (México-Estados Unidos), una que es fuerte, pero sometida a tensiones temporales (Canadá-Estados Unidos), y una que es decididamente helada (Canadá-México). Este contraste será especialmente evidente porque el primer ministro Harper y el presidente Peña Nieto habrán terminado una reunión bilateral en la que el tema central será el visado canadiense para ciudadanos mexicanos, tema que además promete complicar el progreso en otros asuntos.
El éxito tiene muchos padres, mientras que el fracaso es huérfano. México es actualmente una historia de éxito con la que el presidente Obama quiere ser asociado, por lo que deberíamos esperar a ver la relación México-Estados Unidos al frente y al centro en Toluca, mientras que Canadá adoptará un perfil más bajo debido a la cuestión de las visas con México y las tensiones del oleoducto Keystone XL con Estados Unidos.
Read our latest publication “Is Geography Destiny? A Primer on North American Relations,” here.
February 19, 2014
The Globe and Mail, 2/19/14
High hopes but low expectations were being expressed by continentalists leading up to the Three Amigos summit among North America’s three not-so-very-friendly leaders. With so little expected, it may be time to take stock of the trilateral relationship, suggests a new assessment published on Tuesday from the Canada Institute and the Mexico Institute at the Woodrow Wilson Center for International Scholars in Washington.
Short-term political considerations and personal differences among the leaders mean little may be accomplished at the summit in Toluca, Mexico, panelists said at the unveiling of the report, “Is Geography Destiny? A Primer on North American Relations.” The risk is that the trilateral relationship is being further eclipsed by the two bilateral relationships. Even though Canada-Mexico ties and trade have grown over the past 20 years, they remain inconsequential compared to Canada-U.S. relations and the relationship between the United States and Mexico, which is evolving even more rapidly.
To access our newest publication “Is Geography Destiny? A Primer on North American Relations,” please go here.
February 19, 2014
The Globe and Mail, 2/18/14
Prime Minister Stephen Harper says he has no plans to lift the controversial visa restrictions for Mexican travellers and took issue with the trade imbalance between Canada and Mexico, setting a chilly tone ahead of trilateral talks with the United States.
Mexican President Enrique Pena Nieto publicly raised the question of the travel restrictions, forcing the Prime Minister to make it clear that Ottawa has no plans to change the rules. The President’s comments brought an undercurrent of tension to the fore as the two leaders concluded an afternoon of bilateral talks in Mexico City on Tuesday. They will be joined by U.S. President Barack Obama in Toluca on Wednesday for a trilateral summit that is expected to focus on trade, energy and security issues in North America.
February 19, 2014
The Wall Street Journal, 2/18/14
Mexico and Canada are set to push for expanded trade within North America and a bigger global role for their continental trading bloc, even as some U.S. politicians show deep ambivalence over foreign engagements. “The most important thing is to strengthen this project—that at least my government is very dedicated to—of making North America a great center of competitiveness,” Mexican President Enrique Peña Nieto, said in an interview late Monday. “And that this concept be fully shared by the three governments.”
The three countries’ leaders of will meet here Wednesday to celebrate 20 years of the North American Free Trade Agreement, but trade experts say the U.S. political appetite for more free-trade deals has waned, casting a shadow over efforts to expand the pact and deepen trade ties between North America and Pacific Rim countries.
February 19, 2014
President Barack Obama is almost certainly about to be pressured once again by Canadian Prime Minister Stephen Harper to approve the controversial Keystone XL oil pipeline, USA Today reports. Obama is heading to Mexico for the one-day North American Leadership Summit, and the two leaders will meet on the sidelines. But Harper won’t likely hear anything new from his American counterpart. “I think what President Obama will do is explain to (Harper) where we are in the review of the Keystone pipeline and indicate, of course, that we will let our Canadian friends know when we’ve made a decision,” said a senior administration official.
Also on the cross-border front: Obama on Wednesday will sign an executive order mandating the completion of a government portal for small businesses to submit import and export information. The White House says the electronic portal will allow U.S. companies to better compete in the global economy. Read more about the International Trade Data System in the Hill.
February 19, 2014
The North American Free Trade Agreement (NAFTA) provokes a deep yawn because at 20 years old it represents an old type of trade agreement. Instead of acting regionally, the three nations of North America have lapsed into dual bi-lateral discussions, i.e. U.S.-Canada, U.S.-Mexico, and Canada-Mexico. The days of exciting trilateral North American summits peaked in 2004 and subsequent gatherings of leaders focused on security and trade. But, even the Security & Prosperity Partnership was deactivated in 2009. With national problems making summit meetings unwelcome, political leaders left it to the private sector to use the NAFTA framework to develop a North American automobile industry that takes advantage of geographic proximity and complementary wage rates to create a highly competitive regional industry. Today, the aerospace industry is in the process of doing the same, and Mexico’s energy reform presents a significant opportunity for increased production in oil and natural gas.
What should be on the agenda for this North American summit to take place on February 19 in President Pena Nieto’s hometown, Toluca?