Armando Ortega
View from the Top

Direct Connectivity Needed to Foster Bilateral Lines

Wed, 05/08/2019 - 13:15

Q: Much of the existing commercial relationship between Mexico and Canada happens through the US. How can both countries strengthen their direct ties?

A: Both countries are aware of the need to find direct connectivity to foster bilateral trade and investment, avoiding the US as a springboard. Recently, Canadian and Mexican airlines, including West Jet, Volaris, Interjet, and Aeroméxico, have increased the number of direct flights to and from various cities to help boost the services industry. The biggest challenge for trade in goods is maritime connection, which is where the East Coast can trigger the first results. The connection between Halifax to Altamira and Veracruz is one to watch. However, geography matters and the US will always remain the ham in the bilateral sandwich.
Q: In which areas of the Mexican economy do Canadian companies have the largest participation?

A: Canadian investments have flowed mostly to the mining sector, as measured by the number of companies devoted to this activity. Manufacturing in general, and auto parts in particular, are leaders in employment and exports. Pharmaceutical, financial services and a big rainbow of other services illustrate the vibrant bilateral trade and investment between the countries.